The company has achieved significant operating leverage, with operating margins expanding to 46.1% in 2026Q1 while maintaining gross margins consistently above 92%.
| Sales/Revenue | 417.3M | 389.13M | 290.51M | 50.7M | 0 | 0 | 0 | 0 | 1.03M | 0 | 0 |
| Revenue Growth % | 25.15% | 33.94% | 473.02% | - | - | - | - | -100% | - | - | - |
| Cost of Goods Sold | 30.07M | 28.77M | 20.06M | 3.09M | 0 | 0 | 1.85M | 974K | 141K | 23K | 2K |
| COGS % of Revenue | - | 7.39% | 6.91% | 6.1% | - | - | - | - | 13.73% | - | - |
| Gross Profit | 387.24M | 360.36M | 270.45M | 47.6M | 0 | 0 | -1.85M | -974K | 886K | -23K | -2K |
| Gross Margin % | 92.79% | 92.61% | 93.09% | 93.9% | - | - | - | - | 86.27% | - | - |
| Gross Profit Growth % | - | 33.24% | 468.12% | - | - | 100% | -90.04% | -209.93% | 3952.17% | -1050% | - |
| Operating Expenses | 208.43M | 199.06M | 204.76M | 157.33M | 145.2M | 68.28M | 31.15M | 22.08M | 11.92M | 4.77M | 1.14M |
| OpEx % of Revenue | - | 51.16% | 70.48% | 310.33% | - | - | - | - | 1160.27% | - | - |
| Selling, General & Admin | 155.03M | 146.74M | 113.69M | 98.4M | 77.73M | 40.39M | 13.21M | 6.46M | 4.16M | 1.56M | 402K |
| SG&A % of Revenue | - | 37.71% | 39.13% | 194.09% | - | - | - | - | 404.58% | - | - |
| Research & Development | 59.12M | 58.05M | 53.57M | 46.43M | 42.46M | 27.88M | 17.94M | 15.62M | 7.76M | 3.21M | 741K |
| R&D % of Revenue | - | 14.92% | 18.44% | 91.58% | - | - | - | - | 755.7% | - | - |
| Other Operating Expenses | -1000K | -5.72M | 37.5M | 12.5M | 25M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 178.81M | 161.29M | 65.69M | -109.73M | -145.2M | -68.28M | -33M | -22.08M | -11.92M | -4.77M | -1.14M |
| Operating Margin % | 42.85% | 41.45% | 22.61% | -216.43% | - | - | - | - | -1160.27% | - | - |
| Operating Income Growth % | - | 145.52% | 159.87% | 24.43% | -112.66% | -106.9% | -49.45% | -85.31% | -149.71% | -317.5% | - |
| EBITDA | 185.45M | 167.85M | 72.41M | -103.82M | -141.81M | -66.43M | -31.15M | -21.11M | -11.78M | -4.75M | -1.14M |
| EBITDA Margin % | 44.44% | 43.13% | 24.92% | -204.77% | - | - | - | - | -1146.54% | - | - |
| EBITDA Growth % | 60.85% | 131.8% | 169.75% | 26.79% | -113.49% | -113.26% | -47.57% | -79.25% | -147.95% | -316.21% | - |
| D&A (Non-Cash Add-back) | 6.64M | 6.55M | 6.71M | 5.91M | 3.38M | 1.85M | 1.85M | 974K | 141K | 23K | 2K |
| EBIT | 178.81M | 161.29M | 103.19M | -97.23M | -120.2M | -68.08M | -32.17M | -19.09M | -10.89M | -4.66M | -1.14M |
| Net Interest Income | 0 | 28.18M | 29.66M | 22.62M | 5.22M | -1.29M | 832K | 2.99M | 0 | 0 | 0 |
| Interest Income | 0 | 28.18M | 29.66M | 22.62M | 5.22M | 197K | 832K | 2.99M | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 1.49M | 0 | 0 | 1.03M | 3.15M | 7K |
| Other Income/Expense | 28.51M | 28.18M | 29.66M | 122.62M | 5.22M | -1.29M | 832K | 2.99M | 1.03M | -3.15M | -7K |
| Pretax Income | 207.32M | 189.47M | 95.36M | 12.9M | -139.97M | -69.57M | -32.17M | -19.09M | -10.89M | -7.92M | -1.15M |
| Pretax Margin % | 49.68% | 48.69% | 32.82% | 25.44% | - | - | - | - | -1060.27% | - | - |
| Income Tax | -17.71M | -15.36M | 6.2M | 1.97M | 0 | 0 | 0 | 0 | -20.14K | 0 | 0 |
| Effective Tax Rate % | -8.54% | -8.11% | 6.5% | 15.24% | 0% | 0% | 0% | 0% | 0.18% | 0% | 0% |
| Net Income | 225.03M | 204.83M | 89.16M | 10.93M | -139.97M | -69.57M | -32.17M | -19.09M | -10.89M | -7.92M | -1.15M |
| Net Margin % | 53.92% | 52.64% | 30.69% | 21.56% | - | - | - | - | -1060.27% | - | - |
| Net Income Growth % | 81.53% | 129.74% | 715.58% | 107.81% | -101.2% | -116.28% | -68.52% | -75.3% | -37.49% | -588.7% | - |
| Net Income (Continuing) | 225.03M | 204.83M | 89.16M | 10.93M | -139.97M | -69.57M | -32.17M | -19.09M | -10.89M | -7.92M | -1.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.38 | 6.84 | 3.00 | 0.39 | -5.49 | -3.13 | -1.71 | -1.20 | -0.97 | -1.48 | -0.27 |
| EPS Growth % | 79.81% | 128% | 669.23% | 107.1% | -75.4% | -83.04% | -42.5% | -23.71% | 34.46% | -448.15% | - |
| EPS (Basic) | - | 7.08 | 3.12 | 0.40 | -5.49 | -3.13 | -1.71 | -1.20 | -0.97 | -1.48 | -0.27 |
| Diluted Shares Outstanding | 30.51M | 29.95M | 29.74M | 27.75M | 25.49M | 22.2M | 18.79M | 15.9M | 11.2M | 5.36M | 4.28M |
