Earnings Analysis November 2, 2026

Krystal Biotech Inc ($KRYS) Q3 2026 Earnings Analysis: Revenue Up 30%, $400 Million Share Buyback Approved

Earnings Report

Revenue: $127.3 million (Year-over-year +30%, Expected $127 million) ✅ Beat

EPS (Earnings Per Share): $2.05 (GAAP diluted, Q3 2026, Expected $1.92 was non-GAAP) ✅ Beat

Guidance: Newly provided, combined adjusted R&D and SG&A expenses for fiscal year 2026 of $155 million to $165 million

Stock Reaction: After-hours +4.65% ($347.75, as of 11-02 21:06 KST)

Highlights

Viswet Revenue Up 30%: $127.3 million in Q3, cumulative $1.1 billion since launch

$400 Million Share Repurchase: Board approved, to be repurchased over 2 years as opportunities arise

Early Efficacy Confirmed for KB113: Over 80% regression of Gorlin syndrome basal cell carcinoma lesions

Q3 operating income was $71.1 million, a 72% increase from $41.4 million in the same period last year. Profits grew as revenue increased while SG&A expenses decreased from $37.6 million to $33.7 million. Cash and investment assets were $1.2 billion at the end of September.

Misses

Net Income Down 20.5%: $63.1 million, reflecting $17.1 million in income tax expense

KB801 Enrollment Delay: Enrollment of neurotrophic keratitis patients is slower than expected, with top-line expected in 2027

KB803 Schedule Pushed Back: Replacement recruitment underway due to two mid-study withdrawals, last patient visit in February 2027

Net income in the same period last year included a $31.4 million income tax refund. This quarter, despite a 72% increase in operating income, net income decreased by 20.5% due to the $17.1 million income tax expense.

What the Company Said

CEO Krish S. Krishnan stated that Viswet revenue growth is supporting profitability and funding pipeline development. The company explained the $400 million share repurchase as an expression of confidence in long-term growth prospects and disciplined capital allocation.

Market Reaction and Future Outlook

Revenue exceeded expectations, and the approval of a $400 million share repurchase program and initial clinical results for KB113 were announced on the same day. After-hours stock prices reacted on the upside.

As the number of approved prescriptions secured in the U.S. has exceeded 760, it is time to see if the number of prescribing physicians increases further in the next quarter.

With the Italy launch scheduled for early 2027, progress in price negotiations in Spain and France must be monitored.

Whether the interim results for KB111 and the results of FDA discussions regarding KB113 are released within this year is the next key point to watch.

Earnings Call Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added to this section. We will select and summarize only the most important details, such as how management explained performance and outlook, and what analysts asked.