Bausch Health Companies Inc.

Consolidated second-quarter revenue was $2.852 billion, up 13% reported and 11% organic year over year. Adjusted gross margin was 72.9%, up 230 basis points, adjusted EBITDA was $1.075 billion, up $233 million or 28%, and adjusted cash flow from operations was $637 million, up $195 million or 44%. Excluding Bausch + Lomb, revenue was $1.458 billion, up 16%, adjusted EBITDA was $865 million, up 28%, and adjusted cash flow from operations was $471 million, up $116 million. By segment, Salix revenue was $758 million, up 21%; International revenue was $305 million, up 10% reported and 5% organic; Solta revenue was $176 million, up 38% reported and 12% organic, with segment profit up 69%; Diversified revenue was $219 million, flat; and Bausch + Lomb revenue was $1.394 billion, up 9% reported and 8% organic. For the full year, Bausch Health excluding Bausch + Lomb now expects revenue of $5.35 billion to $5.50 billion, adjusted EBITDA of $3.025 billion to $3.100 billion, and adjusted cash flow from operations of $1.4 billion to $1.475 billion. Management said the midpoint of revenue guidance is up $100 million, EBITDA up $150 million, and operating cash flow up $200 million versus prior guidance, and that the midpoint implies 5% revenue growth, 10% EBITDA growth, and 21% cash flow growth year over year. They reiterated 2027 implied adjusted EBITDA guidance of $2.7 billion and said it still assumes Xifaxan exclusivity through January 1, 2028.

Thomas Appio described the quarter as exceptional and emphasized 13 straight quarters of top-line and bottom-line growth. His tone was confident and execution-focused, highlighting profitable growth, operating leverage, and disciplined capital allocation as the company’s core management principles. He said the business is entering the second half with strong momentum and laid out unchanged priorities: maximize Xifaxan during exclusivity, grow organically, build the pipeline through selective business development, and unlock value from Bausch + Lomb.

J.J. Charhon walked through the numbers and highlighted strong cash generation and balance-sheet progress. He cited revenue of $2.852 billion, adjusted gross margin of 72.9%, adjusted EBITDA of $1.075 billion, and adjusted cash flow from operations of $637 million on a consolidated basis, plus $471 million of adjusted operating cash flow for Bausch Health excluding Bausch + Lomb. He also noted net debt was reduced by $434 million in the quarter and said the company is still prioritizing capital structure repair, reinvestment in the business, and only then potential shareholder returns. He explained the full-year guide raise and flagged second-half headwinds from gross-to-net accrual timing, Aplenzin generic competition, and gradual erosion in Medicaid/340B-related revenue.

Analysts focused on business development, capital allocation, Solta’s run-rate, Xifaxan economics after potential genericization, payer behavior around IRA pricing, and tariff exposure. Management said it is open to both small development-stage assets and larger acquisitions, but only if the payback is quick or synergies are clear, because reducing leverage remains the first priority. On Solta, management said the $330 million segment profit run-rate reflects China integration, seasonality, and expense phasing, and that gross margin is broadly stable with future upside coming from operating leverage and continued growth. On Xifaxan and 2027 contracting, management said payers have not yet referenced Part D pricing in contracts, and on tariffs it said any impact would likely be small and not fully assessable until closer to 2028.