Bausch & Lomb Corp

Previous wording

Our accompanying unaudited interim Condensed Consolidated Financial Statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial statements, and should be read in conjunction with our Consolidated Financial Statements for the year ended December 31, 2024, which were included in our Annual Report on Form 10-K filed with the SEC and the Canadian Securities Administrators (the “CSA”) on February 19, 2025 (the “Annual Report”). In our opinion, the unaudited interim Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair statement of the financial condition, results of operations and cash flows for the periods indicated. Additional Company information is available on SEDAR+ at www.sedarplus.com and on the SEC website at www.sec.gov. All currency amounts are expressed in U.S. dollars, unless otherwise noted. Certain defined terms used herein have the meaning ascribed to them in the accompanying unaudited interim Condensed Consolidated Financial Statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024.

Current wording

Our accompanying unaudited interim Condensed Consolidated Financial Statements as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial statements, and should be read in conjunction with our Consolidated Financial Statements for the year ended December 31, 2024, which were included in our Annual Report on Form 10-K filed with the SEC and the Canadian Securities Administrators (the “CSA”) on February 19, 2025 (the “Annual Report”). In our opinion, the unaudited interim Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair statement of the financial condition, results of operations and cash flows for the periods indicated. Additional Company information is available on SEDAR+ at www.sedarplus.com and on the SEC website at www.sec.gov. All currency amounts are expressed in U.S. dollars, unless otherwise noted. Certain defined terms used herein have the meaning ascribed to them in the accompanying unaudited interim Condensed Consolidated Financial Statements as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024.

Previous wording

To supplement our internal R&D initiatives and to build-out and refresh our product portfolio, we also search for opportunities to augment our pipeline through arrangements that allow us to gain access to unique products and investigational treatments, by strategically aligning ourselves with other innovative product solutions. In addition to licensing agreements, we selectively consider acquisitions that we believe align well with our current organization and strategic plan to help drive profitable growth and advance our mission of helping people see better to live better. Certain recent strategic acquisitions and licensing agreements that we have entered into include the following:

Current wording

In addition to licensing agreements, we selectively consider acquisitions that we believe align well with our current organization and strategic plan to help drive profitable growth and advance our mission of helping people see better to live better. Certain recent strategic acquisitions and licensing agreements that we have entered into include the following:

Previous wording

•Acquisition of Trukera Medical – In July 2024, we acquired TearLab Corporation, d/b/a Trukera Medical (“Trukera Medical”) from its private equity owner, AccelMed Partners, and other shareholders. Trukera Medical, a U.S.-based privately held ophthalmic medical diagnostic company, commercializes ScoutPro®, a point-of-care portable device for precisely measuring osmolarity, the salt content of a person’s tears. This acquisition is expected to expand the Company's presence in the dry eye market.

Current wording

•Acquisition of Trukera Medical – In July 2024, we acquired TearLab Corporation, d/b/a Trukera Medical (“Trukera Medical”) from its private equity owner, AccelMed Partners, and other shareholders. Trukera Medical, a U.S.-based privately held ophthalmic medical diagnostic company, commercializes ScoutPro®, a point-of-care portable device for precisely measuring osmolarity, the salt content of a person’s tears. This acquisition expands the Company’s presence in the dry eye market.

Previous wording

•Acquisition of AcuFocus – During January 2023, we acquired AcuFocus, Inc. ("AcuFocus"). AcuFocus is an ophthalmic medical device company that has delivered breakthrough small aperture intraocular technology to address diverse unmet needs in eye care. The IC-8® Apthera™ IOL was approved by the FDA in July 2022 as the first and only small aperture non-toric EDOF IOL for certain cataract patients who have as much as 1.5 diopters of corneal astigmatism and wish to address presbyopia at the same time. We believe that the IC-8® Apthera TM IOL will bolster our surgical portfolio by enhancing our IOL offerings, which is a strategic area of focus for the Company.

Current wording

•Acquisition of AcuFocus – During January 2023, we acquired AcuFocus, Inc. (“AcuFocus”). AcuFocus is an ophthalmic medical device company that has delivered breakthrough small aperture intraocular technology to address diverse unmet needs in eye care. The IC-8® Apthera™ IOL was approved by the U.S. Food and Drug Administration (the “FDA”) in July 2022 as the first and only small aperture non-toric EDOF IOL for certain cataract patients who have as much as 1.5 diopters of corneal astigmatism and wish to address presbyopia at the same time. We believe that the IC-8® Apthera TM IOL will bolster our surgical portfolio by enhancing our IOL offerings, which is a strategic area of focus for the Company.

