Bausch + Lomb (BLCO) | Credit Investor

Next 12 Months: Starting Case

$ in millions	Last 12 Months	Next Quarter (4Q26E)	vs. 4Q25A	Next 12 Months	Change
Revenue	$5,418	$1,492	6.2%	$5,505	1.6%
Adj. EBITDA	$1,009	$294	1.4%	$1,032	2.3%
Free Cash Flow	$252	$90	49.8%	$240	(4.6%)
Net Debt, end of period	$4,504	$4,414		$4,264	(5.3%)
Net Debt / Adj. EBITDA	4.5x	4.4x		4.1x	-0.4x
Total Liquidity, end of period	$1,179	$1,269		$1,420	20.4%

The credit over the next year

Bausch + Lomb grew revenue 7% to $1.375 billion in the third quarter of 2026, and the bigger change is margin: cost of goods fell to about 35% of product sales from about 40% a year earlier while SG&A held near $556 million, lifting adjusted EBITDA to $325 million from $243 million. The next year turns on whether Vision Care (daily silicone hydrogel lenses, LUMIFY) and Pharmaceuticals (MIEBO dry eye) keep growing high single digits and whether the cost gains stick, since EBITDA growth is what brings leverage down. Full year 2026 guidance is $5.45 to $5.55 billion of revenue and $1.09 to $1.14 billion of adjusted EBITDA excluding acquired IPR&D.

Leverage falls from 4.5x to 4.1x over the next four quarters on the starting case.
Free cash flow of $240mm is projected over the next year, with no itemised debt due in that time.
Net debt shrinks from $4.50bn to $4.26bn.
Liquidity a year out is $1.42bn, against $1.18bn today.
Company guidance for fiscal 2026: adjusted EBITDA of $1.09bn to $1.14bn on its own definition.

Built from the inputs on the Projections tab of the model; change them there. A starting case from history, not a forecast.

Capital Structure

Cap Structure	Amt Out.	Mkt Price	Yield	Lev. Through	View
Unrestricted Cash	$513.0
8.375% Senior Secured Notes due October 2028	1,400.0	102.6%*	6.97%	1.4x	Bullish
June 2030 Revolving Credit Facility	100.0	100.0%	N/a	1.5x	Bullish
January 2031 Refinancing Term Facility (term B loan)	2,788.0	100.0%	N/a	4.2x	Bullish
Senior Secured Floating Rate Notes due January 2031 (EUR 675mm)	765.0	100.0%	N/a	5.0x	Bullish
Other debt	12.0	100.0%	N/a	5.0x	Bullish
Total Debt	$5,017.0			5.0x
Net Debt	$4,504.0			4.5x

Last Twelve Months

Revenue	$5,418
Implied Costs	(4,409)
Adj. EBITDA	$1,009
(-) Interest Expense	(383)
(-) Capex	(302)
Memo: FCF	$252
Total Liquidity	$1,179.0

Next 12 months, starting case▶ Revenue $5.42bn → $5.51bn▲ Adj. EBITDA $1.01bn → $1.03bn▼ Free cash flow $252mm → $240mm▼ Net leverage 4.5x → 4.1x▲ Liquidity $1.18bn → $1.42bn

Bausch + Lomb

			9/30/26						Face Value / Adj. EBITDA
Cap Structure	Coupon	Maturity	Amt Out.	Mkt Price	YTM	Next Call	Yield to Call	View	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Unrestricted Cash			$513.0
Undrawn Revolver ($800mm facility)			666.0
Total Liquidity			$1,179.0

8.375% Senior Secured Notes due October 2028	8.375%	10/1/2028	1,400.0	102.6%*	6.97%	10/1/2026 @ 102.094	7.22%	Bullish
June 2030 Revolving Credit Facility	S + 175 to 275	6/26/2030	100.0	100.0%	N/a	N/a	N/a	Bullish
January 2031 Refinancing Term Facility (term B loan)	S + 375	1/15/2031	2,788.0	100.0%	N/a	N/a	N/a	Bullish
Senior Secured Floating Rate Notes due January 2031 (EUR 675mm)	3M EURIBOR (0% f...	1/15/2031	765.0	100.0%	N/a	6/30/2026 @ 100	N/a	Bullish
Total Secured Debt			$5,053.0						6.2x	7.6x	8.0x	7.1x	6.8x	5.0x	4.9x	4.9x
Net Secured Debt			$4,540.0						5.5x	6.9x	7.2x	6.3x	6.1x	4.5x	4.4x	4.4x

