Bausch + Lomb CEO @brentlsaunders just said on CNBC they are one of the few companies that manufacture products for US consumers inside the US.Great to see American manufacturing being promoted by one of the best CEOs in America.🇺🇸 ...

Core Insights - Bausch + Lomb Corporation will hold an investor day on November 13, 2025, at the New York Stock Exchange [1] - Chairman and CEO Brent Saunders will provide an update on the company's transformation and strategic outlook [1] - Executive Vice President and Chief Financial Officer Sam Eldessouky will share details on a three-year plan to drive sustainable growth [1]

Product Portfolio and Development - Bausch + Lomb reported a comprehensive portfolio of approximately 400 products, including contact lenses, IOLs, and surgical devices, marketed in about 100 countries[189]. - The company acquired Whitecap Biosciences in 2025, expanding its clinical-stage pipeline with therapies for glaucoma and geographic atrophy[195]. - The acquisition of Elios Vision in December 2024 is expected to enhance the glaucoma treatment portfolio with a minimally invasive surgery procedure[196]. - Bausch + Lomb's R&D team of around 1,000 employees is focused on over 60 projects, including new contact lenses for myopia and investigational treatments for dry eye[199]. - The company launched enVista Aspire IOLs in the U.S. in October 2023, with further launches planned in Europe and Canada[205]. - The company is developing a next-generation eye vitamin formulation, AREDS3, anticipated to launch in 2026[203]. - Bausch + Lomb's Blink NutriTears, launched in June 2024, targets the root causes of dry eyes and promotes healthy tear production[203]. - The company plans to launch enVista Beyond extended depth of focus (EDOF) in the U.S. in early 2027[215]. - The European launch of the LuxLife Trifocal IOL is currently in process, expanding the premium IOL portfolio[215]. - The company is planning the U.S. submission for ELIOS, a minimally invasive glaucoma surgery procedure using an excimer laser[215]. Financial Performance - Revenues for the three months ended September 30, 2025, were $1,281 million, an increase of $85 million, or 7%, compared to $1,196 million in 2024[242]. - Product sales contributed $1,277 million to revenues, with a notable increase in volumes of $76 million primarily from Pharmaceuticals and Vision Care segments[242]. - Vision Care segment revenue was $736 million, up 8% from $684 million, driven by sales from dry eye and eye vitamins portfolios[251]. - Pharmaceuticals segment revenue increased to $330 million, an 8% rise from $306 million, primarily due to increased net sales of branded pharmaceuticals like MIEBO[252]. - Surgical segment revenue reached $215 million, a 4% increase from $206 million, attributed to higher sales of consumables and equipment[253]. - Total revenues for the nine months ended September 30, 2025, were $3,696 million, a 5% increase from $3,511 million in the same period of 2024, driven by increased volumes and favorable currency impacts[283]. - Vision Care segment revenue increased by $129 million, or 6%, to $2,145 million for the nine months ended September 30, 2025, primarily from the dry eye portfolio and contact lenses[288]. - Pharmaceuticals segment revenue rose by $23 million, or 3%, to $906 million for the nine months ended September 30, 2025, mainly due to increased sales of MIEBO[289]. - Surgical segment revenue increased by $33 million, or 5%, to $645 million for the nine months ended September 30, 2025, driven by demand for consumables and implantables[290]. Costs and Expenses - Cost of goods sold was $509 million, an increase of $45 million, or 10%, primarily due to higher volumes and unfavorable foreign currency impacts[258]. - Total provisions to reduce gross product sales to net product sales were $837 million, representing 39.6% of gross product sales, an increase of 3.9 percentage points from 35.7% in 2024[256]. - SG&A expenses increased by $17 million, or 3%, to $528 million in Q3 2025 from $511 million in Q3 2024, driven by higher selling costs in the Pharmaceuticals segment[262]. - R&D expenses rose by $11 million, or 13%, to $95 million in Q3 2025 compared to $84 million in Q3 2024, attributed to ongoing product development[264]. - Selling, General and Administrative (SG&A) expenses rose by $120 million, or 8%, to $1,670 million for the nine months ended September 30, 2025, driven by higher selling costs and Business Transformation Costs[295]. - Research and Development (R&D) expenses increased by $27 million, or 11%, to $277 million for the nine months ended September 30, 2025, due to ongoing