Krystal Biotech (KRYS) Is Down 11.7% After Reporting Substantially Higher Net Income – Has The Bull Case Changed?

• Earlier this week, Krystal Biotech reported quarterly and half-year earnings results, posting net income of US$38.33 million for the second quarter and US$74.07 million for the first half of 2025, both up substantially from the prior year.
• This marked improvement in both net income and earnings per share signals significant operational progress and momentum compared to last year.
• We’ll examine how these sharply higher earnings underscore Krystal Biotech’s evolving investment narrative and outlook for growth and profitability.

AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Krystal Biotech Investment Narrative Recap

Krystal Biotech’s investment narrative hinges on confidence in the commercial trajectory of its gene therapy platform, particularly its flagship product, VYJUVEK, amid ambitious international expansion. This quarter’s sharp earnings increase improves visibility on the near-term growth catalyst, overseas launches, but does not completely address the primary short-term risk: potential quarter-to-quarter sales volatility tied to patient treatment patterns and market concentration. Earnings momentum strengthens the story, but investors should still watch for revenue consistency as new markets open.

The most relevant recent announcement is VYJUVEK’s approval for the Japanese market, received in late July. This milestone, following close behind European authorization, broadens the addressable market and represents tangible progress on the company’s growth catalyst in global rollouts. Gain in profitability this quarter underscores the importance of successful reimbursement and uptake as Krystal moves from regulatory wins to commercialization in Japan and Europe.

However, investors should be aware that while the latest earnings report is positive, risks remain from...

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

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

Uncover how Krystal Biotech's forecasts yield a $205.50 fair value, a 48% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided four fair value estimates for Krystal Biotech ranging from US$176 to US$702.16 per share. While market conviction supports international expansion as a growth lever, expect wide differences in performance expectations as the company works to convert approvals into sustained revenues.

Explore 4 other fair value estimates on Krystal Biotech - why the stock might be worth just $176.00!

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 4 key rewards and 1 important warning sign 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.

Interested In Other Possibilities?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 20 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com