Bausch Health(BHC) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Bausch Health reported strong Q2 2025 results, achieving 5% revenue growth, $128 million GAAP Net Income, and strategic debt repayment Second Quarter 2025 Overview Bausch Health announced its second quarter 2025 financial results, reporting total consolidated revenues of $2.53 billion, a 5% increase year-over-year. The company achieved its ninth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, demonstrating consistent operational performance - Bausch Health achieved its ninth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb[5] Second Quarter 2025 Consolidated Revenue Performance | Metric | Q2 2025 (Billions) | Q2 2024 (Billions) | Reported Change ($) | Reported Change (%) | Organic Change (%) | | :-------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | :----------------- | | Total Consolidated Revenues | $2.53 | $2.40 | $127 | 5% | 4% | Key Financial and Strategic Highlights Key highlights for Q2 2025 include a 5% reported and 4% organic revenue growth, GAAP Net Income of $128 million, and Consolidated Adjusted EBITDA of $842 million, up 6%. Strategically, the company announced a $900 million debt repayment, an agreement to acquire DURECT Corporation, and reaffirmed its full-year 2025 guidance Second Quarter 2025 Key Financial Highlights | Metric | Q2 2025 (Millions) | YoY Change (%) | | :------------------------------------------------ | :----------------- | :------------- | | Consolidated Revenues (Reported) | $2,530 | 5% | | Consolidated Revenues (Organic) | $2,503 | 4% | | GAAP Net Income Attributable to Bausch Health | $148 | N/A | | Consolidated Adjusted EBITDA Attributable to BHC | $842 | 6% | - Announced upcoming repayment of approximately $900 million of debt using cash on hand after quarter-end[7] - Entered into an agreement to acquire DURECT Corporation in July, aiming to commercialize its main treatment for alcohol-induced hepatitis[7] - Reaffirming full-year 2025 Revenue, Adjusted EBITDA (non-GAAP), and Adjusted Cash Flow from Operations (non-GAAP) guidance[7] Financial Performance - Second Quarter 2025 Q2 2025 financial performance saw total revenues grow 5% to $2.53 billion, with strong segmental contributions, increased profitability, and a decrease in operating cash flow Consolidated Revenue Performance Total Bausch Health revenues for Q2 2025 increased by 5% on a reported basis and 4% on an organic basis compared to Q2 2024, reaching $2.53 billion. Bausch Health (excluding Bausch + Lomb) also saw a 5% increase in both reported and organic revenues Total Bausch Health Revenues (Q2 2025 vs Q2 2024) | Metric | 2025 (Millions) | 2024 (Millions) | Reported Change ($) | Reported Change (%) | Organic Change (%) | | :--------------------------- | :-------------- | :-------------- | :------------------ | :------------------ | :----------------- | | Total Bausch Health Revenues | $2,530 | $2,403 | $127 | 5% | 4% | | Bausch Health (excl. B+L) | $1,252 | $1,187 | $65 | 5% | 5% | Segmental Revenue Performance Segmental revenues showed varied performance, with Salix and Solta Medical leading growth at 12% and 25% respectively, while the Diversified segment experienced a 13% decrease. Bausch + Lomb also contributed to overall growth with a 5% reported increase Segmental Revenue Performance (Q2 2025 vs Q2 2024) | Segment | 2025 (Millions) | 2024 (Millions) | Reported Change ($) | Reported Change (%) | Organic Change (%) | | :------------------ | :-------------- | :-------------- | :------------------ | :------------------ | :----------------- | | Salix | $627 | $558 | $69 | 12% | 12% | | International | $278 | $276 | $2 | 1% | 1% | | Solta Medical | $128 | $102 | $26 | 25% | 26% | | Diversified | ($32) | (13%) | (13%) | | Bausch + Lomb | $1,278 | $1,216 | $62 | 5% | 3% | Salix Segment The Salix segment reported revenues of $627 million, a 12% increase from Q2 2024, driven primarily by Xifaxan® which saw 10% revenue growth - Salix segment revenues increased by 12% to $627 million, with Xifaxan® being the primary driver with 10% growth[9] International Segment International segment revenues grew by 1% to $278 million, with organic growth also at 1%, led by strong performance in Canada and EMEA - International segment revenues increased by 1% to $278 million, with organic growth of 1% driven by Canada and EMEA[10] Solta Medical Segment Solta Medical segment revenues surged by 25% to $128 million, with organic growth reaching 26%, primarily fueled by growth in South Korea - Solta Medical segment revenues increased by 25% to $128 million, with 26% organic growth led by South Korea[10] Diversified Segment The Diversified segment experienced a 13% decrease in reported and organic revenues, falling to $219 million - Diversified segment revenues decreased by 13% to $219 million on both a reported and organic basis[11] Bausch + Lomb Segment Bausch + Lomb segment revenues increased by 5% on a reported basis to $1.28 billion, with organic growth at 3% - Bausch + Lomb segment revenues increased by 5% to $1.28 billion, with 3% organic growth[11] Profitability Metrics Consolidated operating income increased by $55 million to $444 million. GAAP Net Income attributable to Bausch Health significantly rose to $148 million from $10 million in Q2 2024. Adjusted Net Income also saw a slight increase, and Adjusted EBITDA grew by $44 million to $842 million Key Profitability Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change ($ Millions) | | :------------------------------------------------ | :----------------- | :----------------- | :------------------ | | Consolidated Operating Income | $444 | $389 | $55 | | Consolidated Net Income Attributable to BHC | $148 | $10 | $138 | | Consolidated Adjusted Net Income Attributable to BHC (non-GAAP) | $335 | $328 | $7 | | Consolidated GAAP EPS Attributable to BHC | $0.40 | $0.03 | N/A | | Consolidated Adjusted EBITDA Attributable to BHC (non-GAAP) | $842 | $798 | $44 | Cash Flow and Balance Sheet Cash provided by operating activities decreased by 24% to $289 million in Q2 2025. As of June 30, 2025, the company held $1,727 million in cash and cash equivalents and maintained significant availability under its revolving credit facilities Cash Flow and Balance Sheet Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :------------------------------------------------ | :----------------- | :----------------- | :--------- | | Cash Provided by Operating Activities | $289 | $380 | (24%) | | Balance Sheet Item | As of June 30, 2025 (Millions) | | :------------------------------------------------ | :----------------------------- | | Consolidated Cash and Cash Equivalents | $1,727 | | Bausch Health (excl. B+L) Revolving Credit Facility Availability | ~$475 | | Bausch + Lomb Revolving Credit Facility Availability | ~$760 | | Bausch Health (excl. B+L) Accounts Receivable Credit Facility (drawn) | $300 | Strategic Priorities & Outlook The company is focused on strategic execution, R&D advancements, and has increased its full-year 2025 consolidated revenue and Adjusted EBITDA guidance Strategic Focus Bausch Health is focused on executing strategic priorities to drive continued growth and unlock long-term shareholder value, including maximizing the value of its Bausch Health and Bausch + Lomb assets. The company delivered strong financial momentum in the first half of the year and successfully completed a major refinancing initiative - The Company remains