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Bausch & Lomb Corp (BLCO)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $1.278B, up 5% reported and 3% constant currency; adjusted EPS was $0.07 and GAAP EPS was ($0.18) . Versus consensus, revenue beat and adjusted EPS missed (see Estimates Context).*
  • Vision Care led growth (+8% to $753M), Surgical absorbed the enVista IOL recall (+3% to $216M), and Pharmaceuticals was flat (–0% to $309M) with U.S. Generics pressure offset by Xiidra/MIEBO strength .
  • Full-year 2025 guidance raised: revenue to $5.05–$5.15B and adjusted EBITDA ex IPR&D to $860–$910M; constant-currency growth lifted to ~5–7% and FX tailwind added $25M .
  • Call catalysts: enVista IOLs returned to full production; dry eye portfolio reached ~$1B trailing 12-month revenue; management expects tariff impacts to be offset, and highlighted strong contact lens momentum and robust pipeline ahead of Nov 13 investor day .

What Went Well and What Went Wrong

What Went Well

  • Vision Care strength: Daily SiHy, ULTRA monthly, Biotrue ONEday and consumer brands (ARTELAC, LUMIFY, Blink) drove broad-based growth; CEO: “Our continued growth speaks to the breadth and depth of our portfolio…” .
  • Surgical resilience: consumables growth with enVista return to market; CFO noted Surgical would have been +15% ex-recall in Q2 .
  • Dry eye leadership: trailing 12-month dry eye revenue reached ~$1B; MIEBO $63M and Xiidra $82M in Q2, with strong TRx growth; management emphasized comprehensive portfolio and high refill rates .

What Went Wrong

  • U.S. Generics headwind: segment decline impacted Pharma constant-currency growth (would-be +6% to –1%); actions underway to improve 2H performance .
  • enVista recall: one-time recall affected Surgical implantables; Q2 absorbed ~$29M revenue impact and ~$19M EBITDA impact; adjusted gross margin down 130 bps YoY .
  • EPS vs estimates: Adjusted EPS missed Q2 consensus and Q1 missed materially; higher selling/A&P (MIEBO) and financing fees from refinancing weighed on results .*

Financial Results

Consolidated metrics (quarterly)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Billions)$1.280 $1.137 $1.278
GAAP EPS ($)($0.01) ($0.60) ($0.18)
Adjusted EPS ex IPR&D ($)$0.25 ($0.07) $0.07
Adjusted EBITDA ex IPR&D ($USD Millions)$259 $126 $192
Adjusted Gross Margin %62.5% 59.5% 60.6%

Segment revenue (Q2 year-over-year)

SegmentQ2 2024 ($MM)Q2 2025 ($MM)Reported Change
Vision Care$697 $753 +8%
Surgical$209 $216 +3%
Pharmaceuticals$310 $309 0%
Total$1,216 $1,278 +5%

KPIs – Rx Dry Eye brands (quarterly)

KPI ($USD Millions)Q4 2024Q1 2025Q2 2025
MIEBO Revenue$53 $57 $63
Xiidra Revenue$104 $67 $82

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$5.00B–$5.10B (Apr 30) $5.05B–$5.15B (Jul 30) Raised
Constant-Currency Revenue GrowthFY 2025~4.5–6.5% (Apr 30) ~5–7% (Jul 30) Raised
Adjusted EBITDA ex IPR&DFY 2025$850M–$900M (Apr 30) $860M–$910M (Jul 30) Raised
FX Tailwind to RevenueFY 2025Nominal (Apr 30) $25M (Jul 30) Added tailwind
Adjusted Gross MarginFY 2025~61.5% (CFO) ~61.5% (unchanged) Maintained
R&DFY 2025~7.5% of revenue (CFO) ~7.5% of revenue Maintained
Interest ExpenseFY 2025~$375M (CFO) ~$375M (refi minimal impact) Maintained
Adjusted Tax RateFY 2025~15% (CFO) ~15% Maintained
CapexFY 2025~$280M (CFO) ~$280M Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Tariffs/macroQuantified headwinds and scenario planning; diversified footprint Estimated ~120 bps EBITDA margin headwind worst-case; excluded from guidance Estimate now ~40 bps absorbed in guidance; expect to offset via actions Improving mitigation; lower impact
Supply chain/recallPremium IOL momentum pre-recall Voluntary enVista recall; rapid return with enhanced protocols Full production resumed; 200k lenses shipped; sequential ramp through Q4 Recovery underway
Product performance – Contact lensesStrong Daily SiHy growth, ULTRA monthly up Daily SiHy +42% in Q1; broad-based across regions Daily SiHy +36% in Q2; market healthy; Opal DTC traction Sustained outperformance
Dry eye portfolioApproaching $1B annual revenue MIEBO and Xiidra TRx growth; Blink OTC expansion MIEBO $63M, Xiidra $82M; dry eye portfolio ~$1B TTM Leadership consolidating
Regulatory/pipelineLuxLife EU launch; MIGS (Elios), biomimetic lens plans Clinical starts for glaucoma, ocular pain; biomimetic lens study Elios U.S. filing strategy; EnVista Beyond timeline; biomimetic lens large study Oct Advancing execution
Competitive dynamics (dry eye)Building beachhead across Rx/OTC Xiidra access investments; managed care strategy New competitor (Alcon Triptyr) acknowledged; MIEBO unique evaporative profile; symptom/tolerability edge Confident positioning

