Bausch Lomb 2025 Q3 Earnings Sharp Net Loss Amid Revenue Growth

Bausch + Lomb reported Q3 2025 results marked by a significant swing to a loss, despite 7.1% revenue growth. The company raised its adjusted EBITDA guidance but fell short of earnings expectations. CEO Brenton Saunders emphasized innovation-driven growth and strategic priorities, signaling confidence in long-term durability.

Revenue

Bausch + Lomb’s total revenue rose 7.1% year-over-year to $1.28 billion in Q3 2025, driven by robust performance across all segments. The Vision Care division led with $736 million in sales, fueled by strong demand for over-the-counter dry eye products and contact lenses like SiHy Daily and Biotrue ONEday. Surgical revenue grew to $215 million, supported by increased equipment and implantable sales, while the Pharmaceuticals segment reached $330 million, driven by Miebo and Xiidra dry eye treatments. Smaller contributors included Branded and Other Generics ($59 million) and Other Revenues ($4 million).

Earnings/Net Income

The company reported a net loss of $25 million for Q3 2025, a 412.5% deterioration from $8 million net income in the prior-year period. Earnings per share (EPS) swung to a loss of $0.08, compared to $0.01 profit in 2024 Q3. The sharp decline underscores operational challenges despite top-line growth, as higher interest expenses and cost pressures offset revenue gains.

Post-Earnings Price Action Review

Following the earnings release, Bausch + Lomb’s stock price dropped 3.25% during the latest trading day, with a 1.53% decline over the past week. However, shares gained 3.41% month-to-date, reflecting mixed investor sentiment. The stock’s post-earnings performance highlights concerns over profitability amid revenue expansion, though the raised EBITDA guidance and CEO’s optimistic outlook may provide some support for future gains.

CEO Commentary

Brenton L. Saunders, CEO & Chairman, highlighted 6% constant currency revenue growth driven by the “base business engine” and innovative products like Miebo ($84M in Pharmaceuticals) and enVista IOLs (27% growth in Surgical). Strategic priorities include “selling excellence, operational excellence, disruptive innovation, and financial excellence,” with the latter enabling “sustained profitable growth.” Saunders emphasized a “pivotal point” in becoming the “best eye health company,” citing pipeline innovations in dry eye, contact lenses, and glaucoma. Leadership tone is optimistic, with confidence in “real potential” and a focus on “durability of growth through innovation.”

Guidance

Bausch + Lomb maintained 2025 revenue guidance of $5.05B–$5.15B (5–7% constant currency growth) and raised adjusted EBITDA guidance to $870M–$910M. Key assumptions include 61.5% adjusted gross margin, 7.5% R&D as revenue, $375M interest expense, and $295M CapEx. The company expects to offset 2025 tariffs and anticipates margin expansion via disciplined cost management and product mix. Adjusted tax rate is projected at 15%.

Additional News

Recent developments include Bausch + Lomb’s acquisition of Whitecap Biosciences, advancing its pipeline in glaucoma and geographic atrophy therapies. The company also navigated strategic discussions regarding CooperCompanies’ activist investor Jana Partners, which proposed a potential merger of CooperVision with Bausch + Lomb. CEO Brent Saunders clarified that while the company sees value in a larger competitor, no active engagement is planned. Additionally, Bausch + Lomb confirmed its annual Investor Day on November 13, 2025, at the New York Stock Exchange, where it will showcase clinical-stage innovations.

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