Verastem Financials
Financial Health Signals
Verastem passes 1 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution).
For every $1 of reported earnings, Verastem generates $0.80 in operating cash flow (-$104.8M OCF vs -$130.6M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Verastem earns $-25.2 in operating income for every $1 of interest expense (-$115.0M vs $4.6M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Verastem (VSTM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 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).
Key Financial Metrics
Verastem generated $10.0M in revenue in fiscal year 2024.
Verastem's EBITDA was -$114.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 24.9% from the prior year.
Verastem generated -$104.8M in free cash flow in fiscal year 2024, representing cash available after capex.
Verastem reported -$130.6M in net income in fiscal year 2024. This represents a decrease of 49.5% from the prior year.
Verastem earned $-3.66 per diluted share (EPS) in fiscal year 2024. This represents an increase of 7.6% from the prior year.
Verastem held $88.8M in cash against $40.7M in long-term debt as of fiscal year 2024.
Verastem had 45M shares outstanding in fiscal year 2024. This represents an increase of 77.1% from the prior year.
Verastem's operating margin was -1149.6% in fiscal year 2024, reflecting core business profitability.
Verastem's net profit margin was -1306.4% in fiscal year 2024, showing the share of revenue converted to profit.
Verastem invested $81.3M in research and development in fiscal year 2024. This represents an increase of 32.6% from the prior year.
Verastem invested $28K in capex in fiscal year 2024, funding long-term assets and infrastructure.
VSTM Income Statement
| Metric | Q3'25 | Q2'25 | Q3'24 | Q2'24 | Q4'23 | Q3'23 | Q4'22 | Q3'22 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $11.2M+426.1% | $2.1M | N/A | $10.0M | N/A | N/A | N/A | 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 | $29.0M+17.0% | $24.8M+0.1% | $24.8M+37.1% | $18.1M | N/A | $13.9M | N/A | $11.3M |
| SG&A Expenses | $21.0M+1.6% | $20.7M+68.4% | $12.3M+20.2% | $10.2M | N/A | $7.4M | N/A | $6.4M |
| Operating Income | -$40.7M+7.0% | -$43.8M-18.2% | -$37.0M-102.6% | -$18.3M | N/A | -$21.3M | N/A | -$17.7M |
| Interest Expense | $319K+50.5% | $212K-81.5% | $1.1M+0.9% | $1.1M | N/A | $1.1M | N/A | $717K |
| Income Tax | $0 | N/A | $0 | $0 | N/A | $0 | N/A | $0 |
| Net Income | -$98.5M-279.9% | -$25.9M-8.2% | -$24.0M-190.3% | -$8.3M | N/A | -$20.0M | N/A | -$18.1M |
| EPS (Diluted) | $-1.35-117.7% | $-0.62-3.3% | $-0.60-93.5% | $-0.31 | N/A | $-0.75 | N/A | $-0.09 |
VSTM Balance Sheet
| Metric | Q3'25 | Q2'25 | Q3'24 | Q2'24 | Q4'23 | Q3'23 | Q4'22 | Q3'22 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $176.9M-9.9% | $196.3M+93.3% | $101.5M-4.0% | $105.7M-29.4% | $149.7M-15.0% | $176.2M+85.3% | $95.0M-14.4% | $111.1M |
| Current Assets | $154.1M-11.6% | $174.3M+83.5% | $95.0M-4.7% | $99.6M-30.6% | $143.7M-17.7% | $174.5M+87.9% | $92.9M-14.6% | $108.8M |
| Cash & Equivalents | $137.7M-16.2% | $164.3M+85.0% | $88.8M+6.5% | $83.4M+7.0% | $77.9M-18.0% | $95.0M+26.8% | $74.9M-4.1% | $78.2M |
| Inventory | $1.8M+53.6% | $1.2M | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $6.7M+223.5% | $2.1M | N/A | $10.0M | N/A | $2K-93.5% | $31K-58.1% | $74K |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $192.4M+20.1% | $160.2M+22.8% | $130.4M+50.1% | $86.9M+22.1% | $71.2M-0.9% | $71.8M+50.7% | $47.7M-1.2% | $48.2M |
| Current Liabilities | $59.7M+18.6% | $50.4M+62.6% | $31.0M+2.1% | $30.3M+15.0% | $26.4M+10.8% | $23.8M+9.9% | $21.7M-1.0% | $21.9M |
| Long-Term Debt | N/A | N/A | $40.7M+1.0% | $40.3M+0.6% | $40.1M+0.4% | $39.9M+62.7% | $24.5M+0.5% | $24.4M |
| Total Equity | -$15.5M-143.1% | $36.1M+224.8% | -$28.9M-253.3% | $18.9M-67.1% | $57.4M-31.0% | $83.2M+75.5% | $47.4M-24.6% | $62.9M |
| Retained Earnings | -$1.1B-9.5% | -$1.0B-8.2% | -$955.5M-10.2% | -$867.0M-5.1% | -$824.9M-3.4% | -$797.5M-8.1% | -$737.5M-2.3% | -$720.7M |
VSTM Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q3'24 | Q2'24 | Q4'23 | Q3'23 | Q4'22 | Q3'22 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$36.2M-10.9% | -$32.7M-30.1% | -$25.1M+9.0% | -$27.6M+7.1% | -$29.7M-78.9% | -$16.6M+0.2% | -$16.6M-10.2% | -$15.1M |
