Bausch & Lomb Corp

Previous 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.

Current wording

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

Previous 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.

Current wording

We understand that BHC continues to evaluate all relevant factors and considerations relating to its investment in Bausch + Lomb, including any completion of the full Separation. However, there can be no assurance that the Separation will be consummated, the form any such consummated Separation would take or that, even if consummated, we will realize the anticipated benefits from the Separation.

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 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 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 has completed a Lumify® next generation ("Lumify NXTTM" (formerly Lumify Luxe)) development program, 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

•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.

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 nutritional 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 launched Blink® Boost preservative free lubricating eye drops in the U.S. and, in March 2026, we launched a preservative-free lipid-based formulation of our Blink Triple Care® product.

Previous 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.

Current wording

•PreserVision AREDS3 TM Eye Vitamins – We have developed PreserVision AREDS3 TM, a next-generation eye vitamin formulation, in an effort to expand our eye vitamins portfolio. PreserVision AREDS3 TM formula was launched in the first half of 2026.

Previous 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.

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. The second external study is expected to start in the first half of 2027.

Previous 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.

Current wording

•Dual-Action Lifitegrast – We are developing the first dual-action therapeutic to address evaporative and inflammatory dry eye. Phase 2b data provided a clear path forward, and we are advancing the dual-action eye drop into Phase 3 development.

Previous 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.

Current wording

◦enVista Aspire® monofocal and toric IOLs with Intermediate Optimized optics. These IOLs launched in the U.S. in October 2023 and in Europe and Canada in 2025.

Previous 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.

Current wording

◦enVista Envy®trifocal IOLs. These IOLs launched in Canada, the U.S., Europe and Hong Kong, and rollouts into additional geographies are expected.

Previous 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.

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 by the end of 2026 and we expect this acquisition to then bolster the Company’s glaucoma treatment portfolio.

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 half 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. European CE Mark was obtained in September 2026 and 510k submission is anticipated, with approval anticipated by the end of 2026.

Previous 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.

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 nine months ended September 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. 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.

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 launched counter strikes against various targets in the region. While certain ceasefire or de-escalation efforts have been announced, the conflict remains ongoing. Our revenues attributable to the impacted regions for the nine months ended September 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 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, amounts related to tariff recoveries have not been material.

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 portal to facilitate the submission and processing of IEEPA duty refund claims. During the nine months ended September 30, 2026, we received approximately $15 million of recoveries related to previously paid tariffs, of which approximately $14 million were received during the three months ended September 30, 2026. We continue to evaluate the impact of these developments on our business, financial condition, cash flows and results of operations.

Previous wording

In the normal course of business, our products, devices and facilities are the subject of ongoing oversight and review by regulatory and governmental agencies, including general, for cause and pre-approval inspections by the FDA. In June 2026, following a routine FDA inspection of our Tampa, Florida facility, as part of its findings, the FDA issued an Official Action Indicated (“OAI”) of our Tampa, Florida facility. We have submitted to the FDA a response to theinitial inspection and a subsequent response to the OAI, in connection with which we have fully completed all comprehensive corrective and preventive actions raised, and we have requested both a meeting with the FDA and a re-inspection of the facility. We are awaiting a response from the FDA on our submission and the scheduling of the re-inspection of the facility.

Current wording

In the normal course of business, our products, devices and facilities are the subject of ongoing oversight and review by regulatory and governmental agencies, including general, for cause and pre-approval inspections by the FDA. In June 2026, following a routine FDA inspection of our Tampa, Florida facility, as part of its findings, the FDA issued an Official Action Indicated (“OAI”) of our Tampa, Florida facility. We submitted to the FDA a response to theinitial inspection and a subsequent response to the OAI, in connection with which we fully completed all comprehensive corrective and preventive actions raised therewith. Subsequently, in September 2026, we received a warning letter from the FDA in connection with this matter. We have submitted our response to the FDA in connection with the warning letter, and we are in the process of completing the corrective and preventive actions raised. We have also requested a meeting with the FDA and are awaiting a response from the FDA. The Warning Letter does not require the Tampa facility to cease manufacturing operations and does not require a product recall, withdrawal or other market action. The Tampa facility continues to manufacture, release and distribute product and management does not anticipate any interruption to product supply and remains confident in the quality and safety of products manufactured at the Tampa facility.

