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Verastem

VSTM on Nasdaq. Verastem sells an ovarian cancer drug to adults whose cancer returned after treatment. Market value $725m.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to December 2025.

We can't read total debt from the filing, so debt is left out.

Cash flow or capital spending isn't reported, so free cash flow is unknown.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

Nothing stands out yet.

What to watch out for

See Health care stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
annual report to December 2025
n/a

We could not compute this from the filings.

Price to profit
past 12 months to June 2026
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: not known. Price score: 16 of 100. Our list needs 70 on quality and 60 on price.

$7.75 a share, 126% above its 1-year low

Over the past year the price has ranged from $3.43 to $10.82.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

-0.1
n/a
n/a
-0.1
n/a
20212022202320242025
Revenue
$2m$3mn/a$10m$31m
Operating margin
-2991.2%-2809.6%n/a-1149.6%-550.3%
Debt to equity
n/a0.520.70n/an/a
Shares outstanding
0.21bn0.03bn0.04bn0.07bn0.09bn

Health checks

  • Free cash flow positive0 of 2 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)3 of 7 checks we could run
  • Profit backed by cash (accruals)No
  • DebtUnknown
  • Revenue growth, five yearsShrinking, 19.0% a year
  • Buying back its own sharesYes, 57% fewer since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $40 million last quarter, up 1775% on a year ago.
  • A loss of $35 million, compared with a loss of $26 million a year ago.
  • It loses 183 cents on each $1 of sales, compared with 7326 cents a year earlier.
  • 35% more shares than a year ago. Each share owns a bit less of the company.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$0
December 2024$0
March 2025Not reported
June 2025$2m
September 2025$11m
December 2025$18m
March 2026$19m
June 2026$40m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024-$24m
December 2024-$65m
March 2025-$52m
June 2025-$26m
September 2025-$99m
December 2025-$33m
March 2026-$37m
June 2026-$35m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
4 March 2026
Next quarterly (estimated, 10-Q)
5 November 2026

Who owns it

1 long-term investor we follow owns it, unchanged from 1 last quarter. 158 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

19 investors own more than 5%.

  • Deep Track Capital, LP
    Passive investor
    at least 10.0%
    (filed with 2 related holders)
    Since 14 November 2025
  • RTW Investments, LP
    Passive investor
    at least 9.9%0.0 pts
    (filed with 1 related holder)
    Since 31 March 2026
  • Roderick Wong, M.D.
    Passive investor
    8.3%
    Since 31 March 2025
  • Armistice Capital, LLC
    Passive investor
    at least 7.8%+2.5 pts
    (filed with 1 related holder)
    Since 30 June 2026
  • BlackRock, Inc.
    Passive investor
    7.0%+1.0 pts
    Since 30 June 2026
  • STATE STREET CORPORATION
    Passive investor
    5.8%
    Since 30 June 2026
  • 5.0%
    Since 30 June 2026
  • at least 4.8%−0.3 pts
    (filed with 2 related holders)
    Since 31 March 2026
  • at least 4.8%−1.4 pts
    (filed with 4 related holders)
    Since 30 September 2025
  • at least 4.7%−2.4 pts
    (filed with 2 related holders)
    Since 31 December 2025
  • at least 4.3%−0.7 pts
    (filed with 3 related holders)
    Since 30 September 2025
  • BVF PARTNERS L P/IL
    Passive investor
    at least 3.9%−6.1 pts
    (filed with 9 related holders)
    Since 11 August 2025
  • Soleus Private Equity Fund III, L.P.
    Passive investor
    at least 3.9%
    (filed with 1 related holder)
    Since 31 December 2024
  • Foresite Capital Fund VI LP
    Passive investor
    at least 3.6%−1.5 pts
    (filed with 2 related holders)
    Since 31 March 2026
  • Orin Hirschman
    Passive investor
    at least 3.6%−2.5 pts
    (filed with 1 related holder)
    Since 30 June 2025
  • at least 2.1%
    (filed with 2 related holders)
    Since 31 December 2024
  • Soleus Capital Management, L.P.
    Passive investor
    at least 1.8%−5.5 pts
    (filed with 8 related holders)
    Since 31 March 2025
  • at least 1.6%−4.6 pts
    (filed with 4 related holders)
    Since 31 March 2026
  • Barclays PLC
    Passive investor
    n/a
    Since 30 June 2025
  • ORBIMED ADVISORS LLC
    Passive investor
    Sold down below 5%
    Since 30 June 2025
  • Sold down below 5%
    Since 31 December 2025
  • The Vanguard Group
    Passive investor
    Sold down below 5%
    Since 13 March 2026

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 6 sold $1m, $1m of it under preset trading plans.

  • Paterson Dan
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    1 October 2026
    Shares
    44,121
    Price
    $8.00
    Value
    $352,968
  • Calkins Daniel
    Chief Financial Officer
    Sold
    under a preset trading plan
    Date
    1 October 2026
    Shares
    2,566
    Price
    $8.00
    Value
    $20,528
  • Calkins Daniel
    Chief Financial Officer
    Sold
    under a preset trading plan
    Date
    21 September 2026
    Shares
    55
    Price
    $7.70
    Value
    $424
  • Paterson Dan
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    3 August 2026
    Shares
    1,302
    Price
    $5.81
    Value
    $7,565
  • Paterson Dan
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    22 June 2026
    Shares
    20,871
    Price
    $4.18
    Value
    $87,241
  • Calkins Daniel
    Chief Financial Officer
    Sold
    under a preset trading plan
    Date
    22 June 2026
    Shares
    4,089
    Price
    $4.18
    Value
    $17,089
  • Paterson Dan
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    4 May 2026
    Shares
    806
    Price
    $5.82
    Value
    $4,691
  • Paterson Dan
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    4 February 2026
    Shares
    970
    Price
    $6.69
    Value
    $6,489
  • Paterson Dan
    President and CEO, Director
    Sold
    under a preset trading plan
    Date
    12 January 2026
    Shares
    10,321
    Price
    $7.16
    Value
    $73,898
  • Calkins Daniel
    Chief Financial Officer
    Sold
    under a preset trading plan
    Date
    12 January 2026
    Shares
    5,039
    Price
    $7.16
    Value
    $36,079

From Form 4 filings: insiders must report trades in their own company's shares within two days.

What could go wrong

  • Sales have shrunk: 19.0% a year.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.