Summary of Bausch + Lomb Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $1.405 billion, up 7% year-over-year.

Full Year Revenue: $5.101 billion, up 5% (6% excluding enVista recall).

Adjusted EBITDA: $330 million in Q4, up 27% year-over-year; full year adjusted EBITDA was $891 million.

Adjusted EBITDA Margin: 23.5% in Q4, highest since IPO; full year margin at 17.5%.

Adjusted EPS: $0.32 for Q4 and $0.51 for the full year; Q4 adjusted EPS excluding a noncash charge was $0.40.

Cash Flow: Adjusted cash flow from operations was $152 million in Q4 and $381 million for the full year.

2Strategic Updates and Business Highlights

Dry Eye Portfolio: Miebo generated $112 million in Q4, with 111% year-over-year growth; peak sales potential now expected to exceed $600 million.

Surgical Segment: Revenue growth of 6% in Q4 when excluding enVista recall; premium IOLs grew 20% in Q4.

Vision Care: Revenue of $778 million in Q4, driven by contact lenses and consumer products like LUMIFY and Blink.

Pipeline Progress: Upcoming launches include PreserVision AREDS3 and Blink Triple Care; CE mark submission for seeLYRA expected soon.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected to be between $5.375 billion and $5.475 billion, reflecting 5% to 7% constant currency growth.

Adjusted EBITDA Guidance: Projected to be between $1 billion and $1.05 billion, with a margin of approximately 19% at the midpoint.

R&D Investment: Expected to be 7.5% to 8% of revenue in 2026.

Seasonality: Anticipated that Q1 will be the weakest quarter, with Q4 being the strongest, particularly influenced by the dry eye franchise.

4Bad News, Challenges, or Points of Concern

Competitive Pressures: Increased competition in contact lenses and IOLs, with new entrants in the market.

Xiidra Performance: Expected slower TRx growth due to pricing pressures and IRA impacts, although net revenue is anticipated to grow.

Gross Margin Concerns: Q4 gross margin was slightly softer than expected, impacted by tariffs and increased R&D spending.

Market Dynamics: The recall of enVista continues to have lingering effects on the monofocal lens market, requiring time to regain lost business.

5Notable Q&A Insights

Execution Focus: Management emphasized the importance of execution and structural improvements in the P&L, indicating that Q4 results reflect a foundational change in operations.

Miebo Insights: The strong performance of Miebo was attributed to effective marketing and execution strategies, with expectations for continued growth.

Xiidra Strategy: The company plans to balance affordability with long-term investment in Xiidra, anticipating a slower growth trajectory in prescriptions but improved net pricing.

Debt Management: Discussions around the company's debt and interest expenses highlighted ongoing efforts to manage financial obligations effectively.

Float Concerns: Management acknowledged investor concerns regarding stock float and indicated that BHC plans to sell shares in the future, although no specific timeline was provided. Overall, Bausch + Lomb reported a strong Q4 2025, showcasing significant growth and operational improvements, while also navigating competitive challenges and market dynamics as they look ahead to 2026.