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 of $5.101 billion, up 5% [13][22] - Adjusted EBITDA for Q4 was $330 million, a 27% increase year-over-year, with an adjusted EBITDA margin of 23.5%, the highest since the company's IPO [12][20] - The full-year adjusted EBITDA was $891 million, reflecting a strong operating leverage and financial discipline [20][23] 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% [15] - Surgical segment revenue in Q4 was $249 million, a 3% increase, with full-year revenue of $894 million, up 4% [17] - Pharma segment revenue for Q4 was $378 million, a 14% increase, with full-year revenue of $1.284 billion, up 6% [18] Market Data and Key Metrics Changes - The U.S. branded RX business in the pharma segment grew by 21% in Q4 and 13% for the full year, driven by strong performance from MIEBO [18] - Contact lens revenue grew by 8% in Q4 and 7% for the full year, with daily SiHy lenses showing significant growth [16] - The international market for contact lenses grew by 6% in Q4, with China seeing a 7% increase [16] Company Strategy and Development Direction - The company is focused on executing its three-year plan, emphasizing operational excellence and financial discipline to drive sustained growth [5][6] - There is a strong commitment to expanding the dry eye portfolio, with MIEBO expected to exceed peak sales of $600 million due to its successful market penetration [26][27] - The company aims to leverage its diversified product offerings to maintain a competitive advantage in the eye health market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow faster than the market in 2026, with expectations for revenue growth across all segments [22][23] - The company highlighted the importance of execution and operational improvements as key drivers of future success [36][38] - Management acknowledged the competitive landscape but remains optimistic about the company's positioning and product quality [53][56] Other Important Information - The company expects adjusted EBITDA growth of approximately 15% year-over-year for 2026, with a focus on margin expansion [23][24] - The adjusted tax rate for the full year 2025 was 10%, lower than previous guidance, primarily due to one-time adjustments [21] Q&A Session Summary Question: What are the key areas to execute for growth in 2026? - Management emphasized the importance of execution and structural improvements in the P&L, highlighting the successful implementation of Vision 2027 [36][38] 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, which will inform future pipeline strategies [40][41] Question: How will MIEBO's growth trajectory be impacted by steady investments? - Management expects continued strong growth for MIEBO, with a focus on targeted investments as the product transitions from launch to growth phase [48][51] Question: What are the competitive dynamics in the market? - Management acknowledged competition but expressed confidence in their strong market position, particularly in the pharma segment with leading products [53][56]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $1.281 billion, reflecting a year-over-year growth of 6% [10][11] - Adjusted EBITDA for Q3 was $243 million, up 7% year-over-year, with an adjusted EBITDA margin of 19%, representing a sequential increase of 400 basis points [14][15] - Adjusted cash flow from operations was $161 million, with adjusted free cash flow at $87 million, indicating strong cash flow generation [14][15] Business Line Data and Key Metrics Changes - Vision Care revenue for Q3 was $736 million, increasing by 6%, driven by growth in both consumer and contact lenses [10][11] - Pharmaceuticals segment revenue was $330 million, representing a 7% increase, with MIEBO contributing $84 million, showing a 71% year-over-year increase [13][14] - Surgical segment revenue was $215 million, a 1% increase, with a 7% growth excluding the enVista recall [12][14] Market Data and Key Metrics Changes - The U.S. branded RX business in pharmaceuticals grew by 13%, while the international pharmaceuticals business was up 12% [13][14] - The contact lens market is growing at a low end of the mid-single digit range, with the company outpacing market growth [38][80] - The company reported a 9% growth in the U.S. contact lens market and a 4% growth internationally [12][11] Company Strategy and Development Direction - The company is focused on three core pillars: Selling Excellence, Operational Excellence, and Disruptive Innovation, with the addition of a fourth pillar, Financial Excellence, aimed at improving cash conversion and margin structure [6][27] - The company plans to showcase its pipeline of innovative products at the upcoming Investor Day, emphasizing sustained, profitable growth [7][10] - The strategy includes maintaining a strong field force and focusing on combination therapies to expand the dry eye market [105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth of the dry eye market, with MIEBO and Xiidra expected to benefit from increased awareness and education [18][104] - The company is monitoring tariff impacts closely, with expectations to offset potential tariff costs in 2025 [16][78] - Management highlighted the importance of disciplined execution and resource allocation to drive financial excellence and margin expansion [27][29] Other Important Information - The company maintained its full-year revenue guidance at $5.05 billion to $5.15 billion, representing constant currency growth of approximately 5%-7% [15][16] - Adjusted gross margin for Q3 was 61.7%, reflecting a 130 basis points decrease year-over-year due to product mix and the enVista recall [14][88] Q&A Session Summary Question: Commentary on Financial Excellence pillar - Management explained that Financial Excellence focuses on ensuring every dollar spent drives growth and efficiency, emphasizing disciplined execution and better resource allocation [26][27] Question: Insights on contact lens market share - Management noted that the contact lens market is growing in the mid-single digits, with the company growing faster than the market due to new product innovations [38][39] Question: MIEBO and combination therapies - Management discussed the potential for combination therapies to expand the dry eye market, highlighting MIEBO's unique position in treating evaporative dry eye [44][51] Question: Surgical business recovery post-recall - Management reported strong recovery in the enVista IOL platform, with sales approaching pre-recall levels and a focus on regaining market trust [58][60] Question: Sustainability of SG&A leverage - Management indicated that the recent SG&A improvements are sustainable, with a focus on reallocating resources towards revenue generation [66][68] Question: Tariff impact and market growth outlook - Management acknowledged the fluidity of the tariff situation but expressed confidence in the ability to manage and offset impacts, while also noting mixed signals in market growth [78][80]