Bausch + Lomb (BLCO) - 2025 Q2 - Quarterly Results

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 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] - Revenue Growth (Q2 2025 vs Q2 2024): 5% reported, 3% constant currency[4][5] - GAAP Net Loss Attributable to Bausch + Lomb Corporation (Q2 2025): $62 million[5] - Adjusted EBITDA (non-GAAP) (Q2 2025): $191 million[5] - Full-Year 2025 Guidance: Raised[5] 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] - Reached approximately $1 billion in trailing 12-month revenue across the dry eye portfolio[6] - Drove broad-based growth in Vision Care, led by key contact lens franchises and strong performance from consumer brands[6] - Successfully executed refinancing transaction thereby extending maturity profile[6] 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 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 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] 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] 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] - Adjusted EBITDA decrease was primarily due to the decrease in operating results[16] Segment Performance This section analyzes the Q2 2025 revenue performance across Bausch + Lomb's Vision Care, Surgical, and Pharmaceuticals segments 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] - Growth also driven by SiHy Daily lenses, ULTRA monthly and Biotrue ONEday in the contact lens business[8] 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] - Partially offset by the voluntary recall of certain enVista IOL products[9] 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] - Partially offset by increased sales of MIEBO and revenue growth in International Pharmaceuticals[10] 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 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] - The increases in anticipated constant currency revenue growth and anticipated Adjusted EBITDA excluding Acquired IPR&D are a result of strong business performance[20] 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 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] - Basic weighted average shares outstanding for the second quarter of 2025 were 353.7 million[21] 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] - Time: 8:00 a.m. ET[22] - 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] 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] - Specific Non-GAAP Measures include EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding Acquired IPR&D, Adjusted Net Income, Constant Currency, Adjusted EPS[33][38][40][42] - 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] 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 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] - 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] - Bausch + Lomb has approximately 13,500 employees and a presence in approximately 100 countries[24] 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] - These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described[25] - 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][26] 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 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 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 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 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 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 % |