Krystal Biotech Inc

Krystal Biotech came up short of Wall Street expectations in the second quarter of 2026, posting adjusted EPS of $1.79 against a consensus estimate of $1.91, a miss of 6.50%, while revenue of $119.22 million trailed the $121.04 million estimate by 1.50%, though the top line still represented 24.1% growth over the prior-year period. The primary commercial engine, VYJUVEK, drove that revenue figure as the gene therapy continued to benefit from durable U.S. demand, a prescriber base exceeding 640 physicians, and more than 730 reimbursement approvals secured, with cumulative product revenue since launch now approaching $965.90 million. Gross margin held at an exceptional 95%, and net income climbed to $54.77 million from $38.33 million a year earlier, underscoring the business's underlying profitability even as SG&A rose to $39.85 million to fund international expansion into Germany, France, and Japan, with Spain and Italy launches targeted before year end. With multiple pipeline readouts expected in the back half of 2026, including top-line data from the registrational IOLITE study of KB803, management signaled the coming 12 to 18 months could mark a meaningful transition toward a multi-product genetic medicines company.