Previous 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.

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. In September, 2026, the Inclusive Framework released further guidance and an updated GloBE Information Return to incorporate the simplifications included in the "side by side" arrangement package. 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

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.

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 and franchises, 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 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®drops 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® drops, 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 and six months ended June 30, 2026 and 2025 were as follows:

Current wording

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

Previous 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.

Current wording

Our revenues were $1,375 million and $1,281 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $94 million, or 7%. The increase was attributable to: (i) increased volumes of $63 million across each of our segments, (ii) increased net realized pricing of $31 million, primarily driven by our Vision Care and Pharmaceuticals segments and (iii) incremental sales attributable to acquisitions of $8 million, within our Vision Care and Surgical segments. The increases in revenue were partially offset by: (i) the unfavorable impact of foreign currencies of $6 million and (ii) the impact of divestitures and discontinuations of $2 million primarily related to the discontinuation of certain products within our Vision Care segment.

Previous wording

The Vision Care segment revenue was $784 million and $753 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $31 million, or 4%. The increase was primarily driven by the performance of SiHy Daily lenses, Ultra® and Biotrue® within our contact lens business and our dry eye portfolio within our consumer eye care business. This increase included: (i) an increase in net pricing of $21 million, (ii) an increase in volumes of $10 million and (iii) the favorable impact of foreign currencies of $4 million, partially offset by the impact of divestitures and discontinuations of $4 million.

Current wording

The Vision Care segment revenue was $774 million and $736 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $38 million, or 5%. The increase was primarily driven by the performance of SiHy Daily lenses and Ultra® within our contact lens business and Lumify®and Artelac® within our consumer eye care business. This increase included: (i) an increase in net pricing of $21 million, (ii) an increase in volumes of $18 million and (iii) incremental sales from acquisitions of $6 million. These increases were partially offset by: (i) the unfavorable impact of foreign currencies of $5 million and (ii) the impact of divestitures and discontinuations of $2 million.

Previous 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.

Current wording

The Pharmaceuticals segment revenue was $367 million and $330 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $37 million, or 11%. The increase was primarily driven by our branded pharmaceuticals business, driven by MIEBO®. This increase included: (i) an increase in volumes of $26 million and (ii) an increase in net pricing of $11 million.

Previous wording

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 37.3% and 38.9% for the six months ended June 30, 2026 and 2025, respectively, a decrease of 1.6% 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 40.6% and 39.6% for the three months ended September 30, 2026 and 2025, respectively, an increase of 1.0% percentage point, and is primarily attributable to product mix.

Previous 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.

Current wording

Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $118 million and Cost of goods sold as a percentage of Product sales was 35.4% and 39.9% for the three months ended September 30, 2026 and 2025, respectively. The favorable change was primarily driven by product mix, from higher margin brands, and the decrease in cost of goods sold, as previously discussed.

Previous wording

SG&A expenses were $588 million and $579 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $9 million, or 2%. The increase was primarily attributable to higher selling expense in our Vision Care and Surgical segments, partially offset by lower Business Transformation Costs (as defined and discussed below).

Current wording

SG&A expenses were $556 million and $528 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $28 million, or 5%. The increase was primarily attributable to higher selling expense in our Vision Care and Surgical segments, partially offset by lower Business Transformation Costs (as defined and discussed below).

Previous wording

R&D expenses were $215 million and $182 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $33 million, or 18%, primarily due to certain products in development, as previously discussed.

