Krystal Biotech, Inc. Fair Value Disclosure
December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Aggregate Fair Value | Cash and Cash Equivalents | Short-term Marketable Securities(1) | Long-term Marketable Securities(2) | ||||||||||||||||||||||||||||||||||
| Level 1: | |||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 496,304 | $ | — | $ | — | $ | 496,304 | $ | 496,304 | $ | — | $ | — | |||||||||||||||||||||||||||
| Subtotal | 496,304 | — | — | 496,304 | 496,304 | — | — | ||||||||||||||||||||||||||||||||||
| Level 2: | |||||||||||||||||||||||||||||||||||||||||
| Commercial paper | 12,887 | 2 | (1) | 12,888 | 12,888 | — | |||||||||||||||||||||||||||||||||||
| Corporate bonds | 211,268 | 535 | (6) | 211,797 | 142,801 | 68,996 | |||||||||||||||||||||||||||||||||||
| U.S government agency securities and treasuries | 234,216 | 653 | (1) | 234,868 | 175,798 | 59,070 | |||||||||||||||||||||||||||||||||||
| Subtotal | 458,371 | 1,190 | (8) | 459,553 | — | 331,487 | 128,066 | ||||||||||||||||||||||||||||||||||
| Total | $ | 954,675 | $ | 1,190 | $ | (8) | $ | 955,857 | $ | 496,304 | $ | 331,487 | $ | 128,066 | |||||||||||||||||||||||||||
December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Aggregate Fair Value | Cash and Cash Equivalents | Short-term Marketable Securities(1) | Long-term Marketable Securities(2) | ||||||||||||||||||||||||||||||||||
| Level 1: | |||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 344,865 | $ | — | $ | — | $ | 344,865 | $ | 344,865 | $ | — | $ | — | |||||||||||||||||||||||||||
| Subtotal | 344,865 | — | — | 344,865 | 344,865 | — | — | ||||||||||||||||||||||||||||||||||
| Level 2: | |||||||||||||||||||||||||||||||||||||||||
| Commercial paper | 15,373 | 4 | (8) | 15,369 | — | 15,369 | — | ||||||||||||||||||||||||||||||||||
| Corporate bonds | 177,771 | 423 | (225) | 177,969 | — | 86,693 | 91,276 | ||||||||||||||||||||||||||||||||||
| U.S government agency securities and treasuries | 211,283 | 318 | (173) | 211,428 | — | 150,590 | 60,838 | ||||||||||||||||||||||||||||||||||
| Subtotal | 404,427 | 745 | (406) | 404,766 | — | 252,652 | 152,114 | ||||||||||||||||||||||||||||||||||
| Total | $ | 749,292 | $ | 745 | $ | (406) | $ | 749,631 | $ | 344,865 | $ | 252,652 | $ | 152,114 | |||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 10, 2020 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.