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Item 2. Management’s Discussion and Analysis

2025-07-31 compared with 2025-05-01 · 586 added, 296 removed, 692 unchanged (56% of the section changed)

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and its subsidiaries, taken together.

This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the unaudited interim Condensed Consolidated Financial Statements and the related notes (the “Financial Statements ” ) included elsewhere in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025 (this “Form 10-Q”).

The matters discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contain certain forward-looking statements within the meaning of Section 27A of The Securities Act of 1933, as amended, and Section 21E of The Securities Exchange Act of 1934, as amended, and that may be forward-looking information within the meaning of applicable Canadian securities laws (collectively “Forward-Looking Statements”).

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Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Our accompanying unaudited interim Condensed Consolidated Financial Statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

Our accompanying unaudited interim Condensed Consolidated Financial Statements as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial statements, and should be read in conjunction with our Consolidated Financial Statements for the year ended December 31, 2024, which were included in our Annual Report on Form 10-K filed on February 19, 2025.

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subsidiary of Bausch Health sold common shares of B+L pursuant to an initial public offering of Bausch + Lomb (the “B+L IPO”).

Following the B+L IPO, Bausch Health indirectly holds 310,449,643 common shares of Bausch + Lomb, which represents approximately 88% of B+L’s outstanding common shares as of April 23, 2025.

We continue to believe that the B+L Separation, which may include the transfer of all or a portion of our remaining direct or indirect equity interest in Bausch + Lomb to our shareholders, the monetization of all or a portion of our ownership interest in Bausch + Lomb, or a combination thereof, makes strategic sense.

Following the B+L IPO, Bausch Health indirectly holds 310,449,643 common shares of Bausch + Lomb, which represents approximately 88% of B+L’s outstanding common shares as of July 23, 2025.

We continue to believe that the B+L Separation, which may include the transfer of all or a portion of the Company’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders, the monetization of all or a portion of our ownership interest in Bausch + Lomb, or a combination thereof, makes strategic sense.

The completion of the B+L Separation is subject to the achievement of targeted debt leverage ratios and the receipt of any applicable shareholder and other necessary approvals.

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April 2025 Refinancing Transactions

On April 8, 2025, we closed a series of transactions (the “April 2025 Refinancing Transactions”) whereby a subsidiary of the Company, 1261229 B.C.

(the “Issuer”):

(i) entered into an agreement which provides for new senior secured credit facilities (the “2025 Credit Agreement”) consisting of a five-year senior secured revolving credit facility in an amount of $500 million due April 8, 2030 (the “2030 Revolving Credit Facility”) and a $3,000 million 5.5-year senior secured term loan B facility due October 8, 2030 (the “2030 Term Loan B Facility” and together with the 2030 Revolving Credit Facility, the “2025 Senior Secured Credit Facilities”) and (ii) issued $4,400 million aggregate principal amount of 10.00% senior secured notes due April 15, 2032 (the “2032 Senior Secured Notes”).

The Issuer is an indirect wholly-owned subsidiary of the Company, incorporated under the laws of British Columbia, Canada, which owns 185,468,421 common shares of Bausch + Lomb, and as of April 8, 2025, is a non-guarantor restricted subsidiary under the indentures that govern the Company’s Existing Senior Notes.

On April 8, 2025, we closed a series of transactions (the “April 2025 Refinancing Transactions”) whereby an indirect wholly-owned subsidiary of the Company, 1261229 B.C.

Ltd., a company incorporated under the laws of British Columbia, Canada (“126NumberCo”):

(i) entered into a credit agreement which provides for new senior secured credit facilities (the “2025 Credit Agreement”) consisting of a five-year senior secured revolving credit facility in an amount of $500 million due April 8, 2030 (the “2030 Revolving Credit Facility”) and a $3,000 million 5.5-year senior secured term loan B facility due

October 8, 2030 (the “2030 Term Loan B Facility” and together with the 2030 Revolving Credit Facility, the “2025 Senior Secured Credit Facilities”) and (ii) issued $4,400 million aggregate principal amount of 10.00% senior secured notes due April 15, 2032 (the “2032 Senior Secured Notes”).

126NumberCo owns 185,468,421 common shares of Bausch + Lomb and is a non-guarantor restricted subsidiary under the indentures that govern the Company’s Existing Senior Notes.

The proceeds from the April 2025 Refinancing Transactions were used:

(i) to repay in full and terminate the Company’s term loan facility (the “February 2027 Term Loan B Facility”), (ii) to redeem certain senior secured notes, certain unsecured notes and the 9.00% Senior Secured Notes due 2028 (the “9.00% Intermediate Holdco Senior Secured Notes”), (iii) to pay related fees, premiums and expenses and (iv) for general corporate purposes.

In connection with the April 2025 Refinancing Transactions, on April 8, 2025 the Issuer terminated its commitment with a third-party lender to provide a senior secured bridge loan facility in an aggregate principal amount of up to $700 million.

In connection with the April 2025 Refinancing Transactions, on April 8, 2025, 126NumberCo terminated its commitment with a third-party lender to provide a senior secured bridge loan facility in an aggregate principal amount of up to $700 million.

The April 2025 Refinancing Transactions reduced our short term cash requirements for debt service by extending approximately $6,870 million in aggregate debt maturities from the years 2025 through 2028 to the years 2030 through 2032.

After giving effect to the April 2025 Refinancing Transactions, our aggregate debt maturities and mandatory amortization debt payments are $45 million and $672 million for the remainder of 2025 and the full year 2026, respectively, which we anticipate satisfying with cash on hand and cash flows from operations.

This provides us more flexibility to operate and allows us to more effectively allocate capital to initiatives that will strengthen our products and brands.

As a result of the April 2025 Refinancing Transactions, the maturities of the Company’s principal balances of debt obligations as of April 8, 2025 were as follows:

(in millions) Remainder of 2025 2026 2027 2028 2029 2030 2031 and 2032 Total

B+L June 2025 Refinancing Activity

On June 26, 2025, Bausch + Lomb entered into a third amendment to its credit agreement (the “B+L June 2025 Credit Facility Amendment”;

the B+L Original Credit Agreement, as amended by the B+L September 2023 Credit Facility Amendment, the B+L November 2024 Credit Facility Amendment and the B+L June 2025 Credit Facility Amendment, the “B+L Amended Credit Agreement”), whereby Bausch + Lomb entered into an $800 million revolving credit facility maturing June 26, 2030 (subject to customary “springing” maturity provisions) (the “B+L 2030 Revolving Credit Facility”) and a new $2,325 million term B loan facility maturing January 15, 2031 (the “B+L January 2031 Term Loan B Facility” and, together with the B+L September 2028 Term Loan B Facility, the “B+L Term Facilities”;

the B+L Term Facilities, together with the B+L 2030 Revolving Credit Facility, the “B+L Senior Secured Credit Facilities”) (these transactions together, the “B+L June 2025 Refinancing Activity”).

On June 26, 2025, certain of Bausch + Lomb’s subsidiaries, Bausch + Lomb Netherlands B.V.

and Bausch & Lomb Incorporated (the “B+L Issuers”), issued €675 million aggregate principal amount of Senior Secured Floating Rate Notes due January 2031 (the “B+L January 2031 Senior Secured Notes”).

The proceeds from the B+L January 2031 Senior Secured Notes, along with the proceeds of the B+L January 2031 Term Loan B Facility, were used by Bausch + Lomb to:

(i) repay in full borrowings under the B+L May 2027 Revolving Credit Facility(as defined below), (ii) refinance, in full, its outstanding term loans due 2027 and (iii) pay related fees and expenses.

As of June 30, 2025, we had aggregate maturities and mandatory payments of our principal balances of debt obligations as follows:

(in millions) Remainder of 2025 2026 2027 2028 2029 2030 Thereafter Total

Total debt obligations $ 29 $ 660 $ 701 $ 6,223 $ 1,663 $ 4,018 $ 7,856 $ 21,150

On July 28, 2025, we issued an irrevocable notice of redemption pursuant to which we will redeem approximately $602 million of aggregate principal amount of our outstanding 9.25% Senior Unsecured Notes due 2026 using cash on hand.

The redemption date is August 28, 2025.

On July 28, 2025, we gave notice to the administrative agent under our AR Facility Agreement (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements), of our intention to repay using cash on hand, all outstanding amounts under our AR Credit Facility (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements) and to terminate the AR Credit Facility effective October 27, 2025.

As of July 30, 2025, the aggregate principal amount outstanding under the AR Credit Facility was $300 million.

The schedule of maturities above does not give effect to the redemption of the 9.25% Senior Unsecured Notes due 2026 and repayment of the AR Credit Facility as described above.

Gain on Extinguishment of Debt

In connection with the April 2025 Refinancing Transactions, the Company recognized a net gain on extinguishment of debt of $191 million.

In connection with the B+L June 2025 Refinancing Activity, the Company recognized a loss on extinguishment of debt of $13 million.

2024 Repurchases and Retirement of Senior Unsecured Notes

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As of December 31, 2024, approximately 1,500 dedicated R&D and quality assurance employees in 24 R&D facilities were involved in our R&D efforts internally.

As of March 31, 2025, we had approximately 75 projects in our global pipeline.

As of June 30, 2025, we had approximately 75 projects in our global pipeline.

Certain core internal R&D projects that have received a significant portion of our R&D investment in current and prior periods are listed below.

Gastrointestinal

• Rifaximin - Two global Phase 3 studies for the use of a soluble solid dispersion (“SSD”) formulation of rifaximin for the delay of first occurrence of overt hepatic encephalopathy (“OHE”) in patients with early decompensation in liver cirrhosis are ongoing.

We successfully initiated and are currently conducting two global Phase 3 trials with top line results for each expected by early 2026.

• Rifaximin - We are conducting two ongoing global Phase 3 studies to evaluate a soluble solid dispersion (“SSD”) formulation of rifaximin, known as rifaximin SSD-40IR, as part of our RED-C clinical trial program.

These trials aim to assess the drug’s ability to delay the first occurrence of overt hepatic encephalopathy (“OHE”) in patients with early decompensated liver cirrhosis.

Rifaximin SSD-40IR is designed to enhance gastrointestinal solubility while minimizing systemic exposure, potentially improving efficacy and safety.

Top line results for each of the Phase 3 studies are expected in early 2026.

• Amiselimod (S1P modulator) - A Phase 2 study to evaluate Amiselimod (S1P modulator) for the treatment of mild to moderate ulcerative colitis was completed in 2024.

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Solta Medical

• Clear + Brilliant ® Touch - Next generation Clear + Brilliant ® laser is designed to deliver a customized and more comprehensive treatment protocol by providing patients of all ages and skin types the benefits of two wavelengths.

Approval has been received in the United States, Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore.

• Fraxel ® - Next Generation Fraxel ® is a fractionated laser device for skin resurfacing.

We received FDA clearance in August 2024 and launched in the U.S.

• Clear + Brilliant ® Touch - The next generation Clear + Brilliant ® laser is designed to deliver a customized and more comprehensive treatment protocol by providing patients of all ages and skin types the benefits of two wavelengths.

Approval has been received in the United States, Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia, Singapore and Canada.

We are awaiting a response to our submission from the European Medicines Agency of the European Union.

• Fraxel FTX TM - The next generation Fraxel ® is a fractionated laser device for skin resurfacing launched in the U.S.

in April 2025 at the American Society for Laser Medicine & Surgery.

Further rollouts are planned for dermatologists, plastic surgeons and other licensed professionals.

• Thermage ® FLX - A non-invasive, FDA-cleared skin rejuvenation treatment designed to reduce wrinkles and rhytids, including those on the upper and lower eyelids.

It uses radiofrequency energy to stimulate collagen production, resulting in tighter, more contoured skin.

