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 % |

Core Viewpoint - Bausch + Lomb Corporation is under investigation for potential violations of federal securities laws and unlawful business practices following a product recall and subsequent stock price drop [1][2]. Group 1: Product Recall and Impact - On March 27, 2025, Bausch + Lomb announced a voluntary recall of intraocular lenses from its enVista platform due to reports of toxic anterior segment syndrome (TASS), which is a complication associated with cataract surgery [2]. - The recall has raised short-term concerns regarding product safety and may lead to increased regulatory scrutiny [2]. - Following the recall announcement, Bausch + Lomb's stock price fell by $1.50 per share, representing a 10.6% decrease, closing at $15.00 on the same day [2]. Group 2: Legal Investigation - Bragar Eagel & Squire, P.C. is investigating potential claims against Bausch + Lomb on behalf of its stockholders, focusing on possible violations of federal securities laws [1]. - The law firm is reaching out to long-term stockholders who may have suffered losses or have information related to the claims [3].

Core Viewpoint - The Schall Law Firm is investigating Bausch + Lomb Corporation for potential violations of securities laws, focusing on misleading statements and undisclosed information that may have affected investors [1][2]. Financial Performance - Bausch + Lomb reported an adjusted net loss of $54 million for Q1 2025, a significant decline compared to a net income of $24 million in the same period of the previous year [2]. - The company has lowered its full-year growth outlook, attributing part of this change to the recall of its enVista product [2].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Bausch + Lomb Corporation and its executives [1] Group 1: Product Recall and Stock Impact - On March 27, 2025, Bausch + Lomb announced a voluntary recall of intraocular lenses due to reports of toxic anterior segment syndrome, leading to a stock price drop of $1.54 per share, or 9.83%, closing at $14.13 on March 28, 2025 [3] - Following the recall, on April 30, 2025, Bausch + Lomb reported an adjusted net loss of $54 million for Q1 2025, a significant decline from an adjusted net income of $24 million in Q1 2024 [4] - The company revised its full-year growth outlook down to 4.5% to 6.5%, from a previous estimate of 5.5% to 7.5%, citing the impact of the enVista product recall [4] - On the same day, the stock price fell by $2.16 per share, or 15.74%, closing at $11.56 [5] Group 2: Legal Investigation - Pomerantz LLP, a prominent firm in corporate and securities class litigation, is leading the investigation into Bausch + Lomb's practices, emphasizing its long history of fighting for victims of securities fraud [6]

Core Viewpoint - Bausch + Lomb Corporation is under investigation for potential securities fraud and unlawful business practices following significant financial losses and a product recall [1][3]. Financial Performance - Bausch + Lomb reported an adjusted net loss of $54 million for Q1 2025, a stark contrast to an adjusted net income of $24 million in Q1 2024 [3]. - The company has revised its full-year growth outlook to a range of 4.5% to 6.5% year-over-year, down from a previous guidance of 5.5% to 7.5% [3]. Stock Price Movement - Following the announcement of a voluntary recall of intraocular lenses due to toxic anterior segment syndrome, Bausch + Lomb's stock price dropped by $1.54 per share, or 9.83%, closing at $14.13 on March 28, 2025 [2]. - After the release of Q1 2025 financial results, the stock price fell further by $2.16 per share, or 15.74%, closing at $11.56 on April 30, 2025 [4].

