What are the investment strengths of Verastem Inc (VSTM)?

83% gross margin (TTM) shows product economics work if pipeline succeeds. Revenue grew 62% 3Y CAGR from low base - commercial traction emerging. Working capital of 94M and current ratio of 2.6x (154M/60M) provides near-term operational flexibility for clinical execution.

What are the investment risks for Verastem Inc (VSTM)?

Negative equity (-15.5M) and 89.5M debt create existential dilution risk. Any capital raise at 552M market cap severely dilutes shareholders. FCF of -141M TTM exceeds cash of 138M. Without financing, operations cease within 12 months. 5Y revenue CAGR of -32% shows prior struggles.

Verastem Inc

VSTM

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Verastem Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-30

Snapshot

Negative equity (-15.5M) with 89.5M debt - balance sheet impaired. Cash of 137.7M covers ~1 year at current -133M TTM burn rate.[Common Stockholders Equity]
Revenue 62% 3Y CAGR (TTM 13.4M) but operating loss of -160M dwarfs sales. R&D spend of 104M is 7.8x revenue.[Total Revenue 3Y Growth TTM]
P/S of 41x vs industry median 4.1x - trading at 10x premium despite negative margins and equity.[P/S Ratio]

Watch Triggers

Cash and Equivalents: Falls below 75M or burn rate accelerates beyond -150M annually — Triggers forced dilutive financing at distressed terms
Total Revenue TTM: Quarterly revenue exceeds 5M (20M annualized run rate) — Would signal commercial inflection reducing financing pressure
Issuance of Capital Stock: Any equity raise announcement — Dilution magnitude determines equity value preservation

Bull Case

83% gross margin (TTM) shows product economics work if pipeline succeeds. Revenue grew 62% 3Y CAGR from low base - commercial traction emerging.

Gross MarginTotal Revenue 3Y Growth TTM

Working capital of 94M and current ratio of 2.6x (154M/60M) provides near-term operational flexibility for clinical execution.

Working CapitalCurrent Assets

Bear Case

Negative equity (-15.5M) and 89.5M debt create existential dilution risk. Any capital raise at 552M market cap severely dilutes shareholders.

Total EquityTotal DebtMarket Cap TTM

FCF of -141M TTM exceeds cash of 138M. Without financing, operations cease within 12 months. 5Y revenue CAGR of -32% shows prior struggles.

Free Cash Flow TTMCash and EquivalentsTotal Revenue 5Y Growth

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

25%

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Forward Thesis

Binary catalyst: regulatory/clinical outcomes will determine survival within 12 months

3-12mlow

Cash runway of ~12 months at -133M annual burn
R&D of 104M TTM signals late-stage pipeline investment
Negative equity requires capital raise or partnership

Cash 137.7M vs FCF -140.9M TTMOperating loss -160M on 13.4M revenueTotal equity -15.5M, debt 89.5M

Valuation Context

Caveats

Public Strategies Rankings

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VSTM Fundamentals

Manufacturing → Chemical Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$497.98M		—
Enterprise Value	$380.15M		—
P/E Ratio	0.00		—
Total Revenue - TTM	$30.91M	+209.1%	—
Earnings Per Share (diluted) - TTM	$-3.02		—
Operating Margin - TTM	-550%	+599.2%	—
Net Margin - TTM	-678%	+628.8%	—
Free Cash Flow - TTM	$-147.13M		—
Return on Common Equity - TTM	-1,480%		—
Beta 5Y (Monthly)	unknown		—

VSTM Dividend History

No dividends

VSTM Stock Splits

1 stock split

06/01/2312:1 split

VSTM SEC Filings

Filing Date	Report Date	Report Type	Filing Link
03/04/26	12/31/25	Unknown	0001104659-26-023444
11/04/25	09/30/25	10-Q	0001104659-25-106279
08/07/25	06/30/25	10-Q	0001558370-25-010757
05/13/25	03/31/25	10-Q	0001558370-25-007570
03/20/25	12/31/24	10-K	0001558370-25-003372
11/06/24	09/30/24	10-Q	0001558370-24-014640
08/08/24	06/30/24	10-Q	0001558370-24-011599
05/09/24	03/31/24	10-Q	0001558370-24-007607
03/14/24	12/31/23	10-K	0001558370-24-003250
11/08/23	09/30/23	10-Q	0001558370-23-018281
08/08/23	06/30/23	10-Q	0001558370-23-013946
05/09/23	03/31/23	10-Q	0001558370-23-008839
03/14/23	12/31/22	10-K	0001558370-23-003738
11/03/22	09/30/22	10-Q	0001558370-22-016278
08/08/22	06/30/22	10-Q	0001558370-22-012638
05/09/22	03/31/22	10-Q	0001558370-22-007848
03/28/22	12/31/21	10-K	0001558370-22-004498
11/04/21	09/30/21	10-Q	0001558370-21-014621
08/02/21	06/30/21	10-Q	0001558370-21-009812
05/11/21	03/31/21	10-Q	0001558370-21-006825
03/18/21	12/31/20	10-K	0001558370-21-003211
11/09/20	09/30/20	10-Q	0001558370-20-013373
08/10/20	06/30/20	10-Q	0001558370-20-010090
05/07/20	03/31/20	10-Q	0001558370-20-005727
03/11/20	12/31/19	10-K	0001558370-20-002421
10/30/19	09/30/19	10-Q	0001558370-19-009444
08/01/19	06/30/19	10-Q	0001558370-19-006845
05/09/19	03/31/19	10-Q	0001558370-19-004696
03/12/19	12/31/18	10-K	0001558370-19-001852
11/07/18	09/30/18	10-Q	0001558370-18-008809
08/08/18	06/30/18	10-Q	0001558370-18-006754
05/03/18	03/31/18	10-Q	0001558370-18-003896
03/13/18	12/31/17	10-K	0001558370-18-001953
11/07/17	09/30/17	10-Q	0001558370-17-008319
08/08/17	06/30/17	10-Q	0001558370-17-006281
05/10/17	03/31/17	10-Q	0001558370-17-004128
03/23/17	12/31/16	10-K	0001558370-17-002065
11/07/16	09/30/16	10-Q	0001558370-16-009523
08/08/16	06/30/16	10-Q	0001558370-16-007604
05/09/16	03/31/16	10-Q	0001558370-16-005687
03/03/16	12/31/15	10-K	0001558370-16-003821
11/09/15	09/30/15	10-Q	0001104659-15-076901
08/10/15	06/30/15	10-Q	0001104659-15-057907
05/11/15	03/31/15	10-Q	0001104659-15-036823
03/10/15	12/31/14	10-K	0001047469-15-001877
10/30/14	09/30/14	10-Q	0001047469-14-008677
08/07/14	06/30/14	10-Q	0001047469-14-006748
05/08/14	03/31/14	10-Q	0001047469-14-004744
03/06/14	12/31/13	10-K	0001047469-14-001894
11/12/13	09/30/13	10-Q	0001047469-13-010434
08/13/13	06/30/13	10-Q	0001047469-13-008394
05/09/13	03/31/13	10-Q	0001047469-13-005779
03/26/13	12/31/12	10-K	0001047469-13-003414
11/13/12	09/30/12	10-Q	0001047469-12-010412
08/13/12	06/30/12	10-Q	0001047469-12-008189
05/14/12	03/31/12	10-Q	0001047469-12-005921
03/30/12	12/31/11	10-K	0001104659-12-022698
01/27/12	09/30/11	424B4	0001047469-12-000412
08/13/12	06/30/11	10-Q	0001047469-12-008189
05/14/12	03/31/11	10-Q	0001047469-12-005921