Management Commentary

  • CEO Brent Saunders: “Our continued growth speaks to the breadth and depth of our portfolio… excited to showcase potential gamechangers at our November 13 investor day.”
  • CFO Sam Eldessouky: “Excluding the enVista recall, total company revenue grew by 6% in the quarter… Surgical segment growth in Q2 was 15% ex-recall.”
  • CEO on enVista: “We have shipped about 200,000 lenses… expect to recapture momentum by the first quarter of next year.”
  • CFO on guidance: “We are raising full-year revenue to $5.05–$5.15B and adjusted EBITDA to $860–$910M… FX tailwinds add $25M.”
  • CEO on dry eye: “We have the only evaporative dry eye drug (MIEBO) and a best-in-class anti-inflammatory (Xiidra)… our ability to work with ECPs and consumers is unprecedented.”

Q&A Highlights

  • Tariff impact and mitigation: Policy fluid; current estimate ~40 bps impact absorbed in guidance; teams actively mitigating through supply chain actions .
  • Generics outlook: New leadership; expect sequential improvement in 2H ’25; U.S.-made supply a competitive advantage amid potential tariff shifts .
  • Dry eye competition: Alcon’s Triptyr acknowledged; MIEBO differentiated for evaporative dry eye; Xiidra and comprehensive OTC options reinforce portfolio strength .
  • Surgical recovery: EnVista ramp progressing; consumables strength; targeted Q4 ramp and full momentum by early 2026 for Beyond; LuxLife EU rollout .
  • Contact lens market: Healthy demand; Daily SiHy growth broad-based; DTC platforms (Opal U.S., direct in China) supporting resilience .

Estimates Context

Metric vs ConsensusQ4 2024Q1 2025Q2 2025
Revenue Actual ($MM) vs Consensus*$1,280 vs $1,255 — bold beat$1,137 vs $1,150 — bold miss$1,278 vs $1,256 — bold beat
EPS (Adjusted) vs Primary EPS Consensus Mean*$0.25 vs $0.234 — bold beat($0.07) vs $0.021 — bold miss$0.07 vs $0.084 — bold miss
  • Revenue consensus means: Q4 2024 $1,254.84MM; Q1 2025 $1,150.39MM; Q2 2025 $1,255.67MM. EPS consensus means: Q4 2024 $0.23382; Q1 2025 $0.0209; Q2 2025 $0.08423.*
  • Actual revenue and EPS (Adjusted) from company materials: revenue ; Adjusted EPS .
  • Note: EPS consensus reflects S&P Global “Primary EPS” conventions; company reports Adjusted EPS and GAAP EPS; comparisons shown to Adjusted EPS for investor relevance.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Revenue beat and adjusted EPS miss in Q2 reflect strong Vision Care and FX tailwinds, offset by enVista recall costs and U.S. Generics pressure; guidance raised on business momentum and FX .
  • Dry eye franchise momentum remains a core driver (MIEBO and Xiidra), with a robust OTC platform; expect continued TRx growth and improving profitability pull-through into 2026–2027 .
  • Surgical is on track to recover; enVista shipments and consumables strength support 2H ramp; premium IOL and MIGS pipeline (Elios, Beyond) underpin margin expansion trajectory .
  • Contact lenses are a durable growth engine; Daily SiHy expansion, ULTRA monthly resilience, and DTC capabilities (Opal) help offset macro volatility .
  • Tariffs: current impact now estimated at ~40 bps and absorbed in guidance; mitigation actions (manufacturing footprint, inventory/logistics) reduce risk of further estimate surprises .
  • Near-term: watch Q3/Q4 ramp in Surgical and Generics improvement; medium-term: Investor Day (Nov 13) as a potential catalyst on pipeline disclosures and long-term margin ambitions .
  • Positioning: raised FY guidance, constant-currency growth to ~5–7%, and FX tailwind add support to top-line trajectory; valuation sensitivity remains around EPS normalization and dry eye profitability .
Bold beat/miss interpretation: Revenue Actual vs Consensus and Adjusted EPS vs Primary EPS Consensus Mean; “bold beat” = beat; “bold miss” = miss.