Bausch Health(US:BHC)2025-10-29 20:09Financial Performance - Total consolidated reported revenues for Q3 2025 were $2.68 billion, an increase of $171 million, or 7%, compared to Q3 2024[5]. - GAAP net income attributable to Bausch Health for Q3 2025 was $179 million, a significant increase of $264 million compared to a net loss of $85 million in Q3 2024[13]. - Consolidated adjusted EBITDA attributable to Bausch Health for Q3 2025 was $986 million, up 8% on a reported basis compared to Q3 2024, including an $81 million charge for acquired IPR&D[6]. - Product sales for Q3 2025 reached $2,657 million, a 7.1% increase from $2,482 million in Q3 2024[52]. - Total revenues for the nine months ended September 30, 2025, were $7,470 million, compared to $7,066 million for the same period in 2024, reflecting a 5.7% growth[52]. - Adjusted net income for Q3 2025 was $434 million, up from $415 million in Q3 2024, representing a 4.6% increase[53]. - The company reported a net income of $181 million for Q3 2025, compared to a net loss of $92 million in Q3 2024[52]. - Adjusted EBITDA for Q3 2025 reached $1,019 million, up from $939 million in Q3 2024, reflecting a 8.5% increase[60]. - Bausch Health's total revenues for the nine months ended September 30, 2025, were $7,470 million, a 6% increase from $7,066 million in the same period of 2024[65]. Segment Performance - The Salix segment reported revenues of $716 million for Q3 2025, a 12% increase from $642 million in Q3 2024, driven primarily by Xifaxan® with 16% revenue growth[8]. - The Solta Medical segment achieved revenues of $140 million for Q3 2025, reflecting a 25% increase compared to $112 million in Q3 2024, with strong growth in APAC[9]. - The diversified segment reported revenues of $258 million for Q3 2025, a decrease of 4% compared to $269 million in Q3 2024, with a 6% decline on an organic basis[10]. - The Neuro segment experienced a revenue decline of 14% in Q3 2025, with revenues of $146 million compared to $170 million in Q3 2024[63]. - Bausch + Lomb's total revenues for Q3 2025 were $1,281 million, down 19% from $1,196 million in Q3 2024[63]. Guidance and Future Outlook - Bausch Health raised its full-year 2025 revenue guidance to between $10.050 billion and $10.250 billion, reflecting a growth rate of 3% to 6% compared to the prior year[20]. - The company is on track for top-line Phase 3 results for the RED-C program, anticipated by early 2026, focusing on hepatic encephalopathy prevention[18]. - The company anticipates significant impacts from the Inflation Reduction Act (IRA) and the selection of Xifaxan® for drug price negotiations starting in 2027[24]. - The company expects uncertainties regarding the commercial success of new products and the impact of pricing controls on its business[25]. Cash and Liquidity - Consolidated cash and cash equivalents stood at $1.308 billion as of September 30, 2025, indicating a strong liquidity position[18]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $905 million, compared to $996 million for the same period in 2024[67]. - Cash and cash equivalents increased to $1,308 million as of September 30, 2025, compared to $1,181 million at December 31, 2024[67]. Costs and Expenses - The cost of goods sold for Q3 2025 was $735 million, an increase from $682 million in Q3 2024, indicating a 7.8% rise[52]. - Research and development expenses for Q3 2025 were $166 million, compared to $146 million in Q3 2024, marking a 13.7% increase[52]. - Selling, general and administrative expenses for Q3 2025 were $795 million, down from $850 million in Q3 2024, a decrease of 6.5%[54]. - Interest expense for Q3 2025 was $412 million, up from $346 million in Q3 2024, reflecting an increase of 19.1%[55]. - The company incurred restructuring, integration, and transformation costs of $27 million in Q3 2025, compared to $5 million in Q3 2024, representing a significant increase[68]. - Litigation and other matters resulted in a net expense of $35 million in Q3 2025, down from $188 million in Q3 2024, showing a decrease of 81.6%[68]. Non-GAAP Measures - Adjusted EBITDA (non-GAAP) is used as a key metric for evaluating the company's performance, reflecting operational results without the impact of certain costs[34]. - The company has excluded costs related to share-based compensation and acquisition-related adjustments from its financial measures to provide a clearer view of operational performance[39]. - The company believes that its non-GAAP measures provide useful supplemental information for investors, despite not being standardized under GAAP[29]. - The company emphasizes that its Adjusted Net Income (non-GAAP) is significantly higher than its GAAP Net Income (loss), reflecting underlying performance trends[41]. - Adjusted EBITDA excluding Bausch + Lomb for the nine months ended September 30, 2025, was not specified but is a key metric for assessing operational performance[50]. - Adjusted cash flow from operations excluding Bausch + Lomb is a critical measure for evaluating the company's financial health[49].