Bausch Health Raises Full-Year Outlook After Achieving 10th Straight Quarter of Revenue and Earnings Growth

Consistent Financial Momentum and Strong Segment Performance Define Q3 2025

Bausch Health Companies Inc. (NYSE:BHC) announced its third quarter 2025 results with consolidated revenues of $2.68 billion, a 7% increase on a reported basis and 5% organic growth compared to the prior year. This quarter marks the company’s tenth straight period of year-over-year revenue and Adjusted EBITDA growth (excluding Bausch + Lomb), reflecting management’s consistent execution and focus on operational excellence.

Q3 Segment Breakdown Highlights Leadership in Key Growth Areas

Growth was driven by the Salix segment, up 12% year-over-year (11% organic), and Solta Medical, which posted a standout 25% increase (24% organic) primarily fueled by APAC expansion, notably in South Korea. Bausch + Lomb also saw steady growth, while the International and Diversified segments declined modestly on both a reported and organic basis.

Profitability Metrics Improve with Focused Cost Management

Bausch Health posted GAAP net income of $179 million, a sharp turnaround from a $85 million loss a year earlier. Adjusted EBITDA reached $986 million, including an $81 million charge for acquired IPR&D, and Adjusted Net Income increased by $19 million to $434 million. Operating income rose substantially due to higher segment contributions and lower SG&A expenses, partly offset by higher R&D outlays linked to recent acquisitions.

Strategic Initiatives: DURECT Acquisition and Pipeline Milestones

The completion of the DURECT Corporation acquisition bolsters Bausch Health’s hepatology portfolio with Larsucosterol—a novel asset holding FDA Breakthrough Therapy Designation for alcohol-associated hepatitis. This move not only expands the company’s late-stage R&D platform but also signals intent to drive value through targeted pipeline development. Additional R&D highlights include an anticipated Phase 3 readout for the RED-C program in hepatic encephalopathy prevention by early 2026 and new product approvals in major international markets.

Strengthened Balance Sheet and Raised 2025 Outlook Support Ongoing Growth Story

Bausch Health’s balance sheet saw positive movement, highlighted by a $601 million note redemption and full repayment of a $300 million receivables facility post-quarter. With $1.3 billion in cash and cash equivalents at quarter end, the company reaffirmed its intent to further reduce leverage and invest in growth.

Reflecting this operational strength, Bausch Health raised its full-year 2025 guidance for revenue, Adjusted EBITDA, and cash flow—both on a consolidated basis and excluding Bausch + Lomb. This momentum underscores confidence in achieving high-single-digit EBITDA growth for the full year and delivering long-term value for shareholders.

Key Takeaway: Management Delivers on Strategic Priorities

Bausch Health’s third quarter report illustrates solid execution on revenue growth, margin expansion, and disciplined financial management. Ten consecutive quarters of growth, a reinforced pipeline, and an improved debt maturity profile position the company well for the close of 2025 and beyond. Investors and analysts will be watching the coming quarters for the delivery of raised guidance and for further strategic moves that could unlock even more shareholder value.

What’s Next?

As the company eyes its upcoming product milestones and potential asset separations, Bausch Health’s story remains one to monitor for investors interested in turnaround healthcare names with both steady execution and evolving R&D catalysts. The scheduled conference call replay is available for deeper insight into the quarter’s details and management’s outlook.

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