Gross margins have contracted from a peak of 61.4% in 2024Q1 to 56.6% in 2026Q1, reflecting ongoing pricing pressures and an unfavorable product mix.
| Sales/Revenue | 5.21B | 5.1B | 4.79B | 4.15B | 3.77B | 3.77B | 3.41B | 3.78B |
| Revenue Growth % | 7.85% | 6.47% | 15.56% | 10.03% | 0.08% | 10.35% | -9.69% | - |
| Cost of Goods Sold | 2.3B | 2.31B | 1.87B | 1.64B | 1.52B | 1.47B | 1.28B | 1.33B |
| COGS % of Revenue | - | 45.25% | 39.07% | 39.6% | 40.31% | 38.96% | 37.66% | 35.12% |
| Gross Profit | 2.91B | 2.79B | 2.92B | 2.5B | 2.25B | 2.3B | 2.13B | 2.45B |
| Gross Margin % | 55.86% | 54.75% | 60.93% | 60.4% | 59.69% | 61.04% | 62.34% | 64.88% |
| Gross Profit Growth % | - | -4.32% | 16.57% | 11.34% | -2.13% | 8.04% | -13.22% | - |
| Operating Expenses | 2.6B | 2.6B | 2.76B | 2.37B | 2.04B | 1.97B | 1.87B | 2.06B |
| OpEx % of Revenue | - | 51.07% | 57.55% | 57.26% | 54.19% | 52.3% | 54.72% | 54.39% |
| Selling, General & Admin | 2.21B | 2.23B | 2.08B | 1.74B | 1.48B | 1.39B | 1.25B | 1.38B |
| SG&A % of Revenue | - | 43.8% | 43.46% | 41.87% | 39.23% | 36.89% | 36.72% | 36.58% |
| Research & Development | 386M | 371M | 343M | 324M | 307M | 271M | 281M | 258M |
| R&D % of Revenue | - | 7.27% | 7.16% | 7.81% | 8.15% | 7.2% | 8.24% | 6.83% |
| Other Operating Expenses | 0 | 0 | 332M | 314M | 257M | 309M | 333M | 415M |
| Operating Income | 308M | 188M | 162M | 130M | 207M | 329M | 260M | 396M |
| Operating Margin % | 5.91% | 3.69% | 3.38% | 3.14% | 5.49% | 8.74% | 7.62% | 10.48% |
| Operating Income Growth % | - | 16.05% | 24.62% | -37.2% | -37.08% | 26.54% | -34.34% | - |
| EBITDA | 724M | 609M | 598M | 512M | 586M | 744M | 702M | 865M |
| EBITDA Margin % | 13.9% | 11.94% | 12.48% | 12.35% | 15.55% | 19.76% | 20.57% | 22.9% |
| EBITDA Growth % | 37.38% | 1.84% | 16.8% | -12.63% | -21.24% | 5.98% | -18.84% | - |
| D&A (Non-Cash Add-back) | 416M | 421M | 436M | 382M | 379M | 415M | 442M | 469M |
| EBIT | 308M | 188M | 165M | 117M | 219M | 318M | 290M | 467M |
| Net Interest Income | -421M | -419M | -384M | -268M | -140M | 0 | 3M | 1M |
| Interest Income | 13M | 12M | 15M | 15M | 6M | 0 | 3M | 1M |
| Interest Expense | 434M | 431M | 399M | 283M | 146M | 0 | 0 | 0 |
| Other Income/Expense | -509M | -505M | -396M | -296M | -134M | -11M | 30M | 3M |
| Pretax Income | -201M | -317M | -234M | -166M | 73M | 318M | 290M | 399M |
| Pretax Margin % | -3.86% | -6.21% | -4.88% | -4% | 1.94% | 8.45% | 8.5% | 10.56% |
| Income Tax | 10M | 35M | 71M | 82M | 58M | 125M | 307M | 96M |
| Effective Tax Rate % | -4.98% | -11.04% | -30.34% | -49.4% | 79.45% | 39.31% | 105.86% | 24.06% |
| Net Income | -219M | -360M | -317M | -260M | 6M | 182M | -18M | 298M |
| Net Margin % | -4.21% | -7.06% | -6.62% | -6.27% | 0.16% | 4.83% | -0.53% | 7.89% |
| Net Income Growth % | 39.5% | -13.56% | -21.92% | -4433.33% | -96.7% | 1111.11% | -106.04% | - |
| Net Income (Continuing) | -211M | -352M | -305M | -248M | 15M | 193M | -17M | 303M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 73M | 71M | 71M | 70M | 68M | 73M | 70M | 73M |
| EPS (Diluted) | -0.62 | -1.02 | -0.90 | -0.74 | 0.04 | 0.52 | -0.05 | 0.85 |
| EPS Growth % | 39.74% | -13.33% | -21.62% | -1824.94% | -91.75% | 1169.96% | -105.72% | - |
| EPS (Basic) | - | -1.02 | -0.90 | -0.74 | 0.04 | 0.52 | -0.05 | 0.85 |
| Diluted Shares Outstanding | 355.2M | 353.8M | 351.8M | 350.5M | 350M | 350M | 350M | 350M |
