Krystal Biotech (KRYS) AI Stock Analysis

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Krystal Biotech

(NASDAQ:KRYS)

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Rating:77Outperform

Price Target:$346.00▲(12.04% Upside)

Action:reiterated

Date:11/04/26

KRYS scores well primarily due to very strong financial performance (profitability, minimal leverage, and robust free cash flow) and a positive earnings call emphasizing continued commercial and pipeline progress. The score is moderated by weak near-term technical momentum and an elevated P/E with no dividend support.

Positive Factors

VYJUVEK commercial momentumStrong VYJUVEK growth and cumulative revenue demonstrate meaningful patient treatment and physician adoption. Continued reimbursement approvals, prescriber additions, and utilization can support durable commercial expansion and reinforce the product’s position in its rare-disease market.

Negative Factors

Gross-margin pressure overseasThe lower gross margin shows that geographic expansion can initially dilute product economics when manufacturing improvements are not yet applied across regions. If international sales become a larger revenue share before optimization, this mix effect could constrain margin expansion.

Krystal Biotech (KRYS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $9.15B
Dividend Yield: ―
Average Volume (3M): 282.53K
Price to Earnings (P/E): 40.3
Beta (1Y): 0.55
Revenue Growth: 25.96%
EPS Growth: 11.21%
Country: US
Employees: 295
Sector: Healthcare
Sector Strength: 51
Industry: Biotechnology

Krystal Biotech Business Overview & Revenue Model

Company Description

Krystal Biotech, Inc. is a clinical-stage biotechnology company focused on developing redosable gene therapies to address severe orphan diseases across the United States. Its most advanced therapeutic candidate, beremagene geperpavec (B-VEC), is curr...

How the Company Makes Money

Krystal Biotech primarily makes money from product revenue generated by sales of VYJUVEK for DEB. Revenue is recognized from supplying the therapy to customers (typically through specialty distribution channels serving healthcare providers and patien...

Krystal Biotech Earnings Call Summary

Earnings Call Date:Nov 02, 2026(Q3-2026)|% Change Since:-7.07%|Next Earnings Date:Mar 01, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by 30% VYJUVEK revenue growth, substantial cash and profitability, continued US and international commercial expansion, encouraging Gorlin syndrome data, and broad pipeline progress. The main negatives were lower gross margin and year-over-year net income, along with delayed or slower enrollment and readouts in several clinical programs. Management nevertheless characterized the studies as progressing well and maintained multiple 2027 development milestones.

Positive Updates

Strong Q3 Revenue, Profitability, and Liquidity

Third-quarter VYJUVEK revenue was $127.3 million, up 30% from the same period last year. Reported diluted earnings were $2.05 per share, and the company ended September with $1.2 billion in cash and investments.

Negative Updates

Gross Margin Declined

Third-quarter gross margin was 94%, down from 96% in the third quarter of 25. The company attributed the decrease in part to higher sales in Europe and Japan, where the manufacturing process optimizations approved in the US are not yet benefiting product, as well as the prior-year sale of lower-cost R&D batches.

Company Guidance

Krystal revised full year non GAAP R&D and SG&A guidance to $155 million to $165 million from prior guidance of $175 million to $195 million; it expects to deploy a share repurchase program of up to $400 million over the next 2 years, launch VYJUVEK in Italy in early 27, receive a Spain pricing decision before the end of the year with a potential launch next year, and share HHD data before year end. For KB408, it expects the last-patient, last-visit in February 2027 with top line results shortly thereafter and said ocular DEB will come ahead of NK; for KB801, it now expects to complete enrollment and report top-line results in 2027. For KB407, it expects to enroll and dose 3 additional patients before the year end, report interim study results in the first half of 27, and start a 2027 registrational study; for inhaled KB707, it expects to enroll and dose 70 patients at the selected regimen by mid 27.

Krystal Biotech Financial Statement Overview

Summary

Financials are a core strength: strong TTM profitability (very high gross margin and strong operating/net margins), minimal leverage, and excellent free-cash-flow generation with high conversion vs. net income. The main offset is historical volatility (loss/negative cash flow as recently as 2023) and some variability in growth.

