Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $1,278 million, reflecting a year-over-year growth of 3% [14] - Excluding the impact of the Envista recall, total company revenue grew by 6% in the quarter [15] - Adjusted gross margin for Q2 was 60.6%, representing a 130 basis points decrease year-over-year [26] - Adjusted EBITDA for Q2, excluding acquired IPR&D, was $192 million, absorbing a one-time impact of $19 million from the investor recall [27] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q2 was $753 million, increasing by 6%, driven by growth in both consumer and contact lenses [16] - The consumer business grew by 6% in Q2, with Lumify growing by 27% and the dry eye portfolio delivering $115 million in revenue, representing 19% growth [18][19] - Surgical segment revenue was $216 million, an increase of 1%, but would have been 15% growth excluding the recall impact [21] - Pharma segment revenue was $309 million in Q2, representing a decline of 1%, with U.S. branded Rx business up 8% [23] Market Data and Key Metrics Changes - U.S. contact lens revenue grew by 11%, EMEA by 11%, LATAM by 25%, Japan by 3%, and China by 7% [20] - The dry eye portfolio saw a 16% constant currency revenue growth, with Blink eye drops growing by 13% and Artilac by 39% [34] Company Strategy and Development Direction - The company is focused on innovation and has a robust pipeline aimed at transforming the company and accelerating sales growth [6][9] - The strategic roadmap emphasizes operational excellence and a commitment to recapturing market share post-recall [10][11] - The company plans to showcase promising candidates at the upcoming Investor Day, indicating a focus on category disruption [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to overcome challenges and transform the company, highlighting the resilience shown in Q2 [44][45] - The company anticipates steady improvement in the U.S. generics business in the second half of the year [25] - Management expects the fourth quarter to be the strongest due to seasonality and the ramp-up of Envista [29] Other Important Information - The company raised its full-year revenue guidance to a range of $5,050 million to $5,150 million, reflecting constant currency growth of approximately 5% to 7% [28] - Adjusted EBITDA guidance was raised to a range of $860 million to $910 million [29] - The company successfully refinanced $3,100 million of its debt, extending maturities to 2031 [28] Q&A Session Summary Question: Highlights informing the decision to recommit to the company - Management expressed deep confidence in the team, products, and R&D pipeline, emphasizing the opportunity to transform the company [44][46] Question: Quantifying tariff impact and strategy in pharma - Management noted that the tariff impact is now estimated at 40 basis points for 2025, which is absorbed in the guidance [58][59] - The focus in pharma is on driving prescription and demand, with expectations for profitability to improve in 2026 and beyond [50][51] Question: Update on the contact lens market - Management sees the contact lens market as healthy, with strong performance from both new and legacy products [75][76] Question: Pipeline updates and approval timelines - The company expects to submit the ILIUS file this year, with approval anticipated in early second half of next year [93] - The launch of Envista Beyond may experience a couple of months delay due to recruitment issues [97]

Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $1,278 million, reflecting a year-over-year growth of 3% [13] - Excluding the impact of the Envista recall, total company revenue grew by 6% in the quarter [14] - Adjusted gross margin for Q2 was 60.6%, representing a 130 basis points decrease year-over-year [24] - Adjusted EBITDA for Q2, excluding acquired IPR&D, was $192 million, absorbing a one-time impact of $19 million from the investor recall [25] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q2 was $753 million, increasing by 6%, driven by growth in both consumer and contact lenses [15] - The dry eye portfolio generated $115 million in revenue in Q2, representing 19% growth [16] - Surgical segment revenue was $216 million, an increase of 1%, but would have been 15% growth excluding the recall [19] - Pharma segment revenue was $309 million in Q2, representing a decline of 1% [21] Market Data and Key Metrics Changes - U.S. contact lens revenue grew by 11%, EMEA by 11%, LATAM by 25%, Japan by 3%, and China by 7% [19] - The Daily SiHy contact lens franchise grew by 36% in Q2, continuing to be the fastest-growing brand [18] - The U.S. branded Rx business in Pharma was up 8% in Q2, driven by growth in MyBu and Xiidra [21] Company Strategy and Development Direction - The company is focused on innovation and has a robust pipeline that represents its future [7] - The strategic roadmap aims to accelerate growth and improve operational excellence [5] - The company plans to showcase potential game changers at the upcoming Investor Day [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to overcome challenges and transform the company [42] - The company anticipates steady improvement in the U.S. Generics business in the second half of the year [24] - Management remains optimistic about the contact lens market and expects it to remain healthy [75] Other Important Information - The company raised its full-year revenue guidance to a range of $5,050 million to $5,150 million, reflecting constant currency growth of approximately 5% to 7% [26] - Adjusted EBITDA guidance was raised to a range of $860 million to $910 million [27] - The company successfully executed a refinancing of $3,100 million of its debt, extending maturities to 2031 [26] Q&A Session Summary Question: Highlights informing the decision to recommit to the company - Management expressed deep confidence in the team, products, and R&D pipeline, emphasizing the opportunity to transform the company [41] Question: Quantifying the tariff impact and strategy in Pharma - Management noted that the tariff impact is now estimated at 40 basis points for 2025, which is absorbed in the guidance [56] Question: Update on the product pipeline and future expectations - Management indicated that the contact lens R&D projects are at their best in the company's history, with significant advancements expected [98]