VerastemVSTM -10.74%11 Gross Margin % is 83.66% as of Mar. 2026, which is 0% above its 10-year median of 83.39. GuruFocus rates VSTM with a GF Score™ of 11/100. The stock has 7 warning signs investors should review. Among 738 Biotechnology companies, Verastem ranks better than 75.61% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Verastem's Gross Profit for the
three
months ended in Mar. 2026 was $15.62 Mil. Verastem's Revenue for the
three
months ended in Mar. 2026 was $18.67 Mil. Therefore, Verastem's Gross Margin % for the quarter that ended in Mar. 2026 was 83.66%.
The historical rank and industry rank for Verastem's Gross Margin % or its related term are showing as below:
VSTM'
s Gross Margin % Range Over the Past 10 Years
Min: 61.88 Med: 83.39 Max: 97.8
Current: 83.16
During the past 13 years, the highestGross Margin % of Verastem was 97.80%. The lowest was 61.88%. And the median was 83.39%.
VSTM's Gross Margin % is ranked better than 75.61% of 738
companies
in the Biotechnology industry
Industry Median: 60.94
vs VSTM: 83.16
Verastem had a gross margin of 83.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Verastem was 0.00% per year.
Verastem (NAS:VSTM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Verastem had a gross margin of 83.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Verastem Gross Margin % Related Terms
Verastem Gross Margin % Historical Data
* Premium members only.
The historical data trend for Verastem's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VSTM vs ENTA, ARTV, IMRX: Gross Margin % Comparison
For the Biotechnology subindustry, Verastem's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Verastem Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Verastem's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Verastem's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Verastem (VSTM) has a Gross Margin % of 83.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Verastem and its competitors. This is near median its historical median of 83.39. Over the past decade, Verastem's Gross Margin % has ranged from 61.88 to 97.80. According to the industry distribution chart, Verastem ranks #180 out of 738 companies in the Biotechnology industry, placing it in the top 24.4%.
Is Verastem's Gross Margin % too high?
Verastem's current Gross Margin % of 83.66% is near median its 10-year median of 83.39. Over the past 10 years, this metric has ranged from a low of 61.88 to a high of 97.80. The Biotechnology industry median Gross Margin % is 60.94. Verastem's value of 83.66% is 37.3% above this industry median. Based on the distribution chart, Verastem ranks #180 out of 738 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Verastem has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Verastem's Gross Margin % compare to ENTA and ARTV?
According to the Biotechnology industry distribution chart, Verastem ranks #180 out of 738 companies for Gross Margin %. This places Verastem in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.94. Verastem's value of 83.66% is 37.3% above this benchmark. Historically, Verastem's own Gross Margin % has ranged from 61.88 to 97.80 over the past decade. While the company's 10-year median is 83.39 vs. the industry median of 60.94, Verastem has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.94, based on 738 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verastem's current Gross Margin % of 83.66% is 37.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Verastem and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verastem's current Gross Margin % is 83.66%, which is near median its own 10-year median of 83.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verastem stock overvalued right now?
Verastem (VSTM) has a current Gross Margin % of 83.66%. The current Gross Margin % is 83.66%, which is near median its 10-year median of 83.39 and 37.3% above the Biotechnology industry median of 60.94. Verastem's overall GF Score™ is 11/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Verastem (VSTM), the current Gross Margin % is 83.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Verastem Inc is late-stage development biopharmaceutical company, committed to advancing new medicines for patients battling cancer. Its pipeline is focused on novel anticancer agents that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, particularly RAF/MEK inhibition and FAK inhibition.
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