product development[297]. Losses and Income - Operating income for the three months ended September 30, 2025, was $95 million, a significant increase from $43 million in 2024[240]. - Net loss attributable to Bausch + Lomb Corporation was $28 million for the three months ended September 30, 2025, compared to net income of $4 million in 2024[240]. - Net loss attributable to Bausch + Lomb Corporation improved by $12 million to $302 million for the nine months ended September 30, 2025, mainly due to a decrease in the provision for income taxes[311]. - Operating income decreased by $74 million to $1 million for the nine months ended September 30, 2025, reflecting increased SG&A and R&D expenses[301]. Economic and Market Conditions - The ongoing Russia-Ukraine war has impacted economic conditions, including inflation and global supply-chain disruptions, affecting the company's business trends[210]. - Revenues attributable to Russia, Ukraine, and Belarus were approximately 3% of total revenues for both the nine months ended September 30, 2025, and the year ended December 31, 2024[214]. - Revenues from the impacted regions in the Middle East were less than 1% of total revenues for the nine months ended September 30, 2025, and the year ended December 31, 2024[218]. - The company is assessing the impact of macroeconomic factors, including inflation and fluctuations in exchange rates, on its financial performance[357]. - The company is exposed to adverse global economic conditions, including inflationary pressures and foreign currency exchange volatility[364]. - The company faces risks associated with the ongoing conflict between Russia and Ukraine, which could affect sales, earnings, and market conditions[364]. Regulatory and Compliance Issues - The company is monitoring ongoing policy changes by the Trump administration, which could adversely affect business operations due to tariffs and trade restrictions[220]. - The global minimum corporate tax rate of 15% for companies with revenue above €750 million is expected to be effective for fiscal years beginning on or after December 31, 2023[223]. - The company anticipates minimal impact on its 2025 tax rate due to the global minimum tax provisions, but there is a risk of an increase in the overall effective tax rate[227]. - The implementation of the OECD inclusive framework on Base Erosion and Profit Shifting may impact the company's tax provision for 2025 and future years[364]. - The company must navigate complex regulatory environments, including compliance with healthcare laws and potential changes in legislation[367]. Debt and Financial Obligations - As of September 30, 2025, Bausch + Lomb had outstanding borrowings of $490 million under the September 2028 Term Facility and $2,319 million under the January 2031 Term Facility[323]. - The interest rate for the September 2028 Term Facility was 8.16% per annum as of September 30, 2025[327]. - The January 2031 Term Facility had an interest rate of 8.41% per annum as of September 30, 2025[328]. - Bausch + Lomb expects to make interest payments of approximately $120 million and mandatory debt amortization payments of $7 million for the period from October 1, 2025, to December 31, 2025[343]. - The weighted average stated rate of interest for the company's outstanding debt obligations was 7.97% as of September 30, 2025[339]. - The company is required to make mandatory prepayments of loans under certain circumstances, including 100% of net cash proceeds from asset sales[329]. Strategic Initiatives and Risks - The company is evaluating strategic separation from Bausch Health Companies Inc., which may include a distribution of shares to shareholders[190]. - The company is actively managing its pipeline to identify innovative projects expected to provide sustainable revenues and growth[237]. - The company is pursuing acquisitions, including the acquisition of XIIDRA and other ophthalmology assets, with potential risks related to realizing expected benefits[362]. - The company is facing risks related to the recent voluntary recall of certain enVista IOL products, which may affect inventory resupply and operational costs[358]. - The potential for product recalls could lead to significant costs and impact the company's reputation[367]. - The success of the company's drug development pipeline is contingent on the outcomes of clinical trials and regulatory approvals[367]. - The company is at risk of illegal distribution or sale of counterfeit products, which could harm its market position[367]. - There have been no material changes to the company's assessment of its sensitivity to market risks[370].

