Question-and-Answer SessionI mean why don't we just like jump right in. You guys have been on quite a journey over the last few years since becoming, I guess, your own thing independent in that way. How are you feeling about where you are now, I guess, both strategically but also the cultural side of that?Brenton L. SaundersCEO & Chairman Yes, it's a great question. Thanks, Patrick. So look, I guess we spun out in '22. I joined in early '23. And so my frame of reference really is '23 and beyond because '22 ...

Summary of Bausch + Lomb FY Conference Call Company Overview - **Company**: Bausch + Lomb (NYSE: BLCO) - **Event**: FY Conference Call on September 08, 2025 Key Points Strategic Focus and Growth - Bausch + Lomb has prioritized three main areas since its spin-off in 2022: selling excellence, operational excellence, and innovation [3][4] - The company achieved approximately **24% top line growth** since 2023, attributed to enhanced sales capabilities and a robust product launch cycle [4] - A significant focus has been placed on stabilizing the supply chain, which faced disruptions post-pandemic [4][5] Product Innovation and Pipeline - The company has developed a strong pipeline to support future product launches, with an investor day scheduled for November 13 to provide detailed insights [5] - Miebo, launched in late 2023, is highlighted as a major success, with expectations for continued growth and profitability transitioning from launch to growth mode by 2026 [13][14] Consumer Market Dynamics - The consumer market remains stable, with strong consumption despite retailers reducing inventory levels [11] - Brands like Lumify and Blink have performed exceptionally well, with Blink targeting younger demographics through innovative marketing strategies [11][51] Financial Performance and Margins - Financial performance reflects the company's strategic initiatives, with a focus on maximizing asset value and margin expansion as it enters the next growth phase [9][10] - The company is committed to improving margins over time, with a long-term financial strategy outlined in the Vision 27 program [59][63] Surgical Market and Product Reintroduction - The reintroduction of the Invista platform after a recall has been successful, with efforts focused on building supply to meet demand [32][33] - The surgical market remains competitive, with newer technologies showing better outcomes than older ones [34] Capital Allocation and M&A Strategy - Bausch + Lomb emphasizes disciplined capital allocation, focusing on maximizing ROI across its diverse business segments [42][56] - The company is open to strategic M&A opportunities that align with its goals, particularly in intellectual property [56] Future Outlook - The company is optimistic about its growth trajectory, particularly in the dry eye market and the potential of biomimetic materials [27][29] - Upcoming investor day is expected to provide further clarity on the company's long-term strategy and financial metrics [59][63] Additional Insights - The company has noted a bifurcation in consumer behavior, with some segments opting for private label products, but overall brand loyalty remains strong [12] - The competitive landscape in the IOL market is evolving, with private equity influencing clinic dynamics, but Bausch + Lomb's comprehensive service infrastructure is seen as a competitive advantage [36][37] This summary encapsulates the key insights and strategic directions discussed during the Bausch + Lomb FY Conference Call, highlighting the company's growth, innovation, and market dynamics.

Core Insights - Bausch + Lomb reported a GAAP revenue growth of 5% year over year to $1.278 billion, exceeding analyst expectations by $18 million [1] - Adjusted EPS (non-GAAP) was $0.07, beating consensus estimates by $0.01 but down 46.2% from $0.13 in the previous year [2] - The company experienced a narrowed net loss of $62 million compared to $151 million a year earlier, indicating some operational improvement [2][8] Business Overview - Bausch + Lomb specializes in eye health products, including contact lenses, OTC consumer eye care brands, prescription pharmaceuticals, and surgical devices, operating in three segments: Vision Care, Surgical, and Pharmaceuticals [3] Strategic Focus - The growth strategy includes a broad product portfolio, separation from Bausch Health Companies, geographic expansion, and investment in R&D, while managing regulatory risks and increasing scale in consumer and surgical markets [4] Quarterly Performance - Vision Care segment revenue reached $753 million, up 8% year over year, driven by daily silicone hydrogel contact lenses and consumer brands [5] - Surgical segment revenue was $216 million, growing 3% year over year, despite a voluntary recall of certain enVista IOL products [6] - Pharmaceuticals revenue declined to $309 million, attributed to weak US generics performance and pricing pressures [7] Profitability Metrics - Adjusted EBITDA (non-GAAP) decreased to $191 million, reflecting higher spending on marketing and costs from the recall [8] - Cash flow from operations improved to $35 million, a 133.3% increase from the previous year, due to better working capital management [2][8] Research and Development - R&D expenses increased to $96 million, with around 60 projects underway, including next-generation contact lenses and therapeutics for glaucoma and dry eye disease [9] Future Guidance - Full-year 2025 revenue guidance was raised to $5.05 billion to $5.15 billion, with projected constant currency revenue growth between 5% and 7% [10] - Adjusted EBITDA guidance for 2025 is set at $860 million to $910 million, driven by demand in Vision Care and Surgical [10] Key Watch Points - Management highlighted potential tariff impacts on adjusted EBITDA margin, estimating a 120 basis point headwind in the second half of 2025 [11] - Ongoing cost control, stabilization of Pharmaceuticals, and new product rollouts in Vision Care and Surgical are critical areas to monitor [11]

Part I. [Financial Information](index=15&type=section&id=Part%20I.%20Financial%20Information) This section presents Bausch + Lomb Corporation's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=15&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents Bausch + Lomb Corporation's unaudited condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects increased total assets and liabilities as of June 30, 2025, driven by property, plant and equipment, goodwill, and long-term debt | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | | :-------------------------------- | :----------------------------- | :------------------------------ | :------------------- | | Total assets | $13,832 | $13,469 | $363 | | Total liabilities | $7,324 | $6,925 | $399 | | Total equity | $6,508 | $6,544 | $(36) | - Goodwill increased by **$144 million** from **$4,523 million** to **$4,667 million**, and property, plant and equipment, net, increased by **$195 million** from **$1,485 million** to **$1,680 million**[24](index=24&type=chunk) - Long-term debt increased by **$187 million** from **$4,744 million** to **$4,931 million**[24](index=24&type=chunk) [Condensed Consolidated Statements of Operations](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues increased, but operating income declined, while net loss improved due to a significant benefit from income taxes for the three and six months ended June 30, 2025 | Metric | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | Revenues | $1,278 | $1,216 | $62 | 5% | | Operating (loss) income | $(11) | $26 | $(37) | -142% | | Net loss attributable to Bausch + Lomb Corporation | $(62) | $(151) | $89 | 59% | | Basic and diluted loss per share | $(0.18) | $(0.43) | $0.25 | 58% | | Metric | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | Revenues | $2,415 | $2,315 | $100 | 4% | | Operating (loss) income | $(94) | $32 | $(126) | -394% | | Net loss attributable to Bausch + Lomb Corporation | $(274) | $(318) | $44 | 14% | | Basic and diluted loss per share | $(0.78) | $(0.90) | $0.12 | 13% | - The benefit from income taxes for the three months ended June 30, 2025, was **$89 million**, a significant improvement compared to a provision of **$(72) million** in the prior year, contributing to the reduced net loss[27](index=27&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income significantly improved for the three and six months ended June 30, 2025, primarily due to favorable foreign currency translation | Metric | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | Change (in millions) | | :------------------------------------------------ | :--------------------------------------- | :--------------------------------------- | :------------------- | | Net loss | $(58) | $(148) | $90 | | Foreign currency translation adjustment | $114 | $(21) | $135 | | Comprehensive income (loss) | $56 | $(168) | $224 | | Metric | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | | :------------------------------------------------ | :--------------------------------------- | :--------------------------------------- | :------------------- | | Net loss | $(269) | $(311) | $42 | | Foreign currency translation adjustment | $195 | $(62) | $257 | | Comprehensive income (loss) | $(74) | $(373) | $299 | [Condensed Consolidated Statements of Shareholders' Equity](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Total shareholders' equity slightly decreased, reflecting a net loss partially offset by other comprehensive income and share-based compensation | Metric | June 30, 2025 (in millions) | January 1, 2025 (in millions) | Change (in millions) | | :--------------------------------------- | :----------------------------- | :---------------------------- | :------------------- | | Total Bausch + Lomb Corporation shareholders' equity | $6,440 | $6,473 | $(33) | | Accumulated deficit | $(845) | $(571) | $(274) | | Accumulated other comprehensive loss | $(1,191) | $(1,385) | $194 | - Share-based compensation contributed **$58 million** to additional paid-in capital for the six months ended June 30, 2025[29](index=29&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=21&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased due to refinancing fees, while investing and financing activities saw notable changes | Cash Flow Activity | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | | Net cash provided by operating activities | $10 | $56 | $(46) | | Net cash used in investing activities | $(206) | $(131) | $(75) | | Net cash provided by financing activities | $121 | $52 | $69 | | Net decrease in cash and cash equivalents and restricted cash | $(44) | $(32) | $(12) | - The decrease in operating cash flow is primarily attributed to financing fees associated with the June 2025 refinancing, partially offset by favorable changes in operating assets and liabilities[304](index=304&type=chunk) - Investing activities saw a **$75 million** increase in cash used, mainly due to higher purchases of property, plant and equipment[306](index=306&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes detail financial statements, covering business segments, accounting policies, acquisitions, debt refinancing, and legal proceedings [1. DESCRIPTION OF BUSINESS](index=23&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) Bausch + Lomb is a global eye health company operating in three segments, with BHC holding **88%** of shares and evaluating full separation - Bausch + Lomb operates in three reportable segments: Vision Care (contact lenses, consumer eye care), Pharmaceuticals (proprietary and generic eye medications), and Surgical (medical device equipment, IOLs, surgical instruments)[33](index=33&type=chunk)[174](index=174&type=chunk) - Bausch Health Companies Inc. (BHC) directly or indirectly holds approximately **88%** of Bausch + Lomb's issued and outstanding common shares as of July 23, 2025[34](index=34&type=chunk) - BHC is still evaluating the full separation of Bausch + Lomb, which may include a distribution of shares, monetization of ownership, or a sale of the company, contingent on achieving targeted debt leverage ratios and obtaining necessary approvals[35](index=35&type=chunk) [2. SIGNIFICANT ACCOUNTING POLICIES](index=24&type=section&id=2.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Financial statements are prepared under U.S. GAAP, with no new accounting standards adopted in H1 2025, but future ASU impacts are being evaluated - The financial statements are prepared in accordance with U.S. GAAP for interim financial reporting and are consistent with the accounting policies used in the Annual Report on Form 10-K for the year ended December 31, 2024[36](index=36&type=chunk) - No new accounting standards were adopted during the six months ended June 30, 2025[40](index=40&type=chunk) - The company is evaluating the impact of ASU 2023-09 (Income Tax Disclosures, effective FY2025) and ASU 2024-03 (Expense Disaggregation Disclosures, effective FY2026) on its future disclosures[41](index=41&type=chunk)[42](index=42&type=chunk) [3. REVENUE RECOGNITION](index=24&type=section&id=3.%20REVENUE%20RECOGNITION) Revenue from eye health product sales is recognized upon customer control, with variable consideration and credit loss allowances estimated - Revenue is primarily generated from product sales in eye health, including branded/generic pharmaceuticals, OTC products, and medical devices (contact lenses, IOLs, surgical equipment)[44](index=44&type=chunk) - Revenue for product sales is recognized at a point in time, generally upon shipment or customer receipt, or upon delivery and installation for surgical equipment[47](index=47&type=chunk)[48](index=48&type=chunk) - IOLs sold on consignment are recognized upon notification of use[48](index=48&type=chunk) | Provision Type | Reserve Balance, Jan 1, 2025 (in millions) | Current Period Provision (in millions) | Payments and Credits (in millions) | Reserve Balance, June 30, 2025 (in millions) | | :----------------------- | :--------------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------------- | | Discounts and Allowances | $120 | $225 | $(228) | $117 | | Returns | $88 | $32 | $(44) | $76 | | Rebates | $497 | $932 | $(914) | $515 | | Chargebacks | $74 | $295 | $(308) | $61 | | Distribution Fees | $26 | $47 | $(44) | $29 | | **Total** | **$805** | **$1,531** | **$(1,538)** | **$798** | [4. RELATED PARTIES](index=28&type=section&id=4.%20RELATED%20PARTIES) Bausch + Lomb maintains a relationship with BHC, governed by separation agreements, with **$4 million** in related charges for the six months ended June 30, 2025 - BHC holds approximately **88%** of Bausch + Lomb's common shares as of July 23, 2025[60](index=60&type=chunk) - The company has various agreements with BHC, including a Master Separation Agreement, Transition Services Agreement (TSA), Tax Matters Agreement, and Employee Matters Agreement, which define their post-IPO relationship[64](index=64&type=chunk)[67](index=67&type=chunk) - Charges related to these agreements, primarily reflected in Selling, general and administrative expenses, were **$4 million** for the six months ended June 30, 2025, up from **$3 million** in the prior year[65](index=65&type=chunk) [5. ACQUISITIONS](index=30&type=section&id=5.%20ACQUISITIONS) Strategic acquisitions in 2025 and 2024, including Whitecap Biosciences, Elios Vision, and Trukera Medical, expanded the eye health portfolio - On January 3, 2025, Bausch + Lomb acquired Whitecap Biosciences for an upfront payment of approximately **$28 million**, expensed as acquired in-process research and development costs[66](index=66&type=chunk)[68](index=68&type=chunk) - On December 10, 2024, the company acquired Elios Vision for approximately **$99 million** cash and potential future milestone obligations, adding the ELIOS procedure for glaucoma treatment[70](index=70&type=chunk) - On July 19, 2024, the company acquired Trukera Medical for approximately **$24 million**, expanding its dry eye market presence with the ScoutPro device[71](index=71&type=chunk) [6. FAIR VALUE MEASUREMENTS](index=32&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS) Financial assets and liabilities are measured at fair value; acquisition-related contingent consideration decreased, and long-term debt fair value was **$5,093 million** | Financial Instrument | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :----------------------------------- | :----------------------------- | :------------------------------ | | Cash equivalents (Level 1 & 2) | $101 | $60 | | Foreign currency exchange contracts (assets) | $2 | $7 | | Acquisition-related contingent consideration (Level 3) | $96 | $123 | | Foreign currency exchange contracts (liabilities) | $5 | $3 | | Cross-currency swaps (liabilities) | $162 | $34 | - Acquisition-related contingent consideration, a Level 3 measurement, decreased by **$27 million** for the six months ended June 30, 2025, primarily due to fair value adjustments[83](index=83&type=chunk) - The fair value of long-term debt was **$5,093 million** as of June 30, 2025, an increase from **$4,898 million** at December 31, 2024, estimated using quoted market prices (Level 2)[84](index=84&type=chunk) [7. INVENTORIES](index=38&type=section&id=7.%20INVENTORIES) Net inventories slightly increased to **$1,051 million** as of June 30, 2025, primarily driven by finished goods | Inventory Component | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------ | :----------------------------- | :------------------------------ | | Raw materials | $262 | $262 | | Work in process | $85 | $99 | | Finished goods | $704 | $675 | | **Total Inventories, net** | **$1,051** | **$1,036** | [8. INTANGIBLE ASSETS AND GOODWILL](index=38&type=section&id=8.%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) Net intangible assets decreased, while goodwill increased to **$4,667 million** due to foreign exchange, with no impairment found after testing | Asset Type | June 30, 2025 (Net Carrying Amount, in millions) | December 31, 2024 (Net Carrying Amount, in millions) | | :--------------------------------------- | :----------------------------------------------- | :------------------------------------------------ | | Total finite-lived intangible assets | $1,563 | $1,696 | | Acquired in-process research and development intangible asset | $100 | $100 | | B&L Trademark | $1,698 | $1,698 | | **Total Intangible Assets, net** | **$3,361** | **$3,494** | | Segment | Goodwill, Dec 31, 2024 (in millions) | Foreign Exchange Impact (in millions) | Goodwill, June 30, 2025 (in millions) | | :-------------- | :----------------------------------- | :------------------------------------ | :---------------------------------- | | Vision Care | $3,529 | $28 | $3,557 | | Pharmaceuticals | $644 | $104 | $748 | | Surgical | $350 | $12 | $362 | | **Total Goodwill** | **$4,523** | **$144** | **$4,667** | - A quantitative goodwill impairment test was performed as of June 30, 2025, due to a decline in market capitalization, but no impairment was recorded as the fair value of each reporting unit exceeded its carrying value by more than **25%**[91](index=91&type=chunk)[92](index=92&type=chunk) [9. ACCRUED AND OTHER CURRENT LIABILITIES](index=40&type=section&id=9.