Krystal Biotech Q2 2025 Earnings Call: Strong Revenue Growth, Global Expansion, and Strategic Moves Ahead

Krystal Biotech Inc (KRYS) reported Q2 2025 earnings with a profitable EPS of $1.29 per share, $96 million in net VYJUVEK revenue, and over 575 US reimbursement approvals. The company is expanding globally with upcoming launches in Europe and Japan, driven by a strong balance sheet of over $820 million in cash and investments. However, revenue growth is expected to decline in Q3 2025 due to seasonal pauses and patient treatment patterns, and compliance rates are predicted to decrease as patients achieve durable wound closure.

Krystal Biotech Inc (KRYS) reported its Q2 2025 earnings, showcasing a strong performance with a profitable EPS of $1.29 per share. The company generated $96 million in net VYJUVEK revenue, contributing to a total of over $525 million since the product's launch. Notably, Krystal Biotech has secured over 575 reimbursement approvals for VYJUVEK in the US, indicating robust market penetration.

The company's financial health is bolstered by a strong balance sheet, with over $820 million in cash and investments. This financial strength supports the company's global expansion plans, with upcoming launches in Europe and Japan. These expansions are expected to drive significant growth.

However, the company anticipates a decline in Q3 2025 revenues due to seasonal pauses and unpredictability in patient treatment patterns. Additionally, compliance rates for VYJUVEK are expected to decrease as severe patients achieve durable wound closure, which may impact future revenue consistency. The sales force expansion is still underway, and the full impact of new hires will not be realized until future quarters.

The earnings call provided insights into the company's sales strategy and market performance. While the revenue growth in Q2 was partly driven by patients resuming treatment and the incremental effect of hiring sales reps since late Q1, the full impact of these hires will be felt over the next few quarters as they become fully operational. The company is on track to reach 720 patients initiating VYJUVEK early next year but is slightly behind the original timeline. In Europe, the company benefits from free pricing in Germany for the first 12 months post-approval, with early engagements with authorities being productive.

Krystal Biotech Inc's stock has added about 0.2% since the beginning of the year, underperforming the S&P 500's gain of 6.1%. The company has topped consensus revenue estimates two times over the last four quarters, with a quarterly earnings surprise of +19.44%. The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call.

References:
[1] https://finance.yahoo.com/news/krystal-biotech-inc-krys-q2-070231382.html
[2] https://www.ainvest.com/news/contradictions-unveiled-krystal-biotech-q2-2025-earnings-call-reveals-conflicting-insights-vyjuvek-sales-market-strategy-2508/
[3] https://finance.yahoo.com/news/krystal-biotech-inc-krys-tops-121502196.html