Other debt	N/a	N/a	12.0	100.0%	N/a	N/a	N/a	Bullish
Other debt, discounts and issuance costs	N/a	N/a	(48.0)
Total Debt			$5,017.0						6.1x	7.6x	8.0x	7.0x	6.8x	5.0x	4.9x	4.9x
Net Debt			$4,504.0						5.5x	6.8x	7.1x	6.3x	6.1x	4.5x	4.1x	3.9x
						Adj. EBITDA			$820	$662	$630	$716	$741	$1,009	$1,032	$1,032

Key Financials

	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Revenue	$3,765	$3,768	$4,146	$4,791	$5,101	$5,418	$5,505	$5,505
Y/Y Growth		0.1%	10.0%	15.6%	6.5%		1.6%	0.0%
Implied Costs	(2,945)	(3,106)	(3,516)	(4,075)	(4,360)	(4,409)	(4,473)	(4,473)
Adj. EBITDA	$820	$662	$630	$716	$741	$1,009	$1,032	$1,032
Margin	21.8%	17.6%	15.2%	14.9%	14.5%	18.6%	18.7%	18.7%
(-) Restructuring and other cash add-backs	(2)	(14)	(44)	(26)	(58)	(36)	--	--
Cash EBITDA	$818	$648	$586	$690	$683	$973	$1,032	$1,032
(-) Interest Expense (Cash Only)	--	(132)	(238)	(415)	(380)	(383)	(386)	(386)
(-) Cash Taxes	--	--	(64)	(91)	(59)	(99)	(99)	(99)
(-) Capex	(193)	(175)	(181)	(291)	(349)	(302)	(307)	(307)
(+/-) Working Capital and Other	55	(171)	(301)	48	39	63	--	--
Memo: FCF	$680	$170	($198)	($59)	($66)	$252	$240	$240
% of Debt	13.6%	3.4%	(3.9%)	(1.2%)	(1.3%)	5.0%	4.8%	4.8%

Liquidity

Unrestricted Cash	$513.0
Undrawn Revolver	666.0
Total Liquidity	$1,179.0
(-) Debt due through 2028	(1,400.0)
(+/-) Free cash flow, last twelve months	252.0
Liquidity after maturities and a year of cash flow	$31.0

Tranches are from the debt table in the latest quarterly or annual report.Blue figures are inputs in the model. Price is 100% of face unless marked *, which is a bond fund's own valuation from its SEC holdings report, not a traded price.Secured and unsecured are judged from each instrument's name. Adj. EBITDA is operating income plus D&A, stock compensation, restructuring and impairment charges as tagged in SEC filings; it is not the company's own adjusted figure. Free cash flow is cash from operations less capital spending.

The basket review for this company has not finished yet. When it does, this tab shows the dollar capacity to move value or prime lenders, the playbook moves that fit, and what they would do to each tranche. Meanwhile, see the liability management playbook.

Key Financials

	2021A	2022A	2023A	2024A	2025A	LTM	3Q27E LTM	3Q28E LTM
Revenue	$3,765	$3,768	$4,146	$4,791	$5,101	$5,418	$5,505	$5,505
Y/Y Growth		0.1%	10.0%	15.6%	6.5%		1.6%	0.0%
Implied Costs	(2,945)	(3,106)	(3,516)	(4,075)	(4,360)	(4,409)	(4,473)	(4,473)
Adj. EBITDA	$820	$662	$630	$716	$741	$1,009	$1,032	$1,032
Margin	21.8%	17.6%	15.2%	14.9%	14.5%	18.6%	18.7%	18.7%
(-) Restructuring and other cash add-backs	(2)	(14)	(44)	(26)	(58)	(36)	--	--
Cash EBITDA	$818	$648	$586	$690	$683	$973	$1,032	$1,032
(-) Interest Expense (Cash Only)	--	(132)	(238)	(415)	(380)	(383)	(386)	(386)
(-) Cash Taxes	--	--	(64)	(91)	(59)	(99)	(99)	(99)
(-) Capex	(193)	(175)	(181)	(291)	(349)	(302)	(307)	(307)
(+/-) Working Capital and Other	55	(171)	(301)	48	39	63	--	--
Memo: FCF	$680	$170	($198)	($59)	($66)	$252	$240	$240
% of Debt	13.6%	3.4%	(3.9%)	(1.2%)	(1.3%)	5.0%	4.8%	4.8%