Core Insights - Bausch + Lomb reported $1.28 billion in revenue for Q3 2025, a 7.1% year-over-year increase, with an EPS of $0.18 compared to $0.17 a year ago [1] - The revenue was slightly below the Zacks Consensus Estimate by -0.04%, while the EPS exceeded the consensus estimate by +12.5% [1] Revenue Breakdown - Vision Care revenues were $736 million, slightly below the average estimate of $743.74 million, reflecting a year-over-year increase of +7.6% [4] - Surgical revenues reached $215 million, in line with the average estimate of $214 million, marking a +4.4% change year-over-year [4] - Pharmaceuticals revenues totaled $330 million, surpassing the average estimate of $327.18 million, with a year-over-year increase of +7.8% [4] - Other revenues were reported at $4 million, below the two-analyst average estimate of $5 million, showing no change year-over-year [4] Stock Performance - Bausch + Lomb shares returned +0.9% over the past month, underperforming compared to the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Bausch + Lomb (BLCO) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing a slight increase from $0.17 per share a year ago, resulting in an earnings surprise of +12.50% [1] - The company posted revenues of $1.28 billion for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 0.04%, but an increase from $1.2 billion year-over-year [2] - Bausch + Lomb shares have underperformed the market, losing about 15.8% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $1.4 billion, and for the current fiscal year, it is $0.51 on revenues of $5.09 billion [7] - The estimate revisions trend for Bausch + Lomb was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical Services industry, to which Bausch + Lomb belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $1.281 billion, reflecting a year-over-year growth of 6% [10][11] - Adjusted EBITDA for Q3 was $243 million, up 7% year-over-year, with an adjusted EBITDA margin of 19%, representing a sequential increase of 400 basis points [14][15] - Adjusted cash flow from operations was $161 million, with adjusted free cash flow at $87 million, indicating strong cash flow generation [14][15] Business Line Data and Key Metrics Changes - Vision Care revenue for Q3 was $736 million, increasing by 6%, driven by growth in both consumer and contact lenses [10][11] - Pharmaceuticals segment revenue was $330 million, representing a 7% increase, with MIEBO generating $84 million, a 71% year-over-year increase [13][14] - Surgical segment revenue was $215 million, a 1% increase, with premium IOLs showing a 27% constant currency revenue growth [12][14] Market Data and Key Metrics Changes - The U.S. branded RX business in pharmaceuticals grew by 13%, while the international pharmaceuticals business was up 12% [13][14] - The contact lens market is expected to grow in the mid-single digits, with the company outpacing market growth [38][80] - The company reported a 9% growth in the U.S. contact lens market and a 4% growth internationally [12][14] Company Strategy and Development Direction - The company is focused on three core pillars: Selling Excellence, Operational Excellence, and Disruptive Innovation, with the addition of a fourth pillar, Financial Excellence [6][27] - The strategy aims to deliver sustained, profitable growth through innovation and operational efficiency, with a strong emphasis on cash flow optimization [7][10] - Upcoming product launches and innovations are expected to drive future growth, particularly in the dry eye treatment market [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the dry eye market, with MIEBO and XIIdra leading the way [18][104] - The company anticipates continued revenue growth and margin expansion, supported by disciplined cost management and operational improvements [15][29] - The management is closely monitoring tariff impacts and believes they can mitigate potential negative effects [16][78] Other Important Information - The company is maintaining its full-year revenue guidance at $5.05 billion to $5.15 billion, representing constant currency growth of approximately 5% to 7% [15][16] - Adjusted gross margin for Q3 was 61.7%, reflecting a 130 basis points decrease year-over-year, primarily due to product mix and the Invista IOL recall [13][14] Q&A Session Summary Question: Commentary on Financial Excellence pillar - The Financial Excellence pillar focuses on ensuring every dollar spent drives