%20ACCRUED%20AND%20OTHER%20CURRENT%20LIABILITIES) Accrued and other current liabilities increased to **$1,363 million** as of June 30, 2025, mainly due to product rebates and other accrued liabilities | Liability Component | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :-------------------------------- | :----------------------------- | :------------------------------ | | Product Rebates | $477 | $465 | | Employee Compensation and Benefit Costs | $225 | $230 | | Product Returns | $76 | $88 | | Advertising and Promotion | $66 | $52 | | Discounts and Allowances | $59 | $64 | | Professional Fees | $52 | $59 | | Other | $408 | $351 | | **Total Accrued and other current liabilities** | **$1,363** | **$1,309** | [10. FINANCING ARRANGEMENTS](index=40&type=section&id=10.%20FINANCING%20ARRANGEMENTS) A significant debt refinancing in June 2025 established new credit facilities and notes, resulting in a **$9 million** loss on extinguishment and an **8.06%** weighted average interest rate - On June 26, 2025, Bausch + Lomb completed a refinancing, entering into a new **$800 million** June 2030 Revolving Credit Facility and a **$2,325 million** January 2031 Term Facility[99](index=99&type=chunk) - The company issued **€675 million** aggregate principal amount of Senior Secured Floating Rate Notes due January 2031, accruing interest at three-month EURIBOR plus **3.875%**[111](index=111&type=chunk) | Debt Type | Maturity | Principal Amount (in millions) | Net of Issuance Costs (in millions) | | :-------------------------------- | :------------- | :----------------------------- | :---------------------------------- | | September 2028 Term Facility | September 2028 | $491 | $484 | | January 2031 Term Facility | January 2031 | $2,325 | $2,292 | | October 2028 Secured Notes | October 2028 | $1,400 | $1,385 | | January 2031 Secured Notes | January 2031 | $796 | $784 | | Other | Various | $12 | $14 | | **Total long-term debt** | | **$5,024** | **$4,959** | - A loss on extinguishment of debt of **$9 million** was incurred for the three and six months ended June 30, 2025, related to the June 2025 refinancing[119](index=119&type=chunk)[266](index=266&type=chunk)[298](index=298&type=chunk) - The weighted average stated rate of interest for outstanding debt obligations was **8.06%** as of June 30, 2025, up from **7.95%** at December 31, 2024[118](index=118&type=chunk)[331](index=331&type=chunk) [11. SHARE-BASED COMPENSATION](index=48&type=section&id=11.%20SHARE-BASED%20COMPENSATION) The Omnibus Incentive Plan authorizes **52 million** common shares for awards, with expense increasing to **$58 million** for the six months ended June 30, 2025 - The Amended and Restated Plan authorizes an aggregate of **52,000,000** common shares for issuance, including stock options, RSUs, and PSUs[124](index=124&type=chunk) | Metric | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | | :----------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Stock options expense | $4 | $2 | $7 | $4 | | PSUs/RSUs expense | $26 | $20 | $51 | $37 | | **Total Share-based compensation expense** | **$30** | **$22** | **$58** | **$41** | - As of June 30, 2025, unrecognized compensation expenses for outstanding non-vested awards totaled **$157 million**, to be amortized over a weighted-average period of **1.65 years**[128](index=128&type=chunk) [12. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=49&type=section&id=12.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Accumulated other comprehensive loss improved to **$(1,191) million** as of June 30, 2025, due to favorable foreign currency translation | Component | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :-------------------------------- | :----------------------------- | :------------------------------ | | Foreign currency translation adjustment | $(1,164) | $(1,358) | | Pension adjustment, net of tax | $(27) | $(27) | | **Total Accumulated other comprehensive loss** | **$(1,191)** | **$(1,385)** | [13. OTHER EXPENSE, NET](index=50&type=section&id=13.%20OTHER%20EXPENSE%2C%20NET) Other expense, net, increased to **$44 million** for the six months ended June 30, 2025, driven by restructuring and acquired R&D costs | Expense Category | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Restructuring, integration and separation costs | $31 | $6 | $32 | $17 | | Acquired in-process research and development costs | $1 | $3 | $29 | $3 | | Acquisition-related contingent consideration | $(18) | $0 | $(27) | $1 | | **Total Other expense, net** | **$22** | **$14** | **$44** | **$23** | - Acquired in-process research and development costs in 2025 primarily relate to the acquisition of Whitecap Biosciences[131](index=131&type=chunk)[290](index=290&type=chunk) [14. INCOME TAXES](index=50&type=section&id=14.%20INCOME%20TAXES) A **$58 million** benefit from income taxes was recorded for the six months ended June 30, 2025, a significant improvement due to jurisdictional mix and discrete tax effects | Metric | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Benefit from (provision for) income taxes | $89 | $(72) | $58 | $(145) | - The favorable change in income taxes for the six months ended June 30, 2025, was primarily due to jurisdictional mix of earnings and discrete tax effects, including a benefit for previously accrued taxes that settled favorably with the IRS and the impact of the enVista IOL recall[133](index=133&type=chunk)[300](index=300&type=chunk) - The valuation allowance against deferred tax assets increased to **$204 million** as of June 30, 2025, from **$179 million** at December 31, 2024, mainly due to losses in jurisdictions with full valuation allowances[134](index=134&type=chunk) [15. LOSS PER SHARE](index=52&type=section&id=15.%20LOSS%20PER%20SHARE) Basic and diluted loss per share improved for both periods ended June 30, 2025, with potential common shares excluded due to anti-dilutive effects | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss attributable to Bausch + Lomb Corporation (in millions) | $(62) | $(151) | $(274) | $(318) | | Basic and diluted loss per share | $(0.18) | $(0.43) | $(0.78) | $(0.90) | | Basic weighted-average common shares (in millions) | 353.7 | 351.8 | 353.3 | 351.5 | | Diluted weighted-average common shares (in millions) | 353.7 | 351.8 | 353.3 | 351.5 | - Approximately **16.6 million** and **15.2 million** potential common shares from RSUs, PSUs, and stock options were excluded from diluted EPS for the three and six months ended June 30, 2025, respectively, because their effect would have been anti-dilutive[139](index=139&type=chunk) [16. LEGAL PROCEEDINGS](index=52&type=section&id=16.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings, with **$13 million** accrued for current loss contingencies, and no material adverse effect expected - As of June 30, 2025, Bausch + Lomb's Condensed Consolidated Balance Sheets include accrued current loss contingencies of **$13 million** related to matters that are both probable and reasonably estimable[142](index=142&type=chunk) - The company is a defendant in multidistrict antitrust litigation regarding generic pharmaceutical pricing, with anticipated fee and damage splitting with BHC[144](index=144&type=chunk)[146](index=146&type=chunk) - Product liability lawsuits related to Shower to Shower are ongoing, but Johnson & Johnson has indemnification obligations for potential liabilities and legal fees[147](index=147&type=chunk)[152](index=152&type=chunk) - Intellectual property disputes include ongoing Paragraph IV proceedings against generic competitors for Lumify, Vyzulta, and Lotemax SM products[159](index=159&type=chunk)[164](index=164&type=chunk) - The PreserVision AREDS patent litigation and the New Mexico Attorney General consumer protection action have been concluded or settled, with the latter resulting in a consent judgment dismissing the company[167](index=167&type=chunk)[171](index=171&type=chunk) [17. SEGMENT INFORMATION](index=62&type=section&id=17.%20SEGMENT%20INFORMATION) Vision Care showed revenue and profit growth, while Pharmaceuticals and Surgical segments faced profit declines for the six months ended June 30, 2025 - The company's three reportable segments are Vision Care (contact lenses, consumer eye care), Pharmaceuticals (proprietary and generic eye medications), and Surgical (medical device equipment, IOLs, surgical instruments)[172](index=172&type=chunk)[174](index=174&type=chunk) | Segment | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :-------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | **Revenues:** | | | | | | Vision Care | $1,409 | $1,332 | $77 | 6% | | Pharmaceuticals | $576 | $577 | $(1) | 0% | | Surgical | $430 | $406 | $24 | 6% | | **Segment Profit:** | | | | | | Vision Care | $385 | $370 | $15 | 4% | | Pharmaceuticals | $48 | $131 | $(83) | -63% | | Surgical | $(5) | $15 | $(20) | -133% | - The top ten products/franchises accounted for **54%** of total revenues for the six months ended June 30, 2025[179](index=179&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=67&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of Bausch + Lomb's financial condition and results of operations for the three and six months ended June 30, 2025 [INTRODUCTION](index=67&type=section&id=INTRODUCTION) This MD&A introduction outlines its scope, forward-looking nature, and adherence to U.S. GAAP for interim financial reporting - The MD&A is updated through July 30, 2025, and should be read with the unaudited interim Condensed Consolidated Financial Statements[181](index=181&type=chunk) - All currency amounts are expressed in U.S. dollars and prepared in accordance with U.S. GAAP for interim financial reporting[182](index=182&type=chunk) [OVERVIEW](index=67&type=section&id=OVERVIEW) Bausch + Lomb is a leading global eye health company with a broad product portfolio, remaining a BHC subsidiary while BHC evaluates full separation - Bausch + Lomb is a leading global eye health company with a comprehensive portfolio of approximately **400** products, including contact lenses, IOLs, surgical systems, and