Previous wording

Our internal R&D organization focuses on the development of products through robust bench testing that is designed to comply with international standards and through clinical trials. Certain key near-term pipeline products that have received a significant portion of our R&D investment in current and prior periods are listed below.

Current wording

Our internal R&D organization focuses on the development of products through robust bench testing that is designed to comply with international standards and through clinical trials. Certain of our key pipeline products are listed below.

Previous wording

•Lumify® (brimonidine tartrate ophthalmic solution, 0.025%) - An OTC redness reliever eye drop that significantly reduces redness to help eyes look whiter and brighter, revealing eyes’ natural beauty. To date, we have launched and acquired the right to launch Lumify® in various countries. A new line extension formulation, Lumify® Preservative Free, for which the New Drug Application (“NDA”) was approved by the U.S. Food and Drug Administration (the “FDA”) in April 2024, began launching in the first quarter of 2025.

Current wording

•Lumify® Franchise – An OTC redness reliever eye drop that significantly reduces redness to help eyes look whiter and brighter, revealing eyes’ natural beauty. To date, we have launched and acquired the right to launch Lumify® in various countries. A new line extension formulation, Lumify® Preservative Free, for which the New Drug Application (“NDA”) was approved by the FDA in April 2024, began launching in the first quarter of 2025. In addition, the Company is in the process of initiating a Lumify® next generation clinical study, for which enrollment has been completed and we expect topline results by the end of 2025.

Previous wording

•Blink TMNutriTears® - During June 2024, we expanded our over-the-counter dry eye portfolio with the launch of Blink TMNutriTears®, a clinically proven OTC supplement that targets the key root causes of dry eyes, promotes healthy tear production and provides noticeable relief of eye dryness symptoms.

Current wording

•Blink TMFranchise – During June 2024, we expanded our over-the-counter dry eye portfolio with the launch of Blink TMNutriTears®, a clinically proven OTC supplement that targets the key root causes of dry eyes, promotes healthy tear production and provides noticeable relief of eye dryness symptoms. During June 2025, the Company began launching Blink® Nourish and Blink® Boost lubricating eye drops in the U.S.

Previous wording

◦enVista Envy TMlaunched in Canada in June 2024 and the U.S. and Europe launches are in-process.

Current wording

◦enVista Envy®launched in Canada in June 2024 and the U.S. and Europe launches are in-process.

Previous wording

◦enVista Beyond TM (extended depth of focus (“EDOF”) is anticipated to launch in the U.S. in 2026.

Current wording

◦enVista Beyond TM extended depth of focus (“EDOF”) is anticipated to launch in the U.S. early 2027.

Previous wording

•LuxLife® – We are expanding our portfolio of premium IOLs built on the “Lux” platform with the LuxLife®Trifocal IOL with two options, non-Toric and Toric for astigmatic patients. This product is expected to be launched in various European markets in 2025.

Current wording

•LuxLife® – We are expanding our portfolio of premium IOLs built on the “Lux” platform with the LuxLife®Trifocal IOL with two options, non-Toric and Toric for astigmatic patients. The European launch of this product is in process.

Previous wording

In addition, we have a number of other key pipeline products that we are in the process of developing and anticipate initiating clinical studies on certain of these products beginning throughout 2025.

Current wording

In addition, we have a number of other pipeline products that we are in the process of developing.

Previous wording

In response to the investigation, the Company has implemented enhanced inspection protocols for IOLs, as well as more explicit standards for how the monomers that make up its lenses are prepared by vendors. With these new processes in place, the Company has returned to full production of all enVista IOLs. In the following weeks, the Company will return to full market supply in the U.S. The timing for market reentry in other countries will be determined on a case-by-case basis in collaboration with health authorities.

Current wording

In response to the investigation, the Company has implemented enhanced inspection protocols for IOLs, as well as more explicit standards for how the monomers that make up its lenses are prepared by vendors. With these new processes in place, the Company has returned to full production of all enVista IOLs and has been shipping into the market to resupply inventory.

