Bausch & Lomb Corp
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 29, 2026
BLCO$19.99+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001860742-25-000023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001860742-26-000062
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 336 previous paragraphs and 270 current paragraphs.
177 unchanged; 70 reworded; 19 added; 70 removed; 19 previous and 4 current paragraphs rearranged.
Tables are not compared: 13 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
•Acquisition of a manufacturing facility – On December 9, 2025, we acquired certain manufacturing equipment, other assets and the assumption of a manufacturing facility lease in Mexico. The acquisition is expected to unlock manufacturing capacity and expand the Company's margins.
Current report
•DD SiHy Lens - A second daily disposable SiHy lens designed for affordable innovation being developed leveraging our existing manufacturing platform.
Current report
•FRP SiHy - A new premium planned replacement SiHy lens being developed with a focus on providing unsurpassed comfort throughout the month.
Current report
•SeeNova TM – We are developing the next generation ophthalmic microsurgical system for Anterior, Posterior and Combined segment surgeries. US and EU releases are anticipated in 2028.
Current report
•SeeLyra TM – Femtosecond laser assisted cataract surgery system with integration of phaco components. CE Mark and 510k submission is anticipated in the second quarter of 2026 and approvals are anticipated by the end of 2026.
Current report
Additionally, on February 20, 2026 the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). In response to the U.S. Supreme Court’s decision, new Executive Orders were announced aimed at restructuring U.S. tariff policy and exploring alternative statutory authorities under which to impose or maintain tariffs. On March 4, 2026, the U.S. Court of International Trade (“CIT”) ordered the U.S. Customs and Border Protection (“CBP”) to liquidate (meaning calculate and finalize) and, where applicable, reliquidate, or correct, certain import entries without regard to duties imposed under the IEEPA. The CIT order provides relief for entries affected by IEEPA tariffs, and, on April 20, 2026, the CBP opened the Consolidated Administration and Processing of Entries (“CAPE”) portal to facilitate the submission and processing of IEEPA duty refund claims. We are evaluating the impact of these developments on our business, financial condition, cash flows and results of operations, however, as of the date of this filing, no amounts related to potential tariff recoveries have been recorded.
Current report
We have in the past commenced, and may in the future commence, infringement proceedings with respect to certain of our products against potential generic competitors or other potential infringers in the U.S. and elsewhere. For example, we previously commenced infringement proceedings against potential generic competitors in the U.S. with respect to our PreserVision®, Lumify® and Lotemax® SM products, all of which have now been dismissed or otherwise resolved, and we are currently involved in one ongoing infringement proceeding in the U.S. against a potential generic competitor for our Vyzulta® product. If we are not successful in these and any other such proceedings, we may face increased generic competition for these products.
Current report
The Surgical segment revenue was $228 million and $214 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $14 million, or 7%, primarily driven by growth in premium IOLs. This increase included: (i) the favorable impact of foreign currencies of $12 million, (ii) an increase in net realized pricing of $2 million and (iii) incremental sales from acquisitions of $1 million, partially offset by a decrease in volumes of $1 million.
Current report
SG&A expenses were $544 million and $563 million for the three months ended March 31, 2026 and 2025, respectively, a decrease of $19 million, or 3%. The decrease was primarily attributable to: (i) lower Business Transformation Costs, and (ii) lower advertising and promotional expense as XIIDRA®and MIEBO®have exited the launch phase, partially offset by the unfavorable impact of foreign currencies.
Current report
Operating Income (Loss)
Current report
The Vision Care segment profit was $202 million and $176 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $26 million. The increase was primarily driven by the increase in revenue.
Current report
The Pharmaceuticals segment profit was $66 million and $11 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $55 million. The increase was primarily driven by: (i) the increase in revenues, as previously discussed, (ii) the impact of the amortization of inventory step-up related to the acquisition of XIIDRA® during three months ended March 31, 2025 and (iii) lower advertising and promotional expense as XIIDRA®and MIEBO®have exited the launch phase.
Current report
Loss on Extinguishment of Debt
Current report
Net loss attributable to Bausch + Lomb Corporation was $71 million and $212 million for the three months ended March 31, 2026 and 2025, respectively, an increase in our results of $141 million and was primarily due to the increase in our operating results of $116 million and decrease in income taxes of $25 million, each as previously discussed.
Current report
Net cash provided by operating activities was $32 million for the three months ended March 31, 2026, as compared to net cash used by operating activities of $25 million for the three months ended March 31, 2025, an increase of $57 million, and is primarily attributable to the increase in our operating results, as previously discussed.
Current report
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. In addition, as part of our ongoing working capital management, on January 9, 2026, we entered into a financing arrangement, that permits us, subject to certain conditions, to sell certain receivables to a third-party financial institution, potentially accelerating access to cash and reducing our credit risk. As of the date of this filing, the Company sold trade receivables and received cash proceeds totaling $26 million, under this arrangement.
Current report
As of March 31, 2026, the Company had $100 million of outstanding borrowings, $32 million of issued and outstanding letters of credit and remaining availability, subject to certain customary conditions, of $668 million under its June 2030 Revolving Credit Facility. The stated rate of interest for borrowings under the Revolving Credit Facility at March 31, 2026 ranges from 6.42% to 6.43% per annum. Subsequent to March 31, 2026, the Company borrowed, net of repayments an additional $50 million under its June 2030 Revolving Credit Facility, for general corporate purposes.
