Krystal Biotech Q2 Earnings Top Estimates, Shares Down on Q3 Guidance

Krystal Biotech (KRYS) reported Q2 2025 EPS of $1.29, beating estimates of $1.08, and revenues of $96 million, up 36.6% YoY. However, shares lost 14% due to soft Q3 guidance. The company secured over 575 reimbursement approvals for Vyjuvek, its gene therapy for DEB, and has a cash balance of $820.8 million. KRYS is evaluating KB407 for cystic fibrosis and KB408 for alpha-1 antitrypsin deficiency.

Krystal Biotech Inc. (NASDAQ:KRYS) reported its second-quarter 2025 financial results, with earnings per share (EPS) of $1.29, surpassing estimates of $1.08, and revenues of $96 million, representing a 36.6% year-over-year (YoY) increase. However, the company's shares lost 14% in pre-market trading, reflecting investor concerns over the guidance for the third quarter (Q3).

The company's flagship product, VYJUVEK, a gene therapy for dystrophic epidermolysis bullosa (DEB), continues to drive growth. VYJUVEK's revenue reached $96 million in Q2, bringing the cumulative revenue since its launch in Q3 2023 to over $525 million. The company's strong performance in Japan, where VYJUVEK recently gained approval for use in patients from birth, has contributed to this growth.

Despite the positive earnings, Krystal Biotech's stock fell 13.73% to $135.42 in pre-market trading, primarily due to cautious guidance for Q3. The company expects a temporary revenue dip in Q3, attributed to seasonal factors impacting patient activity. However, the company anticipates a return to growth in Q4, driven by multiple clinical readouts in its lung, eye, and aesthetic programs. The European launch of Visovac is set for Germany and France in the upcoming quarter, which could bolster future revenues.

Krystal Biotech's strong financial position is evident in its cash balance of $820.8 million. The company is also evaluating KB407 for cystic fibrosis and KB408 for alpha-1 antitrypsin deficiency.

The market reaction to Krystal Biotech's earnings highlights the importance of forward guidance for investor sentiment. While the company's strong financial performance and pipeline of products are promising, the temporary dip in Q3 revenues and the uncertainty surrounding the European launch may weigh on investor confidence in the near term.

For more detailed earnings estimates and historical performance, see Krystal Biotech’s earnings data. This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.

References:
[1] https://www.chartmill.com/news/KRYS/Chartmill-32205-KRYSTAL-BIOTECH-INC-NASDAQKRYS-Q2-2025-Earnings-Beat-Estimates-as-VYJUVEK-Drives-Strong-Revenue-Growth
[2] https://www.ainvest.com/news/contradictions-unveiled-krystal-biotech-q2-2025-earnings-call-reveals-conflicting-insights-vyjuvek-sales-market-strategy-2508/
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-krystal-biotech-q2-2025-beats-forecasts-stock-dips-93CH-4168060