BAUSCH HEALTH ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
Rhea-AI Summary
Bausch Health (NYSE:BHC) reported Q4 2025 consolidated revenues of $2.80 billion (+9% reported, +6% organic) and full-year revenues of $10.27 billion (+7% reported, +5% organic). GAAP net loss for Q4 was $112 million; full-year GAAP net income was $157 million. Q4 adjusted EBITDA was $1.05 billion (up 13%); full-year adjusted EBITDA was $3.54 billion (up 7%). The company completed the China Solta acquisition, executed significant refinancing (including a $1.7B debt exchange) and provided 2026 guidance: revenues $10.625–$10.875B and adjusted EBITDA $3.875–$4.000B.
Positive
- Revenue +7% FY to $10.27 billion
- Adjusted EBITDA +7% FY to $3.54 billion
- Completed China aesthetics acquisition (Solta/Shibo)
- $9.6 billion total refinancing extends maturities
Negative
- Q4 GAAP net loss of $112 million due to goodwill charge
- Recorded $145 million goodwill impairment in Q4
- Deferred tax asset allowance of $112 million in Q4
Market Reaction
Following this news, BHC has declined 2.28%, reflecting a moderate negative market reaction. Argus tracked a trough of -7.6% from its starting point during tracking. Our momentum scanner has triggered 9 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $6.05. This price movement has removed approximately $54M from the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
BHC was flat pre-release (0%), while peers were mixed: ALVO (-0.85%), HCM (+1.29%), INDV (+0.40%), SUPN (+1.47%), AMRX (+1.95%). Moves do not indicate a unified sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Conference participation | Neutral | +0.0% | Management announced attendance at J.P. Morgan Global Leveraged Finance Conference. |
| Feb 11 | Corporate program | Neutral | -1.3% | Launch of 2026 Salix Gastrointestinal Health Scholars Program with student scholarships. |
| Jan 23 | Clinical trial update | Negative | -10.1% | Phase 3 RED-C trials failed to meet primary endpoint despite acceptable safety profile. |
| Jan 21 | Earnings date notice | Neutral | -2.1% | Announcement of timing for Q4 and full-year 2025 results and conference call. |
| Jan 05 | Conference participation | Neutral | +2.6% | Planned presentation at 44th J.P. Morgan Healthcare Conference with strategic updates. |
Recent news reactions have generally aligned with the news tone, with a pronounced selloff on negative clinical data (RED-C) and modest moves on neutral items like conferences and program announcements.
Over the past months, Bausch Health has focused on investor outreach and R&D updates. Conference participations on Jan 14, 2026 and the J.P. Morgan leveraged finance event in early March were paired with neutral-to-modest share moves. The Jan 23, 2026 RED-C Phase 3 failure triggered a sharper -10.05% reaction, underscoring sensitivity to clinical setbacks. Administrative news such as the earnings-date announcement on Feb 18, 2026 and scholarship programs have seen small moves, setting a backdrop where today’s full-year 2025 results follow a mixed clinical but active corporate period.
Market Pulse Summary
This announcement details solid 2025 growth, with consolidated revenues of $10.27 billion, adjusted EBITDA of $3.54 billion, and 2026 revenue guidance of $10.625–$10.875 billion. It also highlights a shift from a prior-year GAAP net loss to $157 million net income, alongside lower operating cash flow of $1.40 billion. Investors may track execution against 2026 EBITDA and cash-flow targets, the impact of goodwill impairments, and follow-up on R&D items such as the RED-C trials and larsucosterol’s Phase 3 program.
Key Terms
non-GAAP financial
adjusted EBITDA financial
goodwill impairment financial
breakthrough therapy designation regulatory
Phase 3 medical
in-process research and development financial
deferred tax asset valuation allowance financial
revolving credit facility financial
AI-generated analysis. Not financial advice.
- Fourth Quarter Consolidated Revenues of
$2.80 billion 9% on a Reported basis and up6% on an Organic (non-GAAP)1 basis over the prior year period - Full-Year Consolidated Revenues of
$10 7% on a Reported basis and5% on an Organic (non-GAAP)1 basis - GAAP Net Loss Attributable to Bausch Health of
$112 million $157 million - Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1 of
$1.05 billion 13% , and$3.54 billion 7%
BAUSCH HEALTH EXCLUDING BAUSCH + LOMB FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
- Delivered eleventh consecutive quarter of year-over-year growth in both Revenue and Adjusted EBITDA (non-GAAP)1, exceeding 2025 guidance on all metrics
- Completed the acquisition of Shibo's full‑service aesthetics distribution business in
China on December 1, 2025 - Executed a
$1.7 billion $9.6 billion - Generated
$362 million $1.2 billion
"The fourth quarter marks our eleventh consecutive quarter of year‑over‑year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb. These results highlight our global team's unwavering commercial rigor and operational excellence, as full‑year results came in above our guidance on all key metrics. Our newly acquired full‑service aesthetics distribution business in
___________________________________ |
1 This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Information" section of this news release. Please also refer to tables at the end of this news release for a reconciliation of this and other non-GAAP measures to the most directly comparable GAAP measure. |
Fourth Quarter and Full-Year 2025 Revenue Performance
Total consolidated reported revenues were
Total consolidated reported revenues were
Revenues by segment were as follows:
Three Months Ended | Reported Change | Change at (non-GAAP) | Change in Organic1 | |||||||||
(in millions) | 2025 | 2024 | Amount | Pct. | ||||||||
Total Bausch Health Revenues | 9 % | 7 % | 6 % | |||||||||
Bausch Health (Excl. B+L) | 9 % | 7 % | 5 % | |||||||||
Salix segment | 9 % | 9 % | 6 % | |||||||||
International segment | 10 % | 1 % | 2 % | |||||||||
Solta Medical segment | ( | (1 %) | — % | — % | ||||||||
Diversified Products segment | 12 % | 12 % | 9 % | |||||||||
Bausch + Lomb segment | 10 % | 7 % | 7 % | |||||||||
Twelve Months Ended | Reported Change | Change at (non-GAAP) | Change in Organic1 | |||||||||
(in millions) | 2025 | 2024 | Amount | Pct. | ||||||||
Total Bausch Health Revenues | 7 % | 6 % | 5 % | |||||||||
Bausch Health (Excl. B+L) | 7 % | 7 % | 6 % | |||||||||
Salix segment | 11 % | 11 % | 9 % | |||||||||
International segment | 2 % | — % | 1 % | |||||||||
Solta Medical segment | 18 % | 19 % | 19 % | |||||||||
Diversified Products segment | ( | (1 %) | (1 %) | (3 %) | ||||||||
Bausch + Lomb segment | 6 % | 5 % | 5 % | |||||||||
Salix Segment
Salix segment reported revenues were
International Segment
International segment reported revenues were
Solta Medical Segment
Solta Medical segment reported revenues were
Diversified Segment
Diversified segment reported revenues were
Bausch + Lomb Segment
Bausch + Lomb segment reported revenues were
Consolidated Operating Income
Consolidated operating income was
Consolidated operating income was
Consolidated Net (Loss) Income Attributable to Bausch Health
Consolidated net loss attributable to Bausch Health for the fourth quarter of 2025 was
Consolidated Adjusted Net Income Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted net income attributable to Bausch Health (non-GAAP)1 was
Consolidated Earnings (Loss) Per Share Attributable to Bausch Health
Consolidated GAAP Earnings (Loss) Per Share attributable to Bausch Health was (
Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted EBITDA attributable to Bausch Health (non-GAAP)1 was
Consolidated Cash Provided by Operating Activities
The Company generated
Balance Sheet Highlights
- Consolidated cash and cash equivalents were
$1.31 billion - In the fourth quarter, Bausch Health completed an exchange of senior notes, extending
$1.6 billion - Bausch Health (excluding Bausch + Lomb) had availability of approximately
$470 million $665 million - Bausch Health continues to focus on strengthening its balance sheet and delivering value to shareholders.