| Capital Expenditures | N/A | N/A | $0-100.0% | $7K | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | -$25.1M+9.0% | -$27.6M | N/A | N/A | N/A | N/A |
| Investing Cash Flow | N/A | N/A | $0-100.0% | $29.0M+133.1% | $12.4M+117.7% | -$70.1M-638.0% | $13.0M+180.3% | $4.6M |
| Financing Cash Flow | $17.9M-77.5% | $79.4M+10603.0% | $742K+283.2% | -$405K+9.2% | -$446K+49.9% | -$891K | $0-100.0% | $25.6M |
| 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 | Q3'25 | Q2'25 | Q3'24 | Q2'24 | Q4'23 | Q3'23 | Q4'22 | Q3'22 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | -362.2%+1685.7pp | -2047.9% | N/A | -182.8% | N/A | N/A | N/A | N/A |
| Net Margin | -876.3%+337.2pp | -1213.6% | N/A | -82.6% | N/A | N/A | N/A | N/A |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | -55.7%-42.5pp | -13.2%+5.8pp | -19.0%-11.1pp | -7.8% | N/A | -11.4% | N/A | -16.3% |
| Current Ratio | 2.58-0.9 | 3.46+0.4 | 3.07-0.2 | 3.28-2.2 | 5.45-1.9 | 7.33+3.0 | 4.29-0.7 | 4.97 |
| Debt-to-Equity | -12.39-16.8 | 4.44+5.9 | -1.41-3.5 | 2.14+1.4 | 0.70+0.2 | 0.48-0.0 | 0.52+0.1 | 0.39 |
| FCF Margin | N/A | N/A | N/A | -275.8% | N/A | N/A | N/A | N/A |
Note: Shareholder equity is negative (-$28.9M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
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Frequently Asked Questions
What is Verastem's annual revenue?
Verastem (VSTM) reported $10.0M in total revenue for fiscal year 2024. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
Is Verastem profitable?
No, Verastem (VSTM) reported a net income of -$130.6M in fiscal year 2024, with a net profit margin of -1306.4%.
What is Verastem's earnings per share (EPS)?
Verastem (VSTM) reported diluted earnings per share of $-3.66 for fiscal year 2024. This represents a 7.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Verastem's EBITDA?
Verastem (VSTM) had EBITDA of -$114.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Verastem have?
As of fiscal year 2024, Verastem (VSTM) had $88.8M in cash and equivalents against $40.7M in long-term debt.
What is Verastem's operating margin?
Verastem (VSTM) had an operating margin of -1149.6% in fiscal year 2024, 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 -1306.4% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Verastem's free cash flow?
Verastem (VSTM) generated -$104.8M in free cash flow during fiscal year 2024. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Verastem's operating cash flow?
Verastem (VSTM) generated -$104.8M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Verastem's total assets?
Verastem (VSTM) had $101.5M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Verastem's capital expenditures?
Verastem (VSTM) invested $28K in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Verastem spend on research and development?
Verastem (VSTM) invested $81.3M in research and development during fiscal year 2024.
How many shares does Verastem have outstanding?
Verastem (VSTM) had 45M shares outstanding as of fiscal year 2024.
What is Verastem's current ratio?
Verastem (VSTM) had a current ratio of 3.07 as of fiscal year 2024, which is generally considered healthy.
What is Verastem's debt-to-equity ratio?
Verastem (VSTM) had a debt-to-equity ratio of -1.41 as of fiscal year 2024, 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 -128.7% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Verastem's cash runway?
Based on fiscal year 2024 data, Verastem (VSTM) had $88.8M in cash against an annual operating cash burn of $104.8M. This gives an estimated cash runway of approximately 10 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.
Why is Verastem's debt-to-equity ratio negative or unusual?
Verastem (VSTM) has negative shareholder equity of -$28.9M as of fiscal year 2024, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Verastem's Piotroski F-Score?
Verastem (VSTM) has a Piotroski F-Score of 1 out of 9, indicating weak 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 0.80x, 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 -25.2x, 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.