-- Second Quarter Consolidated Revenues of $2.85 billion, up 13% on a
Reported basis and 11% on an Organic (non-GAAP)1 basis over the prior
year period
-- GAAP Net Income Attributable to Bausch Health of $258 million and GAAP
Net Income of $260 million
-- GAAP Earnings per Diluted Share Attributable to Bausch Health of $0.68
compared to $0.40 in the prior year period; Adjusted Earnings per Diluted
Share (non-GAAP)1 of $1.26 compared to $0.90 in the prior year period, an
increase of 40%
-- Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1 of
$1,075 million, up 28% on a Reported basis over the prior year period
BAUSCH HEALTH EXCLUDING BAUSCH + LOMB SECOND QUARTER 2026 RESULTS
-- Delivered thirteenth consecutive quarter of year-over-year Revenue growth,
with Revenue up 16% on a Reported basis and 13% on an Organic (non-GAAP)1
basis
-- Net Income increased $84 million over the prior year period, and Adjusted
EBITDA (non-GAAP)1 grew 28%
-- Generated $517 million in Cash Provided by Operating Activities and $471
million in Adjusted Cash Flows from Operations (non-GAAP)1
-- Raising full-year 2026 Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted
Cash Flows from Operations (non-GAAP)1 guidance
LAVAL, QC, July 29, 2026 /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) ("Bausch Health" or the "Company" or "we" or "our") today announced its second quarter 2026 financial results and other key updates from the quarter.
"The second quarter marks our thirteenth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, reflecting the strength of our portfolio, disciplined execution, and the dedication of our teams around the world. We delivered our highest Revenue and Adjusted EBITDA growth rates in the past three years, generated our strongest Adjusted Cash Flow from Operations since Q4 2024, and reduced Net Debt by one of our largest amounts since our 2022 debt refinancing. This performance strengthens our financial flexibility and supports continued investment in our business, our pipeline, and business development opportunities. We remain focused on driving long-term value creation," said Thomas J. Appio, Chief Executive Officer, Bausch Health.
(1) This is a non-GAAP measure or a non-GAAP ratio. For further information
on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP
Information" section of this news release. Please also refer to tables at
the end of this news release for a reconciliation of this and other
non-GAAP measures and ratios to the most directly comparable GAAP
measure.
Second Quarter 2026 Revenue Performance
Total consolidated reported revenues were $2.85 billion for the second quarter of 2026, compared with $2.53 billion in the second quarter of 2025, an increase of $322 million, or 13%. Excluding the impact of foreign exchange of $25 million, acquisitions of $35 million, and divestitures and discontinuations of $7 million, revenue increased 11% on an organic(1) basis compared with the second quarter of 2025.
Reported revenues by segment were as follows:
Three Months
Ended June Reported
30, Change
-------------- -------------- ----------- ----------
Change at Change in
Constant Organic
Currency(1) Revenue(1)
(in millions) 2026 2025 Amount Pct. (Non-GAAP) (Non-GAAP)
--------------- ------ ------ ------ ------ ----------- ----------
Total Bausch
Health
Revenues $2,852 $2,530 $322 13 % 12 % 11 %
Bausch Health
(excl. B+L) $1,458 $1,252 $206 16 % 15 % 13 %
Salix segment $758 $627 $131 21 % 21 % 21 %
International
segment $305 $278 $27 10 % 5 % 5 %
Solta Medical
segment $176 $128 $48 38 % 37 % 12 %
Diversified
segment $219 $219 $0 -- % -- % -- %
Bausch + Lomb
segment $1,394 $1,278 $116 9 % 8 % 8 %
---------------- ------ ------ ------ ------ ----------- ----------
Salix Segment
Salix segment reported revenues were $758 million for the second quarter of 2026, compared with $627 million for the second quarter of 2025, an increase of $131 million, or 21%. Segment revenues increased 21% on an organic(1) basis compared with the second quarter of 2025. Xifaxan$(R)$ was the primary contributor to growth, with 26% revenue growth in the second quarter of 2026.
