Bausch & Lomb Corp

Previous 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.

Current wording

Our accompanying unaudited interim Condensed Consolidated Financial Statements as of June 30, 2026 and for the three and six months ended June 30, 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 June 30, 2026 and for the three and six months ended June 30, 2026 and 2025.

Previous wording

The Surgical segment—consists of medical device equipment, consumables and technologies for the treatment of cataracts, corneal, vitreous and retinal eye conditions, which includes IOLs and delivery systems, phacoemulsification equipment and other surgical instruments and devices necessary for cataract surgery. Key surgical brands include Akreos®, AMVISC®, IC-8 Apthera®, Crystalens® IOLs, enVista® IOLs, Eyetelligence® Surgical Planning Software, Millennium®, Stellaris Elite® vision enhancement system, Synergetics®, ClearVisc®, StableVisc®, Storz® ophthalmic instruments, VICTUS® femtosecond laser, Teneo®, Eyefill® and Zyoptix®.

Current wording

The Surgical segment—consists of medical device equipment, consumables and technologies for the treatment of cataracts, corneal, vitreous retinal and refractive eye conditions, which includes IOLs and delivery systems, phacoemulsification equipment and other surgical instruments and devices necessary for cataract surgery. Key surgical brands include Akreos®, AMVISC®, IC-8 Apthera®, Crystalens® IOLs, enVista® IOLs, Eyetelligence® Surgical Planning Software, Millennium®, Stellaris Elite® vision enhancement system, Synergetics®, ClearVisc®, StableVisc®, Storz® ophthalmic instruments, VICTUS® femtosecond laser, Teneo®, Eyefill® and Zyoptix®.

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 was launched in the first quarter of 2025. In addition, the Company is in the process of initiating a Lumify® next generation ("Lumify

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 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.

Previous 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.

Current wording

•AREDS3 TM Vitamins – We have developed AREDS3 TM, a next-generation eye vitamin formulation, in an effort to expand our eye vitamins portfolio. AREDS3 TM began launching in 2026.

Previous 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.

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 second half of 2026.

Previous wording

•Dual-Action Lifitegrast – We have begun enrolling a Phase 2 clinical study in an effort to begin developing the first dual-action therapeutic to address evaporative and inflammatory dry eye.

Current wording

•Dual-Action Lifitegrast – We are developing the first dual-action therapeutic to address evaporative and inflammatory dry eye. Phase 2b results are anticipated in the second half of 2026.

Previous 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.

Current wording

•Glaucoma Neuroprotection – We were in the process of developing the first glaucoma therapy to lower intraocular pressure and improve visual function. However, Phase 2 results were received in July 2026, and the study did not achieve its primary endpoint. Based on the totality of the data, the Company has decided not to advance the program in this indication as a topical eye drop.

Previous 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.

Current wording

◦enVista Aspire® monofocal and toric IOLs with Intermediate Optimized optics. These IOLs 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, in the U.S. in November 2024 and in Europe in October 2025, and launches in Singapore and Hong Kong are expected.

Current wording

◦enVista Envy®trifocal IOLs. These IOLs 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 2027.

Current wording

◦enVista Beyond TM extended depth of focus (“EDOF”). The Company recently received topline results, and is conducting a comprehensive review of the data. enVista Beyond TM is anticipated to launch in the U.S. in 2027.

Previous wording

•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 wording

•SeeLyra TM – Femtosecond laser assisted cataract surgery system with integration of phaco components. CE Mark and 510k submission is anticipated in the second half of 2026 and approvals are anticipated by the end of 2026.

Previous 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.

Current wording

We also have a number of other pipeline products that we are in the process of developing. 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

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.

Current wording

The imposed U.S. and European Union (“EU”) sanctions and export controls against Russia and Belarus temporarily impacted our ability to distribute certain products to Russia and Belarus. However, in response to these sanctions, we obtained licenses, or other applicable governmental authorizations, necessary to allow us to sell the applicable currently sanctioned products in each of these countries. 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. 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, 2026 and year ended December 31, 2025. In addition, we do not have any research or manufacturing facilities in Russia, Ukraine or Belarus.

Previous 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.

