BLCO — Bausch + Lomb Corporation

Bausch + Lomb (BLCO) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $1.394 billion, up 8% year-over-year (constant currency).
• Adjusted EBITDA: $246 million, a 28% increase year-over-year, with an adjusted EBITDA margin of 17.6%, up 260 basis points.
• Adjusted Cash Flow from Operations: $161 million, more than tripling from $45 million in Q1 2026.
• Net Leverage: Reduced to approximately 4.7x, down one full turn since the previous year.
• Adjusted EPS: $0.16, compared to $0.07 in the prior year.

2. Strategic Updates and Business Highlights

• Segment Performance:
  • Pharmaceuticals: Revenue of $354 million, up 14%, driven by strong growth in dry eye products Miebo (up 44%) and Xiidra (up 6%).
  • Surgical: Revenue of $256 million, up 16%, with premium IOLs growing 175% year-over-year.
  • Vision Care: Revenue of $784 million, up 4%, with contact lenses growing 5%.
• Product Innovations: Introduction of Orphia, an AI-powered digital health platform, and advancements in the surgical pipeline including ELIOS, an implant-free MIGS excimer laser.
• Market Trends: Notable shifts in demand due to an aging population and increasing prevalence of eye conditions, driving long-term growth potential.

3. Forward Guidance and Outlook

• Revenue Guidance: Raised by $20 million to a range of $5.440 billion to $5.540 billion for the full year 2026, reflecting constant currency growth of approximately 5.8% to 7.7%.
• Adjusted EBITDA Guidance: Increased by $15 million to a range of $1.025 billion to $1.075 billion, with an expected adjusted EBITDA margin of approximately 19.1%.
• Cash Flow Expectations: Aiming for 45% cash flow to adjusted EBITDA conversion, with a long-term goal of over 50% by 2028.

4. Bad News, Challenges, or Points of Concern

• Competitive Pressures: New entrants in the market, particularly in the premium IOL segment (e.g., PureSee and Tryptyr), could impact market share.
• Consumer Health: While the consumer market remains stable, fluctuations in gas prices have shown to influence consumer spending, which could pose risks if prices rise significantly.
• Surgical Segment Risks: Ongoing strikes in Europe could affect surgical procedures and revenue in that region.

5. Notable Q&A Insights

• Three-Year Plan Confidence: CEO Brent Saunders expressed strong confidence in the company's ability to meet or exceed commitments made during the Investor Day, citing consistent performance metrics.
• Surgical Recovery Post-Recall: The company has successfully regained surgeon confidence and market share following a previous recall, with significant growth in premium IOLs.
• Miebo Profitability: Miebo is expected to turn profitable in the second half of 2026, supported by improved market access and strong prescription growth.
• Market Dynamics: The company is closely monitoring competitive dynamics in both the surgical and pharmaceutical segments, with a focus on maintaining leadership in dry eye treatments.

Overall, Bausch + Lomb demonstrated strong financial performance in Q2 2026, with broad-based growth across its segments and a positive outlook for the remainder of the year, despite facing competitive pressures and market fluctuations.