Bausch + Lomb (NYSE:BLCO) Q4 2025 Earnings call February 18, 2026 08:00 AM ET Company ParticipantsAndrew Stewart - President of Global Pharmaceuticals and International ConsumerBrent Saunders - Chairman and CEODavid Roman - Managing DirectorDouglas Miehm - Managing DirectorGeorge Gadkowski - VP of Investor Relations and Business InsightsJoanne Wuensch - Managing Director, Head of U.S. Healthcare ResearchPatrick Wood - Managing DirectorSam Eldessouky - CFOYehia Hashad - EVP and Chief Medical OfficerConferenc ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $1.405 billion, representing a 7% increase year-over-year, and full-year revenue reached $5.101 billion, up 5% [12][18] - Adjusted EBITDA for Q4 was $330 million, reflecting a 27% growth year-over-year, with an adjusted EBITDA margin of 23.5%, the highest since the company's IPO [11][18] - The adjusted gross margin for Q4 was 62.1%, with a full-year adjusted gross margin of 61% [17] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q4 was $778 million, up 5%, with full-year revenue of $2.923 billion, up 6% [13] - Surgical segment revenue in Q4 was $249 million, a 3% increase, with full-year revenue of $894 million, up 4% [15] - Pharma segment revenue for Q4 was $378 million, a 14% increase, with full-year revenue of $1.284 billion, up 6% [16] Market Data and Key Metrics Changes - The U.S. contact lens market grew by 11% in Q4, while international markets saw a 6% increase [14] - In China, contact lens revenue grew by 7% in Q4 and 8% for the full year [14] - The global dry eye market is expected to nearly double in the next four years, with significant growth attributed to MIEBO [27] Company Strategy and Development Direction - The company is focused on executing its three-year plan, emphasizing operational excellence and financial discipline [4][20] - The strategy includes expanding the dry eye portfolio and leveraging R&D to drive revenue growth [6][10] - The company aims to achieve revenue growth faster than the market across all segments in 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth, citing strong execution and a solid foundation for future success [39] - The company anticipates continued momentum in 2026, with expectations for revenue growth in the range of $5.375 billion to $5.475 billion [20] - Management highlighted the importance of disciplined execution and the impact of seasonality on revenue, particularly in the dry eye segment [68] Other Important Information - The company plans to maintain investments in R&D at 7.5%-8% of revenue, with adjusted EBITDA guidance for 2026 set between $1 billion and $1.05 billion [21][22] - The adjusted tax rate for 2026 is expected to be approximately 19% [22] Q&A Session Summary Question: What are the key areas to execute on for growth in 2026? - Management emphasized the importance of execution, structural improvements in the P&L, and aligning the organization around clear priorities [35][36] Question: What lessons can be learned from MIEBO's success? - Management noted that strong execution and a positive benefit-risk profile contributed to MIEBO's success, and these lessons will inform future pipeline strategies [40][41] Question: How will XIIDRA perform in 2026? - Management expects mid-single-digit sales growth for XIIDRA, balancing net price improvement with volume decline [77][80]