[Financial Information](index=15&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and detailed notes on key financial areas [Condensed Consolidated Financial Statements (Unaudited)](index=15&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) The company reported a net loss of $211 million on revenues of $1,137 million for Q1 2025, with total assets of $13,428 million and liabilities of $6,995 million [Condensed Consolidated Balance Sheets](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows total assets of $13,428 million and total liabilities of $6,995 million, with a decrease in cash and cash equivalents Condensed Consolidated Balance Sheets (in millions) | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $202 | $305 | | Total current assets | $2,694 | $2,788 | | Intangible assets, net | $3,427 | $3,494 | | Goodwill | $4,567 | $4,523 | | **Total assets** | **$13,428** | **$13,469** | | **Liabilities & Equity** | | | | Total current liabilities | $1,726 | $1,738 | | Long-term debt | $4,789 | $4,744 | | **Total liabilities** | **$6,995** | **$6,925** | | **Total equity** | **$6,433** | **$6,544** | [Condensed Consolidated Statements of Operations](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, revenues increased to $1,137 million, but the company reported an operating loss of $83 million and a net loss of $212 million due to increased operating expenses Condensed Consolidated Statements of Operations (in millions, except per share) | (in millions, except per share) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | **$1,137** | **$1,099** | | Cost of goods sold | $481 | $423 | | Selling, general and administrative | $563 | $504 | | Operating (loss) income | ($83) | $6 | | Net loss attributable to B+L | ($212) | ($167) | | Basic and diluted loss per share | ($0.60) | ($0.48) | [Condensed Consolidated Statements of Cash Flows](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $25 million in Q1 2025, with a net decrease of $101 million in cash and cash equivalents during the quarter Condensed Consolidated Statements of Cash Flows (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($25) | $41 | | Net cash used in investing activities | ($116) | ($57) | | Net cash provided by financing activities | $31 | $12 | | **Net decrease in cash and cash equivalents** | **($101)** | **($9)** | [Note 5: Acquisitions](index=29&type=section&id=Note%205.%20ACQUISITIONS) The company completed several acquisitions in Q1 2025 and 2024, including Whitecap Biosciences, Elios Vision, and Trukera Medical, to expand its pipeline and product portfolios - On January 3, 2025, the company acquired Whitecap Biosciences for an upfront payment of **~$28 million**, which was expensed as acquired in-process R&D costs[68](index=68&type=chunk)[70](index=70&type=chunk) - In December 2024, the company acquired Elios Vision for **~$99 million** in cash plus potential future milestone payments, adding a minimally invasive glaucoma surgery procedure to its portfolio[72](index=72&type=chunk) - In July 2024, the company acquired Trukera Medical for **~$24 million**, expanding its presence in the dry eye market with the ScoutPro osmolarity measurement device[73](index=73&type=chunk) [Note 10: Financing Arrangements](index=38&type=section&id=Note%2010.%20FINANCING%20ARRANGEMENTS) As of March 31, 2025, the company's total long-term debt was $4,881 million with a weighted average interest rate of 7.92%, and it remained in compliance with all debt covenants Long-Term Debt (in millions) | (in millions) | Principal Amount (Mar 31, 2025) | Maturity | | :--- | :--- | :--- | | Revolving Credit Facility | $160 | May 2027 | | May 2027 Term Facility | $2,431 | May 2027 | | May 2027 Incremental Term Facility | $398 | May 2027 | | September 2028 Term Facility | $492 | Sep 2028 | | October 2028 Secured Notes | $1,400 | Oct 2028 | | **Total long-term debt** | **$4,881** | | - The weighted average stated interest rate for outstanding debt was **7.92%** as of March 31, 2025[103](index=103&type=chunk) - As of March 31, 2025, the company was in compliance with its financial covenants[106](index=106&type=chunk) [Note 16: Legal Proceedings](index=47&type=section&id=Note%2016.