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Why Is Krystal Biotech (KRYS) Down 11.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Krystal Biotech, Inc. (KRYS - Free Report) . Shares have lost about 11.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Krystal Biotech due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Krystal Biotech, Inc. before we dive into how investors and analysts have reacted as of late.
KRYS Q4 Earnings Beat Estimates, Revenues Miss Mark
Krystal Biotech reported fourth-quarter 2025 earnings per share (EPS) of $1.70, which surpassed the Zacks Consensus Estimate of $1.62 per share. The reported EPS increased from $1.52 in the year-ago quarter.
Revenues of $107.1 million increased 17.5% year over year in the reported quarter but missed the Zacks Consensus Estimate of $109 million. Revenues came in solely from the sales of Vyjuvek.
KRYS’ Q4 Results in Detail
The top line comprises product revenues from Krystal’s only marketed drug, Vyjuvek.
Krystal generated $107.1 million in product revenues from Vyjuvek, up from $91.1 million in the year-ago quarter due to strong patient uptake.
The gross margin in the reported quarter was 94%.
Research and development (R&D) expenses were $14.8 million, including stock-based compensation, up 9.36% year over year. Selling, general and administrative (SG&A) expenses totaled approximately $41.4 million, including stock-based compensation, up 32.5% from the year-ago level. This increase was primarily due to higher headcount, legal and consulting services and marketing costs to support the global launches of Vyjuvek.
As of Dec. 31, 2025, cash, cash equivalents and investments totaled $955.9 million compared with $864.2 million as of Sept. 30, 2025.
KRYS’ Full-Year 2025 Results
For 2025, KRYS reported total product revenues of $389.1 million, which rose 34% year over year.
For full-year 2025, the company recorded net earnings of $6.84 per share compared with $3.00 reported in 2024.
2026 Guidance
Krystal Biotech expects non-GAAP combined R&D and SG&A expense to range from $175 million to $195 million in 2026.
KRYS' Recent Pipeline Updates
For Vyjuvek, pricing negotiations with reimbursement authorities remain ongoing in Germany and France and are expected to continue through at least the second half of 2026 and 2027, respectively.
Krystal Biotech is also advancing a robust clinical pipeline of investigational genetic medicines in the fields of respiratory, oncology, dermatology, ophthalmology and aesthetics.
On the respiratory front, the company has two candidates in its pipeline — KB407 and KB408.
The company is evaluating KB407 for the treatment of CF. Data from Cohort 3 of CORAL-1, a multicenter dose-escalation study evaluating KB407 in CF patients regardless of genotype, were announced in January. The data confirmed successful lung delivery and expression of functional CFTR protein with inhaled KB407 in CF patients.
The company plans to initiate enrollment in the registrational repeat-dose CORAL-3 study evaluating KB407 for the treatment of CF in the first half of 2026.
KB408 is being evaluated for the treatment of alpha-1 AATD lung disease. Enrollment is ongoing in repeat-dose Cohort 2B of the SERPENTINE-1 study, with interim results expected in 2026.
In the ophthalmology space, another candidate, KB803, is being evaluated in IOLITE, a phase III randomized, placebo-controlled crossover study for the treatment and prevention of corneal abrasions in DEB patients. Krystal Biotech expects to complete enrollment in the first half of 2026, with top-line data anticipated in 2026.
Krystal is also evaluating KB801 for the treatment of patients with neurotrophic keratitis (NK). A registrational, randomized, double-masked, placebo-controlled study, EMERALD-1, is evaluating the safety and tolerability of topical ocular administration of KB801 in patients with NK. Patient enrollment is currently ongoing and top-line data from the study is expected in 2026.
In January, the FDA granted Fast Track Designation to KB111 for the treatment of HHD.
On the oncology front, Krystal has a promising candidate, KB707, which is being developed for the treatment of solid lung tumors.
The FDA granted RMAT designation to KB707 in February for the treatment of advanced or metastatic NSCLC. Krystal is currently enrolling patients in the dose-expansion cohort of its phase I/II KYANITE-1 study, which is evaluating inhaled KB707 as monotherapy and in combination with chemotherapy in patients with advanced lung tumors.
In the aesthetics space, the company’s wholly owned subsidiary, Jeune Aesthetics, is currently developing KB304 for the treatment of wrinkles of the décolleté. The company has aligned with the FDA on a validated décolleté-specific photonumeric scale and expects to initiate a mid-stage study in 2027.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Krystal Biotech has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Interestingly, Krystal Biotech has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Krystal Biotech is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Moderna (MRNA - Free Report) , a stock from the same industry, has gained 12.5%. The company reported its results for the quarter ended December 2025 more than a month ago.
Moderna reported revenues of $678 million in the last reported quarter, representing a year-over-year change of -29.8%. EPS of -$2.11 for the same period compares with -$2.50 a year ago.
For the current quarter, Moderna is expected to post a loss of $2.03 per share, indicating a change of +19.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moderna. Also, the stock has a VGM Score of C.