Previous wording

The former Biden administration imposed U.S. sanctions and export controls against Russia and Belarus in response to the ongoing war. These sanctions temporarily impacted our ability to distribute our U.S. manufactured contact lenses and our U.S. surgical products to Russia and Belarus. However, in response to these sanctions, we applied for licenses with the U.S. Department of Commerce’s Bureau of Industry and Security for both Russia and Belarus and we have all licenses, or other applicable governmental authorizations, necessary to allow us to sell the applicable currently sanctioned products in each of these countries. In April 2025, the Trump administration extended the sanctions imposed by the former Biden administration for an additional year and has also indicated that it may impose additional sanctions against Russia if negotiations are not commenced respecting a ceasefire or possible end to the conflict in Ukraine.

Current wording

The former Biden administration imposed U.S. sanctions and export controls against Russia and Belarus in response to the ongoing war. These sanctions temporarily impacted our ability to distribute our U.S. manufactured contact lenses and our U.S. surgical products to Russia and Belarus. However, in response to these sanctions, we applied for licenses with the U.S. Department of Commerce’s Bureau of Industry and Security for both Russia and Belarus and we have all licenses, or other applicable governmental authorizations, necessary to allow us to sell the applicable currently sanctioned products in each of these countries. The Trump administration has extended the sanctions imposed by the former Biden administration and has also indicated that it may impose additional sanctions against Russia and/or secondary sanctions against countries doing business with Russia, if negotiations are not progressed respecting a ceasefire or possible end to the conflict in Ukraine.

Previous wording

To date, the challenges associated with the Russia-Ukraine War and related sanctions from the U.S., EU and elsewhere have not yet had a material impact on our operations; although, we continue to review recent and proposed sanctions imposed by the EU, US and others to assess their impact on our operations.

Current wording

To date, the challenges associated with the Russia-Ukraine War and related sanctions from the U.S., EU and elsewhere have not yet had a material impact on our operations; although, we continue to review recent and proposed sanctions imposed by the EU, U.S. and others to assess their impact on our operations.

Previous wording

Our revenues attributable to Russia, Ukraine and Belarus, in the aggregate, were approximately 3% of our total revenues for, both, the three months ended March 31, 2025 and year ended December 31, 2024. In addition, we do not have any research or manufacturing facilities in Russia, Ukraine or Belarus. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.

Current wording

Our revenues attributable to Russia, Ukraine and Belarus, in the aggregate, were approximately 3% of our total revenues for, both, the six months ended June 30, 2025 and year ended December 31, 2024. In addition, we do not have any research or manufacturing facilities in Russia, Ukraine or Belarus. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.

Previous wording

The conflict between Israel and Hamas began during October 2023 and has since expanded to include other countries and militant groups. Our revenues attributable to the impacted regions for the three months ended March 31, 2025 and year ended December 31, 2024 were less than 1% of our total revenues in each period. Sales in Iran are covered by a general OFAC license. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.

Current wording

The conflict between Israel and Hamas began during October 2023 and has since expanded to include other countries and militant groups, including Iran. Our revenues attributable to the impacted regions for the six months ended June 30, 2025 and year ended December 31, 2024 were less than 1% of our total revenues in each period. Sales in Iran are covered by a general OFAC license. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.

Previous wording

As of the date of this filing, the current state of recent tariffs, counter-tariffs and other trade restrictions is fluid and continuously evolving; however, the Company is monitoring the status and believes that, building on its existing revenue stream from products manufactured in-country (which in certain key regions, such as the US and EU, represent a significant portion of the overall revenue), it has certain potential actions that could be taken in response to such tariffs, counter-tariffs and other trade restrictions to help to mitigate their overall impact to the Company and its business. These actions may include strategic inventory stocking, leveraging its global footprint to shift manufacturing and optimizing existing capacity to in-source manufacturing.

Current wording

As of the date of this filing, the current state of recent tariffs, counter-tariffs and other trade restrictions is fluid and continuously evolving; however, the Company is monitoring the status and believes that, building on its existing revenue stream from products manufactured in-country (which in certain key regions, such as the U.S. and EU, represent a significant portion of the overall revenue), it has certain potential actions that could be taken in response to such tariffs, counter-tariffs and other trade restrictions to help to mitigate their overall impact to the Company and its business. These actions may include strategic inventory stocking, leveraging its global footprint to shift manufacturing and optimizing existing capacity to in-source manufacturing.