prescription eye-medications[183](index=183&type=chunk) - BHC holds approximately **88%** of Bausch + Lomb's common shares as of July 23, 2025[184](index=184&type=chunk) - BHC continues to evaluate the separation of Bausch + Lomb, which may involve a distribution, monetization, or sale, but there is no assurance that the separation will be consummated or that anticipated benefits will be realized[184](index=184&type=chunk) [Reportable Segments](index=68&type=section&id=Reportable%20Segments) Bausch + Lomb operates in three reportable segments: Vision Care, Pharmaceuticals, and Surgical, each with distinct product portfolios - Vision Care segment includes contact lenses (e.g., Bausch + Lomb INFUSE, Biotrue ONEday, ULTRA) and consumer eye care products (e.g., Biotrue, Renu, Lumify, PreserVision)[185](index=185&type=chunk)[186](index=186&type=chunk) - Pharmaceuticals segment offers proprietary and generic products for various eye conditions, with key brands like MIEBO, XIIDRA, Vyzulta, and Lotemax[186](index=186&type=chunk) - Surgical segment provides medical device equipment, consumables, and technologies for eye conditions, including IOLs (e.g., enVista, Crystalens), phacoemulsification equipment (e.g., Stellaris Elite), and surgical instruments[186](index=186&type=chunk) [Strategic Acquisitions and Licensing Agreements](index=69&type=section&id=Strategic%20Acquisitions%20and%20Licensing%20Agreements) Strategic acquisitions in 2025 and 2024, including Whitecap Biosciences, Elios Vision, and Trukera Medical, expanded the eye health portfolio - In 2025, Bausch + Lomb acquired Whitecap Biosciences to expand its clinical-stage pipeline for glaucoma and geographic atrophy[188](index=188&type=chunk) - In 2024, the company acquired Elios Vision for its ELIOS procedure for glaucoma and Trukera Medical for its ScoutPro device, expanding its dry eye market presence[189](index=189&type=chunk) - Prior acquisitions include XIIDRA (2023) for dry eye disease, the Blink OTC product line (2023), and AcuFocus (2023) for the IC-8 Apthera™ IOL[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) [Product Development](index=71&type=section&id=Product%20Development) Bausch + Lomb's R&D pipeline includes over **60** projects across Vision Care, Pharmaceuticals, and Surgical segments, focusing on new product launches and clinical studies - The R&D organization is advancing a global pipeline of over **60** projects, including new contact lenses for myopia, next-generation cataract equipment, premium IOLs, and treatments for dry eye[192](index=192&type=chunk) - Recent Vision Care developments include the launch of Lumify Preservative Free (Q1 2025), expansion of the Blink franchise with NutriTears (June 2024), and ongoing development of AREDS3 vitamins and myopia control contact lenses[196](index=196&type=chunk) - Pharmaceuticals segment anticipates initiating clinical studies in H2 2025 for dual-action lifitegrast (dry eye), ocular pain, and glaucoma neuroprotection[196](index=196&type=chunk)[197](index=197&type=chunk) - Surgical segment pipeline includes the launch of enVista Aspire IOLs (U.S. Oct 2023, Europe Jan 2025) and enVista Envy (Canada June 2024), anticipated launch of enVista Beyond EDOF IOL (U.S. early 2027), European launch of LuxLife Trifocal IOL, and planned U.S. submission of ELIOS[198](index=198&type=chunk)[207](index=207&type=chunk) [Business Trends](index=73&type=section&id=Business%20Trends) Key business trends include the enVista IOL recall, minimal impact from geopolitical conflicts, macroeconomic monitoring, and evaluation of tax and healthcare legislative changes - A voluntary recall of certain enVista IOL products was initiated in March 2025 due to an increased number of Toxic Anterior Segment Syndrome (TASS) reports[201](index=201&type=chunk) - The issue was traced to raw material from a different vendor, and enhanced inspection protocols have been implemented, with full production and resupply ongoing[202](index=202&type=chunk) - Revenues from Russia, Ukraine, and Belarus were approximately **3%** of total revenues for the six months ended June 30, 2025, and the conflict has not had a material impact on operations to date[207](index=207&type=chunk) - Revenues from the Middle East conflict regions were less than **1%** of total revenues for the six months ended June 30, 2025, with sales in Iran covered by an OFAC license[210](index=210&type=chunk) - The company is monitoring macroeconomic conditions, including tariffs and trade restrictions, and is exploring mitigation actions such as strategic inventory stocking, shifting manufacturing, and optimizing existing capacity[212](index=212&type=chunk)[213](index=213&type=chunk) - The OECD's global minimum corporate tax rate (Pillar Two) is expected to have minimal impact on the 2025 tax rate, but future risks from changes in tax law are anticipated[219](index=219&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed in July 2025, retroactively extends and modifies certain Tax Cuts & Jobs Act provisions, with the company evaluating its effects on 2025 and future tax provisions[220](index=220&type=chunk) - The company faces generic competition and loss of exclusivity for products like Lumify, PreserVision, Vyzulta, and Lotemax SM, which it manages through patent defense and pipeline development[226](index=226&type=chunk)[227](index=227&type=chunk) [RESULTS OF OPERATIONS](index=80&type=section&id=RESULTS%20OF%20OPERATIONS) Results of operations for the three and six months ended June 30, 2025, show revenue growth, but declining operating income, influenced by segment performance, refinancing, and tax benefits [Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=81&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202024) Revenues increased by **5%**, but operating income declined, while net loss improved significantly due to a favorable change in income taxes | Metric | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | Revenues | $1,278 | $1,216 | $62 | 5% | | Operating (loss) income | $(11) | $26 | $(37) | -142% | | Net loss attributable to Bausch + Lomb Corporation | $(62) | $(151) | $89 | 59% | | Basic and diluted loss per share | $(0.18) | $(0.43) | $0.25 | 58% | - Revenue increase was driven by **$64 million** from increased volumes (Vision Care, Pharmaceuticals), **$21 million** from favorable foreign currencies, and **$6 million** from acquisitions, partially offset by **$27 million** from decreased net realized pricing and **$2 million** from divestitures/discontinuations[232](index=232&type=chunk) | Segment | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :-------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | Vision Care Revenue | $753 | $697 | $56 | 8% | | Pharmaceuticals Revenue | $309 | $310 | $(1) | 0% | | Surgical Revenue | $216 | $209 | $7 | 3% | | Vision Care Segment Profit | $209 | $192 | $17 | 9% | | Pharmaceuticals Segment Profit | $37 | $78 | $(41) | -53% | | Surgical Segment Profit | $2 | $4 | $(2) | -50% | - Cost of goods sold as a percentage of product sales increased to **41.1%** from **39.7%**, driven by product mix and the enVista IOL recall[249](index=249&type=chunk) - SG&A expenses increased by **$44 million** (**8%**) to **$579 million**, primarily due to higher selling and advertising/promotion costs for MIEBO[251](index=251&type=chunk) - R&D expenses increased by **$12 million** (**14%**) to **$96 million**, due to certain products in development[253](index=253&type=chunk) - Interest expense increased by **$26 million** to **$128 million**, primarily due to the write-off of financing costs from the June 2025 refinancing[265](index=265&type=chunk) [Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=91&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) Revenues increased by **4%**, but operating loss widened, while net loss improved due to a significant favorable change in income taxes | Metric | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | Revenues | $2,415 | $2,315 | $100 | 4% | | Operating (loss) income | $(94) | $32 | $(126) | -394% | | Net loss attributable to Bausch + Lomb Corporation | $(274) | $(318) | $44 | 14% | | Basic and diluted loss per share | $(0.78) | $(0.90) | $0.12 | 13% | - Revenue increase was driven by **$127 million** from increased volumes, **$12 million** from acquisitions, and **$2 million** from favorable foreign currencies, partially offset by **$38 million** from decreased net realized pricing and **$3 million** from divestitures/discontinuations[272](index=272&type=chunk) | Segment | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | Change (%) | | :-------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | :--------- | | Vision Care Revenue | $1,409 | $1,332 | $77 | 6% | | Pharmaceuticals Revenue | $576 | $577 | $(1) | 0% | | Surgical Revenue | $430 | $406 | $24 | 6% | | Vision Care Segment Profit | $385 | $370 | $15 | 4% | | Pharmaceuticals Segment Profit | $48 | $131 | $(83) | -63% | | Surgical Segment Profit | $(5) | $15 | $(20) | -133% | - Cost of goods sold as a percentage of product sales increased to **41.7%** from **39.2%**, driven by product mix and the enVista IOL recall, including an inventory reserve[285](index=285&type=chunk) - SG&A expenses increased by **$103 million** (**10%**) to **$1,142 million**, primarily due to higher selling and advertising/promotion costs for MIEBO and higher Business Transformation Costs[286](index=286&type=chunk) - R&D expenses increased by **$16 million** (**10%**) to **$182 million**, due to certain products in development[286](index=286&type=chunk) - Interest expense increased by **$21 million** to **$222 million**, primarily due to the write-off of financing costs from the June 2025 