Current wording

R&D expenses were $91 million and $95 million for the three months ended September 30, 2026 and 2025, respectively, a decrease of $4 million, or 4%.

Previous wording

Amortization of Intangible assets was $57 million and $67 million for the three months ended June 30, 2026 and 2025, respectively, a decrease of $10 million, or 15%, primarily due to fully amortized intangible assets no longer being amortized.

Current wording

Amortization of Intangible assets was $57 million and $68 million for the three months ended September 30, 2026 and 2025, respectively, a decrease of $11 million, or 16%, primarily due to fully amortized intangible assets no longer being amortized.

Previous wording

Other expense, net for the three months ended June 30, 2026 and 2025 consists of the following:

Current wording

Other expense (income), net for the three months ended September 30, 2026 and 2025 consists of the following:

Previous 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.

Current wording

Operating income was $155 million and $95 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $60 million. This increase primarily reflects the increase in contribution, as previously discussed.

Previous 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.

Current wording

Segment profit is based on operating 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 Interim 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 Vision Care segment profit was $229 million and $209 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $20 million. The increase was primarily driven by the increase in revenue, as previously discussed, partially offset by increases in selling and R&D expense.

Current wording

The Vision Care segment profit was $244 million and $217 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $27 million. The increase was primarily driven by: (i) the increase in revenue, as previously discussed, (ii) higher gross profit driven by product mix in our Consumer business and a one-time tariff refund in our Lens business. These increases were partially offset by an increase in selling expense.

Previous 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.

Current wording

The Surgical segment profit was $32 million and $8 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $24 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, partially offset by higher selling expense.

Previous 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.

Current wording

Interest expense was$95 million and$101 million for the three months ended September 30, 2026 and 2025, respectively, a decrease of$6 million, primarily driven by 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$9 million for the three months ended June 30, 2025 and relates to our June 2025 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 a credit of$3 million for the three months ended September 30, 2025, which reflects a true-up related 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$5 million and $2 million for the three months ended June 30, 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$4 million and $3 million for the three months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

Net income attributable to Bausch + Lomb Corporation was $32 million for the three months ended September 30, 2026 as compared to a net loss attributable to Bausch + Lomb Corporation of $28 million for the three months ended September 30, 2025, an increase in our results of $60 million and was primarily due to the increase in our operating results of $60 million and decrease in interest expense of $6 million, partially offset by the increase in income taxes of $1 million, each as previously discussed.

Previous wording

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

Current wording

Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025

Previous wording

Our revenues were $2,638 million and $2,415 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $223 million, or 9%. The increase was attributable to: (i) increased net realized pricing of $97 million, driven by our Pharmaceuticals and Vision Care segments, (ii) increased volumes of $76 million across each of our segments, (iii) the favorable impact of foreign currencies of $54 million and (iv) incremental sales attributable to acquisitions of $4 million, within our Surgical segment. The increases in revenue were partially offset by the impact of divestitures and discontinuations of $8 million, primarily relating to the discontinuation of certain products within our Vision Care segment.

Current wording

Our revenues were $4,013 million and $3,696 million for the nine months ended September 30, 2026 and 2025, respectively, an increase of $317 million, or 9%. The increase was attributable to: (i) increased volumes of $139 million across each of our segments, (ii) increased net realized pricing of $128 million, driven by our Pharmaceuticals and Vision Care segments, (iii) the favorable impact of foreign currencies of $48 million and (iv) incremental sales attributable to acquisitions of $12 million, within our Vision Care and Surgical segments. The increases in revenue were partially offset by the impact of divestitures and discontinuations of $10 million, primarily relating to the discontinuation of certain products within our Vision Care segment.

Previous wording

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 six months ended June 30, 2026 and 2025.

Current wording

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, 2026 and 2025.

Previous wording

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 six months ended June 30, 2026 and 2025. 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)”.

Current wording

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, 2026 and 2025. 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)”.