Key Drivers

Driver	4Q25A	1Q26A	2Q26A	3Q26A	4Q26E	1Q27E	2Q27E	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E	Sensitivity	Next 12m impact ($mm)
Vision Care segment revenue (contact lenses and consumer eye care) $ millions per quarter	778	711	784	774	810	711	784	774	810	711	784	774	$1.0mm on revenue	32
Pharmaceuticals segment revenue (MIEBO, XIIDRA, international) $ millions per quarter	378	305	354	367	413	305	354	367	413	305	354	367	$1.0mm on revenue	35
Surgical segment revenue (IOLs, equipment, consumables) $ millions per quarter	249	228	256	234	269	228	256	234	269	228	256	234	$1.0mm on revenue	20
Cost of goods sold as a share of product sales % of product sales	38.1	38.9	37.9	35.4	37.0	38.9	37.9	35.4	37.0	38.9	37.9	35.4	$13.7mm on cost of revenue	(15)
SG&A as a share of revenue % of revenue	40.1	43.7	42.2	40.4	40.1	43.7	42.2	40.4	40.1	43.7	42.2	40.4	$13.8mm on SG&A	--

Bausch + Lomb grew revenue 7% to $1.375 billion in the third quarter of 2026, and the bigger change is margin: cost of goods fell to about 35% of product sales from about 40% a year earlier while SG&A held near $556 million, lifting adjusted EBITDA to $325 million from $243 million. The next year turns on whether Vision Care (daily silicone hydrogel lenses, LUMIFY) and Pharmaceuticals (MIEBO dry eye) keep growing high single digits and whether the cost gains stick, since EBITDA growth is what brings leverage down. Full year 2026 guidance is $5.45 to $5.55 billion of revenue and $1.09 to $1.14 billion of adjusted EBITDA excluding acquired IPR&D.

Bottoms-Up Projections: starting case

$ in millions	4Q25A	1Q26A	2Q26A	3Q26A	4Q26E	1Q27E	2Q27E	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E
Revenue	$1,405	$1,244	$1,394	$1,375	$1,492	$1,244	$1,394	$1,375	$1,492	$1,244	$1,394	$1,375
Y/Y Growth	9.8%	9.4%	9.1%	7.3%	6.2%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Adj. EBITDA	$290	$176	$236	$307	$294	$185	$240	$312	$294	$185	$240	$312
Margin	20.6%	14.1%	16.9%	22.3%	19.7%	14.9%	17.2%	22.7%	19.7%	14.9%	17.2%	22.7%
Free Cash Flow	$60	($68)	$82	$178	$90	($5)	$41	$114	$90	($5)	$41	$114
Cash, end of period	383	268	367	513	603	598	639	754	843	838	880	994
Total Debt, end of period	5,048	5,039	5,077	5,017	5,017	5,017	5,017	5,017	5,017	5,017	5,017	5,017
Net Debt / Adj. EBITDA	6.3x	5.5x	5.0x	4.5x	4.4x	4.3x	4.3x	4.1x	4.0x	4.0x	4.0x	3.9x

Revenue is built from Vision Care, Pharmaceuticals, Surgical, each driven by volume and by price and mix against the same quarter a year earlier. Every cost line, interest, taxes, capital spending and working capital has its own input on the Projections tab of the model. This is a starting case built from history, not a forecast.

Earnings call: Q3 2026 · Oct 28, 2026

Slides Webcast and audio replay Investor relations site

Bausch + Lomb raised 2026 guidance again after a quarter of 8% constant currency growth and a sharp jump in EBITDA margin.

Takeaways

Revenue rose 7% to $1.375 billion, or 8% at constant currency. Pharmaceuticals grew 11%, Surgical 9% and Vision Care 5%. MIEBO sales rose 42% to $119 million and premium IOLs grew about 70%.
Margins widened. Adjusted gross margin rose 300 basis points to 64.7%. Adjusted EBITDA rose 34% to $325 million, a 23.6% margin versus 19.0% a year ago.
Cash flow improved. Operating cash flow was $233 million against $137 million a year earlier. After $55 million of capex, free cash flow was $178 million.
Net leverage was 4.1 times, on net debt of $4.55 billion and trailing adjusted EBITDA of $1.10 billion. Cash and restricted cash stood at $515 million.
Interest expense fell to $95 million from $101 million, helped by earlier refinancing. No new debt deal came with the quarter.
Leadership is in transition. Board chair Thomas Appio, also Bausch Health CEO, has served as interim CEO since August 2026. The planned separation from Bausch Health still waits on targeted leverage levels and approvals, with no timing given.