Bausch Health (excluding Bausch + Lomb) R&D Update
- Larsucosterol (Epigenetic Modulator): FDA Breakthrough Therapy Designation for treatment of Alcohol-Associated Hepatitis (AH)
- Initiated Phase 3 trial with the first patient randomized in January 2026
- Fraxel FTX®: fractional laser system targeting treatment in skin rejuvenation, addressing common skin concerns such as sun damage, wrinkles, acne scars, and pigmentation irregularities
- Received approval in
Australia in December 2025
- Received approval in
- RED-C: In January 2026, top line results for Phase 3 studies were evaluated
- While safe and well-tolerated, both clinical trials did not achieve their primary endpoint
- January 23, 2026 press release announcing these results is available on EDGAR, SEDAR+ and Bausch Health's website
2026 Financial Outlook
The Company is providing the following full-year guidance for 2026, assuming current foreign exchange rates:
Current Guidance (as of Feb. 18, 2026) | ||||
BHC | BHC (excl. B+L) | B+L | ||
Revenues (in Billions) | ||||
Revenue growth vs. Prior Year | ||||
Adjusted EBITDA1 (in Billions) | ||||
Adj. EBITDA1 growth vs. Prior Year | ||||
Adjusted Operating Cash Flow1 (in Billions) | ||||
Other than with respect to GAAP revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)1 to GAAP net income (loss) or forward-looking Adjusted Cash Flow from Operations to GAAP cash generated from operations, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) and payments (such as payments of legal settlements, transformation costs, separation costs and separation-related costs, interest charged against premium, financing fees paid in connection with the debt refinancing transactions and acquired IPR&D expense) used to calculate Adjusted Cash Flow from Operations vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of projected net income (loss) or cash generated from operations at this time. The amount of these adjustments may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP)1. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. The rapid recent developments in the evolving landscape of tariffs and responses have resulted in uncertainty regarding these measures and the effects they may have. We continue to assess the direct and indirect impacts on our businesses of such tariffs, including retaliatory tariffs and other trade protectionist measures as the situation develops, and there can be no assurance that such impacts will not be adverse.
Conference Call Details
Date: Wednesday, Feb. 18, 2026
Time: 5:00 p.m.
Webcast: ir.bauschhealth.com/events-and-presentations
A replay of the conference call will be available on the investor relations website.
About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.
Forward-looking Statements
This news release contains forward-looking information and statements within the meaning of the
These forward-looking statements are subject to certain factors, risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: our ability to execute our business strategy, business plans and operational efficiency initiatives; demand for, competitive positioning of and pricing for our current and anticipated products and our ability to achieve expected revenues, margins and expense levels; the successful development, regulatory approval, manufacture and timing of launches and commercialization of pipeline and other products; the completion, timing, integration and expected benefits of acquisitions and other strategic transactions (including the acquisition of DURECT Corporation and the planned separation of our eye health business consisting of our Bausch + Lomb global Vision Care, Surgical and Pharmaceuticals businesses) on anticipated terms, timing and costs; the scope, duration and financial and operational impact of product quality matters; the continued availability and performance of key third-party distribution, fulfillment and other arrangements and the stability of global supply chains; the continuation of patent protection and regulatory exclusivity for key products; the expected impacts of the Inflation Reduction Act, and the selection by the Centers for Medicare & Medicaid Services of Xifaxan® for the second round of negotiation under the drug price negotiation program for initial price applicability in 2027 and the results thereof, and other healthcare reform measures and our ability to mitigate the impact thereof; our ability to generate cash flows and access liquidity to meet working capital needs, satisfy debt maturities as they become due, reduce debt levels and comply with financial and other covenants under our financing arrangements; the expected scope and impact of tariffs, counter-tariffs and other trade restrictions and the effectiveness of mitigation actions; macroeconomic and geopolitical conditions (including inflation, recessionary pressures, foreign currency exchange rates and interest rates), changes in tax laws and related guidance (including legislation referred to as the One Big Beautiful Bill Act and Organisation for Economic Co-operation and Development related measures); the expected outcomes of litigation and other contingencies; and other factors, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the
We caution that, as it is not possible to predict or identify all relevant factors that may impact forward-looking statements, the factors referred above are not exhaustive and should not be considered a complete statement of all potential risks and uncertainties. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the aforementioned factors and other uncertainties and potential events. These forward-looking statements speak only as of the date made. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, except as required by law.