Current report
•political and economic instability and other ongoing uncertainties as a result of unrest, instability or changes in geopolitical conditions, including military or political conflicts, in or impacting the countries in which we do business, such as a result of the recent U.S. military action in Venezuela and the tensions between the U.S. and Greenland, and other members of the North Atlantic Treaty Organization;
Current report
•our ability to adopt and integrate artificial intelligence solutions into various aspects of our business and operations responsibly and in compliance with applicable legislation, laws, rules, regulation and guidance;
Removed paragraphs (70)
Previous report
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 report
•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 report
•Acquisition of XIIDRA® – In September 2023, the Company acquired XIIDRA®, a non-steroid eye drop specifically approved to treat the signs and symptoms of dry eye disease focusing on inflammation associated with dry eye, and certain other ophthalmology assets from Novartis Pharma AG and Novartis Finance Corporation (together with Novartis Pharma AG, “Novartis”) (the “XIIDRA Acquisition”). The XIIDRA Acquisition complements and grows our existing dry eye franchise.
Previous report
•Acquisition of Blink®Product Line – In July 2023, we acquired the Blink® OTC product line of eye and contact lens drops from Johnson & Johnson Vision, which consists of Blink® Tears Lubricating Eye Drops, Blink® Tears Preservative Free Lubricating Eye Drops, Blink GelTears® Lubricating Eye Drops, Blink® Triple Care Lubricating Eye Drops, Blink Contacts® Lubricating Eye Drops and Blink-N-Clean® Lens Drops (collectively, the “Blink® Product Line”). This acquisition has enabled us to continue to grow our global OTC business.
Previous report
•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. The acquisition of the IC-8® Apthera TM IOL has allowed us to grow our portfolio of IOL offerings.
Previous report
Voluntary Recall of enVista Intraocular Lenses
Previous report
On March 27, 2025, the Company announced a voluntary recall of certain enVista IOL products. The recall was in response to an increased number of reports of toxic anterior segment syndrome (TASS), and included all lots of the following enVista IOL products: enVista Aspire, enVista Aspire Toric, enVista Envy and enVista Envy Toric, as well as enVista monofocal and enVista monofocal Toric IOL models in the U.S. On April 24, 2025, the Company announced that it, with the assistance of experts and advisors, had completed its investigation into the matter and determined that the issue stemmed from raw material used in certain lots that was delivered by a different vendor.
Previous report
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 report
15, 2025, the OECD published additional guidance on the interpretation of the GloBe model rules, including the central record that contained two lists of jurisdictions that have (i) income inclusion rules (the “IIR”) and (ii) domestic minimum top-up taxes (“QDMTT”) that have transitional qualified status. Canada’s GMTA is included in both lists. The central record was amended by the Inclusive Framework on March 28, 2025 to add new jurisdictions.
Previous report
The Surgical segment revenue was $215 million and $206 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $9 million, or 4%. The increase was primarily driven by increased consumables, equipment and implantables sales, as premium IOLS have been regaining momentum. This increase included: (i) the favorable impact of foreign currencies of $6 million, (ii) incremental sales from acquisitions of $3 million and (iii) an increase in volumes of $2 million, partially offset by a decrease in net realized pricing of $2 million.
Previous report
Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $40 million, primarily driven by: (i) product mix and (ii) the favorable impact of foreign currencies, partially offset by the impact of the voluntary recall of certain enVista IOL products.
Previous report
SG&A expenses were $528 million and $511 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $17 million, or 3%. The increase was primarily attributable to: (i) higher selling costs within our Pharmaceuticals segment, primarily attributable to MIEBO® and our consumer eye care business and (ii) higher general and administrative costs.
Previous report
Other (income) expense, net
Previous report
Acquisition-related contingent consideration in 2025 primarily reflects changes in the estimated amount and timing of projected cash flows of certain products.
Previous report
Operating Income
Previous report
The Vision Care segment profit was $217 million and $201 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $16 million. The increase was primarily driven by the increase in revenue, partially offset by higher selling expense.
Previous report
The Pharmaceuticals segment profit was $76 million and $69 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $7 million. The increase was primarily driven by increased sales of MIEBO®, partially offset by: (i) declines in the U.S. generics business, (ii) higher royalties and manufacturing variances and (iii) higher R&D expense.
Previous report
Net (loss) income attributable to Bausch + Lomb Corporation
Previous report
Net loss attributable to Bausch + Lomb Corporation was $28 million for the three months ended September 30, 2025, as compared to net income attributable to Bausch + Lomb Corporation of $4 million for the three months ended September 30, 2024, a decrease in our results of $32 million and was primarily due to the increase in income taxes of $88 million, partially offset by the increase in our operating results of $52 million, each as previously discussed.
Previous report
Revenues
Previous report
Our revenues were $3,696 million and $3,511 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $185 million, or 5%. The increase was attributable to: (i) increased volumes of $203 million across each of our segments, (ii) the favorable impact of foreign currencies of $21 million and (iii) incremental sales attributable to acquisitions of $15 million, within our Surgical segment. The increases in revenue were partially offset by: (i) decreased net realized pricing of $47 million, driven by our Pharmaceuticals segment and (ii) the impact of divestitures and discontinuations of $7 million, primarily relating to the discontinuation of certain products within our Vision Care segment.
