Krystal Biotech (NASDAQ:KRYS) Shares Gap Up Following Better-Than-Expected Earnings

Krystal Biotech, Inc. (NASDAQ:KRYS) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $276.45, but opened at $289.00. Krystal Biotech shares last traded at $285.45, with a volume of 212,409 shares.

The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.08. Krystal Biotech had a return on equity of 19.36% and a net margin of 53.30%.The company had revenue of $107.11 million during the quarter, compared to the consensus estimate of $105.30 million.

More Krystal Biotech News

Here are the key news stories impacting Krystal Biotech this week:

• Positive Sentiment: Q4 revenue and EPS beat — VYJUVEK net product revenue of $107.1M (Q4) and $389.1M (FY), and EPS that topped estimates, supporting higher near‑term profitability. Krystal Biotech Announces Q4 and FY2025 Results
• Positive Sentiment: Regulatory designations accelerate development: FDA granted RMAT to KB707 (advanced NSCLC) and Fast Track to KB111 (Hailey‑Hailey disease), which can speed review and regulatory interactions. Quiver: 4Q Revenue & FDA Designations
• Positive Sentiment: Strong balance sheet — ~$956M in cash and investments at year‑end provides runway for multiple trials and commercialization efforts. Quiver: Cash Position
• Neutral Sentiment: Positive clinical signals in respiratory programs (KB407 cystic fibrosis cohort showed lung delivery/expression; CORAL‑3 repeat‑dose study discussions with FDA planned), supporting longer‑term upside but still early stage. GlobeNewswire: Pipeline Updates
• Negative Sentiment: The company raised FY‑2026 non‑GAAP combined R&D & SG&A guidance but did not provide a GAAP reconciliation because it cannot confidently estimate stock‑based comp — this increases uncertainty about true GAAP expense and margins. GlobeNewswire: Guidance Note
• Negative Sentiment: Rising operating costs — SG&A increased year‑over‑year (notably stock‑based comp), which could pressure operating leverage as commercialization expands. GlobeNewswire: Expense Details
• Negative Sentiment: European rollout timing risk — pricing negotiations in Germany and France could delay broader European revenue; reimbursement timelines extend into 2026–2027. Quiver: Europe Pricing Risk
• Neutral Sentiment: Investor materials and earnings call transcript provide more color on commercial cadence and trial timelines — useful for due diligence. Seeking Alpha: Earnings Call Transcript

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on KRYS shares. Weiss Ratings restated a “hold (c+)” rating on shares of Krystal Biotech in a research note on Monday, December 29th. Citigroup lifted their target price on shares of Krystal Biotech from $320.00 to $336.00 and gave the stock a “buy” rating in a report on Monday, January 12th. The Goldman Sachs Group upped their price target on shares of Krystal Biotech from $206.00 to $327.00 and gave the company a “buy” rating in a report on Friday, January 30th. Jefferies Financial Group raised their price target on Krystal Biotech from $310.00 to $371.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, TD Cowen reissued a “buy” rating on shares of Krystal Biotech in a research report on Friday, January 9th. Nine investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $291.89.

Insider Transactions at Krystal Biotech

In other news, insider Suma Krishnan sold 25,000 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $220.16, for a total transaction of $5,504,000.00. Following the sale, the insider directly owned 1,413,711 shares in the company, valued at approximately $311,242,613.76. The trade was a 1.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Kathryn Romano sold 12,500 shares of the firm’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $272.14, for a total value of $3,401,750.00. Following the completion of the transaction, the chief accounting officer directly owned 19,318 shares of the company’s stock, valued at approximately $5,257,200.52. This trade represents a 39.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 13.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Krystal Biotech

Hedge funds have recently made changes to their positions in the business. Greenline Wealth Management LLC acquired a new stake in shares of Krystal Biotech during the 4th quarter valued at about $34,000. Sound Income Strategies LLC lifted its stake in Krystal Biotech by 1,270.0% during the fourth quarter. Sound Income Strategies LLC now owns 137 shares of the company’s stock worth $34,000 after purchasing an additional 127 shares during the period. UMB Bank n.a. lifted its stake in Krystal Biotech by 34.6% during the fourth quarter. UMB Bank n.a. now owns 144 shares of the company’s stock worth $36,000 after purchasing an additional 37 shares during the period. Bessemer Group Inc. boosted its holdings in Krystal Biotech by 106.9% during the third quarter. Bessemer Group Inc. now owns 149 shares of the company’s stock valued at $26,000 after purchasing an additional 77 shares in the last quarter. Finally, Global Retirement Partners LLC grew its stake in shares of Krystal Biotech by 788.9% in the 4th quarter. Global Retirement Partners LLC now owns 160 shares of the company’s stock valued at $39,000 after purchasing an additional 142 shares during the period. Institutional investors and hedge funds own 86.29% of the company’s stock.

Krystal Biotech Stock Performance

The firm has a 50 day moving average price of $263.97 and a two-hundred day moving average price of $207.87. The company has a market capitalization of $8.35 billion, a P/E ratio of 43.15 and a beta of 0.49.

About Krystal Biotech

Krystal Biotech, Inc is a clinical-stage biotechnology company focused on developing gene therapies for rare dermatological diseases. Headquartered in Pittsburgh, Pennsylvania, the company applies proprietary viral vector delivery technology to enable topical administration of corrective genes directly to the skin. By targeting the underlying genetic causes of inherited skin disorders, Krystal Biotech seeks to address areas of high unmet medical need with potentially transformative treatments.

The company’s lead product candidate, KB103, is designed to deliver a functional COL7A1 gene to patients with dystrophic epidermolysis bullosa (DEB), a severe and often debilitating blistering condition.