Quick Verdict
Verastem Oncology Q2 2026 Earnings were announced with GAAP EPS of -$0.35 and non-GAAP EPS of -$0.31, while revenue reached $40.1 million, driven by AVMAPKI FAKZYNJA CO-PACK sales and a COPIKTRA milestone. VSTM shares rose in after-hours trading, reflecting a substantial revenue and adjusted-loss beat.
About Verastem Oncology
Verastem Oncology (Nasdaq: VSTM) is a Needham, Massachusetts-headquartered oncology biopharmaceutical company founded in 2010. It develops and commercializes treatments for cancers driven by the RAS/MAPK signaling pathway, spanning its marketed AVMAPKI FAKZYNJA CO-PACK therapy and clinical-stage KRAS G12D inhibitor VS-7375. The company had approximately 102 employees and a current market capitalization of approximately $519 million as of August 6, 2026.investing+1
The company’s lead commercial asset, AVMAPKI FAKZYNJA CO-PACK—avutometinib plus defactinib—is FDA-approved under accelerated approval for previously treated, KRAS-mutated recurrent low-grade serous ovarian cancer (LGSOC). Verastem is also advancing VS-7375 in pancreatic, lung, and colorectal cancer trials. VSTM had a negative trailing P/E of -2.40 and no dividend yield, consistent with its clinical-development-stage and loss-making profile.
Top Financial Highlights
- Total revenue rose to $40.1 million, from $2.1 million in Q2 2025, a year-over-year increase of about 1,776%.
- AVMAPKI FAKZYNJA CO-PACK net product revenue was $25.1 million, compared with $2.1 million a year earlier.
- COPIKTRA license and related-asset revenue contributed $15.0 million, following Secura Bio reaching $200 million in cumulative worldwide COPIKTRA sales.
- GAAP net loss was $34.7 million, versus a $25.9 million loss in Q2 2025.
- GAAP loss per share improved to -$0.35, compared with -$0.39 in the prior-year quarter.
- Non-GAAP adjusted net loss improved to $30.6 million, or -$0.31 per share, from $41.3 million, or -$0.62 per share.
- Product gross margin was approximately 83.9%, calculated from $25.1 million in product revenue and $4.0 million in product-related cost of sales, including intangible amortization.
- R&D expense rose 67% year over year to $41.3 million, primarily reflecting TARGET-D clinical trials, manufacturing, investigator fees, and CRO costs.
- SG&A expense increased 32% to $27.4 million; management expects quarterly SG&A to remain roughly stable through 2026.
- Total operating expenses were $72.8 million, compared with $45.9 million in Q2 2025.
- Cash, cash equivalents, and investments totaled $136.4 million at June 30, 2026; pro forma liquidity was $201.4 million, including expected Oberland closing proceeds and the COPIKTRA milestone.
- Net cash used in operating activities was $96.0 million for the first six months of 2026; the company did not separately report standalone Q2 operating cash flow in its quarterly cash-flow statement.
- Oberland Capital agreed to provide up to $75.0 million in non-dilutive royalty financing, including $50.0 million expected at closing and a potential $25.0 million additional tranche tied to sales conditions
- Verastem expects its capital resources, anticipated product revenue, and future Oberland facility access to fund operations into the second half of 2027.
- Operational guidance centers on updated VS-7375 data in October 2026, completion of enrollment in all three Phase 2 TARGET-D trials by year-end, and first patients in Phase 3 trials during the first half of 2027. No numerical revenue or EPS guidance was issued.
Verastem Oncology Reconciliation of GAAP to Non-GAAP Financial Information
(Source: businesswire.com)
Beat or Miss?
| Metric | Reported | Difference/Analysis |
| Total revenue | $40.08 million | Consensus was $22.88 million; revenue exceeded expectations by $17.20 million, or approximately 75%. |
| Non-GAAP EPS | ($0.31) | Consensus loss was -$0.46; Verastem beat by $0.15 per share. |
| GAAP EPS | ($0.35) | Analyst comparison was not provided for GAAP EPS; the reported loss improved from -$0.39 in Q2 2025. |
| AVMAPKI FAKZYNJA CO-PACK revenue | $25.1 million | Product revenue increased from $18.7 million in Q1 2026 and from $2.1 million in Q2 2025. |
| Revenue outlook | No numerical guidance | Management reiterated cash runway into H2 2027 and an expected self-sustaining LGSOC franchise by year-end 2026. |
What Leadership Is Saying
“The second quarter marked meaningful progress across our commercial business and pipeline programs, with strong quarter-over-quarter growth for AVMAPKI FAKZYNJA CO-PACK driven by new patient starts and increased refills.”
— Dan Paterson, President and Chief Executive Officer
“We believe we have sufficient capital to fund operations into the second half of 2027 and reach meaningful value creating inflection points before needing to access additional capital.”
— Dan Calkins, Chief Financial Officer
Historical Performance
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Total revenue | $40.1 million | $2.1 million | 1776% |
| Net product revenue | $25.1 million | $2.1 million | 1073% |
| GAAP net loss | -$34.7 million | -$25.9 million | +33.7% loss widened |
| Total operating expenses | $72.8 million | $45.9 million | 58.60% |
| R&D expense | $41.3 million | $24.8 million | 66.80% |
| SG&A expense | $27.4 million | $20.7 million | 32.60% |
| Non-GAAP adjusted net loss | -$30.6 million | -$41.3 million | 25.7% improvement |
The revenue increase was materially aided by the non-recurring $15 million COPIKTRA sales milestone, while product revenue accounted for the remaining commercial growth. Expenses rose as Verastem expanded VS-7375 trials and supported the CO-PACK launch.
How the Market Reacted?
VSTM closed the regular session on August 6 at $5.91, up 0.68%, before rising to $6.44 in after-hours trading, an 8.97% gain at the latest available quote. Other contemporaneous coverage reported an initial after-hours rise of as much as 11.68%, as investors reacted to the revenue beat, narrower-than-expected adjusted loss, commercial sales rebound, and strengthened pro forma liquidity
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