International Segment
International segment reported revenues were $305 million for the second quarter of 2026, compared with $278 million for the second quarter of 2025, an increase of $27 million, or 10%. Excluding the impact of foreign exchange of $12 million, segment revenues grew 5% on an organic(1) basis compared with the second quarter of 2025, with strong execution across LATAM and EMEA more than offsetting softer results in Canada.
Solta Medical Segment
Solta Medical segment reported revenues were $176 million for the second quarter of 2026, compared with $128 million in the second quarter of 2025, an increase of $48 million, or 38% aided by the acquisition of our full service distributor in China. Excluding a $1 million favorable impact from foreign exchange and acquisitions of $32 million, segment revenues increased by 12% on an organic(1) basis compared with the second quarter of 2025, led by growth in APAC including South Korea, China and Taiwan.
Diversified Segment
Diversified segment reported revenues were $219 million for the second quarter of 2026, flat compared with $219 million for the second quarter of 2025. Segment revenues were flat on an organic(1) basis compared with the second quarter of 2025. Results in the Neuroscience business balanced softer performance in Dermatology, Generics, and Dentistry.
Bausch + Lomb Segment
Bausch + Lomb segment reported revenues were $1.39 billion for the second quarter of 2026, compared with $1.28 billion for the second quarter of 2025, an increase of $116 million, or 9%. Excluding the impact of foreign exchange of $12 million, acquisitions of $3 million and divestitures and discontinuations of $5 million, segment revenues increased 8% on an organic(1) basis compared with the second quarter of 2025.
Consolidated Operating Income
Consolidated operating income was $740 million for the second quarter of 2026, compared with consolidated operating income of $444 million for the second quarter of 2025, an increase of $296 million, primarily attributable to results in the Salix, Bausch + Lomb, and Solta Medical segments.
Consolidated Net Income Attributable to Bausch Health
Consolidated net income attributable to Bausch Health for the second quarter of 2026 was $258 million, compared with consolidated net income attributable to Bausch Health of $148 million for the second quarter of 2025.
Consolidated Adjusted Net Income Attributable to Bausch Health (non-GAAP)(1) Consolidated adjusted net income attributable to Bausch Health (non-GAAP)(1) for the second quarter of 2026 was $476 million, compared with $335 million for the second quarter of 2025, an increase of $141 million, primarily due to higher revenues.
Consolidated Earnings Per Share Attributable to Bausch Health
Consolidated earnings per share attributable to Bausch Health for the second quarter of 2026 was $0.68 on a diluted basis, compared with consolidated earnings per share of $0.40 on a diluted basis for the second quarter of 2025.
Consolidated Adjusted Earnings Per Share Attributable to Bausch Health (non-GAAP)(1) Consolidated adjusted earnings per share attributable to Bausch Health (non-GAAP)(1) for the second quarter of 2026 was $1.26, compared with $0.90 for the second quarter of 2025.
Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)(1) Consolidated adjusted EBITDA attributable to Bausch Health (non-GAAP)(1) was $1,075 million for the second quarter of 2026, compared with $842 million for the second quarter of 2025, an increase of $233 million.
Consolidated Cash Provided by Operating Activities
The Company generated $671 million of cash from operating activities in the second quarter of 2026, an increase of 132% versus $289 million in the second quarter of 2025.
Balance Sheet Highlights
As of June 30, 2026, Bausch Health reported consolidated cash and cash equivalents of $1,825 million, up from $1,309 million as of December 31, 2025. The Company remains focused on strengthening its balance sheet and delivering value to all stakeholders.
Focus on Strategic Priorities
The Company entered the second half of 2026 with strong financial momentum, with revenue and earnings growth across multiple segments. Upon the successful completion of major refinancing initiatives in the prior twelve-month period, the Company materially improved its debt maturity profile. The Company remains committed to evaluating all options for unlocking shareholder value, including maximizing the value of our Bausch Health and Bausch + Lomb assets.
2026 Financial Outlook
The Company updated its Consolidated full-year Revenue and Adjusted EBITDA (non-GAAP)(1) guidance for 2026.
