Free cash flow generation is highly erratic, with margins plummeting to 3.3% in 2026Q1 compared to a 19.3% peak in 2024Q4, reflecting persistent challenges in working capital management.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.42B | 1.4B | 1.6B | 1.03B | -728M | 1.43B | 1.11B | 1.5B | 1.5B | 2.29B | 2.09B | 2.2B | 2.29B | 1.04B | 656.58M | 676.47M | 263.19M | 360.9M | 204.32M | 340.85M | 521.93M | 498.11M | 277.09M | 281.98M | 334.1M | 284.12M | 102.49M | 81M | 53.6M | 4.3M | -5.6M |
| Operating CF Margin % | - | 13.4% | 16.59% | 11.78% | -8.96% | 16.91% | 13.84% | 17.45% | 17.91% | 26.25% | 21.57% | 21.07% | 27.98% | 18.07% | 18.87% | 27.46% | 22.96% | 43.99% | 26.99% | 40.44% | 48.76% | 53.24% | 31.26% | 34.23% | 42.4% | 48.71% | 33.15% | 45.89% | 47.52% | 5.22% | -8.43% |
| Operating CF Growth % | -31.85% | -12.34% | 54.75% | 241.76% | -151.05% | 28.35% | -25.98% | 0% | -34.45% | 9.73% | -5.15% | -4.11% | 120.23% | 58.7% | -2.94% | 157.03% | -27.07% | 76.63% | -40.05% | -34.69% | 4.78% | 79.76% | -1.73% | -15.6% | 17.59% | 177.21% | 26.54% | 51.12% | 1146.51% | 176.79% | -118.01% |
| Net Income | -1.19B | 120M | -72M | -611M | -212M | -937M | -559M | -1.78B | -4.14B | 2.4B | -2.41B | -287.8M | 912.2M | -863.67M | -116.03M | 159.56M | -208.19M | 176.46M | 199.9M | 195.54M | 203.94M | 99.6M | 52.75M | -27.27M | 87.8M | 87.45M | -147.98M | 62.5M | 45.4M | 35.2M | 22.7M |
| Depreciation & Amortization | 1.2B | 1.21B | 1.27B | 1.26B | 1.39B | 1.55B | 1.82B | 2.08B | 2.82B | 2.86B | 2.87B | 2.63B | 1.74B | 2.02B | 986.22M | 612.6M | 254.5M | 149.26M | 103.42M | 100.77M | 107.86M | 205.41M | 194.64M | 166.85M | 89.96M | 67.87M | 21.53M | 10.1M | 5M | 3.2M | 2M |
| Stock-Based Compensation | 141M | 216M | 150M | 132M | 126M | 128M | 105M | 102M | 87M | 87M | 165M | 140.1M | 78.2M | 45.48M | 66.24M | 94.02M | 98.03M | 5.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 121.77M | 80M | 66M | 51M | -176M | -225M | -475M | -230M | -144M | -4.39B | -236M | -7M | 81.8M | -515.88M | -319.6M | -249.49M | -55.4M | -16M | -90M | 0 | 0 | 0 | 0 | 0 | 0 | 1.45M | 3.75M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.55B | -1.17M | 179M | 778M | -1.46B | 1.04B | 581M | 1.66B | 2.87B | 483M | 1.81B | 549.8M | 153.3M | 738.52M | 293.03M | 196.9M | 196.11M | 47.1M | -28.59M | 92.62M | 220.98M | 75.86M | 69.88M | 175.69M | 198.28M | 106.04M | 272.42M | -300K | -100K | 0 | 600K |
| Working Capital Changes | -363.34M | -222.83M | 7M | -582M | -396M | -128M | -366M | -318M | 18M | 844M | -110M | -822.2M | -668.4M | -378.29M | -253.28M | -137.12M | -21.86M | -1.53M | 25.31M | -48.08M | -10.85M | 117.24M | -40.17M | -33.3M | -41.94M | 21.31M | -47.23M | 8.7M | 3.3M | -34.1M | -30.9M |
| Change in Receivables | -94.72M | -136.35M | -216M | -195M | -57M | -229M | 170M | 39M | 216M | 417M | -34M | -625.9M | -572.4M | -261.38M | -219.43M | -164.58M | 25.19M | -30.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 3.92M | -12.21M | -267M | -322M | -198M | -16M | -77M | -209M | -5M | 7M | -164M | -276M | -174.3M | -122.7M | -80.3M | -11.52M | 7.46M | -26.21M | 20.58M | 3.02M | 10.9M | 16.61M | -26.11M | -30.02M | -14.64M | 0 | -3.89M | -1.6M | 6.3M | -8.6M | -4.5M |
| Change in Payables | -439.12M | -77.33M | 357M | 158M | -75M | 121M | -471M | -149M | -568M | 387M | -144M | 170.3M | 188.6M | -76.55M | -29.07M | -8.98M | -76.1M | 30.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -608.71M | -595M | -454M | -2.15B | -303M | 409M | -261M | -419M | -196M | 2.89B | -125M | -15.58B | -99.7M | -5.38B | -2.97B | -2.84B | 228.94M | -742.77M | -107.83M | -15.04M | -40.45M | 31.78M | -42.26M | -278.45M | -792.47M | -57.75M | -582.3M | -129.4M | -33M | -3.2M | -10.4M |
