Bausch + Lomb (BLCO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.137 billion, up 3% as reported and 5% constant currency, with all segments contributing positively despite headwinds in pharmaceuticals and a one-time enVista IOL recall.

• Net loss attributable to the company was $212 million, compared to $167 million in Q1 2024, reflecting higher SG&A, R&D, and recall-related charges.

• Adjusted EBITDA (excluding Acquired IPR&D) was $126 million, down 30% year-over-year, impacted by the recall and FX headwinds.

• The voluntary recall of enVista IOLs was swiftly managed, with full production resumed and market reentry underway.

• Ongoing innovation pipeline includes new contact lenses, OTC products, and a promising glaucoma therapy, with recent acquisitions expanding the clinical-stage pipeline.

Financial highlights

• Product sales were $1.133 billion, with total Q1 2025 revenue at $1.137 billion, up 5% constant currency year-over-year.

• Adjusted gross margin was 59.5%, including a 140 bps one-time headwind from the enVista recall; GAAP gross margin was 51.7%.

• Adjusted EBITDA (excluding IPR&D) was $126 million, with a $16 million one-time inventory write-off from the recall.

• Adjusted EPS (excluding IPR&D) was a loss of $0.07; GAAP EPS was ($0.60).

• Cash flow used in operations was $25 million; cash and equivalents at quarter-end were $215 million.

Outlook and guidance

• Full-year 2025 revenue guidance updated to $5.00–$5.10 billion, reflecting a $55–$65 million one-time enVista recall impact and FX headwinds.

• Adjusted EBITDA guidance revised to $850–$900 million, absorbing a $65 million recall impact.

• Adjusted gross margin expected at 61.5%, with a 60 bps recall headwind.

• CapEx for the year expected at $280 million; adjusted tax rate at 15%.

• Guidance excludes potential future tariff changes due to policy uncertainty.