The device was officially launched in China in January 2024 following approval by the National Medical Products Administration and received Health Canada approval in April 2025.

• CABTREO ® Topical Gel - The first and only FDA-approved fixed-dose, triple-combination topical treatment for acne.

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Bausch + Lomb

• SiHy Daily - A silicone hydrogel daily disposable contact lens designed to provide outstanding comfort and clear vision throughout the day.

To date, SiHy Daily has been launched in over 50 countries, under the brand names INFUSE ® , BAUSCH + LOMB ULTRA ® ONE DAY and AQUALOX ® ONE DAY and Bausch + Lomb is continuing with their global rollout.

In addition, Bausch + Lomb launched its first silicone hydrogel daily disposable multifocal contact lens in May 2023 and launched a toric lens in the U.S in June 2024.

• Lumify ® (brimonidine tartrate ophthalmic solution, 0.025%) - An OTC eye drop developed as an ocular redness reliever.

• Lumify ® Franchise – An OTC redness reliever eye drop that significantly reduces redness to help eyes look whiter and brighter.

To date, Bausch + Lomb has launched and acquired the right to launch Lumify ® in various countries.

A new line extension formulation, Lumify ® Preservative Free, for which the New Drug Application was approved by the FDA in April 2024, began launching in the first quarter of 2025.

• Blink TM NutriTears ® - During June 2024, Bausch + Lomb expanded its OTC dry eye portfolio with the launch of Blink TM NutriTears ® , a clinically proven OTC supplement that targets the key root causes of dry eyes, promotes healthy tear production and provides noticeable relief of eye dryness symptoms.

• MIEBO ® (perfluorohexyloctane ophthalmic solution) (formerly known as NOV03) – In December 2019, Bausch + Lomb acquired an exclusive license from Novaliq GmbH for the commercialization and development in the U.S.

and Canada of MIEBO ® for the treatment of the signs and symptoms of dry eye disease (“DED”).

MIEBO ® launched in the U.S.

in September 2023 and was approved in Canada in September 2024.

MIEBO ® is the first and only FDA-approved treatment for DED that directly targets tear evaporation and the addition of MIEBO ® will help build upon the strong portfolio of integrated eye health products.

• Bausch + Lomb is expanding its portfolio of premium intraocular lenses (“IOL”) built on the enVista ® platform with:

Additionally, Bausch + Lomb is in the process of initiating a Lumify ® next generation clinical study, for which enrollment has been completed and topline results are expected by the end of 2025.

• Blink TM Franchise – During June 2024, Bausch + Lomb expanded its OTC dry eye portfolio with the launch of Blink TM NutriTears ® , a clinically proven OTC supplement that targets the key root causes of dry eyes, promotes healthy tear production and provides noticeable relief of eye dryness symptoms.

During June 2025, Bausch + Lomb began launching Blink ® Nourish and Blink ® Boost lubricating eye drops in the U.S.

• LuxLife ® – Bausch + Lomb is expanding its portfolio of premium intraocular lenses (“IOL”) built on the “Lux” platform with the LuxLife ® Trifocal IOL with two options, non-Toric and Toric for astigmatic patients.

The European launch of this product is in process.

• Bausch + Lomb is expanding its portfolio of premium IOLs built on the enVista ® platform with:

enVista Aspire ® monofocal and toric IOLs with Intermediate Optimized optics launched in the U.S.

in October 2023, in Europe in January 2025 and the Canada launch is in process, enVista Envy TM launched in Canada in June 2024 and the U.S.

in October 2023, in Europe in January 2025 and the Canada launch is in process, enVista Envy ® launched in Canada in June 2024 and the U.S.

and Europe launches are in process.

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In being selective, we seek to enter into only those acquisitions that provide us with significant synergies with our existing business, thereby minimizing risks to our core businesses and providing long-term growth opportunities.

In July 2025, we entered into an agreement to acquire DURECT Corporation (“DURECT”), a biopharmaceutical company engaged in the development of epigenetic therapies that target dysregulated deoxyribonucleic acid methylation to transform the treatment of serious and life-threatening conditions, including acute organ injury.

DURECT’s lead drug candidate, Larsucosterol, is a novel therapeutic molecule that has demonstrated promising results in Phase 2 trials for the treatment of alcohol-associated hepatitis and has been granted both Fast Track and Breakthrough Therapy designations by the FDA.

We believe our hepatology development and commercial capabilities are well-suited to support the clinical development and potential commercialization of Larsucosterol.

The acquisition is expected to close in the third quarter of 2025, subject to the satisfaction of certain closing conditions included in the agreement.

In January 2025, Bausch + Lomb acquired Whitecap Biosciences, LLC (“Whitecap Biosciences”).

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Trukera Medical commercializes ScoutPro ® , a point-of-care portable device for precisely measuring osmolarity, the salt content of a person’s tears.

This acquisition is expected to expand Bausch + Lomb’s presence in the DED market.

This acquisition expands Bausch + Lomb’s presence in the dry eye disease market.

See Note 4, “LICENSING AGREEMENTS AND ACQUISITIONS” to our unaudited interim Condensed Consolidated Financial Statements for additional information.

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The drug candidate is administered orally, and is a next-generation rifaximin formulation that acts by targeting the beta-subunit of bacterial DNA-dependent RNA polymerase.

We have invested in developing our Amiselimod (S1P modulator) for the treatment of moderate to severe ulcerative colitis.

We have also invested in developing our investigational oral drug Amiselimod (S1P modulator) for the treatment of moderate to severe ulcerative colitis.

We have met with the FDA for an end of Phase 2 meeting, as well as with the EU’s European Medicines Agency and Japan’s Pharmaceuticals and Medical Devices Agency for Amiselimod (S1P modulator) for the treatment of moderate to severe ulcerative colitis.

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We continue to invest in expanding our presence in key markets, including broadening the reach of our DTC campaigns in the U.S., the expansion of Thermage ® FLX which was approved by China’s National Medical Products Administration as a medical device in January 2024 and which was granted medical device license clearance by Health Canada in April 2025, and the strengthening of our sales force in the U.S.

We received FDA approval of Next Generation Fraxel ® in 2024 and launched in the U.S.

We received FDA approval of Fraxel FTX TM in 2024 and launched in the U.S.

in April 2025 at the American Society for Laser Medicine & Surgery.

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In response to the investigation, Bausch + Lomb has implemented enhanced inspection protocols for IOLs, as well as more explicit standards for how the monomers that make up its lenses are prepared by vendors.

With these new processes in place, Bausch + Lomb has returned to full production of all enVista IOLs.

In the following weeks Bausch + Lomb is expected to return to full market supply in the U.S.

The timing for market reentry in other countries will be determined on a case-by-case basis in collaboration with health authorities.

With these new processes in place, Bausch + Lomb has returned to full production of all enVista IOLs and has been shipping into the market to resupply inventory.

Macroeconomic Matters

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Given the international scope of our operations, any sanctions, export controls, tariffs, trade wars and other governmental actions, could have an adverse effect on our business, financial condition, cash flows and results of operations.

Similarly, adverse economic conditions impacting our customers in these countries or uncertainty about global economic conditions could cause purchases of our products to decline, which would adversely affect our revenues and operating results.

Similarly, adverse economic conditions impacting our customers in

these countries or uncertainty about global economic conditions could cause purchases of our products to decline, which would adversely affect our revenues and operating results.

“Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC and the CSA on February 19, 2025, for additional information on the risks associated with tariffs.

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although, as noted above, we continue to review EU sanctions and are still assessing their impact on our operations.

Our revenues attributable to Russia, Ukraine and Belarus for the three months ended March 31, 2025 and 2024 were approximately 2% of our total revenues in each period.

Our revenues attributable to Russia, Ukraine and Belarus for each of the six months ended June 30, 2025 and 2024 were approximately 2% of our total revenues.

In addition, we do not have any research or manufacturing facilities in Russia, Ukraine or Belarus.

While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on our business.

Middle East Regional Conflict

The conflict between Israel and Hamas began during October 2023 and has since expanded to include other countries and militant groups in the region.

Our revenues attributable to the impacted regions for each of the three months ended March 31, 2025 and 2024 were inconsequential.

Conflict in the Middle East

The conflict between Israel and Hamas began during October 2023 and has since expanded to include other countries and militant groups in the region, including Iran.

Our revenues attributable to the impacted regions for each of the six months ended June 30, 2025 and 2024 were inconsequential.

While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on our business.

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While the estimated impact is not material, it is possible that the further implementation of the Inclusive Framework could have a material effect on our liability for corporate taxes or our consolidated tax rate in the future.

One Big Beautiful Bill Act

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the “OBBBA”).

The effects of this legislation for the Company include extending and modifying certain key provisions of the Tax Cuts and Jobs Act enacted in

December 2017 (both domestic and international).

The corporate tax rate remains unchanged but bonus, depreciation and an adjustment to the interest limitation were retroactive to January 1, 2025.

The OBBBA makes additional changes to international tax provisions, including substantive changes to existing Global Intangible Low Tax Income, foreign-derived intangible income, and base erosion and anti-abuse tax provisions.

These changes are effective for taxable years after 2025.

The Company is evaluating the impact of this legislation on its consolidated financial statements and related disclosures for 2025 and future years.

Health Care Reform

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government to set or “negotiate” prices for select high-cost Medicare Part D (beginning in 2026) and Medicare Part B drugs (beginning in 2028) that are more than nine years (for small-molecule drugs) or 13 years (for biological products) from their initial FDA approval, (ii) manufacturers to pay a rebate for Medicare Part B and Part D drugs when prices increase faster than inflation beginning in 2022 for Medicare Part D and 2023 for Medicare Part B drugs and (iii) Medicare Part D redesign which replaces the current Part D Coverage Gap Discount Program and establishes a $2,000 cap for out-of-pocket limits costs for Medicare beneficiaries beginning in 2025, with manufacturers being responsible for 10% of costs up to the $2,000 cap and 20% after that cap is reached.

In January 2025, the Centers for Medicare & Medicaid Services selected Xifaxan ® as one of the medicines for its drug price negotiation program as part of the IRA with an initial price applicability in 2027.

In January 2025, the Centers for Medicare & Medicaid Services (“CMS”) selected Xifaxan ® as one of the medicines for its drug price negotiation program as part of the IRA with an initial price applicability in 2027.

It is possible that other of our products could be selected in future years.

These negotiations could, among other things, accelerate revenue erosion prior to the expiration of intellectual property protections.

Negotiations with CMS are scheduled to conclude in October 2025, and CMS is expected to announce the final price by November 30, 2025.

The effect of reducing prices and reimbursement for certain of our products could significantly impact our business and consolidated results of operations.

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These proposals create new authorities for state regulatory bodies to limit reimbursement for certain drugs and such efforts may expand to additional states.

We continue to evaluate the Company’s participation in government channels.

Generic Competition and Loss of Exclusivity

Certain of our products face the expiration of their patent or regulatory exclusivity in 2026 or in later years, following which we anticipate generic competition of these products.

In addition, in certain cases, as a result of negotiated settlements of some of our patent infringement proceedings against generic competitors, we have granted licenses to such generic companies, which will permit them to enter the market with their generic products prior to the expiration of our applicable patent or regulatory exclusivity.

Certain of our products face the loss of exclusivity (“LOE”) in 2026 or in later years, following which we anticipate generic competition for these products.

In certain cases, the LOE may be as a result of patent expiry, expiry of regulatory exclusivity, or negotiated settlements of some of our patent infringement proceedings against generic competitors.

In some cases, we have granted licenses to such generic competitors, that permit them to enter the market with their generic products prior to the expiration of our applicable patent or regulatory exclusivity.