Previous wording

On October 8, 2021, the Organisation for Economic Co-operation and Development (“OECD”)/G20 inclusive framework on Base Erosion and Profit Shifting (the “Inclusive Framework”) published a statement updating and finalizing the key components of a two-pillar plan on global tax reform originally agreed on July 1, 2021, and a timetable for implementation by 2023. The timetable for implementation was extended to 2024 or, with respect to certain components of the plan, to 2025. The Inclusive Framework plan has now been agreed to by more than 140 OECD members, including several countries which did not agree to the initial plan. Under Pillar One, a portion of the residual profits of multinational businesses with global turnover above €20 billion and a profit margin above 10% will be allocated to market countries where such allocated profits would be taxed. Under Pillar Two, the Inclusive Framework has agreed on a global minimum corporate tax rate of 15% for companies with revenue above €750 million, calculated on a country-by-country basis. On October 30, 2021, the G20 formally endorsed the new global minimum corporate tax rate rules. The Inclusive Framework agreement must be implemented by the OECD Members who have agreed to the plan, effective in 2024. Many members of the Inclusive Framework have either introduced or announced their intention to introduce certain components of the global minimum tax in line with the model rules for fiscal year beginning on or after December 31, 2023. For example, on December 15, 2022, the European Union member states unanimously adopted the directive to implement pillar two rules. According to the directive, the member states were expected to enact pillar two rules into domestic law in 2023, with certain elements becoming effective for fiscal years beginning on or after December 31, 2023. On August 4, 2023, Canada released draft legislation to enact certain components of the pillar two proposals into Canadian law as the Global Minimum Tax Act (“GMTA”), which was enacted on June 20, 2024. The GMTA is generally aligned with the model rules proposed by the OECD and is effective for fiscal years beginning on or after December 31, 2023. The OECD has published model rules and other guidance with respect to pillar two, which are generally consistent with the agreement reached by the Inclusive Framework in October 2021. On February 1, 2023, the Inclusive Framework released a package of technical and administrative guidance on the implementation of pillar two, including the scope of companies that will be subject to the Global Anti-Base Erosion Rules, transition rules, and guidance on domestic minimum taxes that countries may choose to adopt, among other topics. On December 18, 2023, the OECD announced plans to release additional guidance on model rules and to start the peer review process in 2024. On June 17, 2024, the OECD published further administrative guidance to clarify the operation of the model rules. On January 15, 20…

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Current wording

On October 8, 2021, the Organisation for Economic Co-operation and Development (“OECD”)/G20 inclusive framework on Base Erosion and Profit Shifting (the “Inclusive Framework”) published a statement updating and finalizing the key components of a two-pillar plan on global tax reform originally agreed on July 1, 2021, and a timetable for implementation by 2023. The timetable for implementation was extended to 2024 or, with respect to certain components of the plan, to 2025. The Inclusive Framework plan has now been agreed to by more than 140 OECD members, including several countries which did not agree to the initial plan. Under Pillar One, a portion of the residual profits of multinational businesses with global turnover above €20 billion and a profit margin above 10% will be allocated to market countries where such allocated profits would be taxed. Under Pillar Two, the Inclusive Framework has agreed on a global minimum corporate tax rate of 15% for companies with revenue above €750 million, calculated on a country-by-country basis. On October 30, 2021, the G20 formally endorsed the new global minimum corporate tax rate rules. Many members of the Inclusive Framework have either introduced or announced their intention to introduce certain components of the global minimum tax in line with the model rules for fiscal year beginning on or after December 31, 2023. For example, on December 15, 2022, the European Union member states unanimously adopted the directive to implement pillar two rules. According to the directive, the member states were expected to enact pillar two rules into domestic law in 2023, with certain elements becoming effective for fiscal years beginning on or after December 31, 2023. On August 4, 2023, Canada released draft legislation to enact certain components of the pillar two proposals into Canadian law as the Global Minimum Tax Act (“GMTA”), which was enacted on June 20, 2024. The GMTA is generally aligned with the model rules proposed by the OECD and is effective for fiscal years beginning on or after December 31, 2023. The OECD has published model rules and other guidance with respect to pillar two, which are generally consistent with the agreement reached by the Inclusive Framework in October 2021. On February 1, 2023, the Inclusive Framework released a package of technical and administrative guidance on the implementation of pillar two, including the scope of companies that will be subject to the Global Anti-Base Erosion Rules (“GloBe”), transition rules, and guidance on domestic minimum taxes that countries may choose to adopt, among other topics. On December 18, 2023, the OECD announced plans to release additional guidance on model rules and to start the peer review process in 2024. On June 17, 2024, the OECD published further administrative guidance to clarify the operation of the model rules. On January 15, 2025, the OECD published additional guidance on the interpretation of the GloBe model rules, including the central…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

