BLCO — Bausch + Lomb Corporation

Bausch + Lomb (BLCO) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $1.244 billion, up 6% year-over-year (constant currency).
• Adjusted EBITDA: $200 million, up 59% 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 Q1 2025.
• Cash Flow from Operations: $45 million; CapEx was $100 million.
• Net Interest Expense: $93 million.
• Revenue Growth by Segment:
  • Pharmaceuticals: $305 million, up 12%.
  • Vision Care: $711 million, up 5%.
  • Surgical: $228 million, up 1%.

2. Strategic Updates and Business Highlights

• Growth Focus: Bausch + Lomb emphasized a shift towards sustainable growth and margin expansion, with a focus on high-margin categories like dry eye and premium intraocular lenses (IOLs).
• Pharmaceuticals: Strong performance driven by Miebo (up 33%) and Xiidra (up 30%), indicating effective market penetration and execution.
• Vision Care: Notable growth in the daily silicone hydrogel (SiHy) contact lens portfolio, with a 25% increase.
• Surgical Segment: While growth was below expectations, premium IOLs showed a 27% increase, and there is a strategic rebuild of the U.S. surgical field force to enhance performance.
• R&D Investment: Increased by 17% to $101 million, with a focus on advancing the product pipeline.

3. Forward Guidance and Outlook

• Revenue Guidance: Raised by $45 million to a range of $5.42 billion to $5.52 billion for the full year, reflecting a 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 an expected margin of approximately 19%.
• Long-Term Targets: Confidence in achieving three-year targets set during Investor Day, with expectations for continued revenue growth and margin improvement through 2028.

4. Challenges and Points of Concern

• Surgical Segment Performance: Growth was impacted by weather-related disruptions and reimbursement pressures, leading to results below expectations.
• Market Dynamics: The contact lens market is experiencing pricing moderation, and while Bausch + Lomb outperformed competitors, there are concerns about uneven performance in Asia, particularly in China and Southeast Asia.
• Seasonality Effects: The company anticipates typical seasonal declines in prescription volumes, particularly in the first quarter, which may affect future growth rates.
• Inventory Management: Transitioning from CVS contract has led to fluctuations in prescription volumes for Xiidra, which could impact revenue stability.

5. Notable Q&A Insights

• Dry Eye Market: Executives highlighted a strategic focus on being a leader in the dry eye category, with expectations for continued growth driven by Miebo and Xiidra.
• Surgical Field Force Rebuild: The restructuring aims to enhance productivity and account management, with early signs of improvement in sales trends.
• Consumer Sentiment: Management expressed confidence in navigating macroeconomic challenges, citing resilience in consumer demand and effective operational planning.
• Xiidra's Future: Following the termination of the CVS contract, the company expects a shift in growth dynamics, with revenue growth anticipated despite declining prescription volumes.
• AREDS3 Launch: The introduction of PreserVision AREDS3 is seen as a significant long-term growth opportunity, with initial positive feedback from eye care professionals.

Overall, Bausch + Lomb reported a strong start to 2026, with solid revenue growth and margin expansion, while also addressing challenges in specific segments and market dynamics. The company remains optimistic about its strategic initiatives and long-term growth potential.