Krystal Biotech, Inc.

The Company’s business, reputation, results of operations, financial condition, and stock price can be materially and adversely affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of the 2025 10-K under the heading “Risk Factors.” Except as set forth below, there have been no material changes to the Company’s risk factors since the 2025 10-K was filed with the SEC on February 17, 2026. The risk factor set forth below supplements, and should be read together with, the risk factors described in the 2025 10-K. For information regarding legal proceedings relating to risks previously described, see Note 7 of the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

Our stock repurchase program may not be fully consummated or enhance long-term stockholder value, and repurchases could affect the price of our common stock, increase its volatility, and diminish our cash reserves.

In October 2026, our Board of Directors authorized the repurchase of up to $400 million of our common stock, exclusive of any applicable excise taxes, brokerage commissions, fees and other expenses incurred in connection with such repurchases. We may repurchase shares of our common stock from time to time through open market purchases, in privately negotiated transactions, or by other means permitted under applicable securities laws, including through purchases compliant with Rule 10b-18 under the Exchange Act and trading plans adopted under Rule 10b5-1 under the Exchange Act. The program has no expiration date, does not obligate us to acquire any particular amount of common stock, and may be modified, suspended, or discontinued at any time at our discretion. The timing and amount of any repurchases will depend on a number of factors, including the market price of our common stock, general business and market conditions, our liquidity and capital requirements, our clinical development and commercialization plans, alternative uses of capital, and legal and regulatory requirements. Repurchases could affect the price of our common stock and increase its volatility, and the existence of the program could cause the price of our common stock to be higher than it would be in its absence and could reduce the market liquidity for our common stock. In addition, repurchases could also reduce the cash available to fund our clinical programs, the commercialization of VYJUVEK, potential business development transactions, and other corporate purposes, and may be subject to a 1% U.S. federal excise tax. There can be no assurance that the program will be fully consummated or enhance long-term stockholder value, and the market price of our common stock may decline below the prices at which we repurchased shares. Any failure to make repurchases after we have announced an intention to do so, or any suspension or discontinuation of the program, could adversely affect the price of our common stock.