Bausch Health (excluding Bausch + Lomb) is raising its full year Revenue, Adjusted EBITDA (non-GAAP)(1) , and Adjusted Cash Flows from Operations (non-GAAP)(1) guidance, which includes the currently estimated impact of applicable tariffs for the calendar year as of the date of this release.
Current Guidance (as of July 29, 2026)
BHC
BHC (excl. B+L) B+L
--------------------- ------------------ --------------- ---------------
Revenues (in
Billions) $10.790 - $11.040 $5.350 - $5.500 $5.440 - $5.540
Revenue growth vs. Prior Year 4% - 6%
------------------------------------------ --------------- ---------------
Adjusted EBITDA(1)
(in Billions) $4.050 - $4.175 $3.025 - $3.100 $1.025 - $1.075
Adj. EBITDA(1) growth vs. Prior Year 8% - 11%
------------------------------------------ --------------- ---------------
Adjusted Cash Flows from Operations(1) (in $1.400 - $1.475
Billions)
------------------------------------------ --------------- ---------------
Other than with respect to GAAP revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)(1) to GAAP net income (loss) or forward-looking Adjusted Cash Flows from Operations (non-GAAP)(1) to GAAP cash provided by operating activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) and payments (such as payments of legal settlements, transformation costs, separation costs and separation-related costs, interest charged against premium, financing fees paid in connection with the debt refinancing transactions and acquired IPR&D expense) used to calculate Adjusted Cash Flows from Operations (non-GAAP)(1) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of projected net income (loss) or cash provided by operating activities at this time. The amount of these adjustments may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP)(1) . These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. The rapid recent developments in the evolving landscape of tariffs and responses have resulted in uncertainty regarding these measures and the effects they may have. We continue to assess the direct and indirect impacts on our businesses of such tariffs, including retaliatory tariffs and other trade protectionist measures as the situation develops, and there can be no assurance that such impacts will not be adverse.
Conference Call Details
Date: Wednesday, July 29, 2026
Time: 5:00 p.m. EDT
Webcast: http://ir.bauschhealth.com/events-and-presentations
A replay of the conference call will be available on the investor relations website.
About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.
Forward-looking Statements
This news release contains forward-looking information and statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws (collectively, "forward-looking statements"), including, but not limited to, statements relating to the Company's: future prospects and performance, financial guidance, research and development efforts and anticipated timing or results thereof, proposed plan to separate its eye health business, including the timing thereof, management of its balance sheet, generation of cash, ability to launch and commercialize new products, including the timing of regulatory processes with respect to the Company's product pipeline, ability to enforce and defend its Xifaxan(R) intellectual property rights, ability to execute its growth strategies and strategic priorities generally, and other corporate and strategic transactions. Forward-looking statements may generally be identified by the use of the words "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "estimates," "potential," "target," or "continue" and positive and negative variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements, including the full-year guidance, are based upon the current expectations and beliefs of management. The Company's 2026 financial outlook and full-year guidance are included to provide further information about management's expectations about the Company's future business operations, activities and results and may not be appropriate for other purposes.