Finally, for certain of our products that lost patent or regulatory exclusivity in prior years, we anticipate that generic competitors may launch in 2026 or in later years.

Following loss of exclusivity (“LOE”) of and/or generic competition for a product, we would anticipate that product sales for such product would decrease significantly

shortly following the LOE or entry of a generic competitor.

Following LOE of and/or generic competition for a product, we would anticipate that product sales for such product would decrease significantly shortly following the LOE or entry of a generic competitor.

Where we have the rights, we may elect to launch an authorized generic (“AG”) of such product (either ourselves or through a third-party) prior to, upon or following generic entry, which may mitigate the anticipated decrease in product sales;

however, even with launch of an authorized generic, the decline in product sales of such product would still be expected to be significant, and the effect on our future revenues could be material.

however, even with launch of an AG, the decline in product sales of such product would still be expected to be significant, and the effect on our future revenues could be material.

2026 through 2029 LOE Branded Products - Based on current patent expiration dates, settlement agreements and/or competitive information, we have identified branded products that we believe could begin facing potential LOE and/or generic competition in the U.S.

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These dates may change based on, among other things, challenges to our patents, settlement of existing or future patent litigation and at-risk generic launches.

We believe the entry into the market of generic competition generally would have an adverse impact on the volume and/or pricing of the affected products, however we are unable to predict the magnitude or timing of this impact.

We believe the entry into the market of generic

competition generally would have an adverse impact on the volume and/or pricing of the affected products, however we are unable to predict the magnitude or timing of this impact.

In addition, for a number of our products (including Cabtreo ® , Xifaxan ® 550 mg, Trulance ® and Lumify ® in the U.S), we have commenced (or anticipate commencing) and have (or may have) ongoing infringement proceedings against potential generic competitors in the U.S.

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FINANCIAL PERFORMANCE HIGHLIGHTS

The following table provides selected unaudited financial information for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

(in millions, except per share data) 2025 2024 Change

The following table provides selected unaudited financial information for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

(in millions, except per share data) 2025 2024 Change 2025 2024 Change

Revenues $ 2,530 $ 2,403 $ 127 $ 4,789 $ 4,556 $ 233

Operating income $ 444 $ 389 $ 55 $ 720 $ 670 $ 50

Loss before income taxes $ (47) $ (69) $ 22

Net loss attributable to Bausch Health Companies Inc.

$ (58) $ (64) $ 6

Basic and diluted loss per share attributable to Bausch Health Companies Inc.

Income (loss) before income taxes $ 140 $ 48 $ 92 $ 93 $ (21) $ 114

Net income (loss) attributable to Bausch Health Companies Inc.

$ 148 $ 10 $ 138 $ 90 $ (54) $ 144

Earnings (loss) per share attributable to Bausch Health Companies Inc.

Basic $ 0.40 $ 0.03 $ 0.37 $ 0.24 $ (0.15) $ 0.39

Diluted $ 0.40 $ 0.03 $ 0.37 $ 0.24 $ (0.15) $ 0.39

Financial Performance

Summary of the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Revenues for the three months ended March 31, 2025 and 2024 were $2,259 million and $2,153 million, respectively, an increase of $106 million, or 5%.

The increase is primarily attributable to growth in Salix, Bausch + Lomb and Solta Medical segments driven by:

(i) higher volumes, (ii) improved net pricing, (iii) the impact of divestitures and discontinuations which negatively impacted our revenues in 2024 and (iv) incremental sales attributable to acquisitions, partially offset by the unfavorable impact of foreign currencies.

Operating income for the three months ended March 31, 2025 and 2024 was $276 million and $281 million, respectively, and included non-cash charges for Depreciation and amortization of intangible assets of $305 million and $320 million and Share-based compensation of $43 million and $33 million, respectively.

The decrease in our operating results of $5 million reflects, among other factors:

• an increase in contribution (Product sales revenue less Cost of goods sold, excluding amortization and impairments of intangible assets) of $43 million primarily due to the increase in revenues as previously discussed, partially offset by the inventory reserve charge related to Bausch + Lomb’s voluntary recall of certain enVista IOL products;

Summary of the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024

Revenues for the three months ended June 30, 2025 and 2024 were $2,530 million and $2,403 million, respectively, an increase of $127 million, or 5%.

The increase is primarily attributable to growth in our Salix, Bausch + Lomb and Solta

Medical segments driven by:

(i) higher volumes, (ii) improved net realized pricing, (iii) the favorable impact of foreign currencies and (iv) incremental sales attributable to acquisitions.

Operating income for the three months ended June 30, 2025 and 2024 was $444 million and $389 million, respectively, and included non-cash charges for Depreciation and amortization of intangible assets of $307 million and $318 million, Asset impairments of $0 and $5 million, and Share-based compensation of $46 million and $36 million, respectively.

The increase in our operating results of $55 million reflects, among other factors:

• an increase in contribution (Product sales revenue less Cost of goods sold, excluding amortization and impairments of intangible assets) of $85 million primarily due to the increase in revenues as previously discussed;

• an increase in selling, general and administrative (“SG&A”) of $62 million primarily attributable to higher selling, advertising and promotion expenses primarily attributable to MIEBO ® ;

• a decrease in amortization of intangible assets of $14 million, primarily attributable to fully amortized intangible assets no longer being amortized in 2025;

• an increase in Other expense, net of $15 million, primarily attributable to Acquired in-process research and development costs related to certain Bausch + Lomb acquisitions, partially offset by reductions in estimated Acquisition-related contingent consideration.

Loss before income taxes for the three months ended March 31, 2025 and 2024 was $47 million and $69 million, respectively, a favorable change of $22 million.

The change is primarily attributable to a decrease in Interest expense of $25 million and a favorable change in Foreign exchange and other of $11 million, partially offset by the decrease in our operating results of $5 million as previously discussed and a Gain on extinguishment of debt of $11 million in 2024.

Net loss attributable to Bausch Health for the three months ended March 31, 2025 and 2024 was $58 million and $64 million, respectively, an increase in our results of $6 million, and is primarily attributable to a favorable change in Loss before income taxes of $22 million as previously discussed, partially offset by an unfavorable change in income taxes of $31 million.

• an increase in Other income of $38 million, primarily attributable to:

(i) changes in estimates related to Acquisition-related contingent consideration during the three months ended June 30, 2025 and (ii) charges for Litigation and other matters during the three months ended June 30, 2024 not recurring in 2025.

Income before income taxes for the three months ended June 30, 2025 and 2024 was $140 million and $48 million, respectively, an increase of $92 million.

The increase is primarily attributable to:

(i) an increase in Gain on extinguishment of debt of $166 million and (ii) the increase in our operating results of $55 million, as previously discussed, partially offset by:

(i) an increase in Interest expense of $115 million and (ii) an unfavorable change in Foreign exchange and other of $19 million.

Net income attributable to Bausch Health for the three months ended June 30, 2025 and 2024 was $148 million and $10 million, respectively, an increase of $138 million, which is primarily attributable to the increase in Income before income taxes of $92 million as previously discussed, and the decrease in Provision for income taxes of $37 million.

Summary of the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

Revenues for the six months ended June 30, 2025 and 2024 were $4,789 million and $4,556 million, respectively, an increase of $233 million, or 5%.

The increase is attributable to growth in our Salix, Bausch + Lomb and Solta Medical segments driven by:

(i) higher volumes, (ii) improved net realized pricing and (iii) incremental sales attributable to acquisitions, partially offset by the unfavorable impact of foreign currencies.

Operating income for the six months ended June 30, 2025 and 2024 was $720 million and $670 million, respectively, and included non-cash charges for Depreciation and amortization of intangible assets of $612 million and $638 million, Asset impairments of $0 and $6 million and Share-based compensation of $89 million and $69 million, respectively.

The increase in our operating results of $50 million reflects, among other factors:

• an increase in contribution of $128 million primarily due to the increase in revenues as previously discussed;

• an increase in SG&A of $135 million primarily attributable to higher selling, advertising and promotion expenses primarily attributable to MIEBO ® ;

• a decrease in amortization of intangible assets of $32 million, primarily attributable to fully amortized intangible assets no longer being amortized in 2025;

• a decrease in Asset impairments of $6 million, attributable to higher impairments for the six months ended June 30, 2024;

• an increase in Other income of $23 million primarily attributable to:

(i) changes in estimates related to Acquisition-related contingent consideration during the six months ended June 30, 2025 and (ii) charges for Litigation and other matters during the six months ended June 30, 2024 not recurring in 2025, partially offset by Acquired in-process research and development costs related to certain Bausch + Lomb acquisitions.

Income before income taxes for the six months ended June 30, 2025 was $93 million as compared to Loss before income taxes for the six months ended June 30, 2024 of $21 million, an increase in our results of $114 million.

The change is primarily attributable to:

(i) an increase in Gain on extinguishment of debt of $155 million and (ii) the increase in our operating results of $50 million as previously discussed, partially offset by an increase in interest expense of $90 million.

Net income attributable to Bausch Health for the six months ended June 30, 2025 was $90 million as compared to Net Loss attributable to Bausch Health of $54 million for the six months ended June 30, 2024, an increase in our results of $144 million, primarily due to the increase in our results of $114 million as previously discussed.

RESULTS OF OPERATIONS

Our unaudited operating results for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

(in millions) 2025 2024 Change

Our unaudited operating results for the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 Change 2025 2024 Change

Product sales $ 2,504 $ 2,379 $ 125 $ 4,731 $ 4,508 $ 223

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Restructuring, integration and separation costs 31 12 19 32 24 8

Other expense, net 15 — 15

Other (income) expense, net (18) 20 (38) (3) 20 (23)

2,086 2,014 72 4,069 3,886 183

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Foreign exchange and other (30) (11) (19) (34) (26) (8)

Loss before income taxes (47) (69) 22

Income (loss) before income taxes 140 48 92 93 (21) 114

Provision for income taxes (12) (49) 37 (51) (57) 6

Net loss (86) (77) (9)

Net income (loss) 128 (1) 129 42 (78) 120

Net loss attributable to noncontrolling interest 20 11 9 48 24 24

Net loss attributable to Bausch Health Companies Inc.

Net income (loss) attributable to Bausch Health Companies Inc.

$ 148 $ 10 $ 138 $ 90 $ (54) $ 144

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024

The Company’s revenues are primarily generated from product sales, primarily in the therapeutic areas of GI, hepatology, neurology, dermatology and eye health, that consist of:

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Other revenues include alliance and service revenue from the licensing and co-promotion of products and contract service revenue which is derived primarily from contract manufacturing for third parties and which is not material.

Our revenues were $2,259 million and $2,153 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $106 million, or 5%.

Our revenues were $2,530 million and $2,403 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $127 million, or 5%.

The increase was primarily due to:

(i) an increase in volumes of $103 million, primarily attributable to our Bausch + Lomb, Solta Medical, Salix and International segments, (ii) an increase in net realized pricing of $26 million, attributable to our Salix, Diversified and International segments, (iii) the impact of divestitures and discontinuations of $8 million, which negatively impacted our revenues in 2024 and (iv) incremental sales attributable to acquisitions of $6 million, partially offset by the unfavorable impact of foreign currencies of $37 million.

The changes in our segment revenues and segment profits for the three months ended March 31, 2025 are discussed in further detail below under “ — Reportable Segment Revenues and Profits.”

(i) an increase in volumes of $77 million, primarily attributable to our Bausch + Lomb, Solta Medical and Salix segments, (ii) an increase in net realized pricing of $21 million, attributable to our Salix and International segments, (iii) the favorable impact of foreign currencies of $21 million and (iv) incremental sales attributable to acquisitions of $6 million.

The changes in our segment revenues and segment profits for the three months ended June 30, 2025 are discussed in further detail below under “ — Reportable Segment Revenues and Profits.”

