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Bausch Health Companies Inc. (BHC)·Q2 2025 Earnings Summary

Executive Summary

  • Bausch Health delivered solid Q2: consolidated revenue $2.53B (+5% y/y) with organic +4%, and GAAP EPS $0.40; Adjusted EBITDA attributable to BHC rose to $842M (+6% y/y). Guidance for 2025 was raised at the consolidated and B+L levels while BHC ex-B+L was reaffirmed .
  • Versus S&P Global consensus, revenue beat ($2.53B vs $2.485B est.), Primary EPS modestly missed ($0.905 vs $0.944 est.); reported EBITDA missed the consensus ($764M vs $841M est.) while Adjusted EBITDA attributable to BHC was $842M (non-GAAP) ; estimates from S&P Global*.
  • Segment mix constructive: Salix +12% (Xifaxan +10%), Solta +25% (Korea strength), B+L +5%; Diversified -13% on laps of non-recurring tailwinds. BHC highlighted another quarter of double-digit growth in EMEA and Canada within International .
  • Balance sheet actions are a catalyst: company announced ~$900M debt repayment after quarter-end to reduce high-cost debt and AR facility, and is exploring further terming out 2028 maturities; cash and equivalents were $1.73B at 6/30/25 .

What Went Well and What Went Wrong

What Went Well

  • Salix and Xifaxan execution: Salix revenue +12% y/y; Xifaxan +10% with 67k new patient starts (+8% y/y). CEO: “ninth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb.” .
  • Solta strength with geographic breadth: Solta +25% reported (+26% organic) led by Korea; CFO noted Korea +115% organic and double-digit Solta growth in U.S./Canada .
  • Guidance and deleveraging stance: Raised consolidated revenue and Adj. EBITDA outlook; reiterated BHC ex-B+L ranges; plan to repay ~$900M of costly debt and evaluate pushing out 2028 maturities .

What Went Wrong

  • Diversified segment decline: -13% y/y (laps DoD Cardizem stockouts and one-time pricing); derm and neuro weighed; Generics -13% .
  • Standard EBITDA vs consensus: S&P Global consensus EBITDA ~ $841M vs reported EBITDA $764M; company emphasizes Adjusted EBITDA attributable $842M (non-GAAP) ; estimates from S&P Global*.
  • Tariff and Macro friction points: China tariffs temporarily softened Solta China in Apr–May; LatAm softness and channel issues pressured International; IRA 2027 Xifaxan negotiations remain an overhang .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($B)$2.403 $2.259 $2.530
GAAP EPS ($)$0.03 ($0.16) $0.40
Operating Income ($M)$389 $276 $444
Net Income Attrib. to BHC ($M)$10 ($58) $148
Adjusted EBITDA Attrib. to BHC ($M)$798 $661 $842
EBITDA Margin %30.96%*26.65%*30.20%*
EBIT Margin %17.73%*13.15%*18.06%*
Net Income Margin %0.42%*-2.57%*5.85%*
Gross Profit Margin %70.08%*68.97%*69.80%*

Note: Asterisked values retrieved from S&P Global.

Segment revenue (Q2 2025 vs Q2 2024)

Segment ($M)Q2 2024Q2 2025YoY $YoY %
Salix558 627 69 12%
International276 278 2 1%
Solta Medical102 128 26 25%
Diversified251 219 (32) (13%)
Bausch + Lomb1,216 1,278 62 5%
Total BHC2,403 2,530 127 5%

KPIs and operating highlights

KPIQ2 2025
Xifaxan revenue growth+10% y/y
Xifaxan new patient starts67,000 (+8% y/y)
Xifaxan retail scripts+6% y/y
Xifaxan new scripts+7% y/y
Xifaxan extended units+7% y/y; non-retail grew double digits
Solta South Korea+115% organic revenue y/y
Solta China+4% y/y; shipments timed to mitigate tariffs
Cash from ops (consolidated)$289M (vs $380M prior year)
Cash & equivalents$1.727B at 6/30/25

Guidance Changes

MetricPeriodPrevious Guidance (Apr 30)Current Guidance (Jul 30)Change
BHC Revenues ($B)FY 20259.950 – 10.200 10.000 – 10.250 Raised
BHC Adjusted EBITDA ($B)FY 20253.475 – 3.625 3.485 – 3.635 Raised
BHC (ex-B+L) Revenues ($B)FY 20254.950 – 5.100 4.950 – 5.100 Maintained
BHC (ex-B+L) Adj. EBITDA ($B)FY 20252.625 – 2.725 2.625 – 2.725 Maintained
BHC (ex-B+L) Adj. Cash Flow from Ops ($B)FY 20250.825 – 0.875 0.825 – 0.875 Maintained
B+L Revenues ($B)FY 20255.000 – 5.100 5.050 – 5.150 Raised
B+L Adj. EBITDA ($B)FY 20250.850 – 0.900 0.860 – 0.910 Raised