Current wording

The conflict between Israel and Hamas began during October 2023 and expanded to include other countries and militant groups, including Iran. Commencing in February 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. The conflict remains ongoing. Our revenues attributable to the impacted regions for the six months ended June 30, 2026 and year ended December 31, 2025 were approximately 2% of our total revenues in each period. Sales in Iran are covered by a general Office of Foreign Assets Control (“OFAC”) license.

Previous wording

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 wording

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, amounts related to tariff recoveries have not been material.

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 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.

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 June 30, 2026, it should not have a material impact on the Company’s consolidated financial statements.

Previous wording

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 wording

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®, Lotemax® SM and Vyzulta® products, all of which have now been dismissed or otherwise resolved. If we are not successful in such infringement proceedings, we may face increased generic competition for these products.

Previous 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

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 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, 2026 and 2025 were as follows:

Current wording

Our unaudited operating results for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous 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.

Current wording

Our revenues were $1,394 million and $1,278 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $116 million, or 9%. The increase was attributable to: (i) increased net realized pricing of $59 million, primarily driven by our Pharmaceuticals and Vision Care segments, (ii) increased volumes of $47 million primarily from our Surgical segment, (iii) the favorable impact of foreign currencies of $12 million and (iv) incremental sales attributable to acquisitions of $3 million, within our Surgical segment. The increases in revenue were partially offset by the impact of divestitures and discontinuations of $5 million primarily related to the discontinuation of certain products within our Vision Care segment.

Previous 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.

Current wording

The Pharmaceuticals segment revenue was $354 million and $309 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $45 million, or 15%. The increase was primarily driven by: (i) 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 $42 million, (ii) an increase in volumes of $2 million and (iii) the favorable impact of foreign currencies of $2 million.

Previous wording

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 wording

The Surgical segment revenue was $256 million and $216 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $40 million, or 19%. The increase was primarily driven by growth in premium IOLs, which reflects continued growth since the 2025 voluntary recall of certain enVista IOL products. This increase included: (i) an increase in volumes of $35 million, (ii) the favorable impact of foreign currencies of $6 million and (iii) incremental sales from acquisitions of $3 million, partially offset by a decrease in net realized pricing of $4 million.

Previous 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®.

Current wording

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 36.8% and 38.6% for the three months ended June 30, 2026 and 2025, respectively, a decrease of 1.8% percentage points, and is primarily attributable to a decline in rebates, primarily driven by XIIDRA®.

Previous 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.

Current wording

R&D expenses were $114 million and $96 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $18 million, or 19%, 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 1 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. Management continually assesses the useful lives related to our long-lived assets to reflect the most current assumptions.

Previous 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.

Current wording

Operating income was $83 million for the three months ended June 30, 2026, as compared to an operating loss of $11 million for the three months ended June 30, 2025, an increase in our operating results of $94 million. This increase primarily reflects the increase in contribution, as previously discussed.

Previous wording

Interest expense was$97 million and$94 million for the three months ended March 31, 2026 and 2025, respectively, an increase of$3 million, primarily driven by financing fees associated with the January 2026 Credit Facility Amendment, as defined below. See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding our financing arrangements.

Current wording

Interest expense was$93 million and$128 million for the three months ended June 30, 2026 and 2025, respectively, a decrease of$35 million, primarily driven by: (i)the write-off of financing costs associated with the June 2025 Credit Facility Amendment, as defined below and (ii) lower interest rates on the Company's January 2031 Refinancing Term Facility, as defined below, as compared to the term facilities outstanding during 2025. See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding our financing arrangements.

Previous wording

Loss on extinguishment of debt represents the differences between the amounts paid to settle extinguished debts and the carrying value of the related extinguished debt. Loss on extinguishment of debt was a credit of$1 million for the three months ended March 31, 2026, as a result of the January 2026 Credit Facility Amendment, as defined below.

Current wording

Loss on extinguishment of debt represents the differences between the amounts paid to settle extinguished debts and the carrying value of the related extinguished debt. Loss on extinguishment of debt was$9 million for the three months ended June 30, 2025 and relates to our June 2025 Credit Facility Amendment, as defined below.

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$3 million and $6 million for the three months ended March 31, 2026 and 2025, 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$5 million and $2 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

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 wording

Net loss attributable to Bausch + Lomb Corporation was $14 million and $62 million for the three months ended June 30, 2026 and 2025, respectively, an increase in our results of $48 million and was primarily due to the increase in our operating results of $94 million and decrease in interest expense of $35 million, partially offset by the increase in income taxes of $88 million, each as previously discussed.