Previous report
Vision Care Segment Revenue
Previous report
The Vision Care segment revenue was $2,145 million and $2,016 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $129 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 $85 million, (ii) an increase in net pricing of $38 million and (iii) the favorable impact of foreign currencies of $12 million, partially offset by the impact of divestitures and discontinuations of $6 million.
Previous report
Pharmaceuticals Segment Revenue
Previous report
The Pharmaceuticals segment revenue was $906 million and $883 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $23 million, or 3%. The increase was primarily driven by the increased net sales for MIEBO®, driven by its continued positive momentum since launching, partially offset by declines in the U.S. generics business and gross-to-net pricing pressures, primarily attributable to XIIDRA®and MIEBO®. The increase included: (i) an increase in volumes of $108 million and (ii) the favorable impact of foreign currencies of $2 million, partially offset by a decrease in net realized pricing of $86 million.
Previous report
Surgical Segment Revenue
Previous report
The Surgical segment revenue was $645 million and $612 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $33 million, or 5%. 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 $15 million, (ii) an increase in volumes of $10 million, (iii) the favorable impact of foreign currencies of $7 million and (iv) an increase in net realized pricing of $1 million.
Previous report
Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 39.1% and 35.9% for the nine months ended September 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 report
Operating Expenses
Previous report
Cost of goods sold was $1,513 million and $1,369 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $144 million, or 11%. The increase was primarily driven by: (i) higher volumes and (ii) higher manufacturing variances, which include an inventory reserve related to the voluntary recall of certain enVista IOL products.
Previous report
Cost of goods sold as a percentage of Product sales was 41.1% and 39.1% for the nine months ended September 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 report
Selling, General and Administrative Expenses
Previous report
SG&A expenses were $1,670 million and $1,550 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $120 million, or 8%. The increase was primarily attributable to: (i) higher selling costs and (ii) higher Business Transformation Costs (defined and discussed below).
Previous report
Research and Development Expenses
Previous report
R&D expenses were $277 million and $250 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $27 million, or 11%, primarily due to certain products in development, as previously discussed.
Previous report
Amortization of Intangible Assets
Previous report
Amortization of Intangible assets was $202 million and $220 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $18 million, or 8%, primarily due to fully amortized intangible assets no longer being amortized.
Previous report
Acquired in-process research and development costs in 2025 primarily relate to the acquisition of Whitecap Biosciences, as previously discussed.
Previous report
Acquisition-related contingent consideration in 2025 primarily reflects changes in: (i) the timing of regulatory approval of certain pipeline products and (ii) the estimated amount and timing of projected cash flows of certain products.
Previous report
Operating Income
Showing the first 40 of 70 passages. Open the source sections for the rest.
Reworded paragraphs (70)
Previous wording
Our accompanying unaudited interim Condensed Consolidated Financial Statements as of September 30, 2025 and for the three and nine months ended September 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 September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024.
Current wording
Our accompanying unaudited interim Condensed Consolidated Financial Statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 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, 2025, which were included in our Annual Report on Form 10-K filed with the SEC and the Canadian Securities Administrators (the “CSA”) on February 18, 2026 (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, 2026 and for the three months ended March 31, 2026 and 2025.
Previous wording
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc. (“BHC”), with BHC holding, directly or indirectly, approximately 88% of the issued and outstanding common shares of Bausch + Lomb, as of October 22, 2025. Bausch + Lomb understands that BHC continues to believe that completing the separation of our eye health business into an independent publicly traded entity, separate from the remainder of BHC (the “Separation”), which may include the transfer of all or a portion of BHC’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders (the “Distribution”), the monetization of all or a portion of BHC’s ownership interest in Bausch + Lomb, the sale of the Company (a “Sale Transaction”) or a combination thereof, makes strategic sense and that BHC continues to evaluate all relevant factors and considerations related to completing the Separation, including those factors described in BHC’s public filings. The Distribution is subject to the achievement of targeted debt leverage ratios and the completion of the Separation is subject to the receipt of any applicable shareholder and other necessary approvals and other factors and is subject to various risk factors. For additional information on the risks related to the Separation, see Item 1A. “Risk Factors — Risks Relating to the Separation” of our Annual Report. There can be no assurance that the Separation will be consummated, the form any such consummated Separation would take or that a Distribution or Sale Transaction will occur as part of that Separation or that even if consummated, we will realize the anticipated benefits from the Separation.
Current wording
Bausch + Lomb understands that BHC continues to believe that completing the Separation, which may include the monetization of all or a portion of BHC’s ownership interest in Bausch + Lomb, the sale of the Company (a “Sale Transaction”), the transfer of all or a portion of BHC’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders (the “Distribution”), or a combination thereof, makes strategic sense and that BHC continues to evaluate all relevant factors and considerations related to completing the Separation, including those factors described in BHC’s public filings. The Distribution is subject to the achievement of targeted debt leverage ratios and the completion of the Separation is subject to the receipt of any applicable shareholder and other necessary approvals and other factors and is subject to various risk factors. There can be no assurance that the Separation will be consummated, the form any such consummated Separation would take or that a Distribution or Sale Transaction will occur as part of that Separation or that even if consummated, we will realize the anticipated benefits from the Separation. For additional information on the risks related to the Separation, see Item 1A. “Risk Factors — Risks Relating to the Separation” of our Annual Report. There can be no assurance that the Separation will be consummated, the form any such consummated Separation would take or that a Distribution or Sale Transaction will occur as part of that Separation or that even if consummated, we will realize the anticipated benefits from the Separation.