Cash Discounts and Allowances, Chargebacks and Distribution Fees

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We also concentrate on managing our relationships with our payors and wholesalers, reviewing the ranges of our offerings and being disciplined as to the amount and type of incentives we negotiate.

Provisions recorded to reduce gross product sales to net product sales and revenues for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

Provisions recorded to reduce gross product sales to net product sales and revenues for the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

(in millions) Amount Pct.

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Revenues $ 2,530 $ 2,403

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 43.2% and 44.4% for the three months ended March 31, 2025 and 2024, respectively, a decrease of 1.2 percentage points due primarily to the following factors:

• rebates as a percentage of gross product sales were higher primarily due to higher rebates for:

(i) Bausch + Lomb’s XIIDRA ® and MIEBO ® and (ii) CABTREO ® , partially offset by lower rebates for:

(i) Glumetza ® SLX and Zegerid ® that were discontinued in 2024 and (ii) certain other products such as Arazlo ® , Wellbutrin ® and Onexton ® , and

• chargebacks as a percentage of gross product sales were lower primarily due to lower gross product sales of Glumetza ® SLX, partially offset by increased gross product sales for Xifaxan ® .

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 42.4% and 41.3% for the three months ended June 30, 2025 and 2024, respectively, an increase of 1.1 percentage points.

The increase was primarily due to:

• rebates as a percentage of gross product sales which was higher primarily due to higher rebates for:

(i) Bausch + Lomb’s XIIDRA ® and MIEBO ® , (ii) increased gross product sales for certain branded products such as CABTREO ® , Xifaxan ® and Jublia ® , partially offset by lower gross product sales for Arazlo ® and (iii) lower rebates for Trulance ® , partially offset by

• chargebacks as a percentage of gross product sales which was lower primarily due to:

(i) lower gross product sales of certain branded products such as Glumetza ® SLX and Cardizem ® CD certain generic products such as Uceris ® AG, Migranal ® AG and Cardizem ® CD AG and (ii) lower chargeback rates for Ativan ® , partially offset by increased gross product sales for Xifaxan ® .

Cost of Goods Sold (excluding amortization and impairments of intangible assets)

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depreciation of manufacturing facilities and equipment;

and lower of cost or net realizable value adjustments to inventories.

Cost of goods sold typically vary between periods as a result of product

mix, volume, royalties, changes in foreign currency and inflation.

and lower of cost

or net realizable value adjustments to inventories.

Cost of goods sold typically vary between periods as a result of product mix, volume, royalties, changes in foreign currency and inflation.

Cost of goods sold excludes the amortization and impairments of intangible assets.

Cost of goods sold was $683 million and $628 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $55 million, or 9%.

The increase was primarily driven by:

(i) higher volumes as previously discussed and (ii) an inventory reserve charge of $15 million related to Bausch + Lomb’s voluntary recall of certain enVista IOL products as previously discussed.

Cost of goods sold as a percentage of product sales revenue were 30.7% and 29.5% for the three months ended March 31, 2025 and 2024, respectively, an increase of 1.2 percentage points.

Cost of goods sold was $748 million and $708 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $40 million, or 6%.

The increase was primarily driven:

(i) higher volumes as previously discussed and (ii) the unfavorable impact of foreign currencies.

Cost of goods sold as a percentage of product sales revenue were 29.9% and 29.8% for the three months ended June 30, 2025 and 2024, respectively.

Selling, General and Administrative Expenses

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These separation-related costs include, but are not limited to rebranding costs and costs associated with facility relocation and/or modification.

SG&A expenses were $867 million and $794 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $73 million, or 9%.

SG&A expenses were $894 million and $832 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $62 million, or 7%.

The increase was primarily attributable to:

(i) selling, advertising and promotion expenses primarily attributable to MIEBO ® and (ii) general and administrative expenses, primarily driven by higher compensation costs and higher Bausch + Lomb business transformation costs, partially offset by the favorable impact of foreign currencies.

(i) selling, advertising and promotion expenses primarily attributable to MIEBO ® and (ii) general and administrative expenses, primarily driven by higher compensation costs.

Research and Development Expenses

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and other third-party costs.

R&D expenses were $143 million and $151 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $8 million, or 5%.

The decrease is primarily attributable to lower spend on certain projects in the Salix segment, partially offset by an increase in spend on certain projects in the Bausch + Lomb segment.

R&D expenses as a percentage of Product sales were approximately 6% and 7% for the three months ended March 31, 2025 and 2024, respectively.

R&D expenses were $159 million and $156 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $3 million, or 2%.

The increase is primarily attributable to lower spend on certain projects in the Salix segment, partially offset by an increase in spend on certain projects in the Bausch + Lomb segment.

R&D expenses as a percentage of Product sales were approximately 6% and 7% for the three months ended June 30, 2025 and 2024, respectively.

Amortization of Intangible Assets

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Management continually assesses the useful lives related to the Company’s long-lived assets to reflect the most current assumptions.

Amortization of intangible assets was $256 million and $274 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $18 million, or 7%, primarily attributable to fully amortized intangible assets no longer being amortized in 2025.

Amortization of intangible assets was $256 million and $270 million for the three months ended June 30, 2025 and 2024, respectively, a decrease of $14 million, or 5%, primarily attributable to fully amortized intangible assets no longer being amortized in 2025.

See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to our intangible assets.

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The undiscounted cash flow model relies on assumptions regarding revenue growth rates, gross profit, selling, general and administrative expenses and research and development expenses.

Asset impairments for each of the three months ended March 31, 2025 and 2024 were not material.

There were no asset impairments for the three months ended June 30, 2025.

Asset impairments for the three months ended June 30, 2024 were $5 million and primarily related to the discontinuance of a certain product brand.

See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to our intangible assets.

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(i) reducing headcount, (ii) eliminating real estate costs associated with unused or under-utilized facilities and (iii) implementing contribution margin improvement and other cost reduction initiatives.

Restructuring, integration and separation costs were $1 million and $12 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $11 million.

Restructuring, integration and separation costs were $31 million and $12 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $19 million.

The Company continues to evaluate opportunities to streamline its operations and identify additional cost savings globally.

Although a specific plan does not exist at this time, the Company may identify and take additional exit and cost-rationalization restructuring actions in the future, the costs of which could be material.

See Note 5, “RESTRUCTURING, INTEGRATION AND SEPARATION COSTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding these actions.

Other Expense, Net

Other expense, net for the three months ended March 31, 2025 and 2024 consists of the following:

Three Months Ended March 31,

Other (Income) Expense, Net

Other (income) expense, net for the three months ended June 30, 2025 and 2024 consists of the following:

Three Months Ended June 30,

(in millions) 2025 2024

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Gain on sale of assets, net — (1)

Acquired in-process research and development costs for the three months ended March 31, 2025 are related to Bausch + Lomb’s acquisition of Whitecap Biosciences.

Acquisition-related contingent consideration for the three months ended March 31, 2025 and 2024 reflects adjustments for changes in estimates in the timing and amounts of expected future royalty and milestone payments and accretion for the time value of money.

For the three months ended March 31, 2025, Litigation and other matters primarily relates to restitution received in connection with a certain legal matter.

For the three months ended March 31, 2024, Litigation and other matters primarily related to adjustments to provisions for certain legal matters.

Acquisition-related contingent consideration for the three months ended June 30, 2025 and 2024 reflects adjustments for changes in estimates in the timing and amounts of expected future royalty and milestone payments and accretion for the time value of money.

Non-Operating Income and Expense

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Interest expense primarily consists of interest payments due, amortization and write-off of debt discounts, premiums and debt issuance costs under our credit facilities and notes, and the amortization of amounts excluded from the assessment of hedge effectiveness over the term of the Company’s cross-currency swaps.

Interest expense was $330 million and $355 million, and included non-cash amortization and write-offs of debt premiums, discounts and deferred issuance costs of $15 million and $14 million, for the three months ended March 31, 2025 and 2024, respectively.

Interest expense for the three months ended March 31, 2025 decreased $25 million, or 7%, as compared to the three months ended March 31, 2024, primarily due to the repurchase of a portion of the December 2025 Unsecured Notes and the April 2026 Unsecured Notes and lower outstanding balances of our AR Credit Facility.

The weighted average stated rate of interest as of March 31, 2025 and 2024 was 7.71% and 8.02%, respectively.

Interest expense was $465 million and $350 million and included non-cash amortization and write-offs of debt premiums, discounts and deferred issuance costs of $41 million and $14 million, for the three months ended June 30, 2025 and 2024, respectively.

Interest expense for the three months ended June 30, 2025 increased $115 million, or 33%, as compared to the three months ended June 30, 2024.

The increase is attributable to:

(i) write-offs of premiums, discounts and deferred issuance costs associated with the accounting for the April 2025 Refinancing Transactions and the B+L June 2025 Refinancing Activity and (ii) higher effective interest rates on the debt as refinanced.

The weighted average stated rate of interest as of June 30, 2025 and 2024 was 8.63% and 8.00%, respectively.

As discussed in the section titled “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt — Accounting for Exchange”, due to the accounting treatment for the 2022 Secured Notes (as defined below), interest expense in the Company’s financial statements will not be representative of the weighted average stated rate of interest.

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Gain on extinguishment of debt represents the differences between the amounts paid to settle extinguished debts and the carrying value of the related extinguished debt.

There was no gain on extinguishment of debt for the three months ended March 31, 2025.

Gain on extinguishment of debt for the three months ended March 31, 2024 was $11 million and was attributable to open market repurchases.

The gain on extinguishment of debt was $178 million and $12 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $166 million.

In connection with the April 2025 Refinancing Transactions, the Company recognized a net gain on extinguishment of debt of $191 million, during the three months ended June 30, 2025.

In connection with the B+L June 2025 Refinancing Activity, the Company recognized a net loss on extinguishment of debt of $13 million, during the three months ended June 30, 2025.

Gain on extinguishment of debt was $12 million for the three months ended June 30, 2024 and is attributable to repurchases of certain outstanding senior unsecured notes as previously discussed.

See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Consolidated Financial Statements and the section titled “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt” for further details.

Foreign Exchange and Other

Foreign exchange and other was a loss of $4 million and $15 million for the three months ended March 31, 2025 and 2024, respectively, a favorable change of $11 million, primarily due to:

(i) transaction gains/losses on intercompany balances and third-party liabilities and (ii) the gain/loss due to foreign currency exchange contracts.

Provision for income taxes was $39 million and $8 million for the three months ended March 31, 2025 and 2024, respectively, an unfavorable change of $31 million.

Our effective income tax rate for the three months ended March 31, 2025 differs from the statutory Canadian income tax rate primarily due to:

(i) the recording of valuation allowances on entities for which no tax benefit of losses is expected, (ii) the tax provision generated from our annualized mix of earnings by jurisdiction and (iii) the discrete treatment of certain tax matters associated with the filing of certain tax returns.

Our effective income tax rate for the three months ended March 31, 2024 differs from the statutory Canadian income tax rate primarily due to:

Foreign exchange and other was a loss of $30 million and $11 million for the three months ended June 30, 2025 and 2024, respectively, an unfavorable change of $19 million.

This change was primarily driven by:

(i) transaction gains and losses on intercompany balances and third-party liabilities, (ii) gains and losses from foreign currency exchange contracts and (iii) consulting fees related to identifying additional financing and strategic capitalization alternatives.

Provision for income taxes was $12 million and $49 million for the three months ended June 30, 2025 and 2024, respectively, a favorable change of $37 million.

