Verastem Financials
This page shows Verastem (VSTM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Verastem has an operating margin of -550.3%, meaning the company retains $-550 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -1149.6% the prior year.
Verastem's revenue surged 209.1% year-over-year to $30.9M, reflecting rapid business expansion. This strong growth earns a score of 100/100.
Verastem has a moderate D/E ratio of 3.31. This balance of debt and equity financing earns a leverage score of 35/100.
Verastem's current ratio of 3.09 indicates adequate short-term liquidity, earning a score of 59/100. The company can meet its near-term obligations, though with limited headroom.
Verastem generates a -366.2% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100.
Verastem passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Verastem generates $0.66 in operating cash flow (-$137.5M OCF vs -$209.5M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Verastem earns $-149.5 in operating income for every $1 of interest expense (-$170.1M vs $1.1M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Verastem generated $30.9M in revenue in fiscal year 2025. This represents an increase of 209.1% from the prior year.
Verastem's EBITDA was -$169.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 47.4% from the prior year.
Verastem reported -$209.5M in net income in fiscal year 2025. This represents a decrease of 60.3% from the prior year.
Verastem earned $-3.02 per diluted share (EPS) in fiscal year 2025. This represents an increase of 17.5% from the prior year.
Cash & Balance Sheet
Verastem held $205.0M in cash against $0 in long-term debt as of fiscal year 2025.
Verastem had 78M shares outstanding in fiscal year 2025. This represents an increase of 73.6% from the prior year.
Margins & Returns
Verastem's operating margin was -550.3% in fiscal year 2025, reflecting core business profitability. This is up 599.2 percentage points from the prior year.
Verastem's net profit margin was -677.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 628.8 percentage points from the prior year.
Verastem's ROE was -366.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.
Capital Allocation
Verastem invested $114.6M in research and development in fiscal year 2025. This represents an increase of 40.9% from the prior year.
VSTM Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | N/A | $11.2M+426.1% | $2.1M | N/A | N/A | N/A | $10.0M | N/A |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | $29.0M+17.0% | $24.8M-15.0% | $29.2M | N/A | $24.8M+37.1% | $18.1M+2.0% | $17.7M |
| SG&A Expenses | N/A | $21.0M+1.6% | $20.7M+37.6% | $15.0M | N/A | $12.3M+20.2% | $10.2M-1.3% | $10.4M |
| Operating Income | N/A | -$40.7M+7.0% | -$43.8M+0.9% | -$44.2M | N/A | -$37.0M-102.6% | -$18.3M+34.9% | -$28.1M |
| Interest Expense | N/A | $319K+50.5% | $212K+10.4% | $192K | N/A | $1.1M+0.9% | $1.1M+0.7% | $1.1M |
| Income Tax | N/A | N/A | N/A | $0 | N/A | $0 | $0 | $0 |
| Net Income | N/A | -$98.5M-279.9% | -$25.9M+50.2% | -$52.1M | N/A | -$24.0M-190.3% | -$8.3M+75.6% | -$33.9M |
| EPS (Diluted) | N/A | $-1.35-117.7% | $-0.62+35.4% | $-0.96 | N/A | $-0.60-93.5% | $-0.31+75.4% | $-1.26 |
VSTM Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $246.4M+39.3% | $176.9M-9.9% | $196.3M+49.0% | $131.7M+29.7% | $101.5M-19.7% | $126.4M+19.5% | $105.7M-14.4% | $123.5M |
| Current Assets | $223.4M+45.0% | $154.1M-11.6% | $174.3M+39.8% | $124.7M+31.3% | $95.0M-21.3% | $120.7M+21.1% | $99.6M-15.3% | $117.7M |
| Cash & Equivalents | $205.0M+48.9% | $137.7M-16.2% | $164.3M+39.8% | $117.6M+32.4% | $88.8M-21.5% | $113.2M+35.7% | $83.4M+2.5% | $81.3M |
| Inventory | $1.8M+2.2% | $1.8M+53.6% | $1.2M | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $8.8M+31.2% | $6.7M+223.5% | $2.1M | N/A | N/A | N/A | $10.0M | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $189.2M-1.6% | $192.4M+20.1% | $160.2M-2.4% | $164.1M+25.8% | $130.4M+38.5% | $94.2M+8.4% | $86.9M+12.4% | $77.3M |
| Current Liabilities | $72.3M+21.0% | $59.7M+18.6% | $50.4M+41.4% | $35.6M+15.0% | $31.0M-17.1% | $37.4M+23.2% | $30.3M+13.6% | $26.7M |
| Long-Term Debt | N/A | N/A | N/A | N/A | $40.7M+0.5% | $40.5M+0.5% | $40.3M+0.5% | $40.1M |