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings, including antitrust and intellectual property disputes, and has accrued $6 million for probable loss contingencies as of March 31, 2025 - As of March 31, 2025, the company accrued **$6 million** for current loss contingencies from legal matters that are both probable and reasonably estimable[125](index=125&type=chunk) - The company is a defendant in multidistrict antitrust litigation alleging conspiracy to fix prices for generic pharmaceuticals, with Bausch + Lomb and BHC splitting associated costs and liabilities[127](index=127&type=chunk)[129](index=129&type=chunk) - The company faces ongoing patent infringement proceedings against potential generic competitors for key products including Lumify®, Vyzulta®, and Lotemax SM®[145](index=145&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk) [Note 17: Segment Information](index=57&type=section&id=Note%2017.%20SEGMENT%20INFORMATION) In Q1 2025, Vision Care was the largest segment with $656 million in revenue and $176 million in profit, while Pharmaceuticals and Surgical segments saw profit declines Segment Performance (in millions) | (in millions) | Revenue Q1 2025 | Revenue Q1 2024 | Segment Profit Q1 2025 | Segment Profit Q1 2024 | | :--- | :--- | :--- | :--- | :--- | | Vision Care | $656 | $635 | $176 | $178 | | Pharmaceuticals | $267 | $267 | $11 | $53 | | Surgical | $214 | $197 | ($7) | $11 | | **Total** | **$1,137** | **$1,099** | **$180** | **$242** | - The top ten products/franchises represented **55%** of total revenues for the three months ended March 31, 2025, up from **54%** in the prior year period[154](index=154&type=chunk) [Management's Discussion and Analysis (MD&A)](index=59&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 3% revenue increase to $1,137 million for Q1 2025, alongside an operating loss of $83 million due to increased costs and an enVista IOL recall, while maintaining sufficient liquidity [Business Overview and Trends](index=59&type=section&id=Business%20Overview%20and%20Trends) The company's business overview highlights its R&D pipeline, the enVista IOL recall, and the monitoring of geopolitical conflicts and global tax changes, with no material impact to date - The company has a global R&D pipeline of over **60 projects**, including new contact lenses, next-generation cataract equipment, and investigational treatments for dry eye[163](index=163&type=chunk) - On March 27, 2025, the company initiated a voluntary recall of certain enVista IOL products due to TASS, with production resuming after identifying a raw material vendor issue[173](index=173&type=chunk)[174](index=174&type=chunk) - Revenues from Russia, Ukraine, and Belarus were approximately **3%** of total revenues for Q1 2025, while the Middle East accounted for less than **1%**, with neither having a material impact to date[179](index=179&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - The company expects minimal impact to its 2025 tax rate from the new global minimum tax (Pillar Two) but notes a risk of future increases to its overall effective tax rate[191](index=191&type=chunk) [Results of Operations](index=71&type=section&id=Results%20of%20Operations) Q1 2025 revenues grew 3% to $1,137 million, but operating results shifted to an $83 million loss due to increased Cost of Goods Sold and SG&A expenses, leading to a wider net loss Key Financial Results (in millions) | (in millions) | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,137** | **$1,099** | **$38** | **3%** | | Vision Care | $656 | $635 | $21 | 3% | | Pharmaceuticals | $267 | $267 | $0 | 0% | | Surgical | $214 | $197 | $17 | 9% | | **Operating (loss) income** | **($83)** | **$6** | **($89)** | **N/A** | | **Net loss attributable to B+L** | **($212)** | **($167)** | **($45)** | **27%** | - On a constant currency basis, total revenue grew **5%** YoY[212](index=212&type=chunk) - Cost of goods sold increased by **$58 million (14%)**, including a **$15 million** inventory reserve charge related to the enVista IOL recall[221](index=221&type=chunk) - SG&A expenses increased by **$59 million (12%)**, primarily due to higher selling and promotion costs for MIEBO® and increased business transformation costs[224](index=224&type=chunk) [Liquidity and Capital Resources](index=82&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and its revolving credit facility, with total debt of $4,881 million as of March 31, 2025, and recent credit rating upgrades - Net cash used by operating activities was **$25 million** in Q1 2025, a **$66 million** decrease from cash provided in Q1 2024, primarily due to lower operating results and a **$28 million** payment for acquired in-process R&D[243](index=243&type=chunk)[244](index=244&type=chunk) - As of March 31, 2025, the company had