Our effective income tax rate for the three months ended June 30, 2025 differs from the statutory Canadian income tax rate primarily due to:

(i) the recording of valuation allowances on entities for which no tax benefit of losses is expected, (ii) the finalization of the settlement with the Internal Revenue Service (“IRS”) for the 2017 capital loss and (iii) the discrete treatment of certain tax matters, primarily related to changes in uncertain tax positions.

Our effective income tax rate for the three months ended June 30, 2024 differs from the statutory Canadian income tax rate primarily due to:

(i) the tax provision generated from our annualized mix of earnings by jurisdiction, (ii) the recording of valuation allowances on entities for which no tax benefit of losses is expected and (iii) the discrete treatment of certain tax matters, primarily related to changes in uncertain tax positions.

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Certain costs, such as Amortization of intangible assets, Asset impairments, Restructuring, integration, separation costs, and Other expense, net, are not included in the measure of segment profit, as management excludes these items in assessing segment financial performance.

See Note 18, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for a reconciliation of segment profit to Loss before income taxes.

The following table presents segment revenues, segment revenues as a percentage of total revenues, and the period-over-period changes in segment revenues for the three months ended March 31, 2025 and 2024.

The following table also presents segment profits, segment profits as a percentage of segment revenues and the period-over-period changes in segment profits for the three months ended March 31, 2025 and 2024.

Three Months Ended March 31,

See Note 19, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for a reconciliation of segment profit to Income (loss) before income taxes.

Three Months Ended June 30,

2025 2024 Change

32 unchanged sentences

Organic revenue and change in organic revenue exclude from the prior period, all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period.

The following table presents a reconciliation of GAAP revenues to organic revenues (non-GAAP) and the period-over-period changes in organic revenue (non-GAAP) for the three months ended March 31, 2025 and 2024 by segment.

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Change in

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Change in

Organic Revenue (Non-GAAP)

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Salix Segment Revenue

The Salix segment includes our Xifaxan ® product line.

Revenues from our Xifaxan ® product line currently accounts for approximately 85% of the Salix segment revenues.

No other single product group represents 10% or more of the Salix segment product sales.

Salix segment revenue for the three months ended March 31, 2025 and 2024 was $542 million and $499 million, respectively, an increase of $43 million, or 9%.

The Salix segment includes our Xifaxan ® product line which currently accounts for approximately 85% of the Salix segment revenues.

Salix segment revenue for the three months ended June 30, 2025 and 2024 was $627 million and $558 million, respectively, an increase of $69 million, or 12%.

The increase was primarily attributable to:

1 unchanged sentence

Salix Segment Profit

The Salix segment profit for the three months ended March 31, 2025 and 2024 was $371 million and $329 million, respectively, an increase of $42 million, or 13%.

The Salix segment profit for the three months ended June 30, 2025 and 2024 was $455 million and $377 million, respectively, an increase of $78 million, or 21%.

The increase was primarily driven by:

(i) higher contribution attributable to the increase in revenues as previously discussed and (ii) lower R&D expenses, partially offset by an increase in general and administrative expenses.

(i) higher contribution attributable to the increase in revenues as previously discussed and (ii) lower R&D expenses, partially offset by an increase in advertising and promotion expenses.

International Segment:

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The International segment has a diversified product line with no single product group representing 10% or more of its product sales.

The International segment revenue was $262 million and $265 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $3 million, or 1%.

The decrease was primarily attributable to:

(i) the unfavorable impact of foreign currencies of $14 million and (ii) the impact of divestitures and discontinuations of $3 million, partially offset by:

(i) an increase in net realized pricing of $10 million and (ii) an increase in volumes of $4 million.

The International segment revenue was $278 million and $276 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $2 million, or 1%.

The increase was primarily attributable to an increase in net realized pricing of $20 million and (ii) the favorable impact of foreign currencies of $1 million, partially offset by:

(i) a decrease in volumes of $17 million, primarily related to Latin America and (ii) the impact of divestitures and discontinuations of $2 million.

International Segment Profit

The International segment profit for the three months ended March 31, 2025 and 2024 was $85 million and $87 million, respectively, a decrease of $2 million, or 2%.

and was primarily driven by a decrease in revenues.

The International segment profit for the three months ended June 30, 2025 and 2024 was $78 million and $86 million, respectively, a decrease of $8 million, or 9% and was primarily driven by lower contribution primarily attributable to the decrease in volumes, partially offset by the increase in net realized pricing.

Solta Medical Segment:

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The Solta Medical segment includes the Thermage ® product line, which accounted for over 85% of the Solta Medical segment revenues.

The Solta Medical segment revenue for the three months ended March 31, 2025 and 2024 was $113 million and $88 million, respectively, an increase of $25 million, or 28%.

The increase was primarily attributable to an increase in volumes of $34 million, partially offset by:

The Solta Medical segment revenue for the three months ended June 30, 2025 and 2024 was $128 million

and $102 million, respectively, an increase of $26 million, or 25%.

The increase was primarily attributable to an increase in volumes of $30 million primarily in the Asia Pacific region excluding China, partially offset by:

(i) a decrease in net realized pricing of $3 million and (ii) the unfavorable impact of foreign currencies of $1 million.

Solta Medical Segment Profit

The Solta Medical segment profit for the three months ended March 31, 2025 and 2024 was $53 million and $40 million, respectively, an increase of $13 million, or 33%.

The Solta Medical segment profit for the three months ended June 30, 2025 and 2024 was $54 million and $47 million, respectively, an increase of $7 million, or 15%.

The increase was primarily driven by higher contribution attributable to the increase in revenues as previously discussed, partially offset by higher selling, advertising and promotion expenses.

1 unchanged sentence

Diversified Segment Revenue

The Diversified segment revenue for the three months ended March 31, 2025 and 2024 was $205 million and $202 million, respectively, an increase of $3 million, or 1%.

The increase was primarily driven by the increase in net realized pricing of $12 million, primarily in our Neurology business, partially offset by a decrease in volumes of $11 million, primarily in our Neurology business.

The Diversified segment revenue for the three months ended June 30, 2025 and 2024 was $219 million and $251 million, respectively, a decrease of $32 million, or 13%.

The decrease was primarily driven by:

(i) a decrease in volumes of $24 million, primarily in our Neurology business and (ii) a decrease in net realized pricing of $10 million, primarily in our Dermatology business, partially offset by the $2 million impact from the discontinuation of certain non-promoted products which negatively impacted our revenues in 2024.

Diversified Segment Profit

The Diversified segment profit for the three months ended March 31, 2025 and 2024 was $127 million and $114 million, respectively, an increase of $13 million, or 11%.

The increase was primarily driven by:

(i) higher contribution attributable to the increase in revenues as previously discussed and (ii) lower SG&A expenses.

The Diversified segment profit for the three months ended June 30, 2025 and 2024 was $139 million and $166 million, respectively, a decrease of $27 million, or 16%.

The decrease was primarily driven by the decrease in revenues as previously discussed, partially offset by lower advertising and promotion expenses.

Bausch + Lomb Segment:

Bausch + Lomb Segment Revenue

The Bausch + Lomb segment revenue was $1,137 million and $1,099 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $38 million, or 3%.

The Bausch + Lomb segment revenue was $1,278 million and $1,216 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $62 million, or 5%.

The increase was primarily driven by:

(i) an increase in volumes of $63 million across all Bausch + Lomb businesses and (ii) incremental sales attributable to acquisitions of $6 million, primarily within the Surgical business, partially offset by:

(i) the unfavorable impact of foreign currencies of $19 million, (ii) a decrease in net realized pricing of $11 million, primarily driven by the Pharmaceuticals business and (iii) the impact of divestitures and discontinuations of $1 million, related to the discontinuation of certain products within the Vision Care business.

(i) an increase in volumes of $64 million primarily within the Pharmaceuticals and Vision Care businesses, (ii) the favorable impact of foreign currencies of $21 million and (iii) incremental sales attributable to acquisitions of $6 million, primarily within the Surgical business, partially offset by:

(i) a decrease in net realized pricing of $27 million, primarily driven by the Pharmaceuticals business and (ii) the impact of divestitures and discontinuations of $2 million.

Bausch + Lomb Segment Profit

The Bausch + Lomb segment profit for the three months ended March 31, 2025 and 2024 was $180 million and $242 million, respectively, a decrease of $62 million, or 26%.

The Bausch + Lomb segment profit for the three months ended June 30, 2025 and 2024 was $248 million and $274 million, respectively, a decrease of $26 million, or 9%.

The decrease was primarily attributable to:

(i) an increase in selling expenses and advertising and promotion expenses, primarily related to MIEBO ® , and (ii) charges associated with the voluntary recall of certain enVista IOL products of $15 million as previously discussed, partially offset by the increase in revenues as previously discussed.

(i) an increase in selling expenses and advertising and promotion expenses, primarily related to MIEBO ® and (ii) an unfavorable change in product mix, primarily attributable to XIIDRA ® , partially offset by the increase in revenues.

Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

Our revenue was $4,789 million and $4,556 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $233 million, or 5%.

The increase was primarily due to:

(i) an increase in volumes of $179 million attributable to our Bausch + Lomb, Solta Medical and Salix segments, (ii) an increase in net realized pricing of $48 million attributable to our Salix and International segments, (iii) incremental sales attributable to acquisitions of $12 million and (iv) the $10 million impact from the discontinuation of certain non-promoted products which negatively impacted our revenues in 2024, partially offset by the unfavorable impact of foreign currencies of $16 million, primarily in Latin America.

The changes in our segment revenues and segment profits for the six months ended June 30, 2025, are discussed in further detail in the respective subsequent section titled “ — Reportable Segment Revenues and Profits”.

Cash Discounts and Allowances, Chargebacks and Distribution Fees

Provisions recorded to reduce gross product sales to net product sales and revenues for the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

(in millions) Amount Pct.

Gross product sales $ 8,266 100.0 % $ 7,873 100.0 %

Provisions to reduce gross product sales to net product sales

Discounts and allowances 348 4.2 % 325 4.1 %

Returns 68 0.8 % 89 1.1 %

Rebates 2,072 25.2 % 1,802 22.9 %

Chargebacks 887 10.7 % 1,002 12.7 %

Distribution fees 160 1.9 % 147 1.9 %

Total provisions 3,535 42.8 % 3,365 42.7 %

Net product sales 4,731 57.2 % 4,508 57.3 %

Other revenues 58 48

Revenues $ 4,789 $ 4,556

Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 42.8% and 42.7% for the six months ended June 30, 2025 and 2024, respectively, an increase of 0.1 percentage points.

The increase was primarily due to:

• rebates as a percentage of gross product sales which were higher primarily due to:

(i) Bausch + Lomb’s XIIDRA ® and MIEBO ® , (ii) increased gross product sales for certain branded products such as CABTREO ® , Xifaxan ® and Jublia ® , partially offset by lower gross product sales for Glumetza ® SLX, Arazlo ® , Zegerid ® , Onexton ® , Uceris ® and Plenvu ® and (iii) lower rebates for Trulance ® ;

partially offset by

• chargebacks as a percentage of gross product sales which were lower primarily due to:

(i) lower gross product sales of certain branded products such as Glumetza ® SLX and Ativan ® and certain generic products such Uceris ® AG, Cardizem ® AG and Migranal ® AG and (ii) lower chargeback rates for Wellbutrin ® .

These decreases were partially offset by increased gross product sales for Xifaxan ® .

Cost of Goods Sold (excluding amortization and impairments of intangible assets)

Cost of goods sold was $1,431 million and $1,336 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $95 million, or 7%.

The increase was primarily driven by:

(i) higher volumes as previously discussed, (ii) the unfavorable impact of foreign currencies and (iii) an inventory reserve charge related to Bausch + Lomb’s voluntary recall of certain enVista IOL products.

Cost of goods sold as a percentage of product sales revenue was 30.2% and 29.6% for the six months ended June 30, 2025 and 2024, respectively, an increase of 0.6 percentage points.