Previous wording
We continuously search for new product opportunities through internal development, strategic licensing agreements and acquisitions, that, if successful, will allow us to leverage our commercial footprint and supplement our existing product portfolio and address specific unmet needs in the market.
Current wording
In addition to internal development, we continuously search for new product opportunities through strategic licensing agreements and acquisitions, that, if successful, will allow us to leverage our commercial footprint and supplement our existing product portfolio and address specific unmet needs in the market.
Previous wording
Prior to 2025, certain strategic acquisitions that we had entered into included the following:
Current wording
Certain recent strategic acquisitions that we had entered into included the following:
Previous wording
During 2025, the Company acquired Whitecap Biosciences LLC (“Whitecap Biosciences”). The acquisition is expected to expand the Company’s clinical-stage pipeline, as Whitecap Biosciences is currently developing two innovative therapies for potential use in glaucoma and geographic atrophy.
Current wording
•Acquisition of Whitecap Biosciences – On January 3, 2025, we acquired Whitecap Biosciences LLC (“Whitecap Biosciences”). The acquisition is expected to expand the Company’s clinical-stage pipeline, as Whitecap Biosciences is currently developing two innovative therapies for potential use in glaucoma and geographic atrophy.
Previous wording
Our team of approximately 1,000 dedicated Research and Development (“R&D”) employees is focused on advancing our pipeline and identifying new product opportunities and we believe we have a significant innovation opportunity today. We plan to develop and, where applicable, commercialize our global pipeline of over 60 projects, many of which are global projects being developed in and for multiple countries. These global and individual projects are in various stages of pre-clinical and clinical development, including new contact lenses for myopia, next-generation cataract equipment, premium IOLs, investigational treatments for dry eye, novel formulation for eye vitamins and preservative free formulation of eye drops, among others, that are designed to grow our portfolio and accelerate future growth.
Current wording
Our team of approximately 900 dedicated Research and Development (“R&D”) employees is focused on advancing our pipeline and identifying new product opportunities and we believe we have a significant innovation opportunity today. We have a robust global pipeline with projects in various stages of pre-clinical and clinical development, including new contact lenses for myopia, next-generation cataract equipment, premium IOLs, investigational treatments for dry eye, novel formulation for eye vitamins and preservative free formulation of eye drops, among others, that are designed to grow our portfolio and accelerate future growth.
Previous 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 a Phase 3 study met all primary and secondary endpoints.
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 was launched in the first quarter of 2025. In addition, the Company is in the process of initiating a Lumify® next generation ("Lumify
Previous 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.
Current wording
•Blink®Franchise – During June 2024, we expanded our over-the-counter dry eye portfolio with the launch of Blink®NutriTears®, 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. In June 2025, the Company began launching Blink® Nourish and Blink® Boost lubricating eye drops in the U.S. We also recently developed a preservative-free lipid-based formulation of our Blink Triple Care® product, which began launching in 2026.
Previous wording
•AREDS3 Vitamins – We started the development of AREDS3, a next-generation eye vitamin formulation, in an effort to expand our eye vitamins portfolio, which is anticipated to launch in 2026.
Current wording
•AREDS3 TM Vitamins – We have started the development of AREDS3 TM, a next-generation eye vitamin formulation, in an effort to expand our eye vitamins portfolio, which began launching in 2026.
Previous wording
•Biomimetic Lens – Internal clinical studies have been ongoing, and we have begun enrolling an external clinical study, related to the development of a biomimetic lens, a novel material design for daily disposable contact lens.
Current wording
•Bioactive Lens – We are developing a new bioactive contact lens incorporating bioactive hyaluronic acid hydrogel, a novel material design for daily disposable contact lens. Internal clinical studies have been ongoing, and we have completed the first external clinical study. Additional studies are planned through 2026.
Previous wording
•Myopia Control Contact Lens – A multi-year study has begun for a Myopia control contact lens. We expect to receive a year 1 interim report during 2026.
Current wording
•Myopia Control Contact Lens – A multi-year study has begun for a Myopia control contact lens. We expect the U.S. registration clinical study to start in the first half of 2026.
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•Ocular Pain – We have begun enrolling a Phase 1 clinical study in an effort to begin developing a first-in-class therapy for ocular surface pain.
Current wording
•Ocular Pain – We are developing a first-in-class neurosensory agent therapy for ocular surface pain. We have completed the Phase 1 study and Phase 2 results are anticipated in the second half of 2026.
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•Glaucoma Neuroprotection – We have begun enrolling a Phase 2 clinical study in an effort to begin developing the first glaucoma therapy to lower intraocular pressure and improve visual function.
Current wording
•Glaucoma Neuroprotection – We have begun enrolling a Phase 2 clinical study in an effort to begin developing the first glaucoma therapy to lower intraocular pressure and improve visual function. Phase 2 results are expected in the second half of 2026.
