Krystal Biotech’s Vyjuvek sales jump 30% but net income slips (NASDAQ: KRYS)

Posted by Danessa Lincoln on Nov 2nd, 2026

What happened

Krystal Biotech, Inc. (NASDAQ: KRYS) said Vyjuvek net product revenue rose 30% to $127.3 million in the third quarter of 2026. That compares with $97.8 million a year earlier. The company said Vyjuvek has generated $1.1 billion since launch.

The board also authorized a share buyback of up to $400 million, announced with the results on Nov. 2. Chairman and Chief Executive Officer Krish S. Krishnan said the company expects to buy shares opportunistically over the next two years.

Vyjuvek treats dystrophic epidermolysis bullosa. It is approved in the United States, Europe and Japan. In the U.S., Krystal said it has secured over 760 reimbursement approvals nationwide. It is expanding in Germany, France and Japan.

Key numbers

Metric	Latest	Change	Source
Vyjuvek net product revenue, Q3 2026	$127.3 million	from $97.8 million, +30%	SEC 8-K, Exhibit 99.1
Product revenue, nine months	$362.9 million	from $282.0 million, +28.7%	Calculated from SEC 8-K
Income from operations, Q3	$71.1 million	from $41.4 million, +72.0%	Calculated from SEC 8-K
Net income, Q3	$63.1 million	from $79.4 million, -20.5%	Calculated from SEC 8-K
Cash and investments, Sept. 30, 2026	$1.2 billion		SEC 8-K, Exhibit 99.1
Share repurchase authorization (cap)	$400 million		SEC 8-K, Exhibit 99.1

Why it matters

The quarter shows a franchise still growing at a high margin. Gross margin was 94%. Total operating expenses were $56.2 million, against $56.4 million a year earlier. With sales up and costs flat, income from operations rose to $71.1 million from $41.4 million.

Growth has held across the year. Nine-month product revenue was $362.9 million, against $282.0 million a year earlier, a 28.7% rise by OptimistFi's calculation. Nine-month net income rose to $173.8 million from $153.4 million.

OptimistFi has argued that Krystal works if Vyjuvek stays a durable, high-margin franchise that funds the next product. This quarter supports that view. Research and development spending was $14.9 million, up from $14.6 million. Operating income covered it many times over.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

Why quarterly net income fell

Net income dropped to $63.1 million from $79.4 million, a fall of 20.5% by OptimistFi's calculation. Diluted earnings per share were $2.05, down from $2.66.

The decline came below the operating line. Krystal booked income tax expense of $17.1 million, against a tax benefit of $31.4 million a year earlier. Income before taxes rose to $80.1 million from $48.0 million. The earnings drop traces to the tax swing, not to operations.

Cash, the buyback and the share count

Krystal ended September with $1.2 billion in cash and investments. The buyback cap equals about a third of that. The program has no expiration date and does not require Krystal to buy any shares. The company can change, pause or end it at any time.

The filing says timing and amount will depend on the market price, liquidity needs, clinical development and commercialization plans, and other uses of capital.

The investment case includes funding growth without diluting shareholders. Diluted weighted-average shares were 30.8 million in the quarter, up 3.4% from 29.8 million a year earlier by OptimistFi's calculation. Whether the buyback reverses that rise depends on how much Krystal actually buys, since the authorization is a ceiling.

What the pipeline has shown so far

Krystal guided full-year 2026 non-GAAP combined research and development and SG&A expense to $155.0 million to $165.0 million, excluding stock-based compensation.

Early data are encouraging but small. In a three-patient pilot of KB113 for Gorlin syndrome, more than 80% of assessed basal cell carcinoma lesions showed investigator-assessed clinical regression. Krystal has opened FDA discussions. Inhaled KB707 combined with pembrolizumab showed an objective response rate of 31% and a disease control rate of 75% in advanced lung cancer, as presented in May.

Timelines have also moved. Enrollment in the KB801 EMERALD-1 study is slower than anticipated. Krystal blamed narrow eligibility criteria and the difficulty of enrolling a placebo-controlled trial where an approved therapy exists. Top-line results are now expected in 2027. Interim KB407 results are now expected in the first half of 2027. The filing itself warns that results in a small number of patients may not predict later-stage studies.

What's next

Krystal expects interim results from the HALITE-1 study of KB111 in Hailey-Hailey disease, with five patients enrolled, before the end of 2026. Spain pricing decisions are expected later this year. A Swiss marketing application is due before year end.

In 2027, Italy launch is expected in early 2027, and an FDA meeting on KB111 is planned for the first quarter. The KB803 IOLITE study expects its last patient visit in February 2027, with top-line results shortly after. France pricing is expected no earlier than 2027.

A clean IOLITE result would be the nearest registrational evidence that the platform can produce a second product. Further slippage in enrollment or readouts would leave Vyjuvek carrying the investment case for longer.