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
AI/technology in commercialAI/ML tools helped Xifaxan salesforce; ongoing exploration Salesforce productivity +20–30% vs 18 months; AI engine gains “Customer insight engine” reaching ~90% adherence; extending to Relistor Scaling AI-enabled execution
Supply chain/tariffsRegional manufacturing footprint; agile ops Solta China growth; monitoring tariff scenarios; low COGS leverage Managed shipments to mitigate tariffs; China Solta modest growth; LatAm softness Active mitigation; localized ops help
Product performanceXifaxan +16% in Q4; Solta +34% Xifaxan +8%; Solta +33% (Korea +136%, China +30%) Xifaxan +10%; Salix +12%; Solta +25% (Korea +115%) Sustained outperformance in Salix/Solta
Regional trendsEMEA/CAN strength; LatAm tender timing EMEA 9th consecutive organic growth; CAN promoted brands +18% EMEA 10th consecutive organic growth; CAN double-digit growth; LatAm soft EMEA/CAN consistent; LatAm volatile
Regulatory/legalBLCO separation options; Norwich/FDA stay; IRA prep D.C. District Court ruled for FDA/Teva/BHC in Norwich case IRA 2027 negotiation timeline (Oct/Nov 2025 price outcome); multiple levers to offset Progress on litigation; IRA risk monitored
R&D executionRED-C two Phase 3 on track; new Solta devices RED-C fully enrolled; early 2026 data; Fraxel FTX launch RED-C on track; DURECT larsucosterol deal announced, plan for single Phase 3 Pipeline and BD advancing

Management Commentary

  • CEO: “We achieved our ninth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb.”
  • CFO: “Adjusted EBITDA [ex-B+L] was $676 million, up 10%… demonstrating continued operating leverage through positive segment mix and tight cost management.”
  • CFO on deleveraging: “About $900 million of available liquidities will be used… to repay our 9.25% 2026 notes and our accounts receivables facility… still leave almost $600 million of cash.”
  • CEO on Xifaxan: “Our OHE side of the business is growing very nicely… total new-to-brand… 8% growth and 67,000 new patient starts.”
  • CFO on Solta: “South Korea once again outperformed… resulting in 115% organic revenue growth year-over-year.”

Q&A Highlights

  • Capital allocation: Buybacks de-prioritized near-term as reinvestment and BD (e.g., DURECT) took precedence; still evaluating under “exceptional circumstances” .
  • Xifaxan focus: Current DTC spend is focused on OHE; growth balanced between volume and price; gross-to-net accrual releases affected revenue/script dynamics for Trulance/Relistor .
  • IRA negotiation for 2027: Management underscored classification (long- vs short-term monopoly) will drive discount bands; pursuing multiple levers to mitigate impact; final price expected Nov 2025 .
  • Tariffs: Timed Solta shipments to mitigate China tariffs; highlighted regionalized manufacturing footprint and limited COGS exposure .
  • DURECT asset: Acknowledged Phase 2b slight miss but sees strong strategic fit in hepatology; expects only one Phase 3; limited detail until close .

Estimates Context

  • Q2 2025 vs S&P Global consensus: Revenue $2.530B actual vs $2.485B est. (beat); Primary EPS $0.905 actual vs $0.944 est. (slight miss); EBITDA $764M actual vs $841M est. (miss). Note: Company’s Adjusted EBITDA attributable to BHC (non-GAAP) was $842M, +6% y/y ; estimates from S&P Global*.
  • Q1 2025 context: Revenue $2.259B actual vs $2.276B est.; Primary EPS $0.607 actual vs $0.846 est.; EBITDA $602M actual vs $770M est.; initial 2025 guidance subsequently raised at consolidated and B+L levels in Q2 ; estimates from S&P Global*.
  • Implication: Street may need to reconcile standard EBITDA misses with BHC’s emphasis on Adjusted EBITDA, and adjust for non-GAAP add-backs and segment mix (Salix/Solta strength vs Diversified decline).

Key Takeaways for Investors

  • Mix quality improving: Double-digit Salix/Solta growth and EMEA/CAN resilience support sustained operating leverage even as Diversified normalizes .
  • Guidance momentum: Consolidated and B+L outlook raised; BHC ex-B+L reaffirmed despite tariff noise and IRA overhang—execution confidence appears high .
  • Debt trajectory: Near-term ~$900M debt paydown and potential 2028 push-out are positive to equity value and risk profile; ample liquidity ($1.73B cash) provides flexibility .
  • IRA/Xifaxan: 2027 pricing remains a medium-term risk; mgmt targeting mitigation levers. Monitoring classification outcome and Medicare mix is key for modeling .
  • Solta optionality: Korea strength and new device launches (Fraxel FTX, Thermage FLX) plus U.S./Canada momentum expand LT growth runway—even amid Chinese tariff headwinds .
  • Near-term trading setup: Revenue beat and guidance raise vs slight EPS miss and standard EBITDA shortfall; stock may trade on deleveraging actions and clarity on IRA trajectory.
  • Medium-term thesis: If Salix momentum persists and Solta scales globally while debt declines, equity value accretion can outpace IRA headwinds; RED-C and DURECT offer pipeline upside into 2026+ .

Appendix: Estimates vs Actuals (detail)

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($B)2.485*2.530
Primary EPS ($)0.944*0.905*
EBITDA ($M)841*764*

Note: Values marked with * retrieved from S&P Global. Actuals for EPS/EBITDA reflect S&P Global’s standard (“Primary EPS”, “EBITDA”) conventions; company also reports Adjusted EBITDA attributable to BHC (non-GAAP) of $842M .

Additional Notes

  • Other Q2 press releases: Searched July–Aug 2025 window; no additional BHC company press releases located beyond the 8‑K earnings release; did identify an unrelated industry report mention .