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Why Is Krystal Biotech (KRYS) Down 11.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Krystal Biotech, Inc. (KRYS - Free Report) . Shares have lost about 11.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Krystal Biotech due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Krystal Biotech, Inc. before we dive into how investors and analysts have reacted as of late.
KRYS Q4 Earnings Beat Estimates, Revenues Miss Mark
Krystal Biotech reported fourth-quarter 2025 earnings per share (EPS) of $1.70, which surpassed the Zacks Consensus Estimate of $1.62 per share. The reported EPS increased from $1.52 in the year-ago quarter.
Revenues of $107.1 million increased 17.5% year over year in the reported quarter but missed the Zacks Consensus Estimate of $109 million. Revenues came in solely from the sales of Vyjuvek.
KRYS’ Q4 Results in Detail
The top line comprises product revenues from Krystal’s only marketed drug, Vyjuvek.
Krystal generated $107.1 million in product revenues from Vyjuvek, up from $91.1 million in the year-ago quarter due to strong patient uptake.
The gross margin in the reported quarter was 94%.
Research and development (R&D) expenses were $14.8 million, including stock-based compensation, up 9.36% year over year. Selling, general and administrative (SG&A) expenses totaled approximately $41.4 million, including stock-based compensation, up 32.5% from the year-ago level. This increase was primarily due to higher headcount, legal and consulting services and marketing costs to support the global launches of Vyjuvek.
As of Dec. 31, 2025, cash, cash equivalents and investments totaled $955.9 million compared with $864.2 million as of Sept. 30, 2025.
KRYS’ Full-Year 2025 Results
For 2025, KRYS reported total product revenues of $389.1 million, which rose 34% year over year.
For full-year 2025, the company recorded net earnings of $6.84 per share compared with $3.00 reported in 2024.
2026 Guidance
Krystal Biotech expects non-GAAP combined R&D and SG&A expense to range from $175 million to $195 million in 2026.
KRYS' Recent Pipeline Updates
For Vyjuvek, pricing negotiations with reimbursement authorities remain ongoing in Germany and France and are expected to continue through at least the second half of 2026 and 2027, respectively.
Krystal Biotech is also advancing a robust clinical pipeline of investigational genetic medicines in the fields of respiratory, oncology, dermatology, ophthalmology and aesthetics.
On the respiratory front, the company has two candidates in its pipeline — KB407 and KB408.
The company is evaluating KB407 for the treatment of CF. Data from Cohort 3 of CORAL-1, a multicenter dose-escalation study evaluating KB407 in CF patients regardless of genotype, were announced in January. The data confirmed successful lung delivery and expression of functional CFTR protein with inhaled KB407 in CF patients.
The company plans to initiate enrollment in the registrational repeat-dose CORAL-3 study evaluating KB407 for the treatment of CF in the first half of 2026.
KB408 is being evaluated for the treatment of alpha-1 AATD lung disease. Enrollment is ongoing in repeat-dose Cohort 2B of the SERPENTINE-1 study, with interim results expected in 2026.
In the ophthalmology space, another candidate, KB803, is being evaluated in IOLITE, a phase III randomized, placebo-controlled crossover study for the treatment and prevention of corneal abrasions in DEB patients. Krystal Biotech expects to complete enrollment in the first half of 2026, with top-line data anticipated in 2026.
Krystal is also evaluating KB801 for the treatment of patients with neurotrophic keratitis (NK). A registrational, randomized, double-masked, placebo-controlled study, EMERALD-1, is evaluating the safety and tolerability of topical ocular administration of KB801 in patients with NK. Patient enrollment is currently ongoing and top-line data from the study is expected in 2026.
In January, the FDA granted Fast Track Designation to KB111 for the treatment of HHD.
On the oncology front, Krystal has a promising candidate, KB707, which is being developed for the treatment of solid lung tumors.
The FDA granted RMAT designation to KB707 in February for the treatment of advanced or metastatic NSCLC. Krystal is currently enrolling patients in the dose-expansion cohort of its phase I/II KYANITE-1 study, which is evaluating inhaled KB707 as monotherapy and in combination with chemotherapy in patients with advanced lung tumors.
In the aesthetics space, the company’s wholly owned subsidiary, Jeune Aesthetics, is currently developing KB304 for the treatment of wrinkles of the décolleté. The company has aligned with the FDA on a validated décolleté-specific photonumeric scale and expects to initiate a mid-stage study in 2027.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Krystal Biotech has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Interestingly, Krystal Biotech has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Krystal Biotech is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Moderna (MRNA - Free Report) , a stock from the same industry, has gained 12.5%. The company reported its results for the quarter ended December 2025 more than a month ago.
Moderna reported revenues of $678 million in the last reported quarter, representing a year-over-year change of -29.8%. EPS of -$2.11 for the same period compares with -$2.50 a year ago.
For the current quarter, Moderna is expected to post a loss of $2.03 per share, indicating a change of +19.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moderna. Also, the stock has a VGM Score of C.