How Investors May Respond To Krystal Biotech (KRYS) Surging Net Income and EPS Growth in Q3 2025

• Krystal Biotech reported third quarter 2025 results showing net income of US$79.37 million, up from US$27.18 million a year ago, and basic earnings per share of US$2.74 versus US$0.95 in the prior-year quarter.
• This marked improvement in both quarterly and year-to-date profitability, with net income and per-share earnings rising significantly, reflects growing operational efficiencies and stronger market adoption of its key products.
• We'll explore how this substantial growth in net income could influence Krystal Biotech's future earnings trajectory and strategic outlook.

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Krystal Biotech Investment Narrative Recap

Owning Krystal Biotech means believing in the company's ability to expand VYJUVEK worldwide while developing a diversified pipeline to offset its heavy product reliance. The recent surge in quarterly net income is impressive, but it does not directly address the major short-term challenge: the unpredictability of VYJUVEK patient treatment patterns, which continues to drive near-term revenue and earnings fluctuations.

Among recent announcements, the September FDA update expanding VYJUVEK’s label to include dystrophic epidermolysis bullosa patients from birth stands out. This move could boost patient onboarding and support momentum behind the current earnings uptick, reinforcing the catalyst of broader VYJUVEK market penetration, an essential step to manage revenue concentration risk.

Still, in contrast to this progress, investors should be aware that ongoing volatility in patient compliance and treatment pauses could...

Read the full narrative on Krystal Biotech (it's free!)

Krystal Biotech's narrative projects $849.4 million revenue and $485.8 million earnings by 2028. This requires 33.2% yearly revenue growth and a $339.1 million increase in earnings from $146.7 million today.

Uncover how Krystal Biotech's forecasts yield a $212.50 fair value, a 6% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for Krystal Biotech range widely from US$176 to US$447 across four independent views. With reliance on a single high-growth product still driving quarter-to-quarter volatility, these varied perspectives highlight the importance of considering multiple opinions on the business outlook.

Explore 4 other fair value estimates on Krystal Biotech - why the stock might be worth over 2x more than the current price!

Build Your Own Krystal Biotech Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Krystal Biotech research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Krystal Biotech research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Krystal Biotech's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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