growth and efficiency, emphasizing disciplined execution and resource allocation [26][27] Question: Insights on contact lens market share - The company has been growing faster than the industry, attributing this to new product innovations and effective execution [38][39] Question: MIEBO and combination therapy - MIEBO's TRx growth of 110% indicates strong market potential, and combination therapies are seen as a way to enhance treatment efficacy [44][49] Question: Surgical business and Invista IOL recovery - The Invista IOL platform has shown impressive recovery, with sales reaching 82% of pre-recall levels, and the company is regaining momentum in premium IOLs [58][60] Question: Sustainability of SG&A leverage - The company aims for sustainable SG&A improvements while balancing reinvestment in growth opportunities [61][62] Question: Tariff impact and market growth outlook - The company is monitoring tariff impacts closely and believes it can manage potential challenges while maintaining a positive growth outlook [78][80]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $1.281 billion, reflecting a year-over-year growth of 6% [10][11] - Adjusted EBITDA for Q3 was $243 million, up 7% year-over-year, with an adjusted EBITDA margin of 19%, representing a sequential increase of 400 basis points [14][15] - Adjusted cash flow from operations was $161 million, with adjusted free cash flow at $87 million, indicating strong cash flow generation [14][15] Business Line Data and Key Metrics Changes - Vision Care revenue for Q3 was $736 million, increasing by 6%, driven by growth in both consumer and contact lenses [10][11] - Pharmaceuticals segment revenue was $330 million, representing a 7% increase, with MIEBO contributing $84 million, showing a 71% year-over-year increase [13][14] - Surgical segment revenue was $215 million, a 1% increase, with a 7% growth excluding the enVista recall [12][14] Market Data and Key Metrics Changes - The U.S. branded RX business in pharmaceuticals grew by 13%, while the international pharmaceuticals business was up 12% [13][14] - The contact lens market is growing at a low end of the mid-single digit range, with the company outpacing market growth [38][80] - The company reported a 9% growth in the U.S. contact lens market and a 4% growth internationally [12][11] Company Strategy and Development Direction - The company is focused on three core pillars: Selling Excellence, Operational Excellence, and Disruptive Innovation, with the addition of a fourth pillar, Financial Excellence, aimed at improving cash conversion and margin structure [6][27] - The company plans to showcase its pipeline of innovative products at the upcoming Investor Day, emphasizing sustained, profitable growth [7][10] - The strategy includes maintaining a strong field force and focusing on combination therapies to expand the dry eye market [105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth of the dry eye market, with MIEBO and Xiidra expected to benefit from increased awareness and education [18][104] - The company is monitoring tariff impacts closely, with expectations to offset potential tariff costs in 2025 [16][78] - Management highlighted the importance of disciplined execution and resource allocation to drive financial excellence and margin expansion [27][29] Other Important Information - The company maintained its full-year revenue guidance at $5.05 billion to $5.15 billion, representing constant currency growth of approximately 5%-7% [15][16] - Adjusted gross margin for Q3 was 61.7%, reflecting a 130 basis points decrease year-over-year due to product mix and the enVista recall [14][88] Q&A Session Summary Question: Commentary on Financial Excellence pillar - Management explained that Financial Excellence focuses on ensuring every dollar spent drives growth and efficiency, emphasizing disciplined execution and better resource allocation [26][27] Question: Insights on contact lens market share - Management noted that the contact lens market is growing in the mid-single digits, with the company growing faster than the market due to new product innovations [38][39] Question: MIEBO and combination therapies - Management discussed the potential for combination therapies to expand the dry eye market, highlighting MIEBO's unique position in treating evaporative dry eye [44][51] Question: Surgical business recovery post-recall - Management reported strong recovery in the enVista IOL