10-Q · May 4, 2026
Krystal Biotech's Q1 2026 results show a robust increase in product revenue to $116.4 million, up 32% year-over-year, driven by strong VYJUVEK sales in the US, Europe, and Japan. Net income also rose significantly by…
Earnings analysis · 10-Q
KRYS earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Krystal delivered Q2 product revenue of $119.222 million, up 24% year over year and 2.5% sequentially, with operating margin expanding to 49.0% from 41.0% a year earlier. Net income rose 43% to $54.768 million and…
Read full summary
Krystal delivered Q2 product revenue of $119.222 million, up 24% year over year and 2.5% sequentially, with operating margin expanding to 49.0% from 41.0% a year earlier. Net income rose 43% to $54.768 million and six-month operating cash flow increased to $155.171 million. The key watch items are lower U.S. VYJUVEK sales, prolonged European pricing negotiations, and rising commercialization and pipeline spending, although liquidity remains strong at $845.6 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Segment
- VYJUVEK product revenue, net: $119.222 million; the filing does not disclose additional revenue segments.
What stood out
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Revenue grows 24% year over year
Q2 product revenue rose 24% year over year to $119.222 million from $96.042 million and increased 2.5% sequentially from implied Q1 revenue of $116.357 million. Growth reflected European and Japanese launches, partially offset by lower U.S. VYJUVEK sales.
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Margins expanded materially
Gross margin was 94.6% ($119.222 million revenue less $6.437 million COGS), versus 92.5% a year earlier. Operating margin expanded to 49.0% from 41.0%, as operating income climbed 48% to $58.417 million.
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Profitability rose sharply
Net income increased 43% to $54.768 million from $38.333 million, while income from operations grew $19.018 million year over year. Diluted EPS was not included in the provided filing extract.
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Substantial liquidity runway
Cash, cash equivalents and short-term investments were $845.6 million at June 30, 2026. The company states this balance is sufficient to fund operations for at least 12 months from the August 3, 2026 filing date.
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Operating cash generation strengthened
Six-month operating cash flow was $155.171 million, up from $83.698 million in the prior-year period. Investing cash use rose to $225.167 million, primarily from $166.4 million of higher investment purchases rather than disclosed capital expenditures.
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Multiple clinical catalysts approaching
Pipeline execution continues: IOLITE enrolled 16 patients and management expects top-line results before year-end 2026; EMERALD-1 is expected to complete enrollment before year-end 2026 at approximately 60 adult patients.
What to watch
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Single-product and U.S. sales exposure
VYJUVEK accounted for all disclosed Q2 product revenue of $119.222 million, and management says future revenue can fluctuate because of uncertain sales timing and amounts. U.S. VYJUVEK sales declined year over year, partially offsetting international-launch growth.
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European pricing and launch timing risk
Pricing negotiations are expected to continue until at least the second half of 2026 in Germany and through 2027 in France. Potential Italy and Spain launches are targeted for the second half of 2026, but management says timing depends on regulatory interactions and pricing outcomes.
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Commercial and pipeline cost pressure
Management expects R&D and SG&A expenses to increase as it expands development and global commercialization. Q2 SG&A already increased 14% year over year to $39.850 million, including a $2.5 million increase in payroll costs.
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No new risk-factor changes disclosed
No material changes to risk factors were reported versus the February 17, 2026 Form 10-K. Nevertheless, the company notes that clinical-trial costs and timing are unpredictable and may require additional funding despite $845.6 million of cash, cash equivalents and short-term investments.
Management's outlook
The 10-Q provides no numeric revenue or EPS guidance. Management expects R&D and SG&A expenses to increase with pipeline development and global VYJUVEK commercialization; it expects several clinical/readout milestones before year-end 2026 and potential Italy/Spain VYJUVEK launches in the second half of 2026.
Earlier filings 4
10-K · February 17, 2026
Krystal Biotech reports continued commercial traction for VYJUVEK with Q4 revenue of $107,105,000 and diluted EPS of $1.70, supported by strong margins (gross 93.9%, operating 41.3%) and $75M free cash flow in the…
10-K · February 19, 2025
Krystal Biotech is a commercial-stage gene therapy company whose FDA‑approved product VYJUVEK (B‑VEC) launched in August 2023 and has driven rapid commercial scale‑up. The 10‑K highlights $341.2 million in net product…
10-Q · November 4, 2024
Krystal reported a strong commercial quarter as product revenue increased to $83,841 (thousands) for the three months ended September 30, 2024, driving operating income of $22,433 (thousands) and diluted EPS of $0.91.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.