The United States did not announce plans to enact the tax measures under the two-pillar plan. On February 1, 2023, the U.S. Financial Accounting Standards Board indicated that they believe the minimum tax imposed under pillar two is an alternative minimum tax, and, accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. On January 20, 2025, the Trump Administration issued an executive order declaring the Inclusive Framework has no force or effect in the U.S. absent congressional action, and directing the U.S. Department of Treasury to: (i) investigate whether any non-U.S. countries are not in compliance with any U.S. tax treaty or have implemented or are likely to implement tax rules that are extraterritorial or disproportionately affect U.S. companies, which may include actions or taxes imposed under Pillar One or Pillar Two, and (ii) develop options for “protective measures” in response to any such noncompliance or tax rules. In addition, legislation has been introduced in the U.S. Congress that would increase U.S. tax rates on non-U.S. companies and investors if their home jurisdictions impose discriminatory or extraterritorial taxes on U.S. companies. We cannot predict whether the U.S. will adopt any such protective measures or whether any such legislation will be adopted, or whether or how any non-U.S. countries may change their tax laws, including with respect to taxes imposed under Pillar One or Pillar Two, in response to the executive order, any action taken thereunder or the legislation described above. It is possible that any changes in U.S. or non-U.S. tax law could have material adverse effect on our future tax liabilities and our effective tax rate.

Current wording

The United States did not announce plans to enact the tax measures under the two-pillar plan. On February 1, 2023, the U.S. Financial Accounting Standards Board indicated that they believe the minimum tax imposed under pillar two is an alternative minimum tax, and, accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. On January 20, 2025, the Trump Administration issued an executive order declaring the Inclusive Framework has no force or effect in the U.S. absent congressional action, and directing the U.S. Department of Treasury to: (i) investigate whether any non-U.S. countries are not in compliance with any U.S. tax treaty or have implemented or are likely to implement tax rules that are extraterritorial or disproportionately affect U.S. companies, which may include actions or taxes imposed under Pillar One or Pillar Two, and (ii) develop options for “protective measures” in response to any such noncompliance or tax rules. On June 28, 2025, the United States and the rest of the G7 countries announced an agreement that would, in principle, exclude U.S. parented groups from certain taxes under Pillar Two and address certain risks of base erosion and profit shifting. However, we cannot predict whether or when such agreement will be brought into force, and whether the United States will adopt any other protective measures including with respect to any taxes imposed under Pillar One, or whether or how any non-U.S. countries may change their tax laws, including with respect to taxes imposed under Pillar One or Pillar Two, in response to the executive order, the agreement in principle described above, or otherwise. It is possible that any changes in U.S. or non-U.S. tax law could have material adverse effect on our future tax liabilities and our effective tax rate.

Previous wording

In addition, in connection with our Lumify®, PreserVision®, Vyzulta®and Lotemax®SM products, we have commenced ongoing infringement proceedings against potential generic competitors or other potential infringers in the U.S. If we are not successful in these proceedings, we may face increased generic competition for these products. The PreserVision® U.S. formulation patent expired in March 2021, but a patent covering methods of using the formulation remains in force into 2026. PreserVision® products accounted for approximately 6% and 7% of our total revenues in 2024 and 2023, respectively. While PreserVision® and Lumify®are (or were) the subjects of certain ongoing and past patent infringement proceedings, the Company cannot predict the magnitude or timing of a LOE impact from PreserVision®and Lumify®as these are OTC products, and thus, the impact is not expected to be as significant as the LOE of a branded pharmaceutical product.