Selling, General and Administrative Expenses

SG&A expenses were $1,761 million and $1,626 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $135 million, or 8%.

The increase was primarily due to higher:

Research and Development

R&D expenses were $302 million and $307 million for the six months ended June 30, 2025 and 2024, respectively, a decrease of $5 million.

R&D expenses as a percentage of Product sales were approximately 6% and 7% for the six months ended June 30, 2025 and 2024, respectively.

Amortization of Intangible Assets

Amortization of intangible assets was $512 million and $544 million for the six months ended June 30, 2025 and 2024, respectively, a decrease of $32 million, or 6%.

The decrease was primarily attributable to fully amortized intangible assets no longer being amortized in 2025.

See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to our intangible assets.

Asset impairments

There were no asset impairments for the six months ended June 30, 2025.

Asset impairments for the six months ended June 30, 2024 were $6 million and primarily related to the discontinuance of a certain product brand.

See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to our intangible assets.

Restructuring, integration and separation costs

Restructuring, integration and separation costs were $32 million and $24 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $8 million.

The Company continues to evaluate opportunities to streamline its operations and identify additional cost savings globally.

See Note 5, “RESTRUCTURING, INTEGRATION AND SEPARATION COSTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding these actions.

Other (Income) Expense, Net

Other (income) expense, net for the six months ended June 30, 2025 and 2024 consists of the following:

Six Months Ended June 30,

(in millions) 2025 2024

Acquired in-process research and development costs $ 29 $ 3

Acquisition-related transaction costs 3 1

Litigation and other matters, net of insurance recoveries and restitutions 5 27

Acquisition-related contingent consideration (40) (6)

Gain on sale of assets, net — (5)

Acquired in-process research and development costs for the six months ended June 30, 2025 are primarily related to Bausch + Lomb’s acquisition of Whitecap Biosciences.

For the six months ended June 30, 2025, Litigation and other matters, net of insurance recoveries and restitutions includes restitution received in connection with a certain legal matter.

For the six months ended June 30, 2024, Litigation and other matters, net of insurance recoveries and restitutions primarily relates to provisions for certain legal matters.

Acquisition-related contingent consideration for the six months ended June 30, 2025 and 2024 reflects changes in estimates in the timing and amounts of expected future royalty and milestone payments and in 2024 includes the impact of revisions to an existing royalty agreement for certain branded products.

Non-Operating Income and Expense

Interest Expense

Interest expense was $795 million and $705 million and included non-cash amortization and write-offs of debt premiums, discounts and deferred issuance costs of $56 million and $28 million for the six months ended June 30, 2025 and 2024, respectively.

Interest expense increased $90 million, or 13%.

The increase is attributable to:

The weighted average stated rate of interest as of June 30, 2025 and 2024 was 8.63% and 8.00%, respectively.

Due to the accounting treatment for the 2022 Secured Notes, interest expense in the Company’s financial statements will not be representative of the weighted average stated rate of interest.

Gain on Extinguishment of Debt

Gain on extinguishment of debt was $178 million and $23 million for the six months ended June 30, 2025 and 2024, respectively.

In connection with the April 2025 Refinancing Transactions, the Company recognized a net gain on extinguishment of debt of $191 million, during the six months ended June 30, 2025.

In connection with the B+L June 2025 Refinancing Activity, the Company recognized a net loss on extinguishment of debt of $13 million, during the six months ended June 30, 2025.

Gain on extinguishment of debt of $23 million for the six months ended June 30, 2024 is attributable to repurchases of certain outstanding senior unsecured notes as previously discussed.

See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for further details.

Foreign Exchange and Other

Foreign exchange and other was a loss of $34 million and $26 million for the six months ended June 30, 2025 and 2024, respectively, an unfavorable net change of $8 million.

Provision for income taxes was $51 million and $57 million for the six months ended June 30, 2025 and 2024, respectively, a favorable change of $6 million.

Our effective income tax rate for the six months ended June 30, 2025 differs from the statutory Canadian income tax rate primarily due to:

(i) the recording of valuation allowances on entities for which no tax benefit of losses is expected, (ii) the tax provision generated from our annualized mix of earnings by jurisdiction and (iii) the discrete treatment of certain tax matters, primarily related to the finalization of the settlement with the IRS for the 2017 capital loss.

Our effective income tax rate for the six months ended June 30, 2024 differs from the statutory Canadian income tax rate primarily due to:

(i) the recording of valuation allowances on entities for which no tax benefit of losses is expected, (ii) the tax provision generated from our annualized mix of earnings by jurisdiction and (iii) the discrete treatment of certain tax matters, primarily related to changes in uncertain tax positions.

See Note 15, “INCOME TAXES” to our unaudited interim Condensed Consolidated Financial Statements for further details.

Reportable Segment Revenues and Profits

The following table presents segment revenues, segment revenues as a percentage of total revenues, and the year-over-year changes in segment revenues for the six months ended June 30, 2025 and 2024.

The following table also presents segment profits, segment profits as a percentage of segment revenues and the year-over-year changes in segment profits for the six months ended June 30, 2025 and 2024.

Six Months Ended June 30,

2025 2024 Change

(in millions) Amount Pct.

Segment Revenues

Salix $ 1,169 24 % $ 1,057 23 % $ 112 11 %

International 540 11 % 541 12 % (1) — %

Solta Medical 241 5 % 190 4 % 51 27 %

Diversified 424 9 % 453 10 % (29) (6) %

Bausch + Lomb 2,415 51 % 2,315 51 % 100 4 %

Total revenues $ 4,789 100 % $ 4,556 100 % $ 233 5 %

Segment Profits / Segment Profit Margins

Salix $ 826 71 % $ 706 67 % $ 120 17 %

International 163 30 % 173 32 % (10) (6) %

Solta Medical 107 44 % 87 46 % 20 23 %

Diversified 266 63 % 280 62 % (14) (5) %

Bausch + Lomb 428 18 % 516 22 % (88) (17) %

Total segment profits $ 1,790 37 % $ 1,762 39 % $ 28 2 %

The following table presents organic revenue (non-GAAP) and the year-over-year changes in organic revenue (non-GAAP) for the six months ended June 30, 2025 and 2024 by segment.

Organic revenues (non-GAAP) and organic growth (non-GAAP) rates are defined in the previous section titled “—Reportable Segment Revenues and Profits”.

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Change in

Organic Revenue (Non-GAAP)

Reported Changes in Exchange Rates Acquisitions Organic Revenue (Non-GAAP) Revenue

Reported Divestitures

and Discontinuations Organic Revenue (Non-GAAP)

(in millions) Amount Pct.

Salix $ 1,169 $ — $ — $ 1,169 $ 1,057 $ 14 $ 1,071 $ 98 9 %

International 540 13 — 553 541 (5) 536 17 3 %

Solta Medical 241 5 — 246 190 — 190 56 29 %

Diversified 424 — — 424 453 4 457 (33) (7) %

Bausch + Lomb 2,415 (2) (12) 2,401 2,315 (3) 2,312 89 4 %

Total $ 4,789 $ 16 $ (12) $ 4,793 $ 4,556 $ 10 $ 4,566 $ 227 5 %

Salix Segment:

Salix Segment Revenue

The Salix segment includes the Xifaxan ® product line.

Revenues from our Xifaxan ® product line accounted for approximately 85% of the Salix segment revenues.

The Salix segment revenue for the six months ended June 30, 2025 and 2024 was $1,169 million and $1,057 million, respectively, an increase of $112 million, or 11%.

The increase was primarily attributable to:

(i) an increase in net realized pricing of $62 million, (ii) an increase in volumes of $36 million and (iii) the $14 million impact from the discontinuation of certain non-promoted products which negatively impacted our revenues in 2024.

Salix Segment Profit

The Salix segment profit for the six months ended June 30, 2025 and 2024 was $826 million and $706 million, respectively, an increase of $120 million, or 17%.

The increase was primarily driven by:

(i) higher contribution attributable to

the increase in revenues as previously discussed and (ii) lower R&D expenses, partially offset by an increase in advertising and promotion expenses.

International Segment:

International Segment Revenue

The International segment has a diversified product line with no single product group representing 10% or more of its product sales.

The International segment revenue was $540 million and $541 million for the six months ended June 30, 2025 and 2024, respectively, a decrease of $1 million.

The decrease was primarily attributable to:

(i) decrease in volumes of $13 million, (ii) the unfavorable impact of foreign currencies of $13 million and (iii) the impact of divestitures and discontinuations of $5 million, partially offset by an increase in net realized pricing of $30 million.

International Segment Profit

The International segment profit for the six months ended June 30, 2025 and 2024 was $163 million and $173 million, respectively, a decrease of $10 million, or 6%.

This decrease was primarily driven by an unfavorable change in year over year product mix and an increase in SG&A expenses.

Solta Medical Segment:

Solta Medical Segment Revenue

The Solta Medical segment includes the Thermage ® product line, which accounted for approximately 85% of the Solta Medical segment revenues.

The Solta Medical segment revenue for the six months ended June 30, 2025 and 2024 was $241 million and $190 million, respectively, an increase of $51 million, or 27%.

The increase was attributable to an increase in volumes of $64 million, primarily attributable to the Asia-Pacific region, excluding China, partially offset by:

(i) a decrease in net realized pricing of $8 million and (ii) the unfavorable impact of foreign currencies of $5 million.

Solta Medical Segment Profit

The Solta Medical segment profit for the six months ended June 30, 2025 and 2024 was $107 million and $87 million, respectively, an increase of $20 million, or 23%.

The increase was primarily driven by higher contribution attributable to the increase in revenues as previously discussed, partially offset by higher selling, advertising and promotion expenses.

Diversified Segment:

Diversified Segment Revenue

The Diversified segment revenue for the six months ended June 30, 2025 and 2024 was $424 million and $453 million, respectively, a decrease of $29 million, or 6%.

The decrease was primarily driven by a decrease in volumes of $35 million, primarily in our Neurology business, partially offset by:

(i) the $4 million impact from the discontinuation of certain non-promoted products which negatively impacted our revenues in 2024, primarily in our Generics and Dermatology businesses and (ii) an increase in net realized pricing of $2 million.

Diversified Segment Profit

The Diversified segment profit for the six months ended June 30, 2025 and 2024 was $266 million and $280 million, respectively, a decrease of $14 million, or 5% and was primarily attributable to the decrease in revenues as previously discussed, partially offset by lower advertising and promotion expenses.

Bausch + Lomb Segment:

Bausch + Lomb Segment Revenue

The Bausch + Lomb segment revenue was $2,415 million and $2,315 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $100 million, or 4%.

The increase was primarily due to:

(i) an increase in volumes of $127 million across all the Bausch + Lomb businesses, (ii) incremental sales attributable to acquisitions of $12 million, primarily within the Surgical business and (iii) the favorable impact of foreign currencies of $2 million, partially offset by:

(i) a decrease in net realized pricing of $38 million driven by the Pharmaceuticals business and (ii) the impact of divestitures and discontinuations of $3 million.

Bausch + Lomb Segment Profit

The Bausch + Lomb segment profit for the six months ended June 30, 2025 and 2024 was $428 million and $516 million, respectively, a decrease of $88 million, or 17%.

The decrease was primarily driven by:

(i) higher SG&A expenses primarily attributable to MIEBO ® , (ii) declines in the U.S.

generics business and (iii) the overall impact of the voluntary recall of certain enVista IOL products, partially offset by the increase in revenues.