Non-GAAP Information
To supplement the financial measures prepared in accordance with
However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP financial measures and ratios used by other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
The reconciliations of these historical non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below. However, as indicated above, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP Net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Many of the adjustments and exclusions used to calculate the projected non-GAAP measures may vary significantly based on actual events, so the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of these projected amounts. The amounts of these adjustments may be material and, therefore, could result in the GAAP amount being materially different from (including materially less than) the projected non-GAAP measures.
Commencing in the third quarter of 2025, the Company now includes payments of Acquired IPR&D in the calculation of Adjusted Cash Flow From Operations (non-GAAP). Prior-period amounts presented herein have been restated to conform to the current year's presentation.
Description of Non-GAAP Financial Measures
EBITDA (non-GAAP), Adjusted EBITDA (non-GAAP) and Adjusted EBITDA Attributable to Bausch Health (non-GAAP)
EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization, and certain other items described below. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) as defined below.
Management believes that Adjusted EBITDA (non-GAAP) and Adjusted EBITDA attributable to Bausch Health (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization and the following items:
- Restructuring, integration and transformation costs: The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. With regard to infrastructure and operational improvements which the Company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. Additionally, the Company is launching certain transformation initiatives that will result in certain changes to and investment in its organizational structure and operations. These transformation initiatives arise outside of the ordinary course of continuing operations and, as is the case with the Company's restructuring efforts, costs associated with these transformation initiatives are expected to fluctuate between periods in amount, size and timing. These out-of-the-ordinary-course charges include third-party advisory costs, as well as certain severance-related costs. Investors should understand that the outcome of these transformation initiatives may result in future restructuring actions and certain of these charges could recur. The Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.
- Asset impairments: The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, as well as impairments of assets held for sale, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes impairments of intangible assets and assets held for sale from measuring the performance of the Company and the business, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation.
- Goodwill impairments: The Company excludes the impact of goodwill impairments. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. The amount of goodwill impairment is measured as the excess of a reporting unit's carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business.
- Share-based compensation: The Company has excluded costs relating to share-based compensation. The Company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted.
- Acquisition-related costs and adjustments (excluding amortization of intangible assets): The Company has excluded the impact of acquisition-related costs and fair value inventory step-up resulting from acquisitions as the amounts and frequency of such costs and adjustments are not consistent and are significantly impacted by the timing and size of its acquisitions. In addition, the Company excludes acquisition-related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates, and the amount and frequency of such adjustments are not consistent and are significantly impacted by the timing and size of the Company's acquisitions, as well as the nature of the agreed-upon consideration.
- Gain (loss) on extinguishment of debt: The Company has excluded gain (loss) on extinguishment of debt as this represents a gain or loss from refinancing our existing debt and is not a reflection of our operations for the period. Further, the amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control.
- Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities regarding the separation of the eye-health business. Separation costs are incremental costs directly related to effectuating the separation of the eye-health business, and include, but are not limited to, legal, audit and advisory fees. Separation-related costs are incremental costs indirectly related to the separation of the eye-health business and include, but are not limited to, rebranding costs and costs associated with facility relocation and/or modification. As these costs arise from events outside of the ordinary course of continuing operations, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.
- Other adjustments: The Company has excluded certain other amounts, including legal and other professional fees incurred in connection with legal and governmental proceedings, investigations and information requests regarding certain of our legacy distribution, marketing, pricing, disclosure and accounting practices, litigation and other matters, and net (gain) loss on sale of assets or other disposition of assets. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. In addition, as opposed to more ordinary course matters, the Company considers that each of the recent proceedings, investigations and information requests, given their nature and frequency, are outside of the ordinary course and relate to unique circumstances. The Company has also excluded IT infrastructure investments that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. The Company has also excluded certain other costs, including professional fees associated with contemplated, but not completed, strategic transactions. The Company excluded these costs as the consideration of such matters are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation.
Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP). Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.
Adjusted Net Income (non-GAAP) and Adjusted Net Income attributable to Bausch Health (non-GAAP)
Adjusted net income (non-GAAP) is Net income (its most directly comparable GAAP financial measure), adjusted for asset impairments, goodwill impairments, restructuring, integration and transformation costs, acquisition-related costs and adjustments (excluding amortization of intangible assets), gain (loss) on extinguishment of debt, separation costs and separation-related costs and other non-GAAP adjustments as these adjustments are described above, and amortization of intangible assets and write down of financing fees as described below:
- Amortization of intangible assets: The Company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes the amortization of intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.
- Write down of financing fees: In addition to excluding Gain on extinguishment of debt, the Company has excluded the impact of the write down of financing fees from Adjusted net income (non-GAAP). The amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. In addition, the Company excluded these costs as they are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors.
Adjusted net income attributable to Bausch Health (non-GAAP) is Adjusted net income (non-GAAP) further adjusted to exclude the Adjusted net income attributable to noncontrolling interest (non-GAAP). Adjusted net income attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.
Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as described above) that may obscure trends in the Company's underlying performance. By disclosing this non-GAAP measure, it is management's intention to provide investors with a meaningful, supplemental comparison of the Company's operating results and trends for the periods presented. Management believes that this measure is also useful to investors as such measure allows investors to evaluate the Company's performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, the Company believes that Adjusted net income (non-GAAP) is useful to investors in their assessment of the Company's operating performance. It is also noted that, in recent periods, our GAAP Net income (loss) was significantly lower than our Adjusted net income (non-GAAP).
Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP)
Organic revenue (non-GAAP) and Change in organic revenue (non-GAAP), are defined as GAAP Revenue and change in GAAP Revenue (the most directly comparable GAAP financial measures), adjusted for changes in foreign currency exchange rates (if applicable) and excluding the impact of recent acquisitions, divestitures and discontinuations, as defined below.
Organic revenue (non-GAAP) is impacted by changes in product volumes and price. The price component is made up of two key drivers: (i) changes in product gross selling price and (ii) changes in sales deductions. The Company uses organic revenue (non-GAAP) and change in organic revenue (non-GAAP) to assess performance of its reportable segments, and the Company in total. The Company believes that providing these non-GAAP measures is useful to investors as they provide a supplemental period-to-period comparison.
The adjustments to GAAP Revenue to determine Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP) are as follows:
- Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management's control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact of changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.
- Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue and change in organic revenue exclude from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. Organic revenue and change in organic revenue exclude from the prior period, all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period.