Previous wording
◦enVista Aspire® monofocal and toric IOLs with Intermediate Optimized optics were launched in the U.S. during October 2023 and in Europe in January 2025 and the Canada launch is in process.
Current wording
◦enVista Aspire® monofocal and toric IOLs with Intermediate Optimized optics were launched in the U.S. during October 2023 and in Europe and Canada in 2025.
Previous wording
◦enVista Envy®launched in Canada in June 2024 and in the U.S. and Europe, Singapore and Hong Kong launches are expected.
Current wording
◦enVista Envy®launched in Canada in June 2024, in the U.S. in November 2024 and in Europe in October 2025, and launches in Singapore and Hong Kong are expected.
Previous wording
◦enVista Beyond TM extended depth of focus (“EDOF”) is anticipated to launch in the U.S. in early 2027.
Current wording
◦enVista Beyond TM extended depth of focus (“EDOF”) is anticipated to launch in the U.S. in 2027.
Previous wording
•Acquisition of Elios Vision – In December 2024, we acquired Elios Vision, Inc. (“Elios Vision”). Elios Vision, a privately held company, is the developer of the ELIOS® procedure, the first clinically validated, minimally invasive glaucoma surgery procedure using an excimer laser. The U.S. submission of this product is being planned and we expect this acquisition to then bolster the Company’s glaucoma treatment portfolio.
Current wording
•ELIOS® – In December 2024, we acquired Elios Vision, Inc. (“Elios Vision”). Elios Vision, a privately held company, is the developer of the ELIOS® procedure, the first clinically validated, minimally invasive glaucoma surgery procedure using an excimer laser. The U.S. launch of this product is anticipated in the second half of 2026 and we expect this acquisition to then bolster the Company’s glaucoma treatment portfolio.
Previous wording
Our revenues attributable to Russia, Ukraine and Belarus, in the aggregate, were approximately 3% of our total revenues for both the nine months ended September 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.
Current 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, 2026 and year ended December 31, 2025. 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 expanded to include other countries and militant groups, including Iran. The conflict is currently the subject of a ceasefire agreement between Israel and Hamas that was announced in October 2025. Our revenues attributable to the impacted regions for the nine months ended September 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.
Current wording
The conflict between Israel and Hamas began during October 2023 and expanded to include other countries and militant groups, including Iran. During February and March 2026, the conflict further escalated and the U.S. and Israel began launching ongoing missile strikes against Iran, which has launched counter strikes against various targets in the region. Our revenues attributable to the impacted regions for the three months ended March 31, 2026 and year ended December 31, 2025 were less than 2% of our total revenues in each period. Sales in Iran are covered by a general Office of Foreign Assets Control (“OFAC”) license. While we have been monitoring this conflict (including the potential macroeconomic impact of such 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, both in the impacted region and generally.
Previous wording
The Company is monitoring ongoing policy changes being made by the Trump administration, including those related to existing trade agreements and imposition and implementation of new tariffs and the counter-duties, counter-tariffs and/or other counter-measures implemented in response by other countries. Some of these policies have targeted countries in which we do business and sectors in which we do business, including pharmaceuticals. Given the international scope of our operations, any sanctions, export controls, tariffs, trade wars and other governmental actions could have an adverse effect on our business, financial condition, cash flows and results of operations. Similarly, adverse economic and geopolitical conditions impacting our customers in these countries or uncertainty about global economic conditions or the geopolitical environment could cause a decline in our share price and could also result in purchases of our products to decline, which would adversely affect our revenues and operating results.
Current wording
The Company is monitoring ongoing policy changes being made by the Trump administration, including those related to existing trade agreements and the actual or threatened imposition and implementation of new tariffs and the counter-duties, counter-tariffs and/or other counter-measures threatened or implemented in response by other countries. Some of these policies have targeted countries in which we do business and some policies target the sectors in which we do business, including the recent Presidential Proclamation which imposes a one hundred percent (100%) tariff on patented pharmaceutical products and associated pharmaceutical ingredients, subject to certain exemptions for certain countries and certain companies. Given the international scope of our operations and breadth of our product portfolio, any sanctions, export controls, tariffs, trade wars and other governmental actions could have an adverse effect on our business, financial condition, cash flows and results of operations. Similarly, adverse economic and geopolitical conditions impacting our customers in these countries or uncertainty about global economic conditions or the geopolitical environment could result in purchases of our products to decline, which would adversely affect our revenues and operating results and could also cause a decline in our share price.
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 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.
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 situation 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. 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 EU 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
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. 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. While many countries have adopted some or all aspects of these rules, some countries have not adopted any or all of them, and many interpretive questions remain that are expected to be addressed in future guidance. On June 20, 2024, Canada enacted the Global Minimum Tax Act (“GMTA”) that adopted certain components of Pillar Two. The GMTA is generally aligned with the model rules proposed by the OECD.
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. 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 a 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 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. In January 2026, the OECD published the “side by side” arrangement package to implement this exclusion. However, we cannot predict 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 “side by side” arrangement described above, or otherwise. It is possible that any changes in United States. or non-U.S. tax law could have a material adverse effect on our future tax liabilities and our effective tax rate.