| Basic Shares Outstanding | 29.29M | 28.94M | 28.59M | 27.15M | 25.49M | 22.2M | 18.79M | 15.9M | 11.2M | 5.36M | 4.28M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Clinical pipeline execution risk
According to recent financial disclosures, KRYS achieved a 31.9% year-over-year revenue growth in 2026Q1, signaling that the commercial rollout of VYJUVEK is successfully penetrating the target patient population while maintaining a consistent trajectory of expansion across the most recent quarterly reporting periods.
The revenue growth appears to be driven by sustained demand for VYJUVEK, suggesting that the company is effectively transitioning from initial launch bolus to a recurring maintenance model. Investors should monitor whether this growth rate remains durable as the company exhausts the prevalent patient backlog and shifts toward identifying new incident cases.
As reported in quarterly filings, KRYS consistently maintains gross margins exceeding 92%, a figure that underscores the high-value nature of its proprietary STAR-D platform and suggests significant pricing power relative to traditional gene therapy peers who often face higher manufacturing and distribution cost burdens.
This structural margin profile implies that the company has successfully optimized its in-house manufacturing capabilities in Pittsburgh. The ability to sustain these levels suggests that the marginal cost of production remains low, providing a substantial buffer for ongoing commercial and clinical investment.
Based on the provided income statement data, KRYS has demonstrated significant operating leverage, with operating margins expanding from negative territory in early 2024 to 46.1% by 2026Q1, indicating that commercial revenue growth is currently outpacing the incremental costs associated with scaling the specialized sales force.
The efficiency in managing SG&A relative to top-line growth suggests that the company is successfully leveraging its existing commercial infrastructure. This trend warrants further investigation to determine if this operating leverage is sustainable as the company expands into more complex, non-dermal indications.
Analysis of the company's financial statements reveals that stock-based compensation remains a recurring expense, totaling $13.6 million in 2026Q1, which investors should consider when evaluating the true cash-generative capacity of the firm's reported net income and overall earnings quality.
While the company has achieved profitability, the reliance on equity-based incentives suggests that management is balancing cash preservation with talent retention. Analysts should continue to adjust for these non-cash charges to assess the underlying operational performance and the sustainability of current EPS growth.
Despite current profitability, a critical counter-narrative suggests that the company's 90%+ gross margins may face future compression if the transition from topical skin therapies to more complex inhaled delivery systems for cystic fibrosis requires significantly higher manufacturing and regulatory compliance costs than currently anticipated.
The market may be overestimating the scalability of the STAR-D platform across diverse therapeutic areas. If the company's future pipeline requires more intensive clinical and manufacturing resources, the current margin profile may prove to be a peak rather than a baseline.
Quick answers to the most common questions about buying KRYS stock.
For fiscal year 2025, Krystal Biotech, Inc. (KRYS) reported total revenue of $389.1M.
Krystal Biotech, Inc. (KRYS) is profitable, generating $204.8M in net income for the fiscal year ending 2025 with a net profit margin of 52.6%.
Krystal Biotech, Inc. (KRYS) reported an operating income of $161.3M, resulting in an operating profit margin of 41.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Krystal Biotech, Inc. (KRYS) generated $360.4M in gross profit for the year, representing a gross profit margin of 92.6%. This demonstrates the company's core pricing power and production efficiency.