These forward-looking statements are subject to certain factors, risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: our ability to execute our business strategy, business plans and operational efficiency initiatives; demand for, competitive positioning of and pricing for our current and anticipated products and our ability to achieve expected revenues, margins and expense levels; the successful development, regulatory approval, manufacture and timing of launches and commercialization of pipeline and other products; the completion, timing, integration and expected benefits of acquisitions and other strategic transactions (including the planned separation of our eye health business consisting of our Bausch + Lomb global Vision Care, Surgical and Pharmaceuticals businesses) on anticipated terms, timing and costs; the scope, duration and financial and operational impact of product quality matters and manufacturing facility compliance and certification matters; the continued availability and performance of key third-party distribution, fulfillment and other arrangements and the stability of global supply chains; the continuation of patent protection and regulatory exclusivity for key products; the expected impacts of the Inflation Reduction Act, and the impact of the negotiated prices for Xifaxan(R) , expected to become effective in 2027, under certain programs of the Centers for Medicare & Medicaid Services, and other healthcare reform measures and our ability to mitigate the impact thereof; our ability to generate cash flows and access liquidity to meet working capital needs, satisfy debt maturities as they become due, reduce debt levels and comply with financial and other covenants under our financing arrangements; the expected scope and impact of tariffs, counter-tariffs and other trade restrictions and the effectiveness of mitigation actions and the Company's ability to recover any tariffs that are eligible for refund claims; macroeconomic and geopolitical conditions (including inflation, recessionary pressures, foreign currency exchange rates and interest rates), changes in tax laws and related guidance (including legislation referred to as the One Big Beautiful Bill Act and Organisation for Economic Co-operation and Development related measures); the expected outcomes of litigation and other contingencies; and other factors, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors, risks and uncertainties are incorporated herein by reference.
We caution that, as it is not possible to predict or identify all relevant factors that may impact forward-looking statements, the factors referred to above are not exhaustive and should not be considered a complete statement of all potential risks and uncertainties. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the aforementioned factors and other uncertainties and potential events. These forward-looking statements speak only as of the date made. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, except as required by law.
Non-GAAP Information
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures and non-GAAP ratios to provide supplemental information to readers. Management uses these non-GAAP measures and ratios as key metrics in the evaluation of the Company's performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP measures and ratios address questions the Company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors.
However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP financial measures and ratios used by other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
The reconciliations of these historical non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below. However, as indicated above, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP Net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Many of the adjustments and exclusions used to calculate the projected non-GAAP measures may vary significantly based on actual events, so the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of these projected amounts. The amounts of these adjustments may be material and, therefore, could result in the GAAP amount being materially different from (including materially less than) the projected non-GAAP measures.
Commencing in the third quarter of 2025, the Company now includes payments of Acquired IPR&D in the calculation of Adjusted Cash Flows From Operations (non-GAAP). Prior-period amounts presented herein have been restated to conform to the current year's presentation.
Description of Non-GAAP Financial Measures
EBITDA (non-GAAP), Adjusted EBITDA (non-GAAP) and Adjusted EBITDA Attributable to Bausch Health (non-GAAP)
EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization, and certain other items described below. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) as defined below.
Management believes that Adjusted EBITDA (non-GAAP) and Adjusted EBITDA attributable to Bausch Health (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflect our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization and the following items:
-- Restructuring, integration and transformation costs: The Company has
incurred restructuring costs as it implemented certain strategies, which
involved, among other things, improvements to its infrastructure and
operations, internal reorganizations and impacts from the divestiture of
assets and businesses. With regard to infrastructure and operational
improvements which the Company has taken to improve efficiencies in the
businesses and facilities, these tend to be costs intended to right size
the business or organization that fluctuate significantly between periods
in amount, size and timing, depending on the improvement project,
reorganization or transaction. Additionally, the Company is launching
certain transformation initiatives that will result in certain changes to
and investment in its organizational structure and operations. These
transformation initiatives arise outside of the ordinary course of
continuing operations and, as is the case with the Company's
restructuring efforts, costs associated with these transformation
initiatives are expected to fluctuate between periods in amount, size and
timing. These out-of-the-ordinary-course charges include third-party
advisory costs, as well as certain severance-related costs. Investors
should understand that the outcome of these transformation initiatives
may result in future restructuring actions and certain of these charges
could recur. The Company believes that the adjustments of these items
provide supplemental information with regard to the sustainability of the
Company's operating performance, allow for a comparison of the financial
results to historical operations and forward-looking guidance and, as a
result, provide useful supplemental information to investors.
-- Asset impairments: The Company has excluded the impact of impairments of
finite-lived and indefinite-lived intangible assets, as well as
impairments of assets held for sale, as such amounts are inconsistent in
amount and frequency and are significantly impacted by the timing and/or
size of acquisitions and divestitures. The Company believes that the
adjustments of these items correlate with the sustainability of the
Company's operating performance. Although the Company excludes
impairments of intangible assets and assets held for sale from measuring
the performance of the Company and the business, the Company believes
that it is important for investors to understand that intangible assets
contribute to revenue generation.