LIQUIDITY AND CAPITAL RESOURCES

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2025 2024 Change

Net loss $ (86) $ (77) $ (9)

Net income (loss) $ 42 $ (78) $ 120

Adjustments to reconcile net loss to net cash provided by operating activities 432 672 (240)

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Net cash used in investing activities (230) (152) (78)

Net cash used in financing activities (146) (340) 194

Net cash provided by (used in) financing activities 212 (764) 976

Effect of exchange rate changes on cash, cash equivalents and restricted cash 60 (14) 74

Net decrease in cash, cash equivalents and restricted cash (44) (207) 163

Net increase (decrease) in cash, cash equivalents and restricted cash 542 (339) 881

Cash, cash equivalents and restricted cash, beginning of period 1,201 962 239

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Operating Activities

Net cash provided by operating activities was $211 million for each of the three months ended March 31, 2025 and 2024.

Cash provided by operating activities before changes in operating assets and liabilities was $276 million and $246 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $30 million and is primarily attributable to improved operating performance as previously discussed, partially offset by:

(i) payment of $28 million of

acquired in-process research and development costs in 2025 related to Bausch + Lomb’s acquisition of Whitecap Biosciences as previously discussed, and (ii) higher Payments of accrued legal settlements.

Changes in operating assets and liabilities resulted in net decreases in cash of $65 million and $35 million for the three months ended March 31, 2025 and 2024, respectively, an unfavorable change of $30 million.

During the three months ended March 31, 2025, Changes in operating assets and liabilities were unfavorably impacted by:

Net cash provided by operating activities was $500 million and $591 million for the six months ended June 30, 2025 and 2024, respectively, a decrease of $91 million.

Cash provided by operating activities before changes in operating assets and liabilities was $474 million and $594 million for the six months ended June 30, 2025 and 2024, respectively, a decrease of $120 million and is primarily attributable higher Payments of accrued legal settlements of $102 million during 2025 as compared to 2024, partially offset by our improved operating performance as previously discussed.

Changes in operating assets and liabilities resulted in net increase in cash of $26 million for the six months ended June 30, 2025 and a decrease of $3 million for the six months ended June 30, 2024, an increase of $29 million.

During the six months ended June 30, 2025, Changes in operating assets and liabilities were favorably impacted by:

(i) the timing of certain payments in the ordinary course of business of $30 million and (ii) an increase in inventories of $23 million, partially offset by the favorable timing in the collection of trade receivables of $19 million.

During the three months ended March 31, 2024, changes in operating assets and liabilities were unfavorably impacted by:

(i) an increase in inventories of $144 million and (ii) timing of collection of trade receivables of $63 million, partially offset by the unfavorable impact of the timing of certain payments in the ordinary course of business of $172 million.

During the six months ended June 30, 2024, changes in operating assets and liabilities were unfavorably impacted by:

(i) an increase in inventories of $176 million and (ii) timing of collection of trade receivables of $135 million, partially offset by timing of other payments in the ordinary course of business of $308 million.

Investing Activities

Net cash used in investing activities was $130 million for the three months ended March 31, 2025 and was primarily driven by Purchases of property, plant and equipment and B+L acquisitions and other investments.

Net cash used in investing activities was $73 million for the three months ended March 31, 2024 and was primarily driven by purchases of property, plant and equipment.

Net cash used in investing activities was $230 million for the six months ended June 30, 2025 and was primarily driven by Purchases of property, plant and equipment and B+L acquisitions and other investments.

Net cash used in investing activities was $152 million for the six months ended June 30, 2024 and was primarily driven by Purchases of property, plant and equipment.

Financing Activities

Net cash used in financing activities was $146 million for the three months ended March 31, 2025 and was primarily driven by the repayment of long-term debt of $168 million which includes:

(i) $127 million of contractual interest payments on the 2022 Secured Notes allocated to the reduction of the recorded premiums and (ii) $41 million of amortization payments related to our term loan facilities, partially offset by $50 million of additional borrowings under the B+L Revolving Credit Facility.

Net cash used in financing activities was $340 million for the three months ended March 31, 2024 and was primarily driven by the repayment of long-term debt of $390 million which includes:

(i) the repurchase and retirement of certain outstanding senior unsecured notes in the open market with aggregate par value of $250 million for approximately $238 million, (ii) $50 million of repayments under the B+L Revolving Credit Facility, (iii) $39 million of contractual interest payments on the 2022 Secured Notes allocated to the reduction of the recorded premiums, as discussed above, (iv) $38 million of amortization payments on our term loan facilities and (v) repayments of $25 million under our AR Credit Facility, partially offset by $75 million of additional borrowings under the B+L Revolving Credit Facility.

Net cash provided by financing activities was $212 million for the six months ended June 30, 2025 and was primarily driven by Issuance of long-term debt, net of discounts, of $10,422 million which included:

(i) the net proceeds from the April 2025 Refinancing Transactions and the B+L June 2025 Refinancing Activity and (ii) additional borrowings under the B+L May 2027 Revolving Credit Facility.

Issuance of long-term debt was partially offset by Repayments of long-term debt of $10,135 million and Payments of financing costs of $36 million.

Repayments of long-term debt include:

(i) repayments of debt with the proceeds of the April 2025 Refinancing Transactions and the B+L June 2025 Refinancing Activity, (ii) $164 million of contractual interest payments on the 2022 Secured Notes allocated to the reduction of the recorded premiums

and (iii) $42 million of amortization payments related to our term loan facilities.

Payments of financing costs primarily relate to the April 2025 Refinancing Transactions and the B+L June 2025 Refinancing Activity.

Net cash used in financing activities was $764 million for the six months ended June 30, 2024 and was primarily driven by the repayment of long-term debt of $885 million which includes:

(i) the repurchase and retirement of certain outstanding senior unsecured notes with aggregate par value of $555 million for approximately $530 million, (ii) $147 million of contractual interest payments on the 2022 Secured Notes allocated to the reduction of the recorded premiums, (iii) $78 million of amortization on the term loan B facilities, (iv) $50 million of repayments under the B+L May 2027 Revolving Credit Facility and (v) repayments of $50 million under our AR Credit Facility and $30 million under our 2027 Revolving Credit Facility, partially offset by the issuance of long-term debt of $155 million, representing borrowings of $125 million under the B+L May 2027 Revolving Credit Facility and $30 million under our 2027 Revolving Credit Facility.

See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for additional information regarding the financing activities described above, including the definitions of certain defined terms used above.

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We believe these sources will be sufficient to meet our current liquidity needs for the next twelve months.

Cash, cash equivalents and restricted cash as presented in the Condensed Consolidated Balance Sheet as of March 31, 2025 includes $215 million of cash, cash equivalents and restricted cash held by legal entities of Bausch + Lomb.

Cash, cash equivalents and restricted cash as presented in the Condensed Consolidated Balance Sheet as of June 30, 2025 includes $272 million of cash, cash equivalents and restricted cash held by legal entities of Bausch + Lomb.

Cash held by Bausch + Lomb legal entities and any future cash from the operating, investing and financing activities of Bausch + Lomb is expected to be retained by Bausch + Lomb entities and is generally not available to support the operations, investing and financing activities of other legal entities, including Bausch Health unless paid as a dividend which would be determined by the Board of Directors of Bausch + Lomb and paid pro rata to Bausch + Lomb’s shareholders.

As a result of the April 2025 Refinancing Transactions, as discussed in the section titled “— Overview — Focus on Core Businesses — Effectively Managing our Capital Structure — April 2025 Refinancing Transactions” above, the maturities of our principal balances of debt obligations as of April 8, 2025 were as follows:

(in millions) Remainder of 2025 2026 2027 2028 2029 2030 2031 and 2032 Total

As of June 30, 2025, we had aggregate maturities and mandatory payments of our principal balances of debt obligations as follows:

(in millions) Remainder of 2025 2026 2027 2028 2029 2030 Thereafter Total

Total debt obligations $ 29 $ 660 $ 701 $ 6,223 $ 1,663 $ 4,018 $ 7,856 $ 21,150

indebtedness, issuing new debt instruments, divesting of assets or businesses and issuing equity or equity-linked securities (including secondary offerings or other monetization of a portion of our holdings of common shares of Bausch + Lomb), as deemed appropriate, to manage our debt maturities and to improve our capital structure and liquidity.

On July 28, 2025 we issued an irrevocable notice to redeem approximately $602 million of aggregate principal amount of our outstanding 9.25% Senior Unsecured Notes due 2026 and repay all outstanding amounts under our AR Credit Facility using cash on hand.

As of July 30, 2025, the aggregate principal amount outstanding under the AR Credit Facility was $300 million.

The schedule of maturities above does not give effect to these transactions announced on July 28, 2025.

We regularly evaluate market conditions, our liquidity profile and available financing alternatives and may consider executing opportunistic financing transactions, including but not limited to, refinancing or restructuring consolidated indebtedness, issuing new debt instruments, divesting of assets or businesses and issuing equity or equity-linked securities (including secondary offerings or other monetization of a portion of our holdings of common shares of Bausch + Lomb), as deemed appropriate, to manage our debt maturities and to improve our capital structure and liquidity.

Our ability to satisfy our debt obligations will depend principally upon our future operating performance, as well as our continuing efforts to improve our balance sheet.

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Long-term Debt

Long-term debt, net of unamortized premiums, discounts and issuance costs was $21,510 million and $21,616 million as of March 31, 2025 and December 31, 2024, respectively.

Aggregate contractual principal amounts due under our debt obligations were $20,489 million and $20,480 million as of March 31, 2025 and December 31, 2024, respectively, an increase of $9 million.

2025 Senior Secured Credit Facilities

On April 8, 2025, a subsidiary of the Company, 1261229 B.C.

(the “Issuer”) entered into a credit agreement that provides for new senior secured credit facilities (the “2025 Credit Agreement”) consisting of a five-year senior secured revolving credit facility in an amount of $500 million due April 8, 2030 (the “2030 Revolving Credit Facility”) and a $3,000 million 5.5-year senior secured term loan B facility due October 8, 2030 (the “2030 Term Loan B Facility” and together with the 2030 Revolving Credit Facility, the “2025 Senior Secured Credit Facilities”).

Long-term debt, net of unamortized premiums, discounts and issuance costs was $21,738 million and $21,616 million as of June 30, 2025 and December 31, 2024, respectively.

Aggregate contractual principal amounts due under our debt obligations were $21,150 million and $20,480 million as of June 30, 2025 and December 31, 2024, respectively, an increase of $670 million.

Description of 2025 Senior Secured Credit Facilities

Borrowings under the 2030 Term Loan B Facility bear interest, with respect to U.S.

dollar borrowings, based on the Company’s election of either (1) an alternate base rate equal to the highest of:

(i) the prime rate then in effect, (ii) the greater of the federal funds effective rate and the overnight bank funding rate (each subject to a 0% floor), plus 0.500% and (iii) the Term SOFR Rate (as defined in the 2025 Credit Agreement) for a one-month interest period, plus 1.000%, subject to a 1.000% floor, plus the Applicable Rate (as defined in the 2025 Credit Agreement) or (2) the Term SOFR Rate for the applicable interest period, subject to a 0% floor, plus the Applicable Rate.

(i) the prime rate then in effect, (ii) the greater of the federal funds effective rate and the overnight bank funding rate (each subject to a 0% floor), plus 0.500% and (iii) the Term SOFR (as defined in the 2025 Credit Agreement) for a one-month interest period, plus 1.000%, subject to a 1.000% floor, plus the Applicable Rate (as defined in the 2025 Credit Agreement) or (2) the Term SOFR Rate for the applicable interest period, subject to a 0% floor, plus the Applicable Rate.

The Applicable Rate in connection with a borrowing under the 2030 Term Loan B Facility is 5.25% per annum for alternate base rate borrowings and 6.25% per annum for Term SOFR Rate borrowings.

