Krystal Biotech, Inc.

• Observed GAAP P/E is about 45.86x.
• Return on equity is about 16.0%.
• Debt to equity is about 0.0x.
• [TRIGGER] allocator_boost: allocator_boost (allocator) on KRYS — watcher=allocator; producer_version=ws49-p2a-v2; plan_date=2026-08-02; rank=1; ev=8.660885; company_id=7d20c51a-2c20-4e4e-a836-6706906c9a9e; term_contributions={'event_proximity': 2.456192, 'gradability': 2.0, 'staleness': 4.204693, 'credibility_interest': 0.0}; days_since_analysis=66; pending_promises=0; reason=Allocator coverage boost rank #1 EV=8.660885 for KRYS (hot+stale; days_since=66); calendar_week={'next_event_date': '2026-08-03', 'days_until': 1, 'bases': ['expected (estimated date)'], 'in_plan_rows': True, 'never_analyzed': False}; contributing_watchers=allocator (source=allocator; url=allocator:2026-08-02:KRYS)
• Condensed Consolidated Balance Sheets (unaudited) (in thousands, except par value) March 31, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 501,313 $ 496,304 Short-term investments 322,092 331,487 Accounts receivable, net 127,022 127,425 Inventory 42,646 40,475 Prepaid taxes 10,642 14,006 Prepaid expenses and other current assets 16,026 14,905 Total current assets 1,019,741 1,024,602 Property and equipment, net 153,582 150,776 Long-term investments 193,485 128,066 Right-of-use assets 7,035 7,239 Deferred tax asset, net of valuation allowance 22,824 22,824 Other non-current assets 300 287 Total assets $ 1,396,967 $ 1,333,794 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 4,089 $ 3,238 Current portion of lease liability 1,800 1,771 Accrued rebates 70,717 58,181 Accrued expenses and other current liabilities 31,196 39,752 Total current liabilities 107,802 102,942 Lease liability 7,312 7,568 Other long-term liabilities 5,124 3,724 Total liabilities 120,238 114,234 Commitments and contingencies (see note 7) Stockholders’ equity Common stock; $ 0.00001 par value; 80,000 shares authorized as of March 31, 2026 and December 31, 2025; 29,437 and 29,192 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively.
• Condensed Consolidated Statements of Cash Flows (unaudited) Three Months Ended March 31, (in thousands) 2026 2025 Operating Activities Net income $ 55,932 $ 35,733 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 1,522 1,410 Accretion on marketable securities ( 576 ) ( 453 ) Amortization of operating lease right-of-use assets 204 224 Stock-based compensation expense, net 13,609 13,478 Realized gain on investments ( 529 ) ( 1,502 ) Other, net 136 614 Changes in operating assets and liabilities Accounts receivable, net 58 1,486 Inventory ( 243 ) ( 1,395 ) Prepaid taxes 3,365 457 Prepaid expenses and other current assets ( 1,699 ) ( 3,433 ) Lease liability ( 227 ) ( 136 ) Other long-term liabilities 1,435 534 Accounts payable 1,022 906 Accrued rebates 12,685 10,601 Accrued expenses and other current liabilities ( 6,312 ) 3,695 Accrued legal settlement — ( 31,250 ) Net cash provided by operating activities 80,382 30,969 Investing Activities Proceeds from disposal of assets — 435 Purchases of property and equipment ( 7,148 ) ( 6,204 ) Purchases of investments ( 160,033 ) ( 137,806 ) Maturities of investments 103,598 88,806 Net cash (used in) investing activities ( 63,583 ) ( 54,769 ) Financing Activities Proceeds from exercise of stock options 6,501 1,462 Taxes paid for employee tax withholding related to restricted stock units ( 16,960 ) ( 12,116 ) Taxes paid related to settlement of restricted stock awards — ( 1,812 ) Net cash (used in) financing activities ( 10,459 ) ( 12,466 ) Effect of exchange rate changes on cash and cash equivalents ( 1,331 ) 171 Net increase (decrease) in cash and cash equivalents 5,009 ( 36,095 ) Cash and cash equivalents at beginning of period 496,304 344,865 Cash and cash equivalents at end of period $ 501,313 $ 308,770 Supplemental Disclosures of Non-Cash Activities Unpaid purchases of property and equipment $ 1,218 $ 1,397 Initial recognition of right-of-use assets $ — $ 1,802 Supplemental Cash Flow Information Income taxes paid $ 627 $ 400 The accompanying notes are an integral part of these condensed consolidated financial statements.

Bull / Bear case

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