Bausch Health (BHC) Q4 2025 earnings summary

Executive summary

• Achieved eleventh consecutive quarter of revenue and adjusted EBITDA growth (excluding Bausch + Lomb), with full-year results exceeding guidance and double-digit segment profit growth in Salix and Diversified segments in Q4 2025.

• Completed acquisitions of DURECT Corporation and Shibo's full-service aesthetics distribution business in China, supporting international expansion.

• Reduced net debt by $318 million in Q4 2025 and $562 million for FY25, with $9.6 billion in total refinancing to enhance financial flexibility.

Financial highlights

• Q4 2025 consolidated revenue rose 9% year-over-year to $2.796 billion; full-year revenue up 7% to $10.27 billion.

• Q4 adjusted EBITDA grew 13% to $1.052 billion; full-year adjusted EBITDA up 7% to $3.54 billion.

• Q4 adjusted net income was $411 million; full-year adjusted net income was $1.40 billion.

• Adjusted cash flow from operations was $515 million in Q4 2025 and $1.60 billion for FY25.

• Gross margin improved to 62.8% in Q4 2025 and 60.8% in FY25; adjusted gross margin was 71.6% and 71.3%, respectively.

Outlook and guidance

• FY26 consolidated net revenue guidance: $10.625–$10.875 billion (2–5% growth); adjusted EBITDA: $3.875–$4.0 billion (3–5% growth).

• Excluding Bausch + Lomb, FY26 net revenue guidance: $5.25–$5.4 billion, with 2–5% reported revenue growth and adjusted EBITDA of $2.875–$2.95 billion.

• Adjusted operating cash flow guidance for 2026: $1.200–$1.275 billion.

• 2027 EBITDA expected to dip, with average 2026–2027 EBITDA similar to 2025.