refinancing[297](index=297&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=97&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Operating cash flow decreased significantly due to refinancing fees, while investing and financing activities saw notable changes, and the company completed a major debt refinancing in June 2025 | Cash Flow Activity | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | Change (in millions) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------- | | Net cash provided by operating activities | $10 | $56 | $(46) | | Net cash used in investing activities | $(206) | $(131) | $(75) | | Net cash provided by financing activities | $121 | $52 | $69 | | Net decrease in cash and cash equivalents and restricted cash | $(44) | $(32) | $(12) | - The decrease in operating cash flow is primarily attributed to financing fees associated with the June 2025 refinancing[304](index=304&type=chunk) - Net cash used in investing activities increased due to higher purchases of property, plant and equipment[306](index=306&type=chunk) - The company completed a significant debt refinancing in June 2025, including a new **$800 million** revolving credit facility and a **$2,325 million** term B loan facility, and issued **€675 million** in Senior Secured Floating Rate Notes[314](index=314&type=chunk)[326](index=326&type=chunk) - The weighted average stated rate of interest for outstanding debt obligations increased to **8.06%** as of June 30, 2025, from **7.95%** at December 31, 2024[331](index=331&type=chunk) - The company expects primary cash requirements for H2 2025 to include approximately **$185 million** for interest payments, **$14 million** for mandatory debt amortization, and **$80 million** for capital expenditures[341](index=341&type=chunk) [OUTSTANDING SHARE DATA](index=105&type=section&id=OUTSTANDING%20SHARE%20DATA) As of July 23, 2025, Bausch + Lomb had **353.9 million** common shares outstanding, along with various equity awards - As of July 23, 2025, there were **353,865,790** common shares issued and outstanding[341](index=341&type=chunk) - Outstanding equity awards include approximately **10.3 million** stock options, **7.6 million** RSUs, and **5.2 million** PSUs, with a maximum of **13.1 million** common shares issuable upon PSU vesting[341](index=341&type=chunk)[342](index=342&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=107&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) No significant changes were identified in critical accounting policies and estimates during the six months ended June 30, 2025 - No significant changes were identified in critical accounting policies and estimates during the six months ended June 30, 2025[343](index=343&type=chunk) [NEW ACCOUNTING STANDARDS](index=107&type=section&id=NEW%20ACCOUNTING%20STANDARDS) No new accounting standards were adopted during the six months ended June 30, 2025 - No new accounting standards were adopted during the six months ended June 30, 2025[344](index=344&type=chunk) [FORWARD-LOOKING STATEMENTS](index=107&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section provides cautionary statements regarding forward-looking information, highlighting various risks and uncertainties that could materially impact future results - Forward-looking statements relate to business strategy, product pipeline, financial performance, R&D spend, liquidity, debt compliance, tax impacts, litigation, and the anticipated separation from BHC[346](index=346&type=chunk) - Key risks include adverse economic conditions, the enVista IOL recall, trade policies and tariffs, uncertainties regarding the BHC separation, ongoing litigation, regulatory actions, and the ability to comply with debt covenants[348](index=348&type=chunk)[349](index=349&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk)[354](index=354&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk) - The company undertakes no obligation to update or revise forward-looking statements, except as required by law, and cautions that the list of factors affecting future results is not exhaustive[357](index=357&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=118&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's assessment of market risks, except for interest rate risk, have occurred since the Annual Report - No material changes to the company's assessment of market risks, except for interest rate risk, have occurred since the Annual Report[359](index=359&type=chunk) [Item 4. Controls and Procedures](index=118&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated as effective as of June 30, 2025[360](index=360&type=chunk) - No material changes in internal controls over financial reporting occurred during the three months ended June 30, 2025[362](index=362&type=chunk) Part II. [Other Information](index=119&type=section&id=Part%20II.%20Other%20Information) This section provides other information, including legal proceedings, risk factors, equity sales, defaults, mine safety, and a list of exhibits [Item 1. Legal Proceedings](index=119&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with **$13 million** accrued for current loss contingencies, and no material adverse effect expected - The company is involved in various legal proceedings, but based on current information and reserves, no material adverse effect on financial position, liquidity, or results of operations is expected[364](index=364&type=chunk) - Further details on legal proceedings are available in Note 16 of the unaudited interim Condensed Consolidated Financial Statements[365](index=365&type=chunk) [Item 1A. Risk Factors](index=119&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the risk factors as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[366](index=366&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=119&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales or purchases of equity securities occurred during the three months ended June 30, 2025 - No unregistered sales of equity securities or purchases of equity securities by the company occurred during the three months ended June 30, 2025[367](index=367&type=chunk) [Item 3. Defaults Upon Senior Securities](index=119&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[368](index=368&type=chunk) [Item 4. Mine Safety Disclosures](index=119&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported - No mine safety disclosures were reported[368](index=368&type=chunk) [Item 5. Other Information](index=119&type=section&id=Item%205.%20Other%20Information) No other information was reported - No other information was reported[368](index=368&type=chunk) [Item 6. Exhibits](index=120&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key debt agreements and certifications from the CEO and CFO - Key exhibits include the Indenture for the January 2031 Secured Notes and the Third Amendment to Credit and Guaranty Agreement, both filed in June 2025[370](index=370&type=chunk)[374](index=374&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002 are included[370](index=370&type=chunk)[374](index=374&type=chunk)

Core Insights - Bausch + Lomb reported $1.28 billion in revenue for Q2 2025, a 5.1% year-over-year increase, with an EPS of $0.07 compared to $0.13 a year ago, indicating a decline in earnings per share [1] - The revenue exceeded the Zacks Consensus Estimate of $1.25 billion by 2.37%, while the EPS surpassed the consensus estimate of $0.06 by 16.67% [1] Revenue Breakdown - Vision Care revenues reached $753 million, exceeding the average estimate of $742.89 million, reflecting an 8% year-over-year increase [4] - Surgical revenues were reported at $216 million, surpassing the average estimate of $180.14 million, with a year-over-year change of 3.4% [4] - Pharmaceutical revenues totaled $309 million, slightly below the estimated $329.52 million, showing a minor decline of 0.3% year-over-year [4] - Total product sales amounted to $1.27 billion, exceeding the average estimate of $1.25 billion, representing a 4.9% year-over-year increase [4] - Other revenues were reported at $6 million, above the estimated $4 million, marking a significant 100% year-over-year increase [4] Stock Performance - Bausch + Lomb shares have returned +8.9% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced a loss of $0.07, delivering a surprise of -333.33%. Bausch + Lomb (BLCO) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. There are no easy answers to this key qu ...

Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $1,278 million, reflecting a year-over-year growth of 3% [14] - Excluding the impact of the Envista recall, total company revenue grew by 6% in the quarter [15] - Adjusted gross margin for Q2 was 60.6%, representing a 130 basis points decrease year-over-year [26] - Adjusted EBITDA for Q2, excluding acquired IPR&D, was $192 million, absorbing a one-time impact of $19 million from the investor recall [27] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q2 was $753 million, increasing by 6%, driven by growth in both consumer and contact lenses [16] - The consumer business grew by 6% in Q2, with Lumify growing by 27% and the dry eye portfolio delivering $115 million in revenue, representing 19% growth [18][19] - Surgical segment revenue was $216 million, an increase of 1%, but would have been 15% growth excluding the recall impact [21] - Pharma segment revenue was $309 million in Q2, representing a decline of 1%, with U.S. branded Rx business up 8% [23] Market Data and Key Metrics Changes - U.S. contact lens revenue grew by 11%, EMEA by 11%, LATAM by 25%, Japan by 3%, and China by 7% [20] - The dry eye portfolio saw a 16% constant currency revenue growth, with Blink eye drops growing by 13% and Artilac by 39% [34] Company Strategy and Development Direction - The company is focused on innovation and has a robust pipeline aimed at transforming the company and accelerating sales growth [6][9] - The strategic roadmap emphasizes operational excellence and a commitment to recapturing market share post-recall [10][11] - The company plans to showcase promising candidates at the upcoming Investor Day, indicating a focus on category disruption [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to overcome challenges and transform the company, highlighting the resilience shown in Q2 [44][45] - The company anticipates steady improvement in the U.S. generics business in the second half of the year [25] - Management expects the fourth quarter to be the strongest due to seasonality and the ramp-up of Envista [29] Other Important Information - The company raised its full-year revenue guidance to a range of $5,050 million to $5,150 million, reflecting constant currency growth of approximately 5% to 7% [28] - Adjusted EBITDA guidance was raised to a range of $860 million to $910 million [29] - The company successfully refinanced $3,100 million of its debt, extending maturities to 2031 [28] Q&A Session Summary Question: Highlights informing the decision to recommit to the company - Management expressed deep confidence in the team, products, and R&D pipeline, emphasizing the opportunity to transform the company [44][46] Question: Quantifying tariff impact and strategy in pharma - Management noted that the tariff impact is now estimated at 40 basis points for 2025, which is absorbed in the guidance [58][59] - The focus in pharma is on driving prescription and demand, with expectations for profitability to improve in 2026 and beyond [50][51] Question: Update on the contact lens market - Management sees the contact lens market as healthy, with strong performance from both new and legacy products [75][76] Question: Pipeline updates and approval timelines - The company expects to submit the ILIUS file this year, with approval anticipated in early second half of next year [93] - The launch of Envista Beyond may experience a couple of months delay due to recruitment issues [97]

Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $1,278 million, reflecting a year-over-year growth of 3% [13] - Excluding the impact of the Envista recall, total company revenue grew by 6% in the quarter [14] - Adjusted gross margin for Q2 was 60.6%, representing a 130 basis points decrease year-over-year [24] - Adjusted EBITDA for Q2, excluding acquired IPR&D, was $192 million, absorbing a one-time impact of $19 million from the investor recall [25] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q2 was $753 million, increasing by 6%, driven by growth in both consumer and contact lenses [15] - The dry eye portfolio generated $115 million in revenue in Q2, representing 19% growth [16] - Surgical segment revenue was $216 million, an increase of 1%, but would have been 15% growth excluding the recall [19] - Pharma segment revenue was $309 million in Q2, representing a decline of 1% [21] Market Data and Key Metrics Changes - U.S. contact lens revenue grew by 11%, EMEA by 11%, LATAM by 25%, Japan by 3%, and China by 7% [19] - The Daily SiHy contact lens franchise grew by 36% in Q2, continuing to be the fastest-growing brand [18] - The U.S. branded Rx business in Pharma was up 8% in Q2, driven by growth in MyBu and Xiidra [21] Company Strategy and Development Direction - The company is focused on innovation and has a robust pipeline that represents its future [7] - The strategic roadmap aims to accelerate growth and improve operational excellence [5] - The company plans to showcase potential game changers at the upcoming Investor Day [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to overcome challenges and transform the company [42] - The company anticipates steady improvement in the U.S. Generics business in the second half of the year [24] - Management remains optimistic about the contact lens market and expects it to remain healthy [75] Other Important Information - The company raised its full-year revenue guidance to a range of $5,050 million to $5,150 million, reflecting constant currency growth of approximately 5% to 7% [26] - Adjusted EBITDA guidance was raised to a range of $860 million to $910 million [27] - The company successfully executed a refinancing of $3,100 million of its debt, extending maturities to 2031 [26] Q&A Session Summary Question: Highlights informing the decision to recommit to the company - Management expressed deep confidence in the team, products, and R&D pipeline, emphasizing the opportunity to transform the company [41] Question: Quantifying the tariff impact and strategy in Pharma - Management noted that the tariff impact is now estimated at 40 basis points for 2025, which is absorbed in the guidance [56] Question: Update on the product pipeline and future expectations - Management indicated that the contact lens R&D projects are at their best in the company's history, with significant advancements expected [98]

Financial Performance Highlights - Bausch + Lomb reported Q2 2025 revenue of $1278 million, a 5% increase compared to $1216 million in Q2 2024[23] - Constant currency revenue growth was 3% in Q2 2025, and 6% excluding the impact of the enVista recall[12, 23] - Vision Care segment led growth with a 6% constant currency revenue increase in Q2 2025[23] - Adjusted EBITDA (excluding Acquired IPR&D) was $192 million, with an adjusted EBITDA margin of 150%[33] - Adjusted net income attributable to Bausch + Lomb was $25 million, or $007 per share[33] Segment Performance - Vision Care revenue increased by 8% to $753 million in Q2 2025[33] - Surgical revenue increased by 3% to $216 million in Q2 2025[33] - Pharmaceuticals revenue remained relatively flat at $309 million in Q2 2025[33] Future Outlook - Bausch + Lomb raised its FY25 revenue guidance to $505 billion - $515 billion[39] - The company anticipates constant currency revenue growth of approximately 5-7% for FY25[39]

[Executive Summary & Company Highlights](index=1&type=section&id=1_Executive_Summary_Company_Highlights) This section provides an overview of Bausch + Lomb's strong Q2 2025 financial performance and key strategic achievements, including raised full-year guidance [Overall Performance Overview](index=1&type=section&id=1.1_Overall_Performance_Overview) Bausch + Lomb reported strong Q2 2025 financial results with revenue growth and raised full-year guidance, despite a GAAP net loss - Total Reported Revenue (Q2 2025): **$1.278 billion**[4](index=4&type=chunk) - Revenue Growth (Q2 2025 vs Q2 2024): **5% reported**, **3% constant currency**[4](index=4&type=chunk)[5](index=5&type=chunk) - GAAP Net Loss Attributable to Bausch + Lomb Corporation (Q2 2025): **$62 million**[5](index=5&type=chunk) - Adjusted EBITDA (non-GAAP) (Q2 2025): **$191 million**[5](index=5&type=chunk) - Full-Year 2025 Guidance: **Raised**[5](index=5&type=chunk) [Key Company Highlights](index=1&type=section&id=1.2_Key_Company_Highlights) Strategic achievements in Q2 2025 included resuming full IOL production, achieving $1 billion in dry eye revenue, and successful refinancing - Resumed full production of all enVista® platform IOLs following return to market[6](index=6&type=chunk) - Reached approximately **$1 billion** in trailing 12-month revenue across the dry eye portfolio[6](index=6&type=chunk) - Drove broad-based growth in Vision Care, led by key contact lens franchises and strong performance from consumer brands[6](index=6&type=chunk) - Successfully executed refinancing transaction thereby extending maturity profile[6](index=6&type=chunk) [Second-Quarter 2025 Financial Performance](index=1&type=section&id=2_Second-Quarter_2025_Financial_Performance) This section details Bausch + Lomb's Q2 2025 financial results, covering revenue, operating income, net income, EPS, cash flow, and EBITDA [Revenue Performance](index=1&type=section&id=2.1_Revenue_Performance) Total reported revenue for Q2 2025 increased by 5% to $1.278 billion, with a 3% constant currency growth Total Bausch + Lomb Revenue Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Reported Change ($ Millions) | Reported Change (%) | Constant Currency Change (%) | | :----------------------- | :----------------- | :----------------- | :------------------ | :------------------ | :--------------------------- | | Total Bausch + Lomb Revenue | $1,278 | $1,216 | $62 | 5 % | 3 % | [Operating Results](index=3&type=section&id=2.2_Operating_Results) Q2 2025 operating loss of $11 million, a $37 million decrease from Q2 2024, primarily due to higher costs and recall impacts Operating (Loss) Income (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :----------------------- | :----------------- | :----------------- | :---------------- | | Operating (loss) income | ($11) | $26 | ($37) | - The change was largely due to higher selling and advertising and promotion costs, primarily attributable to MIEBO, a one-time impact related to the voluntary recall of certain enVista IOL products, product mix and currency impact[11](index=11&type=chunk) [Net Income and EPS](index=3&type=section&id=2.3_Net_Income_and_EPS) Net loss for Q2 2025 was $62 million, a favorable change of $89 million, with GAAP EPS at ($0.18) and Adjusted EPS at $0.07 Net Loss and EPS Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------------- | :------ | :------ | :----- | | Net loss attributable to Bausch + Lomb Corporation (Millions) | ($62) | ($151) | $89 (favorable) | | GAAP EPS Basic and Diluted | ($0.18) | ($0.43) | $0.25 (favorable) | | Adjusted EPS (non-GAAP) | $0.07 | $0.13 | ($0.06) | - The change in net loss was mainly driven by a decrease in income taxes, partially offset by financing fees from the refinancing debt transaction and operating results[12](index=12&type=chunk) [Cash Flow and