Key Highlights

  • VYJUVEK Revenue was USD 127.3 million, up 30% year over year, with about USD 1.1 billion cumulative since launch.
  • Net income was USD 63.1 million, or USD 2.05 per diluted share, versus USD 79.4 million a year earlier.
  • Cash and investments exceeded USD 1.2 billion, and the board authorized a new share repurchase program.
  • Full-year non-GAAP expense guidance was cut to USD 155 million to 165 million from USD 175 million to 195 million.

Revenue and Profit

Krystal Biotech, Inc. (NASDAQ:KRYS) reported third-quarter 2026 VYJUVEK revenue of USD 127.3 million, up 30% from a year earlier, and cumulative VYJUVEK revenue of about USD 1.1 billion since launch. Net Income was USD 63.1 million, or USD 2.13 per basic and USD 2.05 per diluted share.

The prior-year quarter showed net income of USD 79.4 million, or USD 2.74 basic and USD 2.66 diluted, which included the release of most of the valuation allowance on deferred tax Assets and the Reversal of the Section 174 research Capitalization requirement, both nonrecurring.

Demand and International Pricing

Chief executive Krish Krishnan said Demand and the prescribing physician base continue to grow in the United States. With pricing negotiations complete in Japan, Germany and Italy, management said it has more clarity on the international VYJUVEK opportunity and sees room for growth.

The company described its position as growing, profitable and generating resources to advance its pipeline, with commercial operations, Manufacturing capabilities and a global footprint built over several years. Net revenue from global sales reflected continued growth from the Europe and Japan launches, against USD 97.8 million a year earlier that included only a partial quarter of European sales and none from Japan.

Spending Guidance and Capital

Gross Margin was 94% versus 96%, as Cost of Goods Sold rose to USD 7.6 million from USD 4.3 million, reflecting more sales in Europe and Japan that do not yet benefit from the manufacturing optimizations approved in the United States. R&D expense was USD 14.9 million versus USD 14.6 million, and G&A expense fell to USD 33.7 million from USD 37.6 million, helped by insurance proceeds reimbursing legal costs and lower legal costs. Operating expenses included noncash stock-based compensation of USD 13.9 million. Krystal revised full-year non-GAAP R&D and SG&A guidance to USD 155 million to USD 165 million from USD 175 million to USD 195 million. Cash and investments exceed USD 1.2 billion. Management said the company can invest in global expansion and development and repurchase shares opportunistically through the newly authorized program, noting that it believes its Intrinsic Value and the Market Value of the stock are dislocated.

Management said several important readouts are scheduled over the coming months, with encouraging initial findings, including results for Hailey-Hailey disease along with cystic fibrosis and natural killer programs. On the KB407 cystic fibrosis program, the company is enrolling an additional three patients, a point an analyst asked about on the call. Each program is designed to generate evidence that helps determine how best to bring additional medicines to patients. Hailey-Hailey enrollment is proceeding more slowly than initially anticipated because of narrow eligibility criteria and the difficulty of enrolling a placebo-controlled trial where an approved therapy exists, so top-line results are now projected in 2027, with 22 U.S. sites activated. For KB407 in cystic fibrosis, three patients are being dosed and three more are planned before year end, with interim results projected in the first half of 2027 and a registrational study start in 2027 after selection for the FDA complex innovative design program. KB408 interim data are planned for next year, and the inhaled KB707 lung cancer cohort has completed dose optimization in 10 patients, with 70 patients planned at the selected regimen by mid-2027.

Launch and Readout Checkpoints

Items to watch include international launch uptake after pricing agreements, quarterly VYJUVEK revenue trends, pace of share repurchases and the timing of pipeline readouts.