Bausch Health (BHC) investor relations material

Executive summary

• 14th consecutive quarter of revenue and Adjusted EBITDA growth excluding Bausch + Lomb; quarterly Adjusted EBITDA exceeded $1B for the first time.

• Q3 revenue was $2.941B, up 10% reported and 8% organically; Adjusted EBITDA attributable to Bausch Health Companies Inc. rose 32% to $1.305B.

• Strong first-nine-month results supported a second consecutive quarterly increase to FY 2026 guidance for revenue, Adjusted EBITDA and adjusted cash flow from operations excluding Bausch + Lomb.

Financial highlights

• Q3 operating income was $983M versus $619M; GAAP net income attributable to shareholders was $436M, or $1.15 per diluted share, versus $179M, or $0.48.

• Adjusted gross margin was 75%, up 230 bps; adjusted cash flow from operations was $782M, up $274M or 54%.

• Consolidated cash provided by operating activities was $813M, up 101%; adjusted net income attributable to shareholders was $673M versus $434M.

• Nine-month revenue rose 11% to $8.317B; a $1.426B Salix goodwill impairment contributed to a $729M net loss.

• Excluding Bausch + Lomb, Q3 revenue was $1.566B, up 12%; adjusted cash flow from operations was $539M, up $192M.

Outlook and guidance

• FY 2026 consolidated revenue guidance increased to $10.975B–$11.175B and Adjusted EBITDA guidance to $4.315B–$4.415B.

• FY 2026 guidance excluding Bausch + Lomb: revenue $5.525B–$5.625B, Adjusted EBITDA $3.225B–$3.275B and adjusted cash flow from operations $1.600B–$1.675B.

• Guidance excluding Bausch + Lomb implies midpoint growth of 8% for revenue, 13% for Adjusted EBITDA and 29% for adjusted cash flow from operations.

• Bausch + Lomb FY 2026 guidance is revenue of $5.450B–$5.550B and Adjusted EBITDA of $1.090B–$1.140B.

• Q4 XIFAXAN gross-to-net accruals for the 2027 Medicare price change are expected to reduce revenue growth by 800 bps and Adjusted EBITDA growth by 1,400 bps; inventory normalization may reduce growth by a further 300 and 500 bps, respectively.