Constant Currency
Changes in the relative values of non-
Please also see the reconciliation tables below for further information as to how these non-GAAP measures and ratios are calculated for the periods presented.
Adjusted Cash Flow from Operations (non-GAAP)
Adjusted cash flow from operations (non-GAAP) is Cash generated from operations (its most directly comparable GAAP financial measure) adjusted for: (i) payments of legacy legal settlements, net of insurance recoveries and restitutions, (ii) payments of transformation costs, (iii) payments for separation costs and separation-related costs, (iv) interest payments charged against premium, (v) fees paid in connection with the debt refinancing transactions and (vi) payments of acquired IPR&D.
As these payments arise from events outside of the ordinary course of continuing operations as discussed above, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's cash from operations, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.
Adjusted EBITDA excluding Bausch + Lomb (non-GAAP)
Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) is Adjusted EBITDA (non-GAAP) adjusted to remove Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP). Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP) is Income (loss) before income taxes of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's interest expense, depreciation, amortization and other adjustments as described above, allocated or attributable to Bausch + Lomb.
Adjusted EBITDA excluding Bausch + Lomb is not intended to be, and may not be, representative of income from continuing operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to Bausch Health excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented.
Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP)
Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP) is Adjusted Cash Flow from Operations (non-GAAP) adjusted to remove Adjusted Cash Flow from Operations attributable to Bausch + Lomb (non-GAAP). Adjusted Cash Flow from Operations attributable to Bausch + Lomb (non-GAAP) is Cash Flow from Operations of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's payment of separation costs, separation-related costs and other adjustments as described above, allocated or attributable to Bausch + Lomb.
Adjusted Cash Flow from Operations excluding Bausch + Lomb is not intended to be, and may not be, representative of Cash Flow from Operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to BHC excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the cash flow or Adjusted Cash Flow from Operations attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented.
Management believes that Adjusted EBITDA excluding Bausch + Lomb (non-GAAP), Adjusted Cash Flow from Operations (non-GAAP) and Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP), along with the GAAP and other non-GAAP measures used by management, most appropriately reflects how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the actual financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) and Adjusted Cash Flow (non-GAAP) targets.
Bausch Health Companies Inc. | Table 1 | |||||||||||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2025 and 2024 | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Product sales | $ | 2,768 | $ | 2,528 | $ | 10,156 | $ | 9,518 | ||||||||||||||||||
Other revenues | 28 | 31 | 110 | 107 | ||||||||||||||||||||||
2,796 | 2,559 | 10,266 | 9,625 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Cost of goods sold (excluding amortization and impairments of intangible assets) | 783 | 711 | 2,949 | 2,729 | ||||||||||||||||||||||
Cost of other revenues | 15 | 16 | 64 | 53 | ||||||||||||||||||||||
Selling, general and administrative | 882 | 820 | 3,438 | 3,296 | ||||||||||||||||||||||
Research and development | 161 | 163 | 629 | 616 | ||||||||||||||||||||||
Amortization of intangible assets | 236 | 259 | 1,001 | 1,077 | ||||||||||||||||||||||
Goodwill impairments | 145 | — | 145 | — | ||||||||||||||||||||||
Asset impairments | 7 | 23 | 8 | 29 | ||||||||||||||||||||||
Restructuring, integration and separation costs | 28 | 7 | 77 | 32 | ||||||||||||||||||||||
Other expense, net | 65 | 2 | 142 | 247 | ||||||||||||||||||||||
2,322 | 2,001 | 8,453 | 8,079 | |||||||||||||||||||||||
Operating income | 474 | 558 | 1,813 | 1,546 | ||||||||||||||||||||||
Interest income | 9 | 9 | 48 | 33 | ||||||||||||||||||||||
Interest expense | (397) | (337) | (1,604) | (1,388) | ||||||||||||||||||||||
(Loss) gain on extinguishment of debt | (19) | — | 162 | 23 | ||||||||||||||||||||||
Foreign exchange and other | (11) | (21) | (52) | (47) | ||||||||||||||||||||||
Income before income taxes | 56 | 209 | 367 | 167 | ||||||||||||||||||||||
Provision for income taxes | (159) | (111) | (247) | (239) | ||||||||||||||||||||||
Net (loss) income | (103) | 98 | 120 | (72) | ||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest | (9) | (5) | 37 | 26 | ||||||||||||||||||||||
Net (loss) income attributable to Bausch Health Companies Inc. | $ | (112) | $ | 93 | $ | 157 | $ | (46) | ||||||||||||||||||
Bausch Health Companies Inc. | Table 2 | |||||||||||||||||||||||||
Reconciliation of GAAP Net (Loss) Income to Adjusted Net Income (non-GAAP) | ||||||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2025 and 2024 | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
Net (loss) income | $ | (103) | $ | 98 | $ | 120 | $ | (72) | ||||||||||||||||||
Non-GAAP adjustments: (a) | ||||||||||||||||||||||||||
Amortization of intangible assets | 236 | 259 | 1,001 | 1,077 | ||||||||||||||||||||||
Goodwill impairments | 145 | — | 145 | — | ||||||||||||||||||||||
Asset impairments | 7 | 23 | 8 | 29 | ||||||||||||||||||||||
Restructuring, integration and transformation costs | 34 | 16 | 142 | 66 | ||||||||||||||||||||||
Acquisition-related costs and adjustments (excluding amortization of intangible assets) | 42 | 18 | 37 | 101 | ||||||||||||||||||||||
Loss (gain) on extinguishment of debt, net of write down of financing fees | 29 | — | (99) | (23) | ||||||||||||||||||||||
IT infrastructure investment | 3 | 8 | 20 | 35 | ||||||||||||||||||||||
Separation costs and separation-related costs | 2 | 8 | 7 | 24 | ||||||||||||||||||||||
