Bausch Health 2025 Q1 Earnings Mixed Results as Net Loss Widens 11.7%

Bausch Health Companies Inc. reported its fiscal 2025 Q1 earnings on April 30, 2025. The company experienced a 4.6% increase in total revenue to $2.23 billion, compared to $2.13 billion in the same quarter of 2024. Despite the revenue growth, Bausch Health's net loss widened to $86 million, marking an 11.7% increase from the previous year's $77 million loss. The company maintained its full-year revenue and adjusted EBITDA guidance, reflecting a commitment to shareholder value despite heightened interest expenses.

Revenue

In the first quarter of 2025, Bausch Health saw a revenue increase of 4.6%, reaching $2.23 billion, up from $2.13 billion in the previous year. The Salix segment contributed $542 million, while Solta Medical generated $113 million. The Diversified segment saw $205 million in revenue. Bausch + Lomb and International operations collectively brought in $1.40 billion, with Bausch + Lomb alone accounting for $1.14 billion and International operations contributing $262 million. Total revenues for Bausch Health Companies Inc. amounted to $2.26 billion.

Earnings/Net Income

Bausch Health's loss per share improved from $0.17 in Q1 2024 to $0.16 in Q1 2025, reflecting a 10% improvement. However, the net loss increased by 11.7% to $86 million from $77 million in the prior year. The EPS performance indicates a slight improvement in earnings per share, despite the wider net loss.

Price Action

Post Earnings Price Action Review

The post-earnings analysis of Bausch Health reveals a generally negative impact on its stock price over various short-term periods following earnings reports. The 3-day, 10-day, and 30-day win rates for revenue, net income, and EPS all hover around 49%, 48.5%, and 46.5% respectively, indicating a decreasing likelihood of positive returns as time progresses. The maximum returns observed following these events are minimal or negative, with revenue-related events reaching only -0.01%, net income at -0.07%, and EPS at -0.22%. This suggests that these financial metrics tend to have a neutral to negative impact on Bausch Health's stock price in the short term, offering limited opportunities for significant investor gains post-earnings.

CEO Commentary

"We started the year strong, delivering our eighth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, highlighting the broad momentum across our diverse businesses and geographies. Alongside our healthy financial and operating performance, in early April we successfully closed a comprehensive refinancing transaction, delivering on our commitment to continue to improve our capital structure and maturity profile. We are laser focused on growing profitably and executing against our strategic priorities, including evaluating all options to unlock shareholder value," said Thomas J. Appio, Chief Executive Officer, Bausch Health.

Guidance

Bausch Health maintains its full-year 2025 Revenue and Adjusted EBITDA guidance. The company updated its Adjusted Cash Flow from Operations guidance primarily to reflect higher interest expense. The leadership remains committed to maximizing shareholder value while continuing to navigate financial challenges and opportunities in the market.

Additional News

In recent weeks, Bausch Health received a favorable ruling from the U.S. District Court, which upheld its exclusivity for Xifaxan by denying Norwich Pharmaceuticals' attempt to launch a generic version before 2028. This ruling is seen as pivotal for Bausch's financial stability, as Xifaxan accounts for a significant portion of its revenue and EBITDA. Additionally, Bausch Health successfully launched its Fraxel FTX™ laser system at the ASLMS 2025 Conference, marking a significant advancement in their aesthetics portfolio. The company also completed a comprehensive refinancing transaction to improve its capital structure and extend debt maturities, reflecting its ongoing focus on financial health and shareholder value.