Free cash flow remains deeply negative, with quarterly outflows reaching $52.1 million in 2026Q1, underscoring a persistent reliance on external financing to sustain operations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | -150.95M | -137.51M | -104.77M | -86.46M | -63.67M | -53.5M | -33.51M | -138.52M | -74.52M | -57.31M | -29.48M | -45.56M | -36.9M | -26.3M | -22.6M | -10.13M |
| Operating CF Margin % | - | -444.81% | -1047.71% | - | -2452.73% | -2606.04% | -37.85% | -793.53% | -278.89% | - | - | - | - | - | - | - |
| Operating CF Growth % | -124.77% | -31.25% | -21.18% | -35.79% | -19.01% | -59.68% | 75.81% | -85.89% | -30.02% | -94.38% | 35.28% | -23.46% | -40.29% | -16.39% | -123.07% | - |
| Net Income | -193.96M | -209.47M | -130.64M | -87.37M | -73.81M | -71.2M | -67.73M | -149.21M | -72.43M | -67.8M | -36.44M | -57.87M | -53.37M | -41.2M | -31.98M | -13.68M |
| Depreciation & Amortization | 997K | 728K | 26K | 62K | -36K | 72K | 1.25M | 2.18M | 1.42M | 556K | 670K | 754K | 427K | 236K | 207K | 83K |
| Stock-Based Compensation | 9.66M | 9.4M | 7.34M | 5.86M | 6.05M | 7.71M | 8.12M | 8.54M | 6.67M | 5.03M | 6.29M | 10.09M | 12.36M | 9.68M | 7.4M | 1.64M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 2.89M | 641K | -25.64M | 0 | 0 | 0 | 294K | 0 | 0 | 13.68M |
| Other Non-Cash Items | 19.18M | 35.83M | 14.78M | -4.06M | 228K | 9.33M | 10.32M | 7.13M | 1.81M | 223K | -140K | 310K | 1.2M | 0 | 2.39M | -13.28M |
| Working Capital Changes | 13.17M | 26M | 3.72M | -957K | 3.9M | 584K | 11.63M | -7.8M | 13.65M | 4.68M | 139K | 1.16M | 2.19M | 4.99M | -612K | 1.43M |
| Change in Receivables | -10.16M | -8.81M | -200K | 31K | 485K | -277K | 2.29M | -2.22M | -306K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -1.12M | -1.83M | 0 | 0 | 0 | 0 | 3.1M | -2.77M | -327K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.4M | 8.42M | -3.16M | 2.28M | 2.6M | 623K | -7.98M | -598K | 1.05M | 5.05M | 153K | 863K | 287K | 912K | -425K | 1.99M |
| Cash from Investing | -25.64M | -9.62M | 59.97M | -44.45M | 66.19M | 87K | -47.36M | 89.61M | -138.38M | 43.95M | 36.97M | -27.06M | 43.14M | -23.39M | -45.86M | -36.72M |
| Capital Expenditures | -9.62M | -9.62M | -28K | 0 | 0 | -196K | -33K | -7K | -23.51M | 0 | -39K | -211K | -2.43M | -56K | -310K | -785K |
| CapEx % of Revenue | 19.41% | 31.13% | 0.28% | - | - | 9.55% | 0.04% | 0.04% | 87.98% | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 9.33M | 10.32M | 7.13M | 22M | 0 | 0 | 264K | 0 | 0 | 86K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 119K | -29K | 5K | 0 | 0 | -9.33M | -10.32M | -7.13M | -21.92M | 0 | 41K | -264K | -117K | 0 | -86K | -86K |
| Cash from Financing | 224.57M | 263.31M | 54.78M | 134.19M | 51.78M | 6.88M | 69.63M | -2.44M | 261.16M | 63.18M | -5K | 63.59M | 8.77M | 58.49M | 57.6M | 64.22M |
| Debt Issued (Net) | -1.19M | 32.42M | -150K | 14.62M | 24.15M | 0 | -37.37M | -2.5M | 155.2M | 14.81M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 216.27M | 230.88M | 14.22M | 119.52M | 27.35M | 6.72M | 106.06M | 0 | 105.16M | 48.07M | 0 | 63.99M | 9.53M | 59.76M | 57.6M | 63.46M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -722K |
| Other Financing | 9.48M | 0 | 40.71M | 57K | 282K | 162K | 937K | 63K | 809K | 304K | -5K | -404K | -760K | -1.27M | 3K | 760K |
| Net Change in Cash | 47.98M | 116.17M | 9.98M | 3.29M | 54.3M | -46.53M | -11.24M | -51.35M | 48.27M | 49.83M | 7.48M | -9.03M | 15.01M | 8.79M | -10.86M | 17.37M |
| Free Cash Flow | -150.95M | -137.51M | -104.8M | -86.46M | -63.67M | -53.7M | -33.54M | -138.53M | -98.02M | -57.31M | -29.52M | -45.77M | -39.33M | -26.36M | -22.91M | -10.92M |
| FCF Margin % | -304.42% | -444.81% | -1047.99% | - | -2452.73% | -2615.59% | -37.89% | -793.57% | -366.88% | - | - | - | - | - | - | - |