total debt principal of **$4,881 million** and **$304 million** of availability under its Revolving Credit Facility[98](index=98&type=chunk)[250](index=250&type=chunk) - Credit ratings were upgraded by S&P to 'B' (Corporate) in March 2025 and by Fitch to 'B' (Corporate) in April 2025[257](index=257&type=chunk)[258](index=258&type=chunk) - For the remainder of 2025, primary cash requirements include **~$320 million** for interest payments, **$30 million** for mandatory debt amortization, and **~$170 million** for capital expenditures[265](index=265&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=99&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk sensitivity assessment have occurred since the 2024 Annual Report, except for interest rate risk - There have been no material changes to the Company's assessment of its sensitivity to market risks, except for interest rate risk, since its last annual report[285](index=285&type=chunk) [Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[286](index=286&type=chunk) - No material changes to internal controls over financial reporting occurred during the first quarter of 2025[288](index=288&type=chunk) [Other Information](index=100&type=section&id=Part%20II.%20Other%20Information) This section provides additional information on legal proceedings and risk factors, noting no material changes since the last annual report [Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not anticipate a material adverse effect on its financial position or operations from their ultimate resolution - The company believes that the ultimate resolution of any known legal proceeding will not have a material adverse effect on its financial position, liquidity, or results of operations[290](index=290&type=chunk) - Detailed information on legal proceedings is provided in Note 16 to the Condensed Consolidated Financial Statements[291](index=291&type=chunk) [Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K have been reported - There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K[292](index=292&type=chunk)

Core Viewpoint - Bausch + Lomb reported a revenue of $1.14 billion for the quarter ended March 2025, reflecting a 3.5% increase year-over-year, but an EPS of -$0.07, contrasting with $0.07 in the same quarter last year, indicating challenges in profitability despite revenue growth [1]. Revenue Performance - Vision Care revenues reached $656 million, slightly above the average estimate of $654.55 million, marking a year-over-year increase of 3.3% [4]. - Surgical revenues amounted to $214 million, exceeding the average estimate of $206.66 million, with a year-over-year growth of 8.6% [4]. - Pharmaceuticals revenues were reported at $267 million, below the average estimate of $284.94 million, showing no change year-over-year [4]. - Total product sales were $1.13 billion, compared to the average estimate of $1.15 billion, reflecting a year-over-year increase of 3.6% [4]. - Other revenues were reported at $4 million, below the average estimate of $5 million, indicating a significant year-over-year decline of 20% [4]. Stock Performance - Bausch + Lomb shares have returned -2.7% over the past month, in contrast to the Zacks S&P 500 composite's -0.2% change, suggesting underperformance relative to the broader market [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3].

Group 1 - Bausch + Lomb reported a quarterly loss of $0.07 per share, missing the Zacks Consensus Estimate of $0.03, and compared to earnings of $0.07 per share a year ago, representing an earnings surprise of -333.33% [1] - The company posted revenues of $1.14 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.86%, and this is an increase from year-ago revenues of $1.1 billion [2] - Bausch + Lomb shares have declined approximately 24% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] Group 2 - The earnings outlook for Bausch + Lomb is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for Bausch + Lomb is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $1.27 billion, and for the current fiscal year, it is $0.67 on revenues of $5 billion [7] Group 3 - The Medical Services industry, to which Bausch + Lomb belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Total reported revenue for Q1 2025 was $1.137 billion, a 3% increase from $1.099 billion in Q1 2024, with a 5% increase on a constant currency basis[4] - GAAP net loss attributable to Bausch + Lomb for Q1 2025 was $212 million, compared to a net loss of $167 million in Q1 