Previous wording
On July 4, 2025, President Trump signed into law H.R. 1, the One Big Beautiful Bill Act (the “OBBBA”). The effects of this legislation for the Company include extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international). The corporate tax rate remains unchanged but bonus depreciation, domestic R&D expensing, and an adjustment to the interest deduction limitation were retroactive to January 2025. The OBBBA makes additional changes to international tax provisions, including substantive changes to existing GILTI, foreign-derived intangible income (FDII), and base erosion and anti-abuse tax (BEAT) provisions. These changes are effective for taxable years after 2025. The Company has evaluated the impact of the enactment of the OBBBA and concluded that it did not have a material impact to the Condensed Consolidated Financial Statements.
Current wording
On July 4, 2025, President Trump signed into law H.R. 1, the One Big Beautiful Bill Act (the “OBBBA”). The effects of this legislation for the Company include extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international). The corporate tax rate remains unchanged but bonus depreciation, domestic R&D expensing, and an adjustment to the interest deduction limitation were retroactive to January 2025. The OBBBA makes additional changes to international tax provisions, including substantive changes to existing global intangible low-taxed income (GILTI), foreign-derived intangible income (FDII), and base erosion and anti-abuse tax (BEAT) provisions. These changes are effective for taxable years after 2025. The Company continues to evaluate the impact of the enactment of the OBBBA, but has determined that, as of March 31, 2026, it should not have a material impact to the Company’s financial statements.
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 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.
Current wording
In addition, the PreserVision® U.S. formulation patent expired in March 2021 and the U.S. patent covering methods of using the formulation expired in early 2026. Our revenues from PreserVision® products for 2025 and 2024 accounted for approximately 6% of our total revenues for each period. While PreserVision® and Lumify®were the subjects of certain past patent infringement proceedings and while the Company cannot predict the magnitude or timing of a LOE impact from
Previous wording
Our unaudited operating results for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Our unaudited operating results for the three months ended March 31, 2026 and 2025 were as follows:
Previous wording
Our revenues are primarily generated from product sales in the therapeutic areas of eye health that consist of: (i) branded prescription eye-medications and pharmaceuticals, (ii) generic and branded generic prescription eye medications and pharmaceuticals, (iii) OTC vitamin and supplement products and (iv) medical devices (contact lenses, IOLs and ophthalmic surgical equipment). Other revenues include alliance and service revenue from the licensing and co-promotion of products and contract service revenue. Contract service revenue is derived primarily from contract manufacturing for third parties and is not material. See Note 17, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for the disaggregation of revenues which depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by the economic factors of each category of customer contracts.
Current wording
Our revenues are primarily generated from product sales in the therapeutic areas of eye health that consist of: (i) branded pharmaceuticals, (ii) generic pharmaceuticals, (iii) OTC vitamin and supplement products and (iv) medical devices (contact lenses, IOLs and ophthalmic surgical equipment). Other revenues include alliance and service revenue from the licensing and co-promotion of products and contract service revenue. Contract service revenue is derived primarily from contract manufacturing for third parties and is not material. See Note 17, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for the disaggregation of revenues which depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by the economic factors of each category of customer contracts.
Previous wording
Our revenues were $1,281 million and $1,196 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $85 million, or 7%. The increase was attributable to: (i) increased volumes of $76 million primarily from our Pharmaceuticals and Vision Care segments, (ii) the favorable impact of foreign currencies of $19 million and (iii) incremental sales attributable to acquisitions of $3 million, within our Surgical segment. The increases in revenue were partially offset by: (i) decreased net realized pricing of $9 million, primarily driven by our Pharmaceuticals segment and (ii) the impact of divestitures and discontinuations of $4 million primarily related to the discontinuation of certain products within our Vision Care segment.
Current wording
Our revenues were $1,244 million and $1,137 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $107 million, or 9%. The increase was attributable to: (i) the favorable impact of foreign currencies of $42 million, (ii) increased net realized pricing of $38 million, primarily driven by our Vision Care and Pharmaceuticals segments, (iii) increased volumes of $29 million primarily from our Pharmaceuticals and Vision Care segments and (iv) incremental sales attributable to acquisitions of $1 million, within our Surgical segment. The increases in revenue were partially offset by the impact of divestitures and discontinuations of $3 million primarily related to the discontinuation of certain products within our Vision Care segment.
Previous wording
The Vision Care segment revenue was $736 million and $684 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $52 million, or 8%. The increase was primarily driven by sales from our dry eye portfolio and eye vitamins portfolio within our consumer eye care business and the performance of SiHy Daily lenses and Biotrue®within our contact lens business. This increase included: (i) an increase in volumes of $30 million, (ii) an increase in net pricing of $14 million and (iii) the favorable impact of foreign currencies of $11 million, partially offset by the impact of divestitures and discontinuations of $3 million.
Current wording
The Vision Care segment revenue was $711 million and $656 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $55 million, or 8%. 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 within our contact lens business. This increase included: (i) the favorable impact of foreign currencies of $25 million, (ii) an increase in net pricing of $18 million and (iii) an increase in volumes of $15 million, partially offset by the impact of divestitures and discontinuations of $3 million.
Previous wording
The Pharmaceuticals segment revenue was $330 million and $306 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $24 million, or 8%. The increase was primarily driven by: (i) the increased net sales in our branded pharmaceuticals business, driven by MIEBO®and its continued positive momentum since launching, and (ii) increased sales in our international pharmaceuticals business, partially offset by declines in the U.S. generics business. This increase included: (i) an increase in volumes of $44 million and (ii) the favorable impact of foreign currencies of $2 million, partially offset by a decrease in net realized pricing of $21 million.