Current wording

In addition, in connection with our Lumify®, PreserVision®, Vyzulta®and Lotemax®SM products, we have commenced ongoing infringement proceedings against potential generic competitors or other potential infringers in the U.S. If we are not successful in these proceedings, we may face increased generic competition for these products. The PreserVision® U.S. formulation patent expired in March 2021, but a patent covering methods of using the formulation remains in force into 2026. PreserVision® products accounted for approximately 6% and 7% of our total revenues in 2024 and 2023, respectively. While PreserVision® and Lumify®are (or were) the subjects of certain ongoing and past patent infringement proceedings and while the Company cannot predict the magnitude of a LOE impact from PreserVision®and Lumify®, as these are OTC products, the impact is not expected to be as significant as the LOE of a branded pharmaceutical product.

Previous wording

Our unaudited operating results for the three months ended March 31, 2025 and 2024 were as follows:

Current wording

Our unaudited operating results for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous wording

The Pharmaceuticals segment revenue was $267 million and $267 million for the three months ended March 31, 2025 and 2024, respectively, as the increased sales for MIEBO®, driven by its continued positive momentum since launching, was offset by gross-to-net pricing pressures, primarily attributable to XIIDRA® and declines in the U.S. generics business. The Pharmaceuticals segment revenue performance included an increase in volumes of $24 million, offset by: (i) a decrease in net realized pricing of $22 million and (ii) the unfavorable impact of foreign currencies of $2 million.

Current wording

The Pharmaceuticals segment revenue was $309 million and $310 million for the three months ended June 30, 2025 and 2024, respectively, a decrease of $1 million. The decrease was primarily driven by declines in the U.S. generics business and gross-to-net pricing pressures, primarily attributable to XIIDRA®, partially offset by the increased net sales for MIEBO®, driven by its continued positive momentum since launching. This decrease included a decrease in net realized pricing of $43 million, partially offset by: (i) an increase in volumes of $40 million and (ii) the favorable impact of foreign currencies of $2 million.

Previous wording

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 39.3% and 36.7% for the three months ended March 31, 2025 and 2024, respectively, an increase of 2.6% percentage points, and is primarily attributable to the increase in rebates from our dry eye portfolio, including XIIDRA®and MIEBO®.

Current wording

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 38.6% and 35.4% for the three months ended June 30, 2025 and 2024, respectively, an increase of 3.2% percentage points, and is primarily attributable to the increase in rebates from our dry eye portfolio, including XIIDRA®and MIEBO®.

Previous wording

Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) decreased by $19 million, primarily driven by: (i) the inventory reserve charge related to the voluntary recall, (ii) the decrease in net realized pricing and (iii) the unfavorable impact of foreign currencies.

Current wording

Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $18 million, primarily driven by: (i) higher volumes and (ii) the favorable impact of foreign currencies, partially offset by the decrease in net realized pricing.

Previous wording

Cost of goods sold as a percentage of Product sales was 42.5% and 38.7% for the three months ended March 31, 2025 and 2024, respectively.

Current wording

Cost of goods sold as a percentage of Product sales was 41.1% and 39.7% for the three months ended June 30, 2025 and 2024, respectively. The unfavorable change was driven by product mix and the overall impact of the voluntary recall of certain enVista IOL products.

Previous wording

R&D expenses were $86 million and $82 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $4 million, or 5%, primarily due to certain products in development, as previously discussed.

Current wording

R&D expenses were $96 million and $84 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $12 million, or 14%, primarily due to certain products in development, as previously discussed.

Previous wording

Operating loss was $83 million for the three months ended March 31, 2025, as compared to operating income of $6 million for the three months ended March 31, 2024, a decrease in our operating results of $89 million. This decrease primarily reflects the increase in SG&A and decrease in contribution, each as previously discussed.

Current wording

Operating loss was $11 million for the three months ended June 30, 2025, as compared to operating income of $26 million for the three months ended June 30, 2024, a decrease in our operating results of $37 million. This decrease primarily reflects the increase in SG&A, partially offset by the increase in contribution, each as previously discussed.

Previous wording

The Vision Care segment profit was $176 million and $178 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $2 million as the increase in revenue was offset by higher cost of sales, driven by our international contact lens and consumer eye care businesses, and higher selling expense.

Current wording

The Vision Care segment profit was $209 million and $192 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $17 million. The increase was primarily driven by the increase in revenue, partially offset by higher cost of sales, driven by our contact lens businesses, and higher selling expense.

