Verastem (NASDAQ: VSTM) shares plummeted 20.81% in Tuesday's pre-market trading session following the release of its third-quarter 2025 financial results. The oncology-focused biopharmaceutical company reported a significant widening of its net loss, overshadowing a better-than-expected revenue performance.
The company reported a GAAP net loss of $98.5 million, or $1.35 per share, for Q3 2025, a substantial increase from the $24.0 million loss, or $0.60 per share, in the same period last year. This widening loss appears to be the primary driver behind the stock's sharp decline. On a non-GAAP basis, the adjusted net loss was $39.4 million, or $0.54 per share, which beat analyst estimates of a $0.64 loss per share but still represented a decline from the $0.88 loss per share in Q3 2024.
Despite the disappointing bottom line, Verastem's Q3 net product revenue reached $11.2 million, marking a successful product launch and beating the analyst consensus estimate of $5.659 million by 98.64%. However, investors seem more concerned with the company's rising expenses, as operating expenses for the quarter increased to $51.957 million, primarily due to higher research and development costs. The company's cash runway is expected to extend into the second half of 2026, which may provide some reassurance to long-term investors, but the immediate focus on widening losses has triggered a significant sell-off in the stock.
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