Krystal Biotech revenue reaches $127.34 million in third quarter, up 30%
Key Facts
Krystal Biotech said on November 2 that its revenue in the third quarter of 2026 was $127.34 million, compared with analyst estimates of $126.77 million, while diluted earnings were $2.05 per share, above the estimate of $1.84, according to data reported by Investing.com. Net income was $63.1 million, down from $79.4 million in the same period of 2025, while diluted earnings per share fell from $2.66 to $2.05. But the comparison in net income masks an important tax difference between the periods: a year earlier, the company benefited from a tax benefit, while it recorded a tax expense in the current quarter. In contrast, operating income rose to $71.145 million from $41.374 million. The results therefore reflected growth in revenue and operating income alongside year-over-year declines in net income and earnings per share.
Revenue growth came alongside an expansion in VYJUVEK sales, with the drug generating $127.34 million in revenue in the third quarter, compared with $97.8 million in the same period last year, an increase of about 30%. The drug is the mainstay of the company's commercial business, and Krystal said gross margin was 94% in the quarter. Operating income was $71.145 million, up from $41.374 million a year earlier, consistent with sales growth and the high gross margin. The company said product revenue supports profitability and investment in its development pipeline, without changing the effect of the tax comparison on net income. The third quarter of 2025 recorded a tax benefit of $31.398 million, while the current quarter included an income tax expense of $17.077 million.
On its financial position, the company said cash, cash equivalents and investments totaled $1.2 billion on September 30, 2026. The board authorized a share repurchase program of up to $400 million. The company said it expects to make purchases opportunistically over the next two years. The program comes alongside the company's investments in developing its treatments, while its statement said revenue growth supports profitability and spending on the development pipeline. The announcement did not specify the value of shares to be purchased or the timing of specific transactions.
On its development pipeline, the company said more than 760 U.S. reimbursement approvals had been secured for VYJUVEK. It also reported that more than 80% of lesions assessed in an exploratory study involving 3 patients with basal cell carcinoma showed clinical regression as assessed by investigators. Krystal plans to complete enrollment of about 60 patients in the EMERALD-1 study of KB801, with initial results expected in 2027. The company said enrollment in the study was slower than expected at first. It also aims to begin the pivotal study of KB407 in 2027, following discussions with the Food and Drug Administration about its design. The company expects to launch VYJUVEK in Italy in early 2027.
In trading, the company's shares, listed under the ticker KRYS, closed at $332.29 on October 30, according to EL7 data. After the results were announced on November 2, the stock fell 3.70% in premarket trading, according to Investing.com. The decline came despite revenue and earnings per share exceeding the estimates reported by the site, while the results also showed lower net income and earnings per share than a year earlier. The year-over-year comparison in net income remains affected by the tax benefit the company recorded in the third quarter of 2025, versus a tax expense in the current quarter. Investors will next track completion of enrollment in EMERALD-1 and its initial results expected in 2027, as well as the start of the pivotal study of KB407 that year.