Current wording
The Pharmaceuticals segment revenue was $305 million and $267 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $38 million, or 14%. The increase was primarily driven by: (i) the increased net sales in our branded pharmaceuticals business, driven by MIEBO®and XIIDRA®and (ii) increased sales in our international pharmaceuticals business. This increase included: (i) an increase in net pricing of $18 million, (ii) an increase in volumes of $15 million and (iii) the favorable impact of foreign currencies of $5 million.
Previous wording
Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 39.6% and 35.7% for the three months ended September 30, 2025 and 2024, respectively, an increase of 3.9% 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 37.8% and 39.3% for the three months ended March 31, 2026 and 2025, respectively, a decrease of 1.5% percentage points, and is primarily attributable to a decline in rebates, primarily driven by XIIDRA®.
Previous wording
Cost of goods sold was $509 million and $464 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $45 million, or 10%. The increase was primarily driven by: (i) higher volumes and (ii) the unfavorable impact of foreign currencies.
Current wording
Cost of goods sold was $482 million and $481 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $1 million, or less than 1%. The increase was primarily driven by the unfavorable impact of foreign currencies on this expense.
Previous wording
Cost of goods sold as a percentage of Product sales was 39.9% and 38.9% for the three months ended September 30, 2025 and 2024, respectively. The unfavorable change was primarily driven by product mix.
Current wording
Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $105 million and Cost of goods sold as a percentage of Product sales was 38.9% and 42.5% for the three months ended March 31, 2026 and 2025, respectively. The favorable change was primarily driven by: (i) the favorable impact of foreign currencies to revenues and (ii) product mix. Cost of goods sold as a percentage of Product sales during the three months ended March 31, 2025, were unfavorably impacted by the amortization of inventory step-up related to the acquisition of XIIDRA®, as well as the impact of the voluntary recall of certain enVista® IOL products.
Previous wording
R&D expenses were $95 million and $84 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $11 million, or 13%, primarily due to certain products in development, as previously discussed.
Current wording
R&D expenses were $101 million and $86 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $15 million, or 17%, primarily due to certain products in development, as previously discussed.
Previous wording
Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives, generally 3 to 17 years. Management continually assesses the useful lives related to our long-lived assets to reflect the most current assumptions.
Current wording
Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives, generally 1 to 17 years. Management continually assesses the useful lives related to our long-lived assets to reflect the most current assumptions.
Previous wording
Amortization of Intangible assets was $68 million and $72 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $4 million, or 6%, primarily due to fully amortized intangible assets no longer being amortized.
Current wording
Amortization of Intangible assets was $57 million and $67 million for the three months ended March 31, 2026 and 2025, respectively, a decrease of $10 million, or 15%, primarily due to fully amortized intangible assets no longer being amortized.
Previous wording
Other (income) expense, net for the three months ended September 30, 2025 and 2024 consists of the following:
Current wording
Other expense, net for the three months ended March 31, 2026 and 2025 consists of the following:
Previous wording
Operating income was $95 million and $43 million for the three months ended September 30, 2025 and 2024, respectively, an increase in our operating results of $52 million. This increase primarily reflects the increase in contribution and favorable change in other (income) expense, partially offset by the increase in SG&A and R&D, each as previously discussed.
Current wording
Operating income was $33 million for the three months ended March 31, 2026, as compared to operating loss of $83 million for the three months ended March 31, 2025, an increase in our operating results of $116 million. This increase primarily reflects the increase in revenue and gross profit, and the decline in SG&A, each as previously discussed.
Previous wording
Segment profit is based on operating (loss) income after the elimination of intercompany transactions. Certain costs, such as Amortization of intangible assets and Other expense, net, are not included in the measure of segment profit, as management excludes these items in assessing segment financial performance. Segment profit is a measure of operating performance of our reportable segments and may not be comparable to similar measures reported by other companies. Segment profit is a performance metric utilized by the Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, to allocate resources to and assess performance of the Company’s segments. See Note 17, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for a reconciliation of segment profit to Income before provision for income taxes.
Current wording
Segment profit is based on operating income (loss) after the elimination of intercompany transactions. Certain costs, such as Amortization of intangible assets and Other expense, net, are not included in the measure of segment profit, as management excludes these items in assessing segment financial performance. Segment profit is a measure of operating performance of our reportable segments and may not be comparable to similar measures reported by other companies. Segment profit is a performance metric utilized by the Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, to allocate resources to and assess performance of the Company’s segments. See Note 17, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for a reconciliation of segment profit to Income before provision for income taxes.
Previous wording
The Surgical segment profit was $8 million and $13 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $5 million. The decrease was primarily due to higher selling expense, driven by the impact of acquisitions, partially offset by the increase in revenues, as previously discussed.
Current wording
The Surgical segment profit was $9 million for the three months ended March 31, 2026, as compared to a loss of $7 million for the three months ended March 31, 2025, an increase of $16 million. The increase was primarily due to the increase in revenues, as previously discussed, and higher gross profit primarily driven by the shift to premium IOLs and the impact of the enVista® recall in 2025.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc. (“BHC”), with BHC holding, directly or indirectly, approximately 87% of the issued and outstanding common shares of Bausch + Lomb, as of April 22, 2026. On August 6, 2020, BHC announced its plan to separate our eye health business into an independent publicly traded entity, separate from the remainder of BHC (the “Separation”).