| Total Equity | $57.2M+468.4% | -$15.5M-143.1% | $36.1M+211.2% | -$32.4M-12.3% | -$28.9M-361.2% | $11.1M-41.3% | $18.9M-24.8% | $25.1M |
| Retained Earnings | -$1.2B-2.9% | -$1.1B-9.5% | -$1.0B-2.6% | -$1.0B-5.5% | -$955.5M-7.2% | -$891.0M-2.8% | -$867.0M-1.0% | -$858.8M |
VSTM Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$30.0M+17.3% | -$36.2M-10.9% | -$32.7M+15.5% | -$38.7M-54.1% | -$25.1M-5.5% | -$23.8M+13.7% | -$27.6M+2.6% | -$28.3M |
| Capital Expenditures | N/A | N/A | N/A | N/A | $0 | $0-100.0% | $7K-66.7% | $21K |
| Free Cash Flow | N/A | N/A | N/A | N/A | -$25.1M-5.5% | -$23.8M+13.7% | -$27.6M+2.7% | -$28.3M |
| Investing Cash Flow | -$1.3M | N/A | N/A | N/A | $0 | $0-100.0% | $29.0M-6.4% | $31.0M |
| Financing Cash Flow | $98.6M+451.4% | $17.9M-77.5% | $79.4M+17.8% | $67.4M+8987.2% | $742K-98.6% | $53.6M+13334.3% | -$405K-147.9% | $846K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
VSTM Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | -362.2%+1685.7pp | -2047.9% | N/A | N/A | N/A | -182.8% | N/A |
| Net Margin | N/A | -876.3%+337.2pp | -1213.6% | N/A | N/A | N/A | -82.6% | N/A |
| Return on Equity | N/A | N/A | -71.9% | N/A | N/A | -216.7%-172.9pp | -43.8%+91.3pp | -135.1% |
| Return on Assets | N/A | -55.7%-42.5pp | -13.2%+26.4pp | -39.6% | N/A | -19.0%-11.1pp | -7.8%+19.6pp | -27.4% |
| Current Ratio | 3.09+0.5 | 2.58-0.9 | 3.46-0.0 | 3.50+0.4 | 3.07-0.2 | 3.23-0.1 | 3.28-1.1 | 4.40 |
| Debt-to-Equity | 3.31+15.7 | -12.39-16.8 | 4.44+9.5 | -5.06-3.7 | -1.41-5.1 | 3.66+1.5 | 2.14+0.5 | 1.60 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | -275.8% | N/A |
Similar Companies
Frequently Asked Questions
What is Verastem's annual revenue?
Verastem (VSTM) reported $30.9M in total revenue for fiscal year 2025. This represents a 209.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Verastem's revenue growing?
Verastem (VSTM) revenue grew by 209.1% year-over-year, from $10.0M to $30.9M in fiscal year 2025.
Is Verastem profitable?
No, Verastem (VSTM) reported a net income of -$209.5M in fiscal year 2025, with a net profit margin of -677.6%.
What is Verastem's EBITDA?
Verastem (VSTM) had EBITDA of -$169.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Verastem's operating margin?
Verastem (VSTM) had an operating margin of -550.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Verastem's net profit margin?
Verastem (VSTM) had a net profit margin of -677.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Verastem's return on equity (ROE)?
Verastem (VSTM) has a return on equity of -366.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Verastem's operating cash flow?
Verastem (VSTM) generated -$137.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Verastem's total assets?
Verastem (VSTM) had $246.4M in total assets as of fiscal year 2025, including both current and long-term assets.
How much does Verastem spend on research and development?
Verastem (VSTM) invested $114.6M in research and development during fiscal year 2025.
What is Verastem's current ratio?
Verastem (VSTM) had a current ratio of 3.09 as of fiscal year 2025, which is generally considered healthy.
What is Verastem's debt-to-equity ratio?
Verastem (VSTM) had a debt-to-equity ratio of 3.31 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Verastem's return on assets (ROA)?
Verastem (VSTM) had a return on assets of -85.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Verastem's cash runway?
Based on fiscal year 2025 data, Verastem (VSTM) had $205.0M in cash against an annual operating cash burn of $137.5M. This gives an estimated cash runway of approximately 18 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Verastem's Piotroski F-Score?
Verastem (VSTM) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Verastem's earnings high quality?
Verastem (VSTM) has an earnings quality ratio of 0.66x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Verastem cover its interest payments?
Verastem (VSTM) has an interest coverage ratio of -149.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Verastem?
Verastem (VSTM) scores 39 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.