EBITDA](index=3&type=section&id=2.4_Cash_Flow_and_EBITDA) Cash flow from operations increased to $35 million, while Adjusted EBITDA decreased to $191 million, primarily due to operating results Cash Flow from Operations and Adjusted EBITDA (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | | :------------------------------------------------ | :----------------- | :----------------- | :---------------- | | Cash flow from operations | $35 | $15 | $20 | | Adjusted EBITDA (non-GAAP) | $191 | $209 | ($18) | | Adjusted EBITDA excluding Acquired IPR&D (non-GAAP) | $192 | $212 | ($20) | - Cash flow from operations was positively impacted primarily by improvement in working capital, offset by financing fees related to the refinancing debt transaction[14](index=14&type=chunk) - Adjusted EBITDA decrease was primarily due to the decrease in operating results[16](index=16&type=chunk) [Segment Performance](index=3&type=section&id=3_Segment_Performance) This section analyzes the Q2 2025 revenue performance across Bausch + Lomb's Vision Care, Surgical, and Pharmaceuticals segments [Vision Care Segment](index=3&type=section&id=3.1_Vision_Care_Segment) Vision Care revenue grew 8% to $753 million in Q2 2025, driven by dry eye portfolio, LUMIFY, and key contact lens brands Vision Care Segment Revenue (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Reported Change (%) | Constant Currency Change (%) | | :---------------- | :----------------- | :----------------- | :------------------ | :--------------------------- | | Vision Care Revenue | $753 | $697 | 8 % | 6 % | - Growth driven by sales from the dry eye portfolio and LUMIFY in the consumer eye care business[8](index=8&type=chunk) - Growth also driven by SiHy Daily lenses, ULTRA monthly and Biotrue ONEday in the contact lens business[8](index=8&type=chunk) [Surgical Segment](index=3&type=section&id=3.2_Surgical_Segment) Surgical segment revenue increased 3% to $216 million in Q2 2025, primarily from consumables, despite an IOL recall Surgical Segment Revenue (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Reported Change (%) | Constant Currency Change (%) | | :--------------- | :----------------- | :----------------- | :------------------ | :--------------------------- | | Surgical Revenue | $216 | $209 | 3 % | 1 % | - Growth primarily driven by growth in consumables[9](index=9&type=chunk) - Partially offset by the voluntary recall of certain enVista IOL products[9](index=9&type=chunk) [Pharmaceuticals Segment](index=3&type=section&id=3.3_Pharmaceuticals_Segment) Pharmaceuticals revenue was $309 million in Q2 2025, a slight decline due to U.S. Generics and XIIDRA pricing, partially offset by MIEBO Pharmaceuticals Segment Revenue (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Reported Change (%) | Constant Currency Change (%) | | :-------------------- | :----------------- | :----------------- | :------------------ | :--------------------------- | | Pharmaceuticals Revenue | $309 | $310 | — % | (1)% | - Decline driven by a decline in the U.S. Generics business and gross-to-net pricing pressure, primarily attributable to XIIDRA®[10](index=10&type=chunk) - Partially offset by increased sales of MIEBO and revenue growth in International Pharmaceuticals[10](index=10&type=chunk) [Financial Outlook](index=6&type=section&id=4_Financial_Outlook) This section outlines Bausch + Lomb's updated full-year 2025 financial guidance, reflecting strong business performance and currency tailwinds [Full-Year 2025 Guidance](index=6&type=section&id=4.1_Full-Year_2025_Guidance) Bausch + Lomb raised its full-year 2025 revenue guidance to $5.050 billion - $5.150 billion and Adjusted EBITDA to $860 million - $910 million Full-Year 2025 Financial Guidance Update | Metric | As of April 30, 2025 Guidance | As of July 30, 2025 Guidance | Change | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :----- | | Full-Year Revenue | $5.000B - $5.100B | $5.050B - $5.150B | Increased | | Full-Year Constant Currency Growth | ~4.5 - 6.5% | ~5 - 7% | Increased | | Full-Year Adjusted EBITDA Excluding Acquired IPR&D | $850M - $900M | $860M - $910M | Increased | | Full-Year Revenue Foreign Exchange Tailwinds | Nominal | $25M | Increased | - The increase in the anticipated full-year revenue is a result of strong business performance and an increase in expected currency tailwinds[20](index=20&type=chunk) - The increases in anticipated constant currency revenue growth and anticipated Adjusted EBITDA excluding Acquired IPR&D are a result of strong business performance[20](index=20&type=chunk) [Additional Financial Information](index=8&type=section&id=5_Additional_Financial_Information) This section provides balance sheet highlights, conference call details, and an explanation of the company's non-GAAP financial measures [Balance Sheet Highlights](index=8&type=section&id=5.1_Balance_Sheet_Highlights) As of June 30, 2025, Bausch + Lomb reported $272 million in cash and 353.7 million basic weighted average shares outstanding - Bausch + Lomb's cash, cash equivalents and restricted cash were **$272 million** at June 30, 2025[21](index=21&type=chunk) - Basic weighted average shares outstanding for the second quarter of 2025 were **353.7 million**[21](index=21&type=chunk) [Conference Call Details](index=8&type=section&id=5.2_Conference_Call_Details) Bausch + Lomb hosted a conference call on July 30, 2025, at 8:00 a.m. ET to discuss Q2 2025 financial results - Date: Wednesday, July 30, 2025[22](index=22&type=chunk) - Time: 8:00 a.m. ET[22](index=22&type=chunk) - Webcast: https://www.webcaster4.com/Webcast/Page/2883/51714[22](index=22&type=chunk) - Participant Event Dial-in (North America): +1 (888) 506-0062[22](index=22&type=chunk) [Non-GAAP Information](index=11&type=section&id=5.3_Non-GAAP_Information) The company uses non-GAAP measures like Adjusted EBITDA and EPS to supplement GAAP for performance evaluation, internal assessment, and forecasting - Non-GAAP measures are used as key metrics in the evaluation of the company's performance and consolidated financial results and, in part, in the determination of cash bonuses for its executive officers[29](index=29&type=chunk) - Specific Non-GAAP Measures include EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding Acquired IPR&D, Adjusted Net Income, Constant Currency, Adjusted EPS[33](index=33&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk) - These measures and ratios do not have any standardized meaning under GAAP and other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently[31](index=31&type=chunk) [Company Information & Disclosures](index=10&type=section&id=6_Company_Information_Disclosures) This section provides an overview of Bausch + Lomb's global operations and a disclaimer regarding forward-looking statements and associated risks [About Bausch + Lomb](index=10&type=section&id=6.1_About_Bausch_Lomb) Bausch + Lomb, established in 1853, is a global eye health company with approximately 400 products and 13,500 employees across 100 countries - Bausch + Lomb is dedicated to protecting and enhancing the gift of sight for millions of people around the world[24](index=24&type=chunk) - Its comprehensive portfolio includes approximately **400 products**: contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments[24](index=24&type=chunk) - Bausch + Lomb has approximately **13,500 employees** and a presence in approximately **100 countries**[24](index=24&type=chunk) [Forward-looking Statements](index=10&type=section&id=6.2_Forward-looking_Statements) This disclaimer highlights that forward-looking statements, including 2025 guidance, are subject to risks like separation from Bausch Health, acquisitions, and product recalls - Forward-looking statements include statements regarding Bausch + Lomb's future prospects and performance, including the company's 2025 full-year guidance[25](index=25&type=chunk) - These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described[25](index=25&type=chunk) - Risks and uncertainties include those discussed in SEC filings, risks respecting the proposed plan to separate Bausch + Lomb, acquisitions (XIIDRA®, Elios Vision, Inc.), voluntary recall of enVista® IOL products, tariffs, and adverse economic conditions and other macroeconomic factors[25](index=25&type=chunk)[26](index=26&type=chunk) [Financial Tables](index=16&type=section&id=7_Financial_Tables) This section provides detailed unaudited consolidated financial statements and reconciliations of GAAP to non-GAAP measures for Q2 2025 and 2024 [Consolidated Statements of Operations](index=16&type=section&id=7.1_Consolidated_Statements_of_Operations) This table presents unaudited consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, detailing revenues, expenses, and net loss Consolidated Statements of Operations (Three and Six Months Ended June 30, 2025 and 2024) | (unaudited) | | | Three Months Ended | | | Six Months Ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | June 30, | | | | June 30, | | | | (in millions, except per share amounts) | | 2025 | | 2024 | | 2025 | | 2024 | | Revenues | | | | | | | | | | Product sales | $ | 1,272 | $ | 1,213 | $ | 2,405 | $ | 2,307 | | Other revenues | | 6 | | 3 | | 10 | | 8 | | | | 1,278 | | 1,216 | | 2,415 | | 2,315 | | Expenses | | | | | | | | | | Cost of goods sold (excluding amortization and impairments of intangible assets) | | 523 | | 482 | | 1,004 | | 905 | | Cost of other revenues | | 2 | | 1 | | 3 | | 2 | | Selling, general and administrative | | 579 | | 535 | | 1,142 | | 1,039 | | Research and development | | 96 | | 84 | | 182 | | 166 | | Amortization of intangible assets | | 67 | | 74 | | 134 | | 148 | | Other expense, net | | 22 | | 14 | | 44 | | 23 | | | | 1,289 | | 1,190 | | 2,509 | | 2,283 | | Operating (loss) income | | (11) | | 