Legal and other professional fees | 3 | — | 22 | 25 | ||||||||||||||||||||||
Gain on sale of assets, net | — | — | (6) | (10) | ||||||||||||||||||||||
Litigation and other matters, net of insurance recoveries and restitutions | 21 | 5 | 61 | 220 | ||||||||||||||||||||||
Other | 5 | 7 | 43 | 19 | ||||||||||||||||||||||
Tax effect of non-GAAP adjustments | 13 | 9 | (67) | (57) | ||||||||||||||||||||||
Total non-GAAP adjustments | 540 | 353 | 1,314 | 1,506 | ||||||||||||||||||||||
Adjusted net income (non-GAAP) | 437 | 451 | 1,434 | 1,434 | ||||||||||||||||||||||
Adjusted net income attributable to noncontrolling interest (non-GAAP) | (26) | (21) | (34) | (40) | ||||||||||||||||||||||
Adjusted net income attributable to Bausch Health Companies Inc. (non-GAAP) | $ | 411 | $ | 430 | $ | 1,400 | $ | 1,394 | ||||||||||||||||||
(a) | The components of and further details respecting each of these non-GAAP adjustments and the financial statement line item to which each component relates can be found on Table 2a. |
Bausch Health Companies Inc. | Table 2a | |||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2025 and 2024 | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
Cost of goods sold reconciliation: | ||||||||||||||||||||||||||
GAAP Cost of goods sold (excluding of amortization and impairments of intangible assets) | $ | 783 | $ | 711 | $ | 2,949 | $ | 2,729 | ||||||||||||||||||
Fair value inventory step-up resulting from acquisitions (a) | (2) | (21) | (64) | (82) | ||||||||||||||||||||||
Other (l) | (2) | — | (2) | — | ||||||||||||||||||||||
Adjusted cost of goods sold (excluding of amortization and impairments of intangible assets) | $ | 779 | $ | 690 | $ | 2,883 | $ | 2,647 | ||||||||||||||||||
Selling, general and administrative reconciliation: | ||||||||||||||||||||||||||
GAAP Selling, general and administrative | $ | 882 | $ | 820 | $ | 3,438 | $ | 3,296 | ||||||||||||||||||
IT infrastructure investment (b) | (3) | (8) | (20) | (35) | ||||||||||||||||||||||
Legal and other professional fees (c) | (3) | — | (22) | (25) | ||||||||||||||||||||||
Separation-related costs (d) | (2) | (7) | (7) | (20) | ||||||||||||||||||||||
Transformation costs (e) | (6) | (10) | (65) | (37) | ||||||||||||||||||||||
Adjusted selling, general and administrative (non-GAAP) | $ | 868 | $ | 795 | $ | 3,324 | $ | 3,179 | ||||||||||||||||||
Research and development reconciliation: | ||||||||||||||||||||||||||
GAAP Research and development | $ | 161 | $ | 163 | $ | 629 | $ | 616 | ||||||||||||||||||
Separation-related costs (d) | — | — | — | (1) | ||||||||||||||||||||||
Adjusted research and development (non-GAAP) | $ | 161 | $ | 163 | $ | 629 | $ | 615 | ||||||||||||||||||
Amortization of intangible assets reconciliation: | ||||||||||||||||||||||||||
GAAP Amortization of intangible assets | $ | 236 | $ | 259 | $ | 1,001 | $ | 1,077 | ||||||||||||||||||
Amortization of intangible assets (f) | (236) | (259) | (1,001) | (1,077) | ||||||||||||||||||||||
Adjusted amortization of intangible assets (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Goodwill impairments reconciliation: | ||||||||||||||||||||||||||
GAAP Goodwill impairments | $ | 145 | $ | — | $ | 145 | $ | — | ||||||||||||||||||
Goodwill impairments (g) | (145) | — | (145) | — | ||||||||||||||||||||||
Adjusted goodwill impairments (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Asset impairments reconciliation: | ||||||||||||||||||||||||||
GAAP Asset impairments | $ | 7 | $ | 23 | $ | 8 | $ | 29 | ||||||||||||||||||
Asset impairments (h) | (7) | (23) | (8) | (29) | ||||||||||||||||||||||
Adjusted asset impairments (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Restructuring, integration and separation costs reconciliation: | ||||||||||||||||||||||||||
GAAP Restructuring, integration and separation costs | $ | 28 | $ | 7 | $ | 77 | $ | 32 | ||||||||||||||||||
Restructuring and integration costs (e) | (28) | (6) | (77) | (29) | ||||||||||||||||||||||
Separation costs (d) | — | (1) | — | (3) | ||||||||||||||||||||||
Adjusted restructuring, integration and separation costs (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bausch Health Companies Inc. | Table 2a (continued) | |||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2025 and 2024 | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
Other expense, net reconciliation: | ||||||||||||||||||||||||||
GAAP Other expense, net | $ | 65 | $ | 2 | $ | 142 | $ | 247 | ||||||||||||||||||
Litigation and other matters, net of insurance recoveries and restitutions (i) | (21) | (5) | (61) | (220) | ||||||||||||||||||||||
Acquisition-related contingent consideration (a) | (36) | 4 | 36 | (15) | ||||||||||||||||||||||
Gain on sale of assets, net (j) | — | — | 6 | 10 | ||||||||||||||||||||||
Acquisition-related costs (a) | (4) | (1) | (9) | (4) | ||||||||||||||||||||||
Adjusted other expense, net (non-GAAP) | $ | 4 | $ | — | $ | 114 | $ | 18 | ||||||||||||||||||
(Loss) gain on extinguishment of debt reconciliation: | ||||||||||||||||||||||||||
GAAP (Loss) gain on extinguishment of debt | $ | (19) | $ | — | $ | 162 | $ | 23 | ||||||||||||||||||
Loss (gain) on extinguishment of debt (k) | 19 | — | (162) | (23) | ||||||||||||||||||||||
Adjusted (Loss) gain on extinguishment of debt (non-GAAP) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Interest expense reconciliation: | ||||||||||||||||||||||||||
GAAP Interest expense | $ | (397) | $ | (337) | $ | (1,604) | $ | (1,388) | ||||||||||||||||||
Write-down of financing fees (k) | (10) | — | (63) | — | ||||||||||||||||||||||
Adjusted Interest expense (non-GAAP) | $ | (407) | $ | (337) | $ | (1,667) | $ | (1,388) | ||||||||||||||||||
Foreign exchange and other reconciliation: | ||||||||||||||||||||||||||
GAAP Foreign exchange and other | $ | (11) | $ | (21) | $ | (52) | $ | (47) | ||||||||||||||||||
Other professional fees (l) | (3) | (6) | (41) | (16) | ||||||||||||||||||||||
Other (l) | — | (1) | — | (3) | ||||||||||||||||||||||
Adjusted Foreign exchange and other (non-GAAP) | $ | (14) | $ | (28) | $ | (93) | $ | (66) | ||||||||||||||||||
Provision for income taxes reconciliation: | ||||||||||||||||||||||||||