-- Goodwill impairments: The Company excludes the impact of goodwill
impairments. When the Company has made acquisitions where the
consideration paid was in excess of the fair value of the net assets
acquired, the remaining purchase price is recorded as goodwill. For
assets that we developed ourselves, no goodwill is recorded. Goodwill is
not amortized but is tested for impairment. The amount of goodwill
impairment is measured as the excess of a reporting unit's carrying value
over its fair value. Management excludes these charges in measuring the
performance of the Company and the business.
-- Share-based compensation: The Company has excluded costs relating to
share-based compensation. The Company believes that the exclusion of
share-based compensation expense assists investors in the comparisons of
operating results to peer companies. Share-based compensation expense can
vary significantly based on the timing, size and nature of awards
granted.
-- Acquisition-related costs and adjustments (excluding amortization of
intangible assets): The Company has excluded the impact of
acquisition-related costs and fair value inventory step-up resulting from
acquisitions as the amounts and frequency of such costs and adjustments
are not consistent and are significantly impacted by the timing and size
of its acquisitions. In addition, the Company excludes
acquisition-related contingent consideration non-cash adjustments due to
the inherent uncertainty and volatility associated with such amounts
based on changes in assumptions with respect to fair value estimates, and
the amount and frequency of such adjustments are not consistent and are
significantly impacted by the timing and size of the Company's
acquisitions, as well as the nature of the agreed-upon consideration.
-- Loss (gain) on extinguishment of debt: The Company has excluded loss
(gain) on extinguishment of debt as this represents a gain or loss from
refinancing our existing debt and is not a reflection of our operations
for the period. Further, the amount and frequency of such amounts are not
consistent and are significantly impacted by the timing and size of debt
financing transactions and other factors in the debt market out of
management's control.
-- Separation costs and separation-related costs: The Company has excluded
certain costs incurred in connection with activities regarding the
separation of the eye-health business. Separation costs are incremental
costs directly related to effectuating the separation of the eye-health
business, and include, but are not limited to, legal, audit and advisory
fees. Separation-related costs are incremental costs indirectly related
to the separation of the eye-health business and include, but are not
limited to, rebranding costs and costs associated with facility
relocation and/or modification. As these costs arise from events outside
of the ordinary course of continuing operations, the Company believes
that the adjustments of these items provide supplemental information with
regard to the sustainability of the Company's operating performance,
allow for a comparison of the financial results to historical operations
and forward-looking guidance and, as a result, provide useful
supplemental information to investors.
-- Other adjustments: The Company has excluded certain other amounts,
including legal and other professional fees incurred in connection with
legal and governmental proceedings, investigations and information
requests regarding certain of our legacy distribution, marketing, pricing,
disclosure and accounting practices, litigation and other matters, and
net (gain) loss on sale of assets or other disposition of assets. Given
the unique nature of the matters relating to these costs, the Company
believes these items are not normal operating expenses. For example,
legal settlements and judgments vary significantly, in their nature, size
and frequency, and, due to this volatility, the Company believes the
costs associated with legal settlements and judgments are not normal
operating expenses. In addition, as opposed to more ordinary course
matters, the Company considers that each of the recent proceedings,
investigations and information requests, given their nature and frequency,
are outside of the ordinary course and relate to unique circumstances.
The Company has also excluded IT infrastructure investments that are the
result of other, non-comparable events to measure operating performance.
These events arise outside of the ordinary course of continuing
operations. The Company has also excluded certain other costs, including
professional fees associated with contemplated, but not completed,
strategic transactions. The Company excluded these costs as the
consideration of such matters are outside of the ordinary course of
continuing operations and are infrequent in nature. The Company believes
that the exclusion of such out-of-the-ordinary-course amounts provides
supplemental information to assist in the comparison of the financial
results of the Company from period to period and, therefore, provides
useful supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies in our
industry often face litigation.
Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP). Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.
Adjusted Net Income (non-GAAP) and Adjusted Net Income attributable to Bausch Health (non-GAAP)
Adjusted net income (non-GAAP) is Net income (its most directly comparable GAAP financial measure), adjusted for asset impairments, goodwill impairments, restructuring, integration and transformation costs, acquisition-related costs and adjustments (excluding amortization of intangible assets), gain (loss) on extinguishment of debt, separation costs and separation-related costs and other non-GAAP adjustments as these adjustments are described above, and amortization of intangible assets and write down of financing fees as described below:
-- Amortization of intangible assets: The Company has excluded the impact of
amortization of intangible assets, as such amounts are inconsistent in
amount and frequency and are significantly impacted by the timing and/or
size of acquisitions. The Company believes that the adjustments of these
items correlate with the sustainability of the Company's operating
performance. Although the Company excludes the amortization of intangible
assets from its non-GAAP expenses, the Company believes that it is
important for investors to understand that such intangible assets
contribute to revenue generation. Amortization of intangible assets that
relate to past acquisitions will recur in future periods until such
intangible assets have been fully amortized. Any future acquisitions may
result in the amortization of additional intangible assets.
-- Write down of financing fees: In addition to excluding Loss (gain) on
extinguishment of debt, the Company has excluded the impact of the write
down of financing fees from Adjusted net income (non-GAAP). The amount
and frequency of such amounts are not consistent and are significantly
impacted by the timing and size of debt financing transactions and other
factors in the debt market out of management's control. In addition, the
Company excluded these costs as they are outside of the ordinary course
of continuing operations and are infrequent in nature. The Company
believes that the exclusion of such out-of-the-ordinary-course amounts
provides supplemental information to assist in the comparison of the
financial results of the Company from period to period and, therefore,
provides useful supplemental information to investors.
Adjusted net income attributable to Bausch Health (non-GAAP) is Adjusted net income (non-GAAP) further adjusted to exclude the Adjusted net income attributable to noncontrolling interest (non-GAAP). Adjusted net income attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.
Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as described above) that may obscure trends in the Company's underlying performance. By disclosing this non-GAAP measure, it is management's intention to provide investors with a meaningful, supplemental comparison of the Company's operating results and trends for the periods presented. Management believes that this measure is also useful to investors as such measure allows investors to evaluate the Company's performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, the Company believes that Adjusted net income (non-GAAP) is useful to investors in their assessment of the Company's operating performance. It is also noted that, in recent periods, our GAAP Net income (loss) was significantly lower than our Adjusted net income (non-GAAP).
Adjusted Earnings Per Share (non-GAAP)
Adjusted earnings per share (non-GAAP) is calculated as Basic and Diluted loss per share attributable to Bausch Health (its most directly comparable GAAP financial measure), adjusted for the non-GAAP adjustments to reconcile Net income (loss) attributable to Bausch Health to Adjusted income attributable to Bausch Health (non-GAAP) and the diluted effect of stock options and restricted stock units excluded in the determination of Basic and Diluted loss per share attributable to Bausch Health during the period as the effect of including them would have been antidilutive. Management believes this non-GAAP measure excludes certain factors that could distort the visibility of the Company's underlying performance per share and offers investors a clearer, supplemental view of the Company's performance and trends over the reported periods. As a result, the Company considers Adjusted earnings per share (non-GAAP) to be beneficial for investors evaluating the Company's operating results, overall valuation, and potential return on investment. Management notes that for the periods presented, the Company's GAAP EPS was notably lower than its Adjusted earnings per share (non-GAAP).
Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP)
Organic revenue (non-GAAP) and Change in organic revenue (non-GAAP), are defined as GAAP Revenue and change in GAAP Revenue (the most directly comparable GAAP financial measures), adjusted for changes in foreign currency exchange rates (if applicable) and excluding the impact of recent acquisitions, divestitures and discontinuations, as defined below.