Income Statement

92Very Positive

Balance Sheet

90Very Positive

Cash Flow

94Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	470.02M	389.13M	290.51M	50.70M	0	0
Gross Profit	438.79M	360.36M	270.45M	47.60M	0	0
EBITDA	252.25M	196.02M	109.91M	-92.22M	-116.14M	-65.31M
Net Income	225.17M	204.83M	89.16M	10.93M	-139.97M	-69.57M
Balance Sheet
Total Assets	1.59B	1.33B	1.06B	818.36M	558.45M	626.29M
Cash, Cash Equivalents and Short-Term Investments	911.85M	827.79M	597.52M	532.18M	379.17M	438.10M
Total Debt	8.59M	9.34M	7.26M	8.09M	8.93M	8.02M
Total Liabilities	150.47M	114.23M	109.46M	39.71M	36.22M	32.72M
Stockholders Equity	1.44B	1.22B	946.38M	778.64M	522.23M	593.58M
Cash Flow
Free Cash Flow	310.08M	188.91M	119.18M	-100.60M	-153.55M	-116.27M
Operating Cash Flow	323.93M	200.87M	123.42M	-88.80M	-100.57M	-47.94M
Investing Cash Flow	-271.99M	-58.42M	-163.44M	82.64M	-114.08M	-226.77M
Financing Cash Flow	23.67M	8.71M	27.01M	202.75M	35.35M	347.69M

Krystal Biotech Technical Analysis

Technical Analysis SentimentNegative

Last Price308.81

Price Trends

50DMA329.36Negative

100DMA339.05Negative

200DMA309.41Negative

Market Momentum

MACD-6.91Positive

RSI44.96Neutral

STOCH48.26Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRYS, the sentiment is Negative. The current price of 308.81 is below the 20-day moving average (MA) of 314.49, below the 50-day MA of 329.36, and below the 200-day MA of 309.41, indicating a bearish trend. The MACD of -6.91 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRYS.

Krystal Biotech Risk Analysis

Krystal Biotech disclosed 74 risk factors in its most recent earnings report. Krystal Biotech reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.Artificial intelligence presents risks and challenges that could negatively impact our business.Q4, 2024

2.us to submit a Prior Approval Supplement ("PAS") to the FDA and obtain the agency's approval for the manufacturing process changes before they can be implemented.Q4, 2024

3.We may need or desire to transfer VYJUVEK or an approved product candidate manufacturing from ANCORIS, our commercial scale CGMP-compliant manufacturing facility where VYJUVEK is currently manufactured to ASTRA, our recently completed and qualified state-of-the-art CGMP manufacturing facility, or transfer an approved product manufacturing from ASTRA to ANCORIS, and technical transfer of a manufacturing process is subject to risks and uncertainties and requires FDA inspection and approval of the facility where manufacturing is planned to be transferred.Q4, 2024

Krystal Biotech Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

KRYS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	77Outperform	$9.08B	40.31	17.02%	―	25.96%	11.21%
SRPT	52Neutral	$1.76B	185.33	1.04%	―	-18.95%	59.85%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
QURE	51Neutral	$1.59B	-6.94	-96.34%	―	28.04%	19.12%
TSHA	49Neutral	$1.39B	-10.13	-56.19%	―	-32.27%	-21.09%
RARE	48Neutral	$1.65B	-3.22	213.22%	―	15.76%	12.63%
PGEN	46Neutral	$1.62B	69.11	57.93%	―	2387.61%	―

* Healthcare Sector Average

Performance Comparison

KRYS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KRYS	Krystal Biotech, Inc.	308.81	107.60	53.48%
SRPT	Sarepta Therapeutics Inc.	16.68	-1.14	-6.40%
PGEN	Precigen, Inc.	4.72	0.86	22.28%
RARE	Ultragenyx Pharmaceutical, Inc.	16.70	-16.20	-49.24%
QURE	uniQure N.V.	24.59	-5.75	-18.97%
TSHA	Taysha Gene Therapies, Inc.	4.28	0.27	6.73%

Krystal Biotech Corporate Events

Business Operations and StrategyProduct-Related Announcements

Krystal Biotech advances KB113 for Gorlin syndrome

Positive

Oct 15, 2026

On October 15, 2026, Krystal Biotech reported positive clinical data from a Gorlin syndrome pilot study of KB113, an HSV-1-based intratumoral immunotherapy targeting basal cell carcinomas in three adult patients. Over 80% of assessed landmark lesions...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 04, 2026

Krystal Biotech AI Stock Analysis