Krystal Biotech, Inc.KRYS

Krystal Biotech, Inc. Revenue Disclosure

10-KFiled Feb 17, 20262 min read
Product Revenue, Accounts Receivable and Reserves for Product Sales
Following FDA approval in May 2023, the Company began commercial marketing and sales of VYJUVEK and began recognizing revenue in the third quarter of 2023. The Company’s product revenue, net of sales discounts and allowances totaled $389.1 million, $290.5 million and $50.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024, and 2023, approximately 75%, 87% and 100%, respectively, of the Company’s product revenue, net was generated from a single customer in the U.S. No other customer exceeded 10% of the Company’s product revenue, net.
The Company’s accounts receivable, net balance relating to VYJUVEK sales was $127.4 million and $104.7 million as of December 31, 2025 and 2024, respectively. Net product revenue receivable from the Company’s customers who individually accounted for 10% or more of net product revenue receivable consisted of the following:


Percent of Net Product Revenue Receivable
Year Ended December 31,
20252024
Customer A
66 %81 %
Customer B
14 %13 %

The following table summarizes changes in allowances and discounts:
(in thousands)RebatesPrompt PayOther AccrualsTotal
Balance as of December 31, 2023
$5,977 $858 $279 $7,114 
Provision
45,853 9,212 420 55,485 
Payments/Credits
(13,607)(7,500)(373)(21,480)
Balance as of December 31, 2024
$38,223 $2,570 $326 $41,119 
Provision65,273 13,478 507 79,258 
Payments/Credits(41,591)(10,214)(455)(52,260)
Balance as of December 31, 2025
$61,905 $5,834 $378 $68,117 
Rebates are included in accrued rebates and other long-term liabilities on the consolidated balance sheets. Prompt pay discount is recorded as an allowance against accounts receivable, net on the consolidated balance sheets. Other long-term liabilities include $3.7 million of long-term accrued rebates. Other accruals are included in accrued expenses and other current liabilities on the consolidated balance sheets. Provisions for rebates, prompt pay discount and other accruals are recorded as reductions to product revenue, net on the consolidated statements of operations and comprehensive income.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 19, 2025
2023Feb 26, 2024

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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