Krystal Biotech Shares Slide Despite Earnings Beat as Revenue Misses Forecasts

Krystal Biotech Shares Slide Despite Earnings Beat as Revenue Misses Forecasts

Fiona Craig

Mon, August 3, 2026 at 3:29 PM GMT+3 2 min read

• KRYS +3.90%

Krystal Biotech, Inc. (NASDAQ:KRYS) reported second-quarter 2026 results on Monday that exceeded earnings expectations but fell short of Wall Street's revenue estimates, sending the stock down 7.65% in pre-market trading.

Earnings Outperform While Revenue Comes in Below Expectations

The company reported adjusted earnings of $1.79 per share for the second quarter, beating analysts' consensus estimate of $1.70 by $0.09.

Product revenue totaled $119.2 million, missing the market forecast of $122.3 million. Even so, sales increased 24% from $96.0 million in the same quarter last year.

Krystal also reported a 95% gross margin for its flagship product, VYJUVEK, during the quarter.

Management Highlights Commercial Momentum and Pipeline Progress

Chairman and Chief Executive Officer Krish S. Krishnan said the company's business continues to benefit from a combination of commercial execution, financial strength and pipeline development.

"Our second quarter reflects the strength of the Krystal model: a global commercial product that continues to perform, a strong balance sheet, and a pipeline now moving toward multiple registrational readouts," said Krish S. Krishnan, Chairman and Chief Executive Officer of Krystal Biotech.

Company Issues Full-Year Expense Guidance

For fiscal 2026, Krystal expects adjusted combined research and development expenses together with selling, general and administrative costs to range between $175.0 million and $195.0 million, excluding stock-based compensation.

Profit and Cash Position Improve

Net income increased to $54.8 million, or $1.79 per diluted share, compared with $38.3 million, or $1.29 per diluted share, in the second quarter of 2025.

The company ended the quarter with approximately $1.1 billion in cash, cash equivalents and investments, providing substantial financial flexibility to support its commercial and clinical development programs.

VYJUVEK Continues International Expansion

Krystal said VYJUVEK continues to gain traction outside the United States as pricing and reimbursement discussions progress across Europe.

The company expects commercial launches in both Italy and Spain before the end of 2026.

As of the close of the second quarter, VYJUVEK had secured more than 730 reimbursement approvals and was being prescribed by over 640 healthcare providers, reflecting continued growth in physician adoption.

Krystal Biotech stock price