platform, with sales approaching pre-recall levels and a focus on regaining market trust [58][60] Question: Sustainability of SG&A leverage - Management indicated that the recent SG&A improvements are sustainable, with a focus on reallocating resources towards revenue generation [66][68] Question: Tariff impact and market growth outlook - Management acknowledged the fluidity of the tariff situation but expressed confidence in the ability to manage and offset impacts, while also noting mixed signals in market growth [78][80]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $1.281 billion, reflecting year-over-year growth of 6% [10] - Adjusted EBITDA for Q3 was $243 million, up 7% year-over-year, with an adjusted EBITDA margin of 19%, representing a sequential increase of 400 basis points [14][15] - Adjusted cash flow from operations was $161 million, with adjusted free cash flow at $87 million, indicating strong cash flow generation [14] Business Line Data and Key Metrics Changes - Vision Care revenue for Q3 was $736 million, increasing by 6%, driven by growth in both consumer and contact lenses [10] - Pharmaceuticals segment revenue was $330 million, representing a 7% increase, with MIEBO generating $84 million, a 71% year-over-year increase [13] - Surgical segment revenue was $215 million, a 1% increase, with premium IOLs showing 27% constant currency revenue growth [12][13] Market Data and Key Metrics Changes - The U.S. branded RX business in pharmaceuticals grew by 13%, while the international pharmaceuticals business was up 12% [13] - The contact lens market is growing at a mid-single-digit rate, with the company outpacing the market growth [41][80] - The company reported a 9% growth in the U.S. contact lens market and a 4% growth internationally [12] Company Strategy and Development Direction - The company is focused on four strategic pillars: Selling Excellence, Operational Excellence, Disruptive Innovation, and Financial Excellence [5][6] - The upcoming Investor Day will showcase a three-year plan aimed at delivering sustained, profitable growth [6][15] - The company aims to elevate the standard of care in eye health through innovative product launches and a strong pipeline [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the dry eye market, anticipating continued expansion due to increased awareness and education [18][100] - The company is committed to maintaining a disciplined approach to cost management while investing in R&D for future growth [15][66] - Management noted that the tariff situation remains fluid but expressed confidence in the ability to mitigate impacts [75][78] Other Important Information - Adjusted gross margin for Q3 was 61.7%, a decrease of 130 basis points year-over-year, primarily due to product mix and the Invista IOL recall [14][86] - The company is maintaining its full-year revenue guidance at $5.05 billion to $5.15 billion, representing constant currency growth of approximately 5% to 7% [15][16] Q&A Session Summary Question: Commentary on Financial Excellence pillar - Management explained that the Financial Excellence pillar focuses on ensuring every dollar spent drives growth and efficiency, emphasizing disciplined execution and resource allocation [24][26] Question: Insights on contact lens market share - Management indicated that the contact lens market is growing in the mid-single digits, with the company growing faster than the market due to new product innovations [41][42] Question: MIEBO's performance and market opportunity - Management highlighted MIEBO's strong TRx growth of 110% year-over-year, indicating a positive outlook for the dry eye treatment market [18][49] Question: Surgical business and Invista IOL recovery - Management reported impressive recovery in the Invista IOL platform, with sales reaching 82% of pre-recall levels, and expressed confidence in regaining market momentum [58][60] Question: Capital allocation strategy - Management confirmed a commitment to deleveraging while also considering reinvestment in R&D and potential M&A opportunities [108]

3Q25 Financial Results Forward-Looking Statements; Non-GAAP Information This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, statements regarding future prospects and performance of Bausch + Lomb Corporation ("Bausch + Lomb", the "Company", "we", "us", or "B+L") (including the Company's 2025 full-year guidance), our strategic roadmap and the steps thereof, our antic ...