| Basic Shares Outstanding | 355.2M | 353.8M | 351.8M | 350.5M | 350M | 350M | 350M | 350M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent Net Margin Deficit
According to the provided quarterly income statement data, Bausch + Lomb's year-over-year revenue growth has decelerated from 18.0% in 2024Q1 to 9.4% by 2026Q1, suggesting that the initial post-separation expansion phase is cooling as the company faces a more challenging competitive environment in its core segments.
The transition from double-digit growth to high single-digit expansion indicates that the company may be reaching a saturation point in its legacy vision care markets. Investors should monitor whether this deceleration reflects a broader slowdown in elective surgical procedures or if it signals a loss of market share in the competitive dry eye pharmaceutical space.
As reported in financial statements, the company's gross margin has contracted from a peak of 61.4% in 2024Q1 to 56.6% in 2026Q1, reflecting potential pricing pressure or an unfavorable shift in product mix toward lower-margin offerings within the broader ophthalmic portfolio.
The erosion of gross margins suggests that the company lacks the pricing power necessary to offset rising input costs or competitive discounting. This trend warrants further investigation into whether the integration of new pharmaceutical assets is diluting the overall margin profile or if manufacturing inefficiencies are weighing on the bottom line.
Based on the income statement figures, SG&A expenses have remained stubbornly high, consistently hovering between $500 million and $580 million per quarter, which effectively absorbs the majority of the company's gross profit and prevents the realization of meaningful operating leverage as revenue scales.
The inability to achieve operating leverage suggests that the company's cost structure is heavily burdened by fixed overheads associated with its standalone corporate status. Without a significant reduction in these administrative costs, the company may struggle to achieve consistent operating profitability regardless of top-line performance.
Data from the last ten quarters reveals that Bausch + Lomb has reported negative net income in nine out of ten periods, with net margins fluctuating between -18.6% and 0.3%, indicating that the company's bottom-line performance remains structurally challenged by non-operating items and interest expenses.
The recurring net losses suggest that the company's reported earnings are significantly impacted by the costs of its capital structure and potential legacy liabilities. Investors should be cautious of the gap between operational performance and GAAP net income, as the latter appears to be consistently weighed down by factors outside of core business operations.
Quick answers to the most common questions about buying BLCO stock.
For fiscal year 2025, Bausch + Lomb Corporation (BLCO) reported total revenue of $5.10B. This represents a 35.0% increase compared to $3.78B in 2019.
Bausch + Lomb Corporation (BLCO) reported a net loss of $360.0M for the fiscal year ending 2025.
Bausch + Lomb Corporation (BLCO) reported an operating income of $188.0M, resulting in an operating profit margin of 3.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Bausch + Lomb Corporation (BLCO) generated $2.79B in gross profit for the year, representing a gross profit margin of 54.8%. This demonstrates the company's core pricing power and production efficiency.