GAAP Provision for income taxes | $ | (159) | $ | (111) | $ | (247) | $ | (239) | ||||||||||||||||||
Tax effect of non-GAAP adjustments (m) | 13 | 9 | (67) | (57) | ||||||||||||||||||||||
Adjusted provision for income taxes (non-GAAP) | $ | (146) | $ | (102) | $ | (314) | $ | (296) | ||||||||||||||||||
Net (income) loss attributable to noncontrolling interest reconciliation: | ||||||||||||||||||||||||||
GAAP Net (income) loss attributable to noncontrolling interest | $ | (9) | $ | (5) | $ | 37 | $ | 26 | ||||||||||||||||||
Noncontrolling interest portion of amortization of intangible assets (n) | (7) | (8) | (31) | (34) | ||||||||||||||||||||||
Noncontrolling interest portion of all other adjustments (n) | (10) | (8) | (40) | (32) | ||||||||||||||||||||||
Adjusted net income attributable to noncontrolling interest (non-GAAP) | $ | (26) | $ | (21) | $ | (34) | $ | (40) | ||||||||||||||||||
(a) | Represents the three components of the non-GAAP adjustment of "Acquisition-related costs and adjustments (excluding amortization of intangible assets)" (see Table 2). |
(b) | Represents the sole component of the non-GAAP adjustment of "IT infrastructure investment" (see Table 2). |
(c) | Represents the sole component of the non-GAAP adjustment of "Legal and other professional fees" (see Table 2). |
(d) | Represents the three components of the non-GAAP adjustment of "Separation costs and separation-related costs" (see Table 2). |
(e) | Represents the two components of the non-GAAP adjustment of "Restructuring, integration and transformation costs" (see table 2). |
(f) | Represents the sole component of the non-GAAP adjustment of "Amortization of intangible assets" (see Table 2). |
(g) | Represents the sole component of the non-GAAP adjustment of "Goodwill impairments" (see Table 2). |
(h) | Represents the sole component of the non-GAAP adjustment of "Asset impairments" (see Table 2). |
(i) | Represents the sole component of the non-GAAP adjustment of "Litigation and other matters, net of insurance recoveries and restitutions" (see Table 2). |
(j) | Represents the sole component of the non-GAAP adjustment of "Gain on sale of assets, net" (see Table 2). |
(k) | Represents the two components of the non-GAAP adjustment of "Loss (gain) on extinguishment of debt and write-down of financing fees" (see Table 2). |
(l) | Represents the three components of the non-GAAP adjustment of "Other" (see Table 2). |
(m) | Represents the sole component of the non-GAAP adjustment of "Tax effect of non-GAAP adjustments" (see Table 2). |
(n) | Represents the portion of the non-GAAP adjustments attributable to noncontrolling interest (see Table 2). |
Bausch Health Companies Inc. | Table 2b | ||||||||||||||||||||||||||||
Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA (non-GAAP) | |||||||||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2025 and 2024 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
Net (loss) income | $ | (103) | $ | 98 | $ | 120 | $ | (72) | |||||||||||||||||||||
Interest expense, net | 388 | 328 | 1,556 | 1,355 | |||||||||||||||||||||||||
Provision for income taxes | 159 | 111 | 247 | 239 | |||||||||||||||||||||||||
Depreciation and amortization | 290 | 307 | 1,208 | 1,267 | |||||||||||||||||||||||||
EBITDA | 734 | 844 | 3,131 | 2,789 | |||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Goodwill impairments | 145 | — | 145 | — | |||||||||||||||||||||||||
Asset impairments | 7 | 23 | 8 | 29 | |||||||||||||||||||||||||
Restructuring, integration and transformation costs | 34 | 16 | 142 | 66 | |||||||||||||||||||||||||
Acquisition-related costs and adjustments (excluding amortization of intangible assets) | 42 | 18 | 37 | 101 | |||||||||||||||||||||||||
Loss (gain) on extinguishment of debt | 19 | — | (162) | (23) | |||||||||||||||||||||||||
Share-based compensation | 84 | 43 | 216 | 150 | |||||||||||||||||||||||||
Separation costs and separation-related costs | 2 | 8 | 7 | 24 | |||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||
Litigation and other matters, net of insurance recoveries and restitutions | 21 | 5 | 61 | 220 | |||||||||||||||||||||||||
IT infrastructure investment | 3 | 8 | 20 | 35 | |||||||||||||||||||||||||
Legal and other professional fees (a) | 3 | — | 22 | 25 | |||||||||||||||||||||||||
Gain on sale of assets, net | — | — | (6) | (10) | |||||||||||||||||||||||||
Other | 5 | 7 | 43 | 19 | |||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP) (b) | 1,099 | 972 | 3,664 | 3,425 | |||||||||||||||||||||||||
Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) (c) | (47) | (37) | (123) | (118) | |||||||||||||||||||||||||
Adjusted EBITDA attributable to Bausch Health Companies Inc. (non-GAAP) (d) | $ | 1,052 | $ | 935 | $ | 3,541 | $ | 3,307 | |||||||||||||||||||||
(a) | Legal and other professional fees incurred during the three and twelve months ended December 31, 2025 and 2024 in connection with recent legal and governmental proceedings, investigations and information requests related to, among other matters, our distribution, marketing, pricing, disclosure and accounting practices. |
(b) | Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest adjusted for the noncontrolling interest portion of the adjustments above as follows: |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest | $ | (9) | $ | (5) | $ | 37 | $ | 26 | |||||||||||||||||||||
Noncontrolling interest portion of adjustments for: | |||||||||||||||||||||||||||||
Interest expense, net | (12) | (11) | (53) | (46) | |||||||||||||||||||||||||
Depreciation and amortization | (12) | (13) | (51) | (51) | |||||||||||||||||||||||||
All other adjustments | (14) | (8) | (56) | (47) | |||||||||||||||||||||||||
Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) | $ | (47) | $ | (37) | $ | (123) | $ | (118) | |||||||||||||||||||||
(c) | Includes the impact of Acquired IPR&D charges of |
(d) | Includes the impact of Acquired IPR&D charges net of noncontrolling interest (non-GAAP) of |