Current report — wording carried from elsewhere
NXTTM" (formerly Lumify Luxe)) clinical study, for which a Phase 3 study met all primary and secondary endpoints and for which the New Drug Application (“NDA”) has been submitted and approval is anticipated in the first half of 2027.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
The proceeds from the January 2031 Secured Notes, along with the proceeds of the January 2031 Term Facility, were used by the Company to: (i) repay in full outstanding borrowings under the May 2027 Revolving Credit Facility, (ii) refinance, in full, its outstanding term loans due 2027 (the May 2027 Term Facility and May 2027 Incremental Term Facility) and (iii) pay related fees and expenses.
Rearranged previous paragraphs (19)
Previous report — wording carried elsewhere
•ELIOS® – As discussed above, we plan to expand our glaucoma treatment portfolio with ELIOS®, the first clinically validated, minimally invasive glaucoma surgery procedure using an excimer laser. The U.S. submission of this product is being planned.
Previous report — wording carried elsewhere
Provision for income taxes was $22 million for the three months ended September 30, 2025, as compared to a benefit from income taxes of $66 million for the three months ended September 30, 2024, an unfavorable change of $88 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) the filings of certain tax returns and (b) the reduction of IPR&D payments year over year.
Previous report — wording carried elsewhere
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Previous report — wording carried elsewhere
The following table presents segment revenues, segment revenues as a percentage of total revenues and the period-over-period changes in segment revenues for the nine months ended September 30, 2025 and 2024.
Previous report — wording carried elsewhere
Constant Currency Revenues and Constant Currency Revenue Growth (non-GAAP)
Previous report — wording carried elsewhere
The following table presents a reconciliation of Revenues to constant currency revenues (non-GAAP) and the period-over-period changes in constant currency revenue (non-GAAP) for the nine months ended September 30, 2025 and 2024. Constant Currency Revenues (non-GAAP) and Constant Currency Revenue Growth (non-GAAP) are defined in the previous section titled “Constant Currency Revenues and Constant Currency Revenue Growth (non-GAAP)”.
Previous report — wording carried elsewhere
Cash Discounts and Allowances, Chargebacks and Distribution Fees
Previous report — wording carried elsewhere
Provisions recorded to reduce gross product sales to net product sales and revenues for the nine months ended September 30, 2025 and 2024 were as follows:
Previous report — wording carried elsewhere
Cost of Goods Sold (exclusive of amortization and impairments of intangible assets)
Previous report — wording carried elsewhere
Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $39 million, primarily driven by: (i) higher manufacturing variances, including that related to the voluntary recall of certain enVista IOL products and (ii) product mix.
Previous report — wording carried elsewhere
See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to the Amortization of intangible assets.
Previous report — wording carried elsewhere
Other expense, net for the nine months ended September 30, 2025 and 2024 consists of the following:
Previous report — wording carried elsewhere
The following table presents segment profits, segment profits as a percentage of segment revenues and the period-over-period changes in segment profits for the nine months ended September 30, 2025 and 2024.
Previous report — wording carried elsewhere
See Note 14, “INCOME TAXES” to our unaudited interim Condensed Consolidated Financial Statements for further details.
Previous report — wording carried elsewhere
Borrowings under the June 2030 Revolving Credit Facility in: (i) U.S. dollars bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either: (a) a term Secured Overnight Financing Rate (“SOFR”)-based rate or (b) a U.S. dollar base rate, (ii) Canadian dollars bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either: (a) a term Canadian Overnight Repo Rate Average (“CORRA”)-based rate or (b) a Canadian dollar prime rate, (iii) euros bear interest at a rate per annum equal to EURIBOR and (iv) pounds sterling bear interest at a rate per annum equal to Sterling Overnight Index Average (“SONIA”) (provided, however, that the term SOFR-based rate, term CORRA-based rate, EURIBOR and SONIA shall be no less than 0.00% per annum at any time and the U.S. dollar base rate and the Canadian dollar prime rate shall be no less than 1.00% per annum at any time), in each case, plus an applicable margin. Term SOFR-based borrowings under the June 2030 Revolving Credit Facility are not subject to any credit spread adjustment.
Previous report — wording carried elsewhere
The amortization rate for the September 2028 Term Facility is 1.00% per annum, or $5 million, payable in quarterly installments. Bausch + Lomb may direct that prepayments be applied to such amortization payments in order of maturity. As of September 30, 2025, the remaining mandatory quarterly amortization payments for the September 2028 Term Facility were $14 million through June 2028, with the remaining term loan balance being due in September 2028.
Previous report — wording carried elsewhere
On September 29, 2023, Bausch + Lomb issued $1,400 million aggregate principal amount of 8.375% Senior Secured Notes due October 2028 (the “October 2028 Secured Notes”).
Previous report — wording carried elsewhere
Transformation Costs”. These costs are recorded in SG&A in the unaudited Condensed Consolidated Statements of Operations and include third-party advisory costs.
Previous report — wording carried elsewhere
•the effect of current market conditions and recessionary pressures in one or more of our markets;