| FCF Growth % | -31.09% | -31.21% | -21.21% | -35.79% | -18.58% | -60.11% | 75.79% | -41.32% | -71.04% | -94.12% | 35.5% | -16.37% | -49.2% | -15.06% | -109.87% | - |
| FCF per Share | -1.52 | -1.98 | -2.93 | -3.92 | -3.95 | -3.69 | -2.62 | -22.29 | -16.97 | -17.90 | -9.58 | -15.29 | -18.29 | -13.95 | -14.65 | -6.47 |
| FCF Conversion (FCF/Net Income) | 0.78x | 0.66x | 0.80x | 0.99x | 0.86x | 0.75x | 0.49x | 0.93x | 1.03x | 0.85x | 0.81x | 0.79x | 0.69x | 0.64x | 0.71x | 0.74x |
| Interest Paid | 0 | 0 | 0 | 3.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary clinical trial outcomes
According to the provided cash flow data, Verastem exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently exceeding 1.0, which suggests that reported losses are being exacerbated by non-cash charges and working capital fluctuations rather than reflecting pure operational efficiency.
The consistent divergence between net income and operating cash flow indicates that the company's accounting losses do not fully capture the actual cash burn required to sustain clinical operations. Investors should monitor this relationship closely, as the reliance on non-cash adjustments to reconcile these figures may mask the true underlying cost of the RAMP clinical programs.
As reported in financial statements, Verastem's free cash flow trajectory remains deeply negative, with quarterly outflows reaching as high as $52.1 million in 2026Q1, highlighting the company's ongoing reliance on external capital to fund its research-heavy business model in the absence of recurring commercial revenue streams.
The lack of positive free cash flow is a structural reality for a clinical-stage entity, yet the magnitude of these outflows warrants caution regarding the company's long-term runway. The absence of a clear path to self-funding suggests that the current cash position is a finite resource that will likely necessitate further dilutive financing if clinical milestones are delayed.
Based on reported figures, Verastem's working capital dynamics show significant quarter-to-quarter volatility, with changes ranging from a $38,000 inflow to an $8.6 million outflow, reflecting the lumpy nature of milestone-based revenue recognition and the timing of payments to clinical research organizations and other external vendors.
This variability in working capital suggests that the company's cash position is highly sensitive to the timing of contractual obligations and milestone receipts. Analysts should interpret these fluctuations as a byproduct of the company's project-based revenue model rather than an indication of operational efficiency in managing payables or receivables.
Data indicates that stock-based compensation consistently adds approximately $2 million per quarter to the company's expenses, which effectively masks the true economic cost of talent retention and dilutes existing shareholders while providing a non-cash buffer that slightly improves the reported net income relative to actual cash outflows.
While stock-based compensation is a standard tool for biotech firms, its consistent presence suggests that the company's reported operating losses may understate the true cost of operations when viewed from a cash-only perspective. Investors should consider the impact of this ongoing dilution on future earnings per share, as it represents a persistent claim on equity that is not captured in the headline cash burn figures.
Quick answers to the most common questions about buying VSTM stock.
Verastem, Inc. (VSTM) generated $-137.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Verastem, Inc. (VSTM) reported negative free cash flow of $137.5M in 2025, indicating capital requirements exceeded cash from operations.
Verastem, Inc. (VSTM) spent $9.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.