Bausch Health Companies Inc. | Table 3a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organic Growth (non-GAAP) - by Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended December 31, 2025 and 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Organic Revenue for the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2025 | December 31, 2024 | Change in | Change in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Changes in | Acquisitions | Organic (Non-GAAP) (b) | Revenue | Divestitures and Discontinuances | Organic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Amount | Pct. | Amount | Pct. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bausch Health (excl. B+L) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salix | $ | 693 | $ | — | $ | — | $ | 693 | $ | 634 | $ | 17 | $ | 651 | $ | 59 | 9 | % | $ | 42 | 6 % | ||||||||||||||||||||||||||||||||||||||||||
International | 306 | (23) | — | 283 | 279 | (2) | 277 | 27 | 10 | % | 6 | 2 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Solta Medical | 137 | 1 | — | 138 | 138 | — | 138 | (1) | (1) | % | — | — % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Diversified | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience | 148 | — | — | 148 | 142 | — | 142 | 6 | 4 | % | 6 | 4 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dermatology | 59 | — | — | 59 | 53 | 6 | 59 | 6 | 11 | % | — | — % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Generics | 24 | — | — | 24 | 9 | 1 | 10 | 15 | 167 | % | 14 | 140 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dentistry | 24 | — | — | 24 | 24 | — | 24 | — | — | % | — | — % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Diversified | 255 | — | — | 255 | 228 | 7 | 235 | 27 | 12 | % | 20 | 9 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bausch Health (excl. B+L) revenues | $ | 1,391 | $ | (22) | $ | — | $ | 1,369 | $ | 1,279 | $ | 22 | $ | 1,301 | $ | 112 | 9 | % | $ | 68 | 5 % | ||||||||||||||||||||||||||||||||||||||||||
Bausch + Lomb | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vision Care | $ | 778 | $ | (21) | $ | — | $ | 757 | $ | 723 | $ | (5) | $ | 718 | $ | 55 | 8 | % | $ | 39 | 5 % | ||||||||||||||||||||||||||||||||||||||||||
Surgical | 249 | (10) | (1) | 238 | 231 | — | 231 | 18 | 8 | % | 7 | 3 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pharmaceuticals | 378 | (6) | — | 372 | 326 | — | 326 | 52 | 16 | % | 46 | 14 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Bausch + Lomb revenues | $ | 1,405 | $ | (37) | $ | (1) | $ | 1,367 | $ | 1,280 | $ | (5) | $ | 1,275 | $ | 125 | 10 | % | $ | 92 | 7 % | ||||||||||||||||||||||||||||||||||||||||||
Total Bausch Health Companies Inc. revenues | $ | 2,796 | $ | (59) | $ | (1) | $ | 2,736 | $ | 2,559 | $ | 17 | $ | 2,576 | $ | 237 | 9 | % | $ | 160 | 6 % | ||||||||||||||||||||||||||||||||||||||||||
(a) | The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. |
(b) | To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. For additional information about the Company's use of such non-GAAP financial measures, refer to the body of the news release to which these tables are attached. Organic revenue (non-GAAP) for the three months ended December 31, 2025 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release). Organic revenue (non-GAAP) for the three months ended December 31, 2024 is calculated as revenue as reported less revenues attributable to divestitures and discontinuances during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period. |
Bausch Health Companies Inc. | Table 3b | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organic Growth (non-GAAP) - by Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, 2025 and 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Organic Revenue for the Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2025 | December 31, 2024 | Change in | Change in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Changes in | Acquisitions | Organic (Non-GAAP) (b) | Revenue | Divestitures | Organic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Amount | Pct. | Amount | Pct. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bausch Health (excl. B+L) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salix | $ | 2,578 | $ | — | $ | — | $ | 2,578 | $ | 2,333 | $ | 33 | $ | 2,366 | $ | 245 | 11 | % | $ | 212 | 9 % | ||||||||||||||||||||||||||||||||||||||||||
International | 1,132 | (19) | — | 1,113 | 1,111 | (8) | 1,103 | 21 | 2 | % | 10 | 1 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
+ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solta Medical | 518 | 5 | — | 523 | 440 | — | 440 | 78 | 18 | % | 83 | 19 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Diversified | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience | 530 | — | — | 530 | 543 | (3) | 540 | (13) | (2) | % | (10) | (2) % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dermatology | 234 | — | — | 234 | 238 | 14 | 252 | (4) | (2) | % | (18) | (7) % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Generics | 79 | — | — | 79 | 74 | 6 | 80 | 5 | 7 | % | (1) | (1) % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dentistry | 94 | — | — | 94 | 95 | — | 95 | (1) | (1) | % | (1) | (1) % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Diversified | 937 | — | — | 937 | 950 | 17 | 967 | (13) | (1) | % | (30) | (3) % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bausch Health (excl. B+L) revenues | $ | 5,165 | $ | (14) | $ | — | $ | 5,151 | $ | 4,834 | $ | 42 | $ | 4,876 | $ | 331 | 7 | % | $ | 275 | 6 % | ||||||||||||||||||||||||||||||||||||||||||
Bausch + Lomb | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vision Care | $ | 2,923 | $ | (33) | $ | — | $ | 2,890 | $ | 2,739 | $ | (11) | $ | 2,728 | $ | 184 | 7 | % | $ | 162 | 6 % | ||||||||||||||||||||||||||||||||||||||||||
Surgical | 894 | (17) | (16) | 861 | 843 | — | 843 | 51 | 6 | % | 18 | 2 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pharmaceuticals | 1,284 | (8) | — | 1,276 | 1,209 | (1) | 1,208 | 75 | 6 | % | 68 | 6 % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Bausch + Lomb revenues | $ | 5,101 | $ | (58) | $ | (16) | $ | 5,027 | $ | 4,791 | $ | (12) | $ | 4,779 | $ | 310 | 6 | % | $ | 248 | 5 % | ||||||||||||||||||||||||||||||||||||||||||
Total Bausch Health Companies Inc. revenues | $ | 10,266 | $ | (72) | $ | (16) | $ | 10,178 | $ | 9,625 | $ | 30 | $ | 9,655 | $ | 641 | 7 | % | $ | 523 | 5 % | ||||||||||||||||||||||||||||||||||||||||||
