Bausch Lomb 2025 Q2 Earnings Mixed Results with Net Loss Narrowed 60%

Bausch + Lomb (BLCO) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Bausch + Lomb exceeded revenue expectations with a 5% year-over-year increase to $1.28 billion, surpassing the Zacks Consensus Estimate of $1.25 billion. Despite the revenue growth, the company posted a GAAP net loss of $62 million, overshadowing its positive top-line performance. The company raised its full-year revenue guidance to a range of $5.05 billion to $5.15 billion, reflecting confidence in its business outlook.

Revenue
Bausch + Lomb saw revenue growth across various segments. Pharmaceuticals contributed $260 million, while the Devices segment recorded $472 million. The OTC segment added $482 million, Branded and Other Generics brought in $58 million, and Other revenues totaled $6 million. The company's diverse product portfolio resulted in a total revenue of $1.28 billion.

Earnings/Net Income
Bausch + Lomb reduced its net loss to $58 million in 2025 Q2, a significant improvement from the $148 million net loss reported in 2024 Q2. The earnings per share loss also narrowed to $0.18 from $0.43 in the previous year. The EPS improvements reflected a positive trend in financial performance.

Price Action
The stock price of Bausch + Lomb tumbled 9.02% during the latest trading day, reflecting market concerns over profitability despite revenue growth. Over the most recent week, the stock dropped 3.72%, yet showed a 10.56% increase month-to-date, indicating some investor optimism. The fluctuation in stock price suggests market uncertainty regarding the company's long-term performance.

Post-Earnings Price Action Review
The strategy of investing in Bausch + Lomb shares after a quarterly revenue increase has proven to be ineffective, as evidenced by a three-year compound annual growth rate (CAGR) of -10.08%. Despite the strategy's premise of capitalizing on revenue growth, it resulted in substantial risk and losses, as indicated by a Sharpe ratio of -0.24. Investors faced a maximum drawdown of 0.00%, highlighting the strategy's failure to generate positive returns. Overall, the strategy's poor performance underscores the challenges in predicting stock movements based solely on revenue growth.

CEO Commentary
Brenton L. Saunders, CEO, highlighted the company's strong product portfolio performance, particularly in contact lenses and dry eye segments. Despite challenges like the enVista recall, Saunders expressed pride in the team's resilience and execution. He emphasized ongoing innovation and a robust pipeline, positioning the company for growth with a focus on expanding market share and operational excellence.

Guidance
Bausch + Lomb increased its full-year revenue guidance to a range of $5.05 billion to $5.15 billion, indicating constant currency growth of 5% to 7%. The adjusted EBITDA guidance was raised to $860 million to $910 million. The company expects adjusted gross margins around 61.5%, with plans to invest 7.5% of revenue in R&D. The fourth quarter is anticipated to be the strongest, driven by seasonal demand and enhanced enVista product availability.

Additional News
Bausch + Lomb has been active in mergers and acquisitions, including the acquisition of XIIDRA and other ophthalmology assets, aiming to strengthen its pharmaceutical segment. In leadership changes, Brent Saunders extended his contract as CEO, citing confidence in the team and strategic direction. The company has also been focused on consumer growth initiatives, leveraging brands like Artelac, Blink, and LUMIFY to boost market presence. These developments reflect Bausch + Lomb's commitment to enhancing its product offerings and leadership stability.