Debt and capital

Debt as of October 28, 2026: a $2.8 billion term loan, $1.4 billion of senior secured notes due October 2028, EUR 675 million of senior secured notes due January 2031, $12 million of other term debt and $100 million drawn on the revolver.
Net debt was $4.55 billion and net leverage 4.1 times trailing adjusted EBITDA excluding acquired IPR&D.
The next large maturity is the $1.4 billion of secured notes due October 2028.
Year to date the company booked only a $1 million loss on debt extinguishment and $6 million of fee write-downs, much less than in 2025. No new refinancing was announced.
Bausch Health still plans to distribute its remaining stake once targeted leverage ratios are reached. Deleveraging is the gating item for the separation.

Guidance

Raised. 2026 revenue now $5.450 to $5.550 billion, up from $5.440 to $5.540 billion. Constant currency growth is now 6.1% to 8.0%.
Raised. Adjusted EBITDA excluding acquired IPR&D now $1.090 to $1.140 billion, up $65 million from $1.025 to $1.075 billion. This implies about 25% growth at the midpoint.
Adjusted gross margin guided to 62.5% to 63.0%. The midpoint EBITDA margin of about 20.3% runs ahead of the roughly 19.0% target set at Investor Day.
Held. Net interest expense about $365 million and capex about $285 million. The adjusted tax rate assumption moved down to about 18% from 19%.
Revenue guidance assumes a $40 million currency tailwind, down from $45 million. Guidance includes the current estimated cost of tariffs.
This is the third guidance raise of 2026, after increases in April and July.

Tone: Upbeat on growth and margin progress, with guidance raised for the third time this year despite a CEO transition.

Q2 2026Slides · Webcast
Q1 2026Slides · Webcast
Q4 2025Slides · Webcast

Summary written with AI from Press release and slides only. Bausch + Lomb does not publish a call transcript or prepared remarks on its IR site or with the SEC.. Slides, audio and any transcript are the company's and open on its own site. Full transcripts from transcript vendors are not reproduced here.

Last quarter: Third quarter 2026

Revenue rose 7% to $1.375bn, Adjusted EBITDA rose to $325mm from $243mm, and full-year guidance was raised.

Results

Revenue was $1,375mm, up 7% from $1,281mm a year earlier, or about 8% at constant currency.
Adjusted EBITDA was $325mm versus $243mm a year earlier; there was no acquired IPR&D charge in either quarter.
Operating income was $155mm versus $95mm, and net income to the company was $32mm versus a $28mm loss.
Cash flow from operations was $233mm versus $137mm a year earlier.
By segment: Vision Care $774mm (up 5%), Surgical $234mm (up 9%), Pharmaceuticals $367mm (up 11%).

Why

Vision Care grew on daily silicone hydrogel and ULTRA contact lenses and on LUMIFY and Artelac consumer products.
Pharmaceuticals grew on MIEBO, whose revenue rose 42% to $119mm, and on higher international sales.
Surgical grew on premium intraocular lenses, which rose about 70%.
Cost of goods sold fell to $485mm from $509mm despite higher sales, partly because the prior year carried $19mm of inventory step-up.

Balance sheet and guidance

Cash, cash equivalents and restricted cash were $515mm at September 30, 2026, up from $378mm at June 30, 2026.
GAAP interest expense was $95mm in the quarter versus $101mm a year earlier; the release does not give total debt or leverage.
Full-year 2026 revenue guidance raised to $5,450mm to $5,550mm from $5,440mm to $5,540mm.
Full-year 2026 Adjusted EBITDA excluding acquired IPR&D guidance raised to $1,090mm to $1,140mm from $1,025mm to $1,075mm.
Expected currency tailwind to revenue cut to $40mm from $45mm; currency effect on EBITDA described as nominal.