| Capital Expenditures | -392.38M | -397M | -337M | -215M | -218M | -269M | -302M | -278M | -235M | -336M | -291M | -303.3M | -470.6M | -184.96M | -181.13M | -385.95M | -16.82M | -569.25M | -22M | -35.09M | -44.8M | -63.81M | -28.03M | -36.92M | -61.38M | -44.44M | -15.85M | -51.5M | -3.7M | -2.7M | -6.7M |
| CapEx % of Revenue | 3.72% | 3.8% | 3.5% | 2.46% | 2.68% | 3.19% | 3.76% | 3.23% | 2.8% | 3.85% | 3.01% | 2.9% | 5.74% | 3.21% | 5.2% | 15.67% | 1.47% | 69.38% | 2.91% | 4.16% | 4.19% | 6.82% | 3.16% | 4.48% | 7.79% | 7.62% | 5.13% | 29.18% | 3.28% | 3.28% | 10.09% |
| Acquisitions | -195.27M | 0 | 0 | -1.89B | -45M | 0 | 0 | -180M | 5M | -165M | -49M | -15.46B | -1.1B | -5.25B | -3.49B | -2.46B | 224.45M | -200M | -101.92M | 0 | 4M | -47K | -9.32M | -25.74M | -240.58M | 0 | -622.14M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -18.01M | -195M | -119M | -39M | -45M | 682M | 37M | 45M | 34M | 3.39B | 199M | -18.7M | 1.49B | 110.73M | 83.12M | -327.44M | -1.7M | 28.3M | -7.29M | 0 | 1K | 98.13M | 3M | -211.23M | -405.38M | -12.45M | -7.75M | -23.2M | -29.3M | -500K | -3.7M |
| Cash from Financing | -692.65M | -742M | -868M | 1.48B | -474M | -1.51B | -2.29B | 1.44B | -1.35B | -4.96B | -1.96B | 13.62B | -2.44B | 4.03B | 3.06B | 1.95B | -213.28M | 177.05M | -210.31M | -728.65M | -92.25M | -119.09M | -334.53M | 72.52M | 79.53M | 83.6M | 427.05M | 147.9M | 49.5M | 2.6M | -3M |
| Debt Issued (Net) | -577.53M | -648.15M | -799M | 1.58B | -1.01B | -1.34B | -2.19B | 1.55B | -1.16B | -4.78B | -1.22B | 12.64B | -2.26B | 2.01B | 3.47B | 2.77B | 200.58M | 323.73M | 0 | -418.01M | -26.38M | -39.59M | -346.29M | 60.44M | 450.19M | -404.67M | 309.15M | -75.2M | 117.7M | -1.8M | -3.2M |
| Equity Issued (Net) | -3M | 0 | -26M | 0 | 675M | 0 | 0 | -40M | -10M | 0 | 0 | 1.36B | 16.4M | 2.25B | -280.7M | -639.24M | -60.13M | 866K | -29.84M | 11.22M | 15.24M | 2.99M | 8.01M | 12.08M | -370.66M | 488.27M | 109.6M | 223.1M | -68.2M | 4.5M | 200K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -356.29M | -147.15M | -180.29M | -321.52M | -80.06M | -79.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3M | 0 | -26M | 0 | 0 | 0 | 0 | -40M | -10M | -4M | -11M | -72M | -44M | -55.6M | -280.7M | -639.24M | -60.13M | 0 | -29.84M | 0 | 0 | 0 | 0 | 0 | -503.1M | -129.97M | 0 | -30.6M | -72.1M | 0 | 0 |
| Other Financing | -112.12M | -93.85M | -43M | -106M | -139M | -173M | -107M | -71M | -186M | -184M | -747M | -376M | -202.1M | -235.6M | -136.7M | -183.28M | 2.55M | -399K | -182K | -338K | -1.05M | -2.72M | 3.75M | 0 | 0 | 0 | 8.3M | 0 | 0 | -100K | 0 |
| Net Change in Cash | 153.89M | 124M | 239M | 371M | -1.53B | 303M | -1.43B | 2.52B | -74M | 255M | -55M | 274.7M | -277.7M | -315.75M | 751.98M | -230.16M | 279.81M | -203.08M | -116.09M | -400.9M | 389.23M | 410.96M | -98.94M | 77.18M | -378.81M | 309.75M | -52.94M | 99.8M | 70M | 3.7M | -19.8M |
| Free Cash Flow | 989.53M | 1B | 1.26B | 760M | -996M | 1.14B | 802M | 1.22B | 1.27B | 1.95B | 1.8B | 1.9B | 1.82B | 857M | 475.44M | 290.52M | 246.37M | -208.35M | 182.33M | 305.77M | 477.13M | 434.3M | 249.06M | 245.06M | 272.72M | 239.69M | 86.65M | 29.5M | 49.9M | 1.6M | -12.3M |
| FCF Margin % | 9.38% | 9.6% | 13.09% | 8.68% | -12.26% | 13.55% | 9.99% | 14.22% | 15.11% | 22.4% | 18.57% | 18.17% | 22.25% | 14.86% | 13.66% | 11.79% | 21.5% | -25.4% | 24.08% | 36.28% | 44.57% | 46.42% | 28.09% | 29.75% | 34.61% | 41.09% | 28.03% | 16.71% | 44.24% | 1.94% | -18.52% |
| FCF Growth % | -18.5% | -20.4% | 65.79% | 176.31% | -187.14% | 42.52% | -34.42% | -3.4% | -35.21% | 8.8% | -5.33% | 4% | 112.85% | 80.25% | 63.65% | 17.92% | 218.24% | -214.28% | -40.37% | -35.92% | 9.86% | 74.38% | 1.63% | -10.14% | 13.78% | 176.62% | 193.73% | -40.88% | 3018.75% | 113.01% | -143.16% |
