Bausch + Lomb (US:BLCO)2025-10-29 11:02Revenue 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]