What to watch

Whether the raised EBITDA range holds: it implies fourth-quarter Adjusted EBITDA excluding IPR&D of roughly $319mm to $369mm against $771mm for the first nine months.
Progress on the planned separation from Bausch Health, which the release ties to reaching targeted leverage ratios and notes BHC's pledge of its shares as debt collateral.
Leadership, since the chairman is serving as interim CEO, and the size of add-backs: share-based pay rose to $37mm from $27mm while restructuring fell to $17mm from $23mm.

From the company's press release filed Oct 28, 2026. Figures in this section are as the company reports them, including its own adjusted EBITDA.

Filings

Earnings releases 8

Oct 28, 20268-K for Oct 28, 2026: Results · Press release
Jul 29, 20268-K for Jul 29, 2026: Results · Press release
Apr 29, 20268-K for Apr 29, 2026: Results · Press release
Feb 18, 20268-K for Feb 18, 2026: Results · Press release
Oct 29, 20258-K for Oct 29, 2025: Results · Press release
Jul 30, 20258-K for Jul 30, 2025: Results · Press release
Apr 30, 20258-K for Apr 30, 2025: Results · Press release
Feb 19, 20258-K for Feb 19, 2025: Results · Press release

Annual reports (10-K) 4

Quarterly reports (10-Q) 12

Current reports (8-K) 20

Oct 28, 20268-K for Oct 28, 2026: Director or officer change
Oct 13, 20268-K for Oct 11, 2026: Director or officer change; Regulation FD
Aug 6, 20268-K for Aug 5, 2026: Material agreement; Director or officer change; Other event
May 20, 20268-K for May 20, 2026: Shareholder vote
Jan 2, 20268-K for Jan 2, 2026: Material agreement; New debt; Other event
Dec 17, 20258-K for Dec 17, 2025: Director or officer change
Dec 12, 20258-K for Dec 12, 2025: Other event
Nov 13, 20258-K for Nov 13, 2025: Regulation FD
Aug 18, 20258-K for Aug 14, 2025: Agreement terminated; Director or officer change; Regulation FD
Jul 23, 20258-K for Jul 21, 2025: Director or officer change
Jun 27, 20258-K for Jun 26, 2025: Material agreement; New debt; Other event
Jun 18, 20258-K for Jun 18, 2025: Other event
Jun 10, 20258-K for Jun 10, 2025: Other event
May 21, 20258-K for May 21, 2025: Shareholder vote
May 21, 20258-K for May 19, 2025: Other event
Nov 1, 20248-K for Nov 1, 2024: Material agreement; New debt
May 29, 20248-K for May 29, 2024: Director or officer change; Shareholder vote
Feb 28, 20248-K for Feb 27, 2024: Director or officer change; Regulation FD
Sep 29, 20238-K for Sep 29, 2023: Material agreement; Acquisition or disposal completed; New debt
Sep 14, 20238-K for Sep 14, 2023: Other event

Proxy statements 3

Other filings 4

May 6, 2022424B4
Apr 28, 2022S-1/A
Mar 31, 2022S-1/A
Jan 13, 2022S-1

Links open the document on SEC EDGAR. Earnings call transcripts are not SEC filings and belong to their publishers, so they are not reproduced here; the press release and slides filed with each results 8-K are.

Rating actions

Apr 17, 2025Fitch: Upgraded to B from B-, senior secured to BB from BB-; Rating Watch Evolving kept. Fitch moved the eye-care company up in step with its upgrade of the parent after the parent's April 2025 refinancing pushed out near-term maturities. · source
Mar 20, 2025Moody's: Assigned a B1 corporate family rating, outlook stable. Moody's added a corporate level rating for the company, matching the B1 it already carried on the senior secured debt. · source
Mar 19, 2025S&P: Upgraded to B from B-, senior secured to B from B-, outlook revised to developing from positive. S&P raised the company alongside the parent's refinancing, with the developing outlook reflecting the unsettled path of a separation from the parent. · source

Coming up

Feb 17, 2027Results. Full-year results for the period ending 2026-12-31. The date is an estimate: last year's filing date moved forward a year.
Oct 1, 2028Maturity. 8.375% Senior Secured Notes due October 2028: $1,400mm outstanding comes due.

Recent 8-K filings

Oct 28, 2026Director or officer change
Oct 28, 2026Reported results
Oct 13, 2026Director or officer change; Regulation FD disclosure
Aug 6, 2026Entered into a material agreement; Director or officer change; Other event
Jul 29, 2026Reported results