Krystal Biotech Reports 37% Revenue Growth to $96M in Q2 2025

Krystal Biotech, Inc. reported significant financial growth in its latest quarterly filing, with product revenue reaching $96.0 million for the three months ended June 30, 2025, a 37% increase from $70.3 million in the same period last year. For the first half of 2025, the company generated $184.2 million in product revenue, up 59% from $115.5 million in the first half of 2024. The increase in revenue is attributed to the successful commercialization of VYJUVEK, its FDA-approved gene therapy for dystrophic epidermolysis bullosa (DEB), which has seen growing adoption in the market.

Operating expenses for the second quarter of 2025 totaled $56.7 million, down 8% from $61.7 million in the prior year, primarily due to the absence of litigation settlement costs that had impacted the previous year's figures. The company reported a net income of $38.3 million for the quarter, a substantial increase from $15.6 million in the same quarter of 2024. This resulted in a basic net income per share of $1.33, compared to $0.54 a year earlier. For the first half of 2025, net income was $74.1 million, compared to $16.5 million in the first half of 2024.

In terms of operational developments, Krystal Biotech has expanded its geographic footprint, with VYJUVEK recently receiving approvals in Europe and Japan, following its initial FDA approval in the U.S. in May 2023. The company is preparing for a direct commercial launch in key European markets, starting with Germany expected in the third quarter of 2025. Additionally, Krystal Biotech has been actively developing its pipeline, with ongoing clinical trials for several product candidates, including KB407 for cystic fibrosis and KB408 for alpha-1 antitrypsin deficiency.

As of June 30, 2025, Krystal Biotech reported total assets of $1.14 billion, up from $1.06 billion at the end of 2024. The company had cash, cash equivalents, and short-term investments totaling approximately $682 million, which management believes will be sufficient to fund operations for at least the next 12 months. The accumulated deficit decreased to $106.6 million from $180.7 million at the end of 2024, reflecting the company's improved financial performance.

Looking ahead, Krystal Biotech anticipates continued revenue growth driven by the commercialization of VYJUVEK and the advancement of its product pipeline. The company plans to leverage its cash reserves and revenue from VYJUVEK to support ongoing operations and may seek additional capital through strategic partnerships or financing arrangements as needed. The management remains optimistic about the potential for its product candidates to address significant unmet medical needs in the biotechnology sector.