| FCF per Share | 2.65 | 2.67 | 3.42 | 2.08 | -2.75 | 3.18 | 2.26 | 3.47 | 3.62 | 5.55 | 5.17 | 5.46 | 5.34 | 2.67 | 1.56 | 0.89 | 1.26 | -1.31 | 1.14 | 1.90 | 2.98 | 2.72 | 1.55 | 1.53 | 1.70 | 1.59 | 0.60 | 0.27 | 0.47 | 0.02 | -0.12 |
| FCF Conversion (FCF/Net Income) | -0.83x | 8.76x | -34.72x | -1.74x | 3.24x | -1.50x | -1.99x | -0.84x | -0.36x | 0.95x | -0.87x | -8.19x | 2.60x | -1.20x | -5.66x | 4.24x | -1.26x | 2.05x | 1.02x | 1.74x | 2.49x | 2.02x | 1.72x | -6.99x | 3.81x | 3.25x | -0.69x | 1.30x | 1.18x | 0.12x | -0.25x |
| Interest Paid | 0 | 0 | 1.67B | 1.53B | 1.54B | 0 | 0 | 0 | 0 | 1.71B | 0 | 1.27B | 934M | 652.9M | 421M | 247.88M | 37.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 61M | 237M | 266M | 0 | 0 | 0 | 0 | 179M | 0 | 95M | 98.7M | 65.1M | 41.4M | 45.4M | 26.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Debt service and litigation
As evidenced by the 2026Q1 data, BHC's operating cash flow of $230M against a net loss of $1.4B highlights a significant divergence, suggesting that reported earnings are heavily distorted by non-cash charges rather than reflecting the underlying cash-generating capacity of the firm's core pharmaceutical assets.
The persistent gap between net income and operating cash flow indicates that the company's bottom line is frequently obscured by non-cash impairments and accounting adjustments. Investors should monitor whether this cash-flow-to-earnings disconnect persists, as it complicates the assessment of the company's true operational health.
Based on the provided quarterly figures, BHC's free cash flow trajectory remains highly erratic, with margins fluctuating from a low of 3.3% in 2026Q1 to a peak of 19.3% in 2024Q4, underscoring the company's difficulty in maintaining consistent cash generation for debt reduction.
The volatility in free cash flow suggests that the firm's ability to deleverage is highly sensitive to working capital swings and periodic cash outflows. This inconsistency may indicate that the company's cash flow profile is not yet stabilized, leaving it vulnerable to sudden shifts in operational performance.
According to historical cash flow statements, BHC's capital expenditure as a percentage of revenue has remained relatively contained, averaging between 3% and 5%, which suggests that the firm is prioritizing essential maintenance over aggressive expansion of its manufacturing and surgical equipment infrastructure.
The relatively low capital intensity appears to be a defensive measure to preserve liquidity in a high-leverage environment. However, this may also imply that the company is under-investing in long-term growth initiatives, potentially limiting its future competitive positioning in the vision care market.
As reported in recent financial statements, BHC has experienced recurring negative working capital changes, including a $195.3M outflow in 2025Q4, which suggests that the company is struggling to optimize its cash conversion cycle and manage its inventory and payables effectively.
These persistent working capital outflows act as a drag on operating cash flow, further tightening the company's liquidity position. The inability to consistently generate cash from working capital management warrants further investigation into the efficiency of the firm's supply chain and collection processes.
Quick answers to the most common questions about buying BHC stock.
Bausch Health Companies Inc. (BHC) generated $1.40B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Bausch Health Companies Inc. (BHC) generated $1.00B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Bausch Health Companies Inc. (BHC) spent $397.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.