(a) | The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. |
(b) | To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. For additional information about the Company's use of such non-GAAP financial measures, refer to the body of the news release to which these tables are attached. Organic revenue (non-GAAP) for the twelve months ended December 31, 2025 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release). Organic revenue (non-GAAP) for the twelve months ended December 31, 2024 is calculated as revenue as reported less revenues attributable to divestitures and discontinuances during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period. |
Bausch Health Companies Inc. | Table 4 | |||||||||||||||||||||||||
Other Financial Information | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
(in millions) | December 31, | December 31, | ||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,309 | $ | 1,181 | ||||||||||||||||||||||
Restricted cash | 16 | 20 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 1,325 | $ | 1,201 | ||||||||||||||||||||||
Debt Obligations | ||||||||||||||||||||||||||
Senior Secured Credit Facilities: | ||||||||||||||||||||||||||
Revolving Credit Facilities | $ | 100 | $ | 110 | ||||||||||||||||||||||
AR Credit Facility | — | 300 | ||||||||||||||||||||||||
Term Loan Facilities | 5,787 | 5,518 | ||||||||||||||||||||||||
Senior Secured Notes | 10,235 | 9,305 | ||||||||||||||||||||||||
Senior Unsecured Notes | 4,098 | 5,235 | ||||||||||||||||||||||||
Other | 12 | 12 | ||||||||||||||||||||||||
Total long-term debt and other, net of premiums, discounts and issuance costs | 20,232 | 20,480 | ||||||||||||||||||||||||
Plus: Unamortized premiums, discounts and issuance costs | 585 | 1,136 | ||||||||||||||||||||||||
Total long-term debt and other | $ | 20,817 | $ | 21,616 | ||||||||||||||||||||||
Maturities of Debt Obligations | ||||||||||||||||||||||||||
2025 | $ | — | $ | 2,380 | ||||||||||||||||||||||
2026 | 58 | 767 | ||||||||||||||||||||||||
2027 | 701 | 6,963 | ||||||||||||||||||||||||
2028 | 4,240 | 7,168 | ||||||||||||||||||||||||
2029 | 1,662 | 1,609 | ||||||||||||||||||||||||
2030 | 4,118 | 1,130 | ||||||||||||||||||||||||
Thereafter | 9,453 | 463 | ||||||||||||||||||||||||
Total debt obligations | $ | 20,232 | $ | 20,480 | ||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
Cash provided by operating activities | $ | 495 | $ | 601 | $ | 1,400 | $ | 1,597 | ||||||||||||||||||
Bausch Health Companies Inc. | Table 5 | |||||||||||||||||||||||||||||||||||||
Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA (non-GAAP) | ||||||||||||||||||||||||||||||||||||||
For the Three Months Ended December 31, 2025 and 2024 | ||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2025 | Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||
(in millions) | Bausch Health | Bausch + Lomb | Bausch Health | Bausch Health | Bausch + Lomb | Bausch Health | ||||||||||||||||||||||||||||||||
Net (loss) income | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | 388 | 95 | 293 | 328 | 93 | 235 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 159 | 71 | 88 | 111 | (8) | 119 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 290 | 99 | 191 | 307 | 106 | 201 | ||||||||||||||||||||||||||||||||
EBITDA(1) | 734 | 207 | 527 | 844 | 189 | 655 | ||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Goodwill impairments | 145 | — | 145 | — | — | — | ||||||||||||||||||||||||||||||||
Asset impairments | 7 | — | 7 | 23 | — | 23 | ||||||||||||||||||||||||||||||||
Restructuring, integration and transformation costs | 34 | 21 | 13 | 16 | 14 | 2 | ||||||||||||||||||||||||||||||||
Acquisition-related costs and adjustments (excluding amortization of intangible assets) | 42 | 25 | 17 | 18 | 11 | 7 | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 19 | — | 19 | — | — | — | ||||||||||||||||||||||||||||||||
Share-based compensation | 84 | 64 | 20 | 43 | 27 | 16 | ||||||||||||||||||||||||||||||||
Separation costs and separation-related costs | 2 | 1 | 1 | 8 | 6 | 2 | ||||||||||||||||||||||||||||||||
Other adjustments: | ||||||||||||||||||||||||||||||||||||||
Litigation and other matters, net of insurance recoveries and restitutions | 21 | 2 | 19 | 5 | 3 | 2 | ||||||||||||||||||||||||||||||||
IT infrastructure investment | 3 | 3 | — | 8 | 8 | — | ||||||||||||||||||||||||||||||||
Legal and other professional fees | 3 | 3 | — | — | 1 | (1) | ||||||||||||||||||||||||||||||||
Other | 5 | — | 5 | 7 | 1 | 6 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP)(1),(2) | ||||||||||||||||||||||||||||||||||||||
Impact of Acquired IPR&D | $— | $— | $— | $— | ||||||||||||||||||||||||||||||||||
(1) | This is a non-GAAP measure. Management considers the presentation of Adjusted EBITDA for Bausch Health (excl. B+L) (non-GAAP) to be meaningful information and utilizes it in decision making and for compensation purposes. Adjusted EBITDA for Bausch Health Excluding B+L (non-GAAP) is not intended to be representative of GAAP continuing operations and Adjusted EBITDA for B+L is not intended to be representative of discontinued operations as the criteria for that accounting has not been met. As such, Adjusted EBITDA excluding B+L (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if B+L met the criteria to be treated as a discontinued operation during any of the periods presented. |
(2) | Adjusted EBITDA (non-GAAP) above includes Adjusted EBITDA attributable to noncontrolling interests. For Bausch Health Companies Inc., this amounted to |
Investor Contact: | Media Contact: |
Garen Sarafian | Katie Savastano |
(877) 281-6642 (toll free) | (908) 541-3785 |
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SOURCE Bausch Health Companies Inc.
FAQ
What were Bausch Health (BHC) Q4 2025 revenues and growth rates?
How did BHC perform on adjusted EBITDA in Q4 and full-year 2025?
Why did Bausch Health record a Q4 2025 GAAP net loss of $112 million?
What refinancing actions did BHC complete in Q4 2025 and their impact?
What acquisition did BHC complete in China and when did it close?
What guidance did BHC provide for full-year 2026 revenue and adjusted EBITDA?