2024[13] - Adjusted EBITDA excluding Acquired IPR&D for Q1 2025 was $126 million, down from $180 million in Q1 2024, a decrease of $54 million[16] - Adjusted net income (non-GAAP) for Q1 2025 was $24 million, compared to a loss of $54 million in Q1 2024, resulting in an adjusted EPS of $0.07 versus a loss of $0.15[46] - Total revenues for Q1 2025 were $1,137 million, a 3.5% increase from $1,099 million in Q1 2024, driven by product sales of $1,133 million[45] - The net loss attributable to Bausch + Lomb Corporation for Q1 2025 was $212 million, compared to a net loss of $167 million in Q1 2024, with a diluted loss per share of $0.60 versus $0.48[45] - Adjusted EBITDA (non-GAAP) for Q1 2025 was $98 million, down from $180 million in Q1 2024, reflecting a decrease of 45.6%[50] Segment Performance - Vision Care segment revenue was $656 million, a 3% increase from $635 million in Q1 2024, with a 5% increase on a constant currency basis[9] - Surgical segment revenue was $214 million, a 9% increase from $197 million in Q1 2024, with an 11% increase on a constant currency basis[10] - Pharmaceuticals segment revenue remained flat at $267 million, with a 1% increase on a constant currency basis[11] - Vision Care segment revenue increased to $669 million in Q1 2025, up 5% from $635 million in Q1 2024[51] - Surgical segment revenue grew by 11% to $218 million in Q1 2025, compared to $197 million in Q1 2024[51] - Pharmaceuticals segment revenue remained stable at $269 million in Q1 2025, with a slight increase of 1% from $267 million in Q1 2024[51] Operational Costs - Operating loss for Q1 2025 was $83 million, compared to an operating income of $6 million in Q1 2024, a change of $89 million[12] - Cash flow used in operations for Q1 2025 was $25 million, down from $41 million in Q1 2024[14] - Cost of goods sold (excluding amortization and impairments) increased to $481 million in Q1 2025 from $423 million in Q1 2024, reflecting a 13.7% rise[45] - Selling, general and administrative expenses rose to $563 million in Q1 2025, up from $504 million in Q1 2024, marking an increase of 11.7%[45] - Research and development expenses were $86 million in Q1 2025, slightly up from $82 million in Q1 2024, indicating a 4.9% increase[45] - The company incurred $38 million in restructuring, integration, and transformation costs in Q1 2025, compared to $28 million in Q1 2024[50] Guidance and Future Outlook - Full-year 2025 revenue guidance updated to $5.000 billion - $5.100 billion, reflecting a constant currency growth of approximately 4.5% - 6.5%[18] - Bausch + Lomb's 2025 full-year guidance is based on current management expectations and includes anticipated growth in key products like XIIDRA® and MIEBO®[25] - The company is undergoing a separation from Bausch Health Companies Inc., which may involve transferring equity interests to shareholders, contingent on achieving targeted debt leverage ratios[25] - Future business development transactions may lead to recurring costs related to Acquired In-Process Research and Development (IPR&D) as the company continues to pursue growth opportunities[36] Risks and Challenges - Risks associated with the separation include potential business disruptions, regulatory approvals, and market conditions that may affect the transaction's completion[26] - The anticipated impact of tariffs and global supply chain disruptions is a concern for the company's revenue and expenses moving forward[26] - The company is actively managing the expected impact of inflation and interest rate fluctuations on its financial performance[26] - The voluntary recall of certain enVista® IOL products is expected to affect market supply, with enhanced inspection protocols in place to address quality concerns[26] Financial Metrics and Adjustments - The company reported a total of $191 million in non-GAAP adjustments for Q1 2025, compared to $158 million in Q1 2024[46] - Amortization of intangible assets decreased to $67 million in Q1 2025 from $74 million in Q1 2024[47] - The company utilized constant currency revenue growth metrics to assess performance, indicating that foreign exchange fluctuations can obscure underlying business trends[39] - Management emphasized the importance of adjusted financial metrics for evaluating operational performance and making strategic decisions[38] - The company has excluded costs related to share-based compensation and separation activities from its financial measures to provide clearer insights into operational performance[34]