Previous 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.

Current wording

The Vision Care segment revenue was $1,495 million and $1,409 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $86 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, Ultra® and Biotrue® within our contact lens business. This increase included: (i) an increase in net pricing of $39 million, (ii) the favorable impact of foreign currencies of $29 million and (iii) an increase in volumes of $25 million, partially offset by the impact of discontinuations of $7 million.

Previous 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.

Current wording

Cost of goods sold was $1,009 million and $1,004 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $5 million, or less than 1%. The increase was primarily driven by the unfavorable impact of foreign currencies on this expense and higher volumes.

Previous 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.

Current wording

Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $218 million and Cost of goods sold as a percentage of Product sales was 38.4% and 41.7% for the six months ended June 30, 2026 and 2025, respectively. The favorable change was primarily driven by: (i) product mix and (ii) the favorable impact of foreign currencies to revenues. Cost of goods sold as a percentage of Product sales during the six months ended June 30, 2025, was also 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

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 wording

SG&A expenses were $1,132 million and $1,142 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of $10 million, or 1%. The decrease was primarily attributable to: (i) lower Business Transformation Costs (as defined below), 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 on this expense.

Previous wording

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 wording

The Pharmaceuticals segment profit was $155 million and $48 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $107 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 2025 and (iii) lower advertising and promotional expense as XIIDRA®and MIEBO®have exited the launch phase, partially offset by higher R&D expense.

Previous 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.

Current wording

The Surgical segment profit was $26 million for the six months ended June 30, 2026, as compared to a loss of $5 million for the six months ended June 30, 2025, an increase of $31 million. The increase was primarily due to: (i) the increase in revenues, as previously discussed, (ii) higher gross profit primarily driven by the shift to premium IOLs and (iii) the enVista® recall which impacted 2025.

Previous wording

Provision for income taxes was $6 million and $31 million for the three months ended March 31, 2026 and 2025, respectively, a favorable change of $25 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 one-time impact of the enVista® recall in the prior year, (b) a reduction of deferred tax assets resulting from the third-party sale of intellectual property ("IP") in the current year and (c) the tax effects of acquired tax intangibles and net operating losses recorded in the current year.

Current wording

Provision for income taxes was $5 million for the six months ended June 30, 2026, as compared to a benefit from income taxes of $58 million for the six months ended June 30, 2025, an unfavorable change of $63 million. The change in income taxes was primarily related to: (i) a change in the jurisdictional mix of earnings resulting in a benefit in the prior year and (ii) discrete tax effects of: (a) a benefit related to a favorable settlement in a foreign jurisdiction, (b) the year to date impact of the enVista®recall in the prior year and (c) a benefit for previously accrued taxes that settled favorably with the Internal Revenue Service in the prior year.

Previous wording

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 wording

Net cash provided by operating activities was $185 million and $10 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $175 million, and is primarily attributable to the increase in our operating results, as previously discussed, partially offset by the timing of payments in the normal course of business.

Previous wording

Net cash used in investing activities was $130 million and $116 million for the three months ended March 31, 2026 and 2025, respectively, an increase of $14 million. The increase was primarily driven by a $35 million milestone payment during the three months ended March 31, 2026, after achieving an annual sales-based milestone for MIEBO®, under the terms of a December 2019 license agreement with Novaliq GmbH.

Current wording

Net cash used in investing activities was $217 million and $206 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $11 million. The increase was primarily driven by a $35 million milestone payment during the six months ended June 30, 2026, after achieving an annual sales-based milestone for MIEBO®, under the terms of a December 2019 license agreement with Novaliq GmbH, partially offset by a decrease in purchases of property, plant and equipment during the six months ended June 30, 2026.

Previous wording

Net cash used in financing activities was $20 million for the three months ended March 31, 2026, as compared to net cash provided by financing activities was $31 million for the three months ended March 31, 2025, a decrease of $51 million. The decrease is primarily attributable to $50 million in borrowings under the May 2027 Revolving Credit Facility (as defined below), during the three months ended March 31, 2025.

Current wording

Net cash provided by financing activities was $14 million and $121 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of $107 million. The decrease is primarily attributable to borrowings under the May 2027 Revolving Credit Facility (as defined below), during the six months ended June 30, 2025.