BLCO — Bausch + Lomb Corporation

Summary of Bausch + Lomb (BLCO) Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $1.244 billion, up 6% year-over-year (constant currency).
• Adjusted EBITDA: $200 million, a 59% increase year-over-year, with an adjusted EBITDA margin of 16.1%, expanding 500 basis points.
• Adjusted EPS: $0.08 compared to a loss of $0.07 in the prior year.
• R&D Investment: Increased by 17% to $101 million.
• Net Interest Expense: $93 million.
• Adjusted Gross Margin: 61.2%, up 170 basis points year-over-year.
• Cash Flow from Operations: $45 million.

2. Strategic Updates and Business Highlights:

• Growth Segments: Pharmaceuticals grew 12% in constant currency, with Miebo and Xiidra showing strong performance (33% and 30% growth, respectively). Vision Care revenue increased by 5%, driven by a 25% growth in the daily SiHy contact lens portfolio.
• Surgical Segment: Revenue grew 1%, impacted by weather-related disruptions and a strategic rebuild of the U.S. surgical field force. Premium IOLs saw a 27% increase in revenue.
• Pipeline Development: NDA filed for LUMIFY NXT and CE Mark submission for seeLYRA, with ongoing trial recruitment.
• Consumer Products: Continued strong performance from brands like PreserVision and LUMIFY, with significant market share gains.

3. Forward Guidance and Outlook:

• Revenue Guidance: Raised by $45 million to a range of $5.42 billion to $5.52 billion for 2026, reflecting constant currency growth of approximately 5.3% to 7.2%.
• Adjusted EBITDA Guidance: Increased by $10 million to a range of $1.01 billion to $1.06 billion, with a projected margin of approximately 19%.
• Long-Term Goals: Confidence in achieving three-year targets set at Investor Day, with expectations for continued revenue and margin expansion through 2028.

4. Bad News, Challenges, or Points of Concern:

• Surgical Segment Performance: Below expectations due to temporary factors; however, a strategic rebuild of the sales force is underway to improve future performance.
• Market Conditions: Potential headwinds from geopolitical factors (e.g., Middle East tensions) and inflation could impact consumer sentiment and operational costs.
• Seasonality in Pharmaceuticals: January and February saw lower prescription volumes due to higher co-pays and deductibles, which may affect future growth metrics.
• Competitive Pressures: The company faces challenges from competitors in the contact lens market, particularly in Asia, where growth has been uneven.

5. Notable Q&A Insights:

• Miebo and Xiidra Growth: The strong growth of Xiidra was attributed to walking away from a less favorable contract with CVS, leading to improved revenue despite declining prescription volumes.
• Contact Lens Market: The company expects sequential improvement in contact lens sales throughout the year, driven by a full portfolio of offerings and new product launches.
• Consumer Sentiment: Management expressed confidence in navigating macroeconomic challenges, citing the resilience of their product categories and strong brand execution.
• Sales Force Rebuild: The restructuring of the U.S. surgical field force is aimed at enhancing productivity and account management, with early signs of improvement noted in Q2.

Overall, Bausch + Lomb demonstrated strong financial performance in Q1 2026, with significant growth in key segments and a positive outlook for the remainder of the year, despite facing some challenges and competitive pressures.