26 | | (94) | | 32 | | Interest income | | 3 | | 3 | | 6 | | 6 | | Interest expense | | (128) | | (102) | | (222) | | (201) | | Loss on extinguishment of debt | | (9) | | — | | (9) | | — | | Foreign exchange and other | | (2) | | (3) | | (8) | | (3) | | Loss before provision for income taxes | | (147) | | (76) | | (327) | | (166) | | Benefit from (provision for income taxes) | | 89 | | (72) | | 58 | | (145) | | Net loss | | (58) | | (148) | | (269) | | (311) | | Net income attributable to noncontrolling interest | | (4) | | (3) | | (5) | | (7) | | Net loss attributable to Bausch + Lomb Corporation | $ | (62) | $ | (151) | $ | (274) | $ | (318) | | Basic and diluted loss per share attributable to Bausch + Lomb Corporation | $ | (0.18) | $ | (0.43) | $ | (0.78) | $ | (0.90) | | Basic weighted-average common shares | | 353.7 | | 351.8 | | 353.3 | | 351.5 | | Diluted weighted-average common shares | | 353.7 | | 351.8 | | 353.3 | | 351.5 | [Reconciliation of GAAP to Non-GAAP Net Income and EPS](index=17&type=section&id=7.2_Reconciliation_of_GAAP_to_Non-GAAP_Net_Income_and_EPS) This table reconciles GAAP Net Loss and Diluted Loss per Share to Adjusted Net Income and EPS (non-GAAP) for Q2 2025 and 2024, detailing specific adjustments Reconciliation of GAAP Net Loss and Diluted Loss per Share Attributable to Bausch + Lomb Corporation to Adjusted Net Income (Loss) (non-GAAP) and Adjusted Earnings (Loss) Per Share (non-GAAP) (Three Months Ended June 30, 2025 and 2024) | | | | | Three Months Ended June 30, | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2025 | | 2024 | | | | | (in millions, except per share amounts) | Income | | | Earnings per | Income | | | Earnings per | | | (Expense) | | | Share Impact | (Expense) | | | Share Impact | | Net loss and Diluted loss per share attributable to Bausch + Lomb Corporation | $ | (62) | $ | (0.18) $ | | (151) | $ | (0.43) | | (a) Non-GAAP adjustments: | | | | | | | | | | Amortization of intangible assets | | 67 | | 0.19 | | 74 | | 0.21 | | Asset impairments | | — | | — | | 5 | | 0.01 | | Restructuring, integration and transformation costs | | 53 | | 0.15 | | 27 | | 0.08 | | Acquisition-related costs and adjustments (excluding amortization of intangible | | | | | | | | | | assets) | | 5 | | 0.01 | | 21 | | 0.06 | | Loss on extinguishment of debt and write-down of financing fees | | 40 | | 0.11 | | — | | — | | Separation costs and separation-related costs | | — | | — | | 1 | | — | | Gain on sale of assets | | — | | — | | (1) | | — | | Other | | 13 | | 0.04 | | 4 | | 0.01 | | Tax effect of non-GAAP adjustments | | (91) | | (0.25) | | 65 | | 0.19 | | Total non-GAAP adjustments | | 87 | | 0.25 | | 196 | | 0.56 | | Adjusted net income (non-GAAP) and Adjusted earnings per | | | | | | | | | | share (non-GAAP) | $ | 25 | $ | 0.07 $ | | 45 | $ | 0.13 | | Acquired IPR&D | | 1 | | — | | 3 | | 0.01 | | Adjusted net income excluding Acquired IPR&D (non-GAAP) and Adjusted | | | | | | | | | | earnings per share excluding Acquired IPR&D (non-GAAP) | $ | 26 | $ | 0.07 $ | | 48 | $ | 0.14 | [Reconciliation of GAAP to Non-GAAP Financial Information](index=18&type=section&id=7.3_Reconciliation_of_GAAP_to_Non-GAAP_Financial_Information) This table provides a detailed reconciliation of various GAAP financial statement line items to their non-GAAP adjusted counterparts for Q2 2025 and 2024 Reconciliation of GAAP to Non-GAAP Financial Information (Three and Six Months Ended June 30, 2025 and 2024) | | | | Three Months Ended | | | | Six Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | June 30, | | | June 30, | | | | (in millions) | | 2025 | | 2024 | | 2025 | | 2024 | | Cost of goods sold reconciliation: | | | | | | | | | | GAAP Cost of goods sold (excluding amortization and impairments of intangible assets) | $ | 523 | $ | 482 | $ | 1,004 | $ | 905 | | (a) Fair value inventory step-up resulting from acquisitions | | (21) | | (20) | | (43) | | (40) | | Adjusted cost of goods sold (excluding amortization and impairments of intangible assets) (non-GAAP) | $ | 502 | $ | 462 | $ | 961 | $ | 865 | | Selling, general and administrative reconciliation: | | | | | | | | | | GAAP Selling, general and administrative | $ | 579 | $ | 535 | $ | 1,142 | $ | 1,039 | | (b) Separation-related costs | | — | | (1) | | (1) | | (2) | | (c) Transformation costs | | (22) | | (21) | | (58) | | (38) | | Other (d) | | (6) | | (2) | | (6) | | (3) | | Adjusted selling, general and administrative (non-GAAP) | $ | 551 | $ | 511 | $ | 1,077 | $ | 996 | | Research and development reconciliation: | | | | | | | | | | GAAP Research and development | $ | 96 | $ | 84 | $ | 182 | $ | 166 | | (b) Separation-related costs | | — | | — | | — | | (1) | | Adjusted research and development (non-GAAP) | $ | 96 | $ | 84 | $ | 182 | $ | 165 | | Amortization of intangible assets reconciliation: | | | | | | | | | | GAAP Amortization of intangible assets | $ | 67 | $ | 74 | $ | 134 | $ | 148 | | (e) Amortization of intangible assets | | (67) | | (74) | | (134) | | (148) | | Adjusted amortization of intangible assets (non-GAAP) | $ | — | $ | — | $ | — | $ | — | | Other expense, net reconciliation: | | | | | | | | | | GAAP Other expense, net | $ | 22 | $ | 14 | $ | 44 | $ | 23 | | (d) Litigation and other matters | | (6) | | — | | (7) | | (1) | | (c) Restructuring and integration costs | | (31) | | (6) | | (33) | | (17) | | Asset impairments (f) | | — | | (5) | | — | | (5) | | (b) Separation costs | | — | | — | | 1 | | — | | (a) Acquisition-related contingent consideration | | 18 | | — | | 27 | | (1) | | (a) Acquisition-related costs | | (2) | | (1) | | (3) | | (1) | | (g) Gain on sale of assets | | — | | 1 | | — | | 5 | | Adjusted other expense, net (non-GAAP) | $ | 1 | $ | 3 | $ | 29 | $ | 3 | | Interest expense reconciliation: | | | | | | | | | | GAAP Interest expense | $ | (128) | $ | (102) | $ | (222) | $ | (201) | | Write-down of financing fees (h) | | 31 | | — | | 31 | | — | | Adjusted interest expense (non-GAAP) | $ | (97) | $ | (102) | $ | (191) | $ | (201) | | Loss on extinguishment of debt reconciliation: | | | | | | | | | | GAAP Loss on extinguishment of debt | $ | (9) | $ | — | $ | (9) | $ | — | | (h) Loss on extinguishment of debt | | 9 | | — | | 9 | | — | | Adjusted loss on extinguishment of debt (non-GAAP) | $ | — | $ | — | $ | — | $ | — | | Foreign exchange and other reconciliation: | | | | | | | | | | GAAP Foreign exchange and other | $ | (2) | $ | (3) | $ | (8) | $ | (3) | | (d) Other | | 1 | | 2 | | 2 | | 2 | | Adjusted foreign exchange and other (non-GAAP) | $ | (1) | $ | (1) | $ | (6) | $ | (1) | | Benefit from (provision for) income taxes reconciliation: | | | | | | | | | | GAAP Benefit from (provision for) income taxes | $ | 89 | $ | (72) | $ | 58 | $ | (145) | | (i) Tax effect of non-GAAP adjustments | | (91) | | 65 | | (54) | | 133 | | Adjusted (provision for) benefit from income taxes (non-GAAP) | $ | (2) | $ | (7) | $ | 4 | $ | (12) | [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=19&type=section&id=7.4_Reconciliation_of_GAAP_Net_Loss_to_Adjusted_EBITDA) This table reconciles GAAP Net Loss to Adjusted EBITDA (non-GAAP) and Adjusted EBITDA excluding Acquired IPR&D (non-GAAP) for Q2 2025 and 2024 Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP) (Three and Six Months Ended June 30, 2025 and 2024) | | | | Three Months Ended | | | | Six Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | June 30, | | | | June 30, | | | (in millions) | | 2025 | | 2024 | | 2025 | | 2024 | | Net loss attributable to Bausch + Lomb Corporation | $ | (62) | $ | (151) | $ | (274) | $ | (318) | | Interest expense, net | | 125 | | 99 | | 216 | | 195 | | (Benefit from) provision for income taxes | | (89) | | 72 | | (58) | | 145 | | Depreciation and amortization of intangible assets | | 107 | | 110 | | 213 | | 220 | | EBITDA | | | 81 | 130 | | 97 | | 242 | | Adjustments: | | | | | | | | | | Asset impairments | | | — | 5 | | — | | 5 | | Restructuring, integration and transformation costs | | | 53 | 27 | | 91 | | 55 | | Acquisition-related costs and adjustments (excluding amortization of intangible | | | | | | | | | | assets) | | | 5 | 21 | | 19 | | 42 | | Share-based compensation | | | 30 | 22 | | 58 | | 41 | | Separation costs and separation-related costs | | | — | 1 | | — | | 3 | | Loss on extinguishment of debt | | | 9 | — | | 9 | | — | | Other non-GAAP adjustments: | | | | | | | | | | Gain on sale of assets | | | — | (1) | | — | | (5) | | Other | | | 13 | 4 | | 15 | | 6 | | Adjusted EBITDA (non-GAAP) | $ | 191 | $ | 209 | $ | 289 | $ | 389 | | Acquired IPR&D | | | 1 | 3 | | 29 | | 3 | | Adjusted EBITDA excluding Acquired IPR&D (non-GAAP) | $ | 192 | $ | 212 | $ | 318 | $ | 392 | [Constant Currency Revenue by Segment](index=20&type=section&id=7.5_Constant_Currency_Revenue_by_Segment) This table details constant currency revenue and growth by segment for Q2 2025 and 2024, illustrating foreign exchange impact on reported revenue Constant Currency Revenue (non-GAAP) and Constant Currency Revenue Growth (non-GAAP) - by Segment (Three Months Ended June 30, 2025 and 2024) | | | | | Ended | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | June 30, 2025 | | | | | June 30, 2024 | | | | Change in | | | | Revenue as | Reported | Changes in Exchange Rates (a) | | Constant Currency Revenue (Non-GAAP) | (b) | | Revenue as Reported | Amount | Change in Revenue as Reported Pct. | | Constant Currency Revenue (Non-GAAP) Amount | (b) Pct. | | (in millions) Vision Care | $ | 753 | $ | (14) | $ | 739 | $ | 697 | $ 56 | | 8 % $ | 42 | 6 % | | Surgical | | 216 | | (5) | | 211 | | 209 | 7 | | 3 % | 2 | 1 % | | Pharmaceuticals | | 309 | | (2) | | 307 | | 310 | (1) | | — % | (3) | (1)% | | Total revenues | $ | 1,278 | $ | (21) | $ | 1,257 | $ | 1,216 | $ 62 | | 5 % $ | 41 | 3 % |