Previous wording

The Pharmaceuticals segment profit was $11 million and $53 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $42 million. The decrease was primarily driven by higher selling and advertising and promotional expenses related to MIEBO®and gross-to-net pricing pressures, primarily attributable to XIIDRA®.

Current wording

The Pharmaceuticals segment profit was $37 million and $78 million for the three months ended June 30, 2025 and 2024, respectively, a decrease of $41 million. The decrease was primarily driven by: (i) higher selling and advertising and promotional expenses related to MIEBO®, (ii) declines in the U.S. generics business and (iii) gross-to-net pricing pressures, primarily attributable to XIIDRA®.

Previous wording

Foreign exchange and other primarily includes translation gains/losses on intercompany balances and third-party liabilities and the gain/loss due to the change in fair value of foreign currency exchange contracts. Foreign exchange and other was a net loss of$6 million and $0 for the three months ended March 31, 2025 and 2024, respectively.

Current wording

Foreign exchange and other primarily includes translation gains/losses on intercompany balances and third-party liabilities and the gain/loss due to the change in fair value of foreign currency exchange contracts. Foreign exchange and other was a net loss of$2 million and $3 million for the three months ended June 30, 2025 and 2024, respectively.

Previous wording

Net loss attributable to Bausch + Lomb Corporation was $212 million and $167 million for the three months ended March 31, 2025 and 2024, respectively, a decrease in our results of $45 million and was primarily due to the decrease in our operating results of $89 million, partially offset by the decrease in the provision for income taxes of $42 million, each as previously discussed.

Current wording

Net loss attributable to Bausch + Lomb Corporation was $62 million and $151 million for the three months ended June 30, 2025 and 2024, respectively, an increase in our results of $89 million and was primarily due to the decrease in income taxes of $161 million, partially offset by the decrease in our operating results of $37 million and increase interest expense of$26 million, each as previously discussed.

Previous wording

Our revenues were $1,137 million and $1,099 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $38 million, or 3%. The increase was attributable to: (i) increased volumes of $63 million across each of our segments and (ii) incremental sales attributable to acquisitions of $6 million, within our Surgical segment. The increases in revenue were partially offset by: (i) the unfavorable impact of foreign currencies of $19 million, (ii) decreased net realized pricing of $11 million, driven by our Pharmaceuticals segment and (iii) the impact of divestitures and discontinuations of $1 million, related to the discontinuation of certain products within our Vision Care segment.

Current wording

Our revenues were $2,415 million and $2,315 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $100 million, or 4%. The increase was attributable to: (i) increased volumes of $127 million across each of our segments, (ii) incremental sales attributable to acquisitions of $12 million, within our Surgical segment and (iii) the favorable impact of foreign currencies of $2 million. The increases in revenue were partially offset by: (i) decreased net realized pricing of $38 million, driven by our Pharmaceuticals segment and (ii) the impact of divestitures and discontinuations of $3 million, relating to the discontinuation of certain products within our Vision Care segment.

Previous wording

The Vision Care segment revenue was $656 million and $635 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $21 million, or 3%. The increase was primarily driven by the performance of SiHy Daily lenses and Ultra within our contact lens business and sales from our dry eye portfolio within our consumer eye care business. This increase included: (i) an increase in volumes of $25 million and (ii) an increase in net pricing of $10 million, partially offset by: (i) the unfavorable impact of foreign currencies of $13 million and (ii) the impact of divestitures and discontinuations of $1 million.

Current wording

The Vision Care segment revenue was $1,409 million and $1,332 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $77 million, or 6%. The increase was primarily driven by sales from our dry eye portfolio and Lumify® within our consumer eye care business and the performance of SiHy Daily lenses and Ultra® within our contact lens business. This increase included: (i) an increase in volumes of $55 million, (ii) an increase in net pricing of $24 million and (iii) the favorable impact of foreign currencies of $1 million, partially offset by the impact of divestitures and discontinuations of $3 million.

Previous wording

The Surgical segment revenue was $214 million and $197 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $17 million, or 9%. The increase was primarily driven by: (i) increased demand of implantables, driven by our premium IOL portfolio, (ii) increased demand of consumables and (iii) increased equipment sales. This increase included: (i) an increase in volumes of $14 million, (ii) incremental sales from acquisitions of $6 million and (iii) an increase in net realized pricing of $1 million, partially offset by the unfavorable effect of foreign currencies of $4 million.