Revenue Performance - Total reported revenue for Q3 2025 was $1.281 billion, an increase of $85 million or 7% compared to Q3 2024[4] - Vision Care segment revenue was $736 million, up $52 million or 8% year-over-year, driven by growth in over-the-counter dry eye products and SiHy Daily lenses[8] - Pharmaceuticals segment revenue increased to $330 million, a rise of $24 million or 8%, primarily due to increased sales of MIEBO and growth in International Pharmaceuticals[9] - Surgical segment revenue was $215 million, an increase of $9 million or 4%, attributed to higher equipment sales and premium IOLs[9] - Product sales for Q3 2025 reached $1,277 million, a 7.1% increase from $1,192 million in Q3 2024[46] - Total revenues for the nine months ended September 30, 2025, were $3,696 million, compared to $3,511 million for the same period in 2024, reflecting a 5.3% growth[46] - Total revenues for the three months ended September 30, 2025, were $1,281 million, reflecting a 7% increase from $1,196 million in the same period of 2024[53] - For the nine months ended September 30, 2025, total revenues were $3,696 million, a 5% increase from $3,511 million in the same period of 2024[55] Financial Metrics - Adjusted EBITDA for Q3 2025 was $243 million, an increase of $31 million from $212 million in Q3 2024[15] - Adjusted EBITDA (non-GAAP) is used to assess financial performance, focusing on underlying operational results[33] - Full-year adjusted EBITDA excluding acquired IPR&D guidance updated to $870 million to $910 million[17] - Adjusted net income (non-GAAP) for Q3 2025 was $66 million, translating to an adjusted EPS of $0.18, up from $46 million and $0.13 in Q3 2024[47] - Operating income for Q3 2025 was $95 million, significantly higher than $43 million in Q3 2024[46] - Total non-GAAP adjustments for Q3 2025 amounted to $94 million, contributing an additional $0.26 to the adjusted EPS[47] - Adjusted selling, general and administrative expenses for the three months ended September 30, 2025, were $514 million, compared to $495 million in the same period of 2024[51] - The company reported adjusted cost of goods sold of $490 million for the three months ended September 30, 2025, compared to $443 million in the same period of 2024[51] Net Income and Loss - Net loss attributable to Bausch + Lomb was $28 million for Q3 2025, compared to a net income of $4 million in Q3 2024, reflecting a $32 million unfavorable change[11] - The company reported a net loss of $25 million for Q3 2025, compared to a net income of $8 million in Q3 2024[46] - For the three months ended September 30, 2025, Bausch + Lomb reported GAAP net loss of $28 million, compared to a net income of $4 million in the same period of 2024[51] - The company’s diluted loss per share for Q3 2025 was $(0.08), compared to a diluted income per share of $0.01 in Q3 2024[47] Cash Flow and Guidance - Cash flow from operations decreased to $137 million in Q3 2025, down $17 million from $154 million in Q3 2024[13] - Full-year 2025 revenue guidance remains at $5.050 billion to $5.150 billion, with expected constant currency growth of approximately 5% to 7%[17] - Cash, cash equivalents, and restricted cash totaled $332 million as of September 30, 2025[21] Expenses and R&D - Research and development expenses increased to $95 million in Q3 2025, compared to $84 million in Q3 2024, marking a 13.1% rise[46] - Research and development expenses for the three months ended September 30, 2025, were $95 million, up from $84 million in the same period of 2024[51] Risks and Operational Changes - The company faces risks related to economic conditions, including heightened inflation and interest rates, which could adversely impact revenue and margins[26] - Management has made assumptions regarding 2025 full-year guidance, including expectations for base performance growth and adjusted gross margin[26] - Risks associated with acquisitions may affect the company's ability to realize expected benefits in a timely manner[26] - The company has incurred restructuring and transformation costs as part of its operational improvements and separation initiatives[34] - The company has implemented enhanced inspection protocols for certain products following a voluntary recall[26] - Future amortization of intangible assets will recur until fully amortized, impacting financial results[41] - The company emphasizes the importance of non-GAAP measures for investors to evaluate performance and valuation[29] - Constant currency revenue growth is utilized to assess performance without the impact of foreign currency fluctuations[40]