Free cash flow remains highly volatile, evidenced by a $135 million outflow in 2025Q1 and a $68 million outflow in 2026Q1, exacerbated by capital expenditures reaching 9.7% of revenue.
| Cash from Operations | 340.39M | 283M | 232M | -17M | 345M | 873M | 522M | 799M |
| Operating CF Margin % | - | 5.55% | 4.84% | -0.41% | 9.16% | 23.19% | 15.3% | 21.15% |
| Operating CF Growth % | 862.25% | 21.98% | 1464.71% | -104.93% | -60.48% | 67.24% | -34.67% | - |
| Net Income | -219M | -352M | -305M | -248M | 15M | 193M | -17M | 303M |
| Depreciation & Amortization | 416M | 421M | 436M | 382M | 379M | 415M | 442M | 469M |
| Stock-Based Compensation | 64M | 149M | 92M | 74M | 62M | 62M | 50M | 50M |
| Deferred Taxes | -60.39M | -32M | -10M | -10M | -90M | 116M | 97M | -39M |
| Other Non-Cash Items | 164.63M | 79M | 106M | 72M | -2M | 59M | 9M | 56M |
| Working Capital Changes | -28.85M | 18M | -87M | -287M | -19M | 28M | -59M | -40M |
| Change in Receivables | -86.24M | -148M | -227M | -121M | -95M | -107M | 77M | -21M |
| Change in Inventory | 28.26M | 38M | -147M | -264M | -106M | -15M | -32M | -91M |
| Change in Payables | 35.86M | 108M | 126M | 245M | 189M | 163M | -144M | 78M |
| Cash from Investing | -466.16M | -455M | -412M | -2.11B | -215M | -214M | -256M | -186M |
| Capital Expenditures | -336.06M | -349M | -291M | -181M | -175M | -193M | -259M | -180M |
| CapEx % of Revenue | 6.45% | 6.84% | 6.07% | 4.37% | 4.64% | 5.13% | 7.59% | 4.76% |
| Acquisitions | 7.01M | 0 | 0 | -1.94B | 45M | -16M | 6M | 6M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -25.09M | -103M | -123M | 14M | -45M | 0 | -6M | -6M |
| Cash from Financing | 172.25M | 225M | 178M | 2.08B | 81M | -712M | -232M | -606M |
| Debt Issued (Net) | 203.75M | 249M | 201M | 2.12B | 2.46B | 28M | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | -12M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2M | 0 | -12M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -31.5M | -24M | -11M | -37M | -2.38B | -740M | -232M | -606M |
| Net Change in Cash | 64M | 81M | -18M | -46M | 203M | -61M | 46M | 4M |
| Free Cash Flow | 4.33M | -66M | -59M | -198M | 170M | 680M | 263M | 619M |
| FCF Margin % | 0.08% | -1.29% | -1.23% | -4.78% | 4.51% | 18.06% | 7.71% | 16.38% |
| FCF Growth % | 102.58% | -11.86% | 70.2% | -216.47% | -75% | 158.56% | -57.51% | - |
| FCF per Share | 0.01 | -0.19 | -0.17 | -0.56 | 0.49 | 1.94 | 0.75 | 1.77 |
| FCF Conversion (FCF/Net Income) | -0.02x | -0.79x | -0.73x | 0.07x | 57.50x | 4.80x | -29.00x | 2.68x |
| Interest Paid | 0 | 0 | 415M | 238M | 132M | 0 | 3M | 0 |
| Taxes Paid | 0 | 0 | 91M | 64M | 83M | 53M | 57M | 0 |
Persistent Net Margin Deficit
According to recent SEC filings, BLCO exhibits a persistent disconnect between net income and operating cash flow, as evidenced by the 2025Q1 period where the company reported a $212 million net loss while simultaneously generating a negative $25 million in operating cash flow, highlighting significant earnings quality concerns.
The recurring gap between GAAP net losses and operating cash flow suggests that non-cash charges, primarily heavy depreciation and amortization, are masking the underlying cash burn. Investors should monitor whether this divergence is a temporary byproduct of post-separation restructuring or a structural inability to convert core operations into meaningful cash generation.
As reported in financial statements, BLCO's free cash flow trajectory remains highly erratic, swinging from a $135 million outflow in 2025Q1 to a $94 million inflow in 2024Q3, which underscores the company's struggle to maintain consistent cash generation amidst its ongoing operational and integration-heavy business model.
The inability to sustain positive free cash flow margins suggests that the company's capital requirements are currently outpacing its operational efficiency. This volatility warrants further investigation into whether the business can achieve self-funding status without continued reliance on external financing or further balance sheet strain.
Based on BLCO's reported figures, capital expenditures have remained elevated, peaking at 9.7% of revenue in 2025Q1, which indicates that the company is prioritizing significant investment in its manufacturing and surgical infrastructure despite the current lack of bottom-line profitability and consistent free cash flow generation.
The consistent level of CapEx relative to revenue suggests that the company is in a heavy maintenance and growth phase, likely necessary to support its surgical equipment installed base. However, this capital intensity acts as a persistent drag on cash flow, limiting the company's flexibility to address its debt obligations.
Data from the last ten quarters reveals that working capital fluctuations have been a primary driver of cash flow volatility, with a massive $182 million outflow in 2024Q4 followed by a $98 million inflow in 2024Q3, indicating significant instability in the company's cash conversion cycle.
These sharp swings in working capital suggest potential inefficiencies in inventory management or aggressive shifts in accounts receivable collections. Such unpredictability makes it difficult for analysts to forecast normalized cash flow, as the underlying operational performance is frequently obscured by these large, non-recurring working capital movements.
Quick answers to the most common questions about buying BLCO stock.
Bausch + Lomb Corporation (BLCO) generated $283.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Bausch + Lomb Corporation (BLCO) reported negative free cash flow of $66.0M in 2025, indicating capital requirements exceeded cash from operations.
Bausch + Lomb Corporation (BLCO) spent $349.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.