Current wording

The Surgical segment revenue was $430 million and $406 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $24 million, or 6%. The increase was primarily driven by: (i) increased demand of consumables, (ii) increased demand of implantables, driven by our premium IOL portfolio and (iii) increased equipment sales, partially offset by the voluntary recall of certain enVista IOL products, as previously discussed. This increase included: (i) incremental sales from acquisitions of $12 million, (ii) an increase in volumes of $8 million, (iii) an increase in net realized pricing of $3 million and (iv) the favorable impact of foreign currencies of $1 million.

Previous wording

SG&A expenses were $563 million and $504 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $59 million, or 12%. The increase was primarily attributable to: (i) higher selling and advertising and promotion costs, primarily attributable to MIEBO®and (ii) higher business transformation costs (discussed below).

Current wording

SG&A expenses were $1,142 million and $1,039 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $103 million, or 10%. The increase was primarily attributable to: (i) higher selling and advertising and promotion costs, primarily attributable to MIEBO®and (ii) higher Business Transformation Costs (defined and discussed below).

Previous wording

Acquired in-process research and development costs in 2025 relates to the acquisition of Whitecap Biosciences, as previously discussed.

Current wording

Acquired in-process research and development costs in 2025 primarily relate to the acquisition of Whitecap Biosciences, as previously discussed.

Previous wording

The Surgical segment profit was a loss of $7 million for the three months ended March 31, 2025, as compared to a profit of $11 million for the three months ended March 31, 2024, a decrease of $18 million. The decrease was primarily due to: (i) higher cost of sales as a result of an inventory obsolescence charge of $15 million related to the voluntary recall of certain enVista IOL products and (ii) higher selling expenses, partially offset by the increase in revenues.

Current wording

The Surgical segment profit was a loss of $5 million for the six months ended June 30, 2025, as compared to a profit of $15 million for the six months ended June 30, 2024, a decrease of $20 million. The decrease was primarily due to: (i) the overall impact of the voluntary recall of certain enVista IOL products and (ii) higher selling expenses, partially offset by the increase in revenues.

Previous wording

Provision for income taxes was $31 million and $73 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $42 million. The change in income taxes was primarily related to: (i) a change in the jurisdictional and seasonal mix of earnings and (ii) discrete tax effects of: (a) a tax benefit recorded on acquired assets, (b) the quarter to date impact of the enVista recall and (c) the filings of certain tax returns.

Current wording

Benefit from income taxes was $58 million for the six months ended June 30, 2025, as compared to a provision for income taxes of $145 million for the six months ended June 30, 2024, a favorable change of $203 million. The change in income taxes was primarily related to: (i) a change in the jurisdictional and seasonal mix of earnings and (ii) discrete tax effects of: (a) a tax benefit recorded on acquired assets, (b) the year to date impact of the enVista recall and (c) a benefit for previously accrued taxes that settled favorably with the Internal Revenue Service.

Previous wording

Net cash used in investing activities was $116 million and $57 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $59 million and was primarily driven by an increase in purchases of property, plant and equipment during the three months ended March 31, 2025.

Current wording

Net cash used in investing activities was $206 million and $131 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $75 million and was primarily driven by an increase in purchases of property, plant and equipment during the six months ended June 30, 2025.

Previous wording

Our primary sources of liquidity are expected to be our cash and cash equivalents, cash collected from customers, funds as needed from our Revolving Credit Facility, and issuances of other long-term debt, additional equity and equity-linked securities. We believe these sources will be sufficient to meet our current liquidity needs for the next twelve months, and be sufficient to support our future cash needs; however, we can provide no assurance that our liquidity and capital resources will meet future funding requirements or, as discussed in the Forward-Looking Statements section of this Form 10-Q, of our ability to comply with, or if necessary, obtain a waiver or amendment of, the financial and other covenants contained in our Amended Credit Agreement.

Current wording

Our primary sources of liquidity are expected to be our cash and cash equivalents, cash collected from customers, funds as needed from our June 2030 Revolving Credit Facility, and issuances of other long-term debt, additional equity and equity-linked securities. We believe these sources will be sufficient to meet our current liquidity needs for the next twelve months, and be sufficient to support our future cash needs; however, we can provide no assurance that our liquidity and capital resources will meet future funding requirements.