The 2030 Revolving Credit Facility will mature on the earlier of April 8, 2030 and the date that is 91 calendar days prior to the scheduled maturity of indebtedness for borrowed money of the Company or the Issuer in an aggregate principal amount in excess of $1,000 million.

The 2030 Revolving Credit Facility will mature on the earlier of April 8, 2030 and the date that is 91 calendar days prior to the scheduled maturity of indebtedness for borrowed money of the Company or 126NumberCo in an aggregate principal amount in excess of $1,000 million.

Borrowings under the 2030 Revolving Credit Facility can be made in U.S.

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Borrowings under the 2030 Revolving Credit Facility bear interest, with respect to U.S.

dollar borrowings, based on the Company’s election of either (1) an alternate base rate equal to the Applicable Rate plus the highest of:

dollar borrowings, based on the Company’s election of either (1) an alternate base rate equal to the highest of:

(i) the prime rate then in effect, (ii) the greater of the federal funds effective rate and the overnight bank funding rate (each subject to a 0% floor), plus 0.500% and (iii) the Adjusted Term SOFR Rate (as defined in the 2025 Credit Agreement) for a one-month interest period (subject to a 0% floor), plus 1.000%, plus the Applicable Rate or (2) the Adjusted Term SOFR Rate for the applicable interest period (subject to a 0% floor), plus the Applicable Rate.

Borrowings under the 2030 Revolving Credit Facility bear interest, with respect to Canadian Dollar borrowings, based on the Company’s election of either (1) the Canadian Overnight Repo Rate Average (“Term CORRA”) plus 0.29547% for a one month interest period or 0.32138% for a three-month interest period (subject to a 0% floor), plus the Applicable Rate or (2) a rate equal to the highest of:

(i) the Canadian prime rate then in effect and (ii) the annual rate of interest equal to the sum of the (x) Term CORRA rate plus 0.29547% for a one month interest period and (y) 1.00% (each subject to a 1.00% floor), plus the Applicable Rate.

(i) the Canadian prime rate then in effect and (ii) the annual rate of interest equal to the sum of the (x) Term CORRA rate plus 0.29547% and (y) 1.00% (each subject to a 1.00% floor), plus the Applicable Rate.

Borrowings under the 2030 Revolving Credit Facility bear interest, with respect to Euro borrowings, based on the Adjusted EURIBOR Screen Rate (as defined in the 2025 Credit Agreement), subject to a 0% floor, for any applicable interest period plus the Applicable Rate.

The Applicable Rate in connection with alternate base rate borrowings, Canadian prime rate loans and swingline loans is 3.25% and in connection with Adjusted Term SOFR Rate loans, Adjusted EURIBOR Rate loans and Adjusted Term CORRA Rate loans is 4.25%;

provided that, in connection with any borrowing, the Applicable Rate is subject to two 0.250% step-downs subject to compliance with a Blended First Lien Leverage Ratio (as defined in the 2025 Credit Agreement) of equal to or less than 2.6:1.00 and equal to or less than 2.1:1.00, respectively.

In addition, the Company is required to pay commitment fees of 0.50% per annum in respect of the unutilized commitments (but in the case of swingline loans, whether

utilized or unutilized) under the 2030 Revolving Credit Facility, payable quarterly in arrears, subject to two 0.125% step-downs subject to compliance with a Blended First Lien Leverage Ratio of equal to or less than 2.6:1.00 and equal to or less than 2.1:1.00, respectively.

In addition, the Company is required to pay commitment fees of 0.50% per annum in respect of the unutilized commitments (but in the case of swingline loans, whether utilized or unutilized) under the 2030 Revolving Credit Facility, payable quarterly in arrears, subject to two 0.125% step-downs subject to compliance with a Blended First Lien Leverage Ratio of equal to or less than 2.6:1.00 and equal to or less than 2.1:1.00, respectively.

The Company is also required to pay letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the Applicable Rate in connection with Adjusted Term SOFR Rate loans, Adjusted EURIBOR Rate loans and Adjusted Term CORRA Rate loans under the 2030 Revolving Credit Facility on a per annum basis, payable quarterly in arrears, as well as customary fronting fees (not to exceed 0.125% per annum) for the issuance of letters of credit and agency fees.

The Issuer is permitted to voluntarily prepay outstanding loans under the 2030 Term Loan B Facility, in whole or in part, without premium or penalty subject to customary “breakage” costs.

The 2030 Term Loan B Facility includes a 100% net cash proceeds sweep, on a pro rata basis with obligations under the 2032 Senior Secured Notes, in connection with (i) the receipt of net cash proceeds from the sale of Bausch + Lomb Share Collateral, (ii) the receipt of any dividends, distributions or other amounts on account of such Bausch + Lomb Share Collateral, (iii) incurrence of indebtedness that is not otherwise permitted, (iv) certain asset sales or other dispositions of any property of the Company or its restricted subsidiaries and certain casualty or condemnation events (subject to reinvestment rights and with any prepayments to be shared ratably with the 11.00% First Lien Notes due September 2028, the 2028 Senior Secured Notes and the 2032 Senior Secured Notes) and (v) cash of the Issuer from payments under certain intercompany obligations after funding principal and interest payments (including for the subsequent six months) under the 2025 Credit Agreement and the 2032 Senior Secured Notes.

The 2030 Term Loan B Facility will mature October 8, 2030.

126NumberCo is permitted to voluntarily prepay outstanding loans under the 2030 Term Loan B Facility, in whole or in part, without premium or penalty subject to customary “breakage” costs.

The 2030 Term Loan B Facility includes a 100% net cash proceeds sweep, on a pro rata basis with obligations under the 2032 Senior Secured Notes, in connection with (i) the receipt of net cash proceeds from the sale or disposition of Bausch + Lomb Share Collateral, (ii) the receipt of any dividends, distributions or other amounts on account of such Bausch + Lomb Share Collateral if such amounts received exceed $50 million, (iii) incurrence of indebtedness that is not otherwise permitted, (iv) certain asset sales or other dispositions of any property of the Company or its restricted subsidiaries and certain casualty or condemnation events in each case, in excess of $100 million in any fiscal year (subject to reinvestment rights and with any prepayments to be shared ratably with the 11.00% First Lien Secured Notes due September 2028, the 2028 Senior Secured Notes and the 2032 Senior Secured Notes) and (v) cash of 126NumberCo from payments under certain intercompany obligations after funding principal and interest payments (including for the subsequent six months) under the 2025 Credit Agreement and the 2032 Senior Secured Notes.

The 2030 Term Loan B Facility will mature on October 8, 2030.

The amortization rate for the 2030 Term Loan B Facility is 1.00% per annum, or $30 million, payable in quarterly installments beginning on September 30, 2025.

The Issuer may direct that prepayments be applied to such amortization payments in order of maturity.

The mandatory quarterly amortization payments for the 2030 Term Loan B Facility will be $158 million through October 2030.

The 2025 Credit Agreement provides for an accordion feature that allows the Issuer, on one or more occasions prior to December 31, 2025, to increase the size of the 2030 Term Loan B Facility, add one or more incremental term loan facilities or incur incremental equivalent debt in an aggregate amount not to exceed $1,600 million less the amount of any Drop Down Debt (as defined in the 2025 Credit Agreement) originally incurred (whether or not such Drop Down Debt remains outstanding at the time of such incurrence of incremental term loan facilities or incremental equivalent debt), secured by the collateral on a pari passu basis with the 2030 Term Loan B Facility and the 2030 Revolving Credit Facility.

The incurrence of such incremental term loan facilities or incremental equivalent debt is subject to customary conditions, including that a specified amount of Bausch + Lomb shares are added to the Bausch + Lomb Share Collateral based on the amount of such incremental term loan facilities or incremental equivalent debt incurred.

In addition, the Issuer and the guarantors shall be able to incur junior lien or unsecured indebtedness in an amount such that after giving effect to the incurrence of any such debt, the Company would be in compliance, on a pro forma basis after giving effect to such incurrence of such indebtedness, with either a (i) Fixed Charge Coverage Ratio that is no less than 2.00 to 1.00 or (ii) Total Leverage Ratio that is no greater than 6.50 to 1.00, in each case, subject to customary terms and conditions, and with such ratios as defined in the 2025 Credit Agreement.

The 2030 Revolving Credit Facility, which is part of the 2025 Credit Agreement, also contains financial maintenance covenants, that require the Company to maintain (1) a Blended First Lien Leverage Ratio (as defined in the 2025 Credit Agreement) of not greater than (i) 4.25:1.00, prior to the Covenant Step Up Date (as defined in the 2025 Credit Agreement) and (ii) 5.75:1.00 on and after such date and (2) minimum liquidity of not less than $400 million on or after the Covenant Step Up Date.

Senior Secured Credit Facilities under the B+L Credit Agreement

On May 10, 2022, Bausch + Lomb entered into a credit agreement (the “B+L Credit Agreement”, and the credit facilities thereunder, the “B+L Credit Facilities”).

Prior to the B+L September 2023 Credit Facility Amendment (as defined below), the B+L Credit Agreement provided for a term loan of $2,500 million with a five-year term to maturity (the “B+L May 2027 Term Loan B Facility”) and a five-year revolving credit facility of $500 million (the “B+L Revolving Credit Facility”).

B+L Senior Secured Notes and B+L Term Loan B Facility

On September 29, 2023, Bausch + Lomb entered into an incremental term loan facility secured on a pari passu basis with its existing B+L May 2027 Term Loan B Facility.

This incremental term loan facility was entered into in the form of an incremental amendment (the “September 2023 Credit Facility Amendment”) to the existing B+L Credit Agreement (the B+L Credit Agreement, as amended by the September 2023 Credit Facility Amendment, the “Initial B+L Amended Credit Agreement”) and consisted of borrowings of $500 million in new term B loans with a five-year term to maturity (the “B+L September 2028 Term Loan B Facility”).

On November 1, 2024, Bausch + Lomb entered into an additional incremental term loan facility secured on a pari passu basis with its existing B+L May 2027 Term Loan B Facility and B+L September 2028 Term Loan B Facility.

This incremental term loan facility was entered into in the form of an incremental amendment (the “November 2024 Credit Facility Amendment”) to the Initial B+L Amended Credit Agreement (the Initial B+L Amended Credit Agreement, as amended by the November 2024 Credit Facility Amendment, the “B+L Second Amended Credit Agreement”) and consisted of borrowing $400 million of new term loans with a maturity of May 2027 (the “B+L May 2027 Incremental Term Loan B Facility” and, together with the B+L September 2028 Term Loan B Facility and the B+L May 2027 Term Loan B Facility, the “B+L Term Facilities”, and the B+L Term Facilities, together with the B+L Revolving Credit Facility, the “B+L Senior Secured Credit Facilities”).

The proceeds from the B+L May 2027 Incremental Term Loan B Facility were used to repay revolving loans outstanding under the B+L Amended Credit Agreement and for general corporate purposes.

126NumberCo may direct that prepayments be applied to such amortization payments in order of maturity.

Aggregate mandatory quarterly amortization payments for the 2030 Term Loan B Facility will be $158 million through October 2030.

The 2025 Credit Agreement provides for an accordion feature that allows 126NumberCo, on one or more occasions prior to December 31, 2025, to increase the size of the 2030 Term Loan B Facility, add one or more incremental term loan facilities or incur incremental equivalent debt in an aggregate amount not to exceed $1,600 million less the amount of any Drop Down Debt (as defined in the 2025 Credit Agreement) originally incurred (whether or not such Drop Down Debt remains outstanding at the time of such incurrence of incremental term loan facilities or incremental equivalent debt), secured by the collateral on a pari passu basis with the 2025 Senior Secured Credit Facilities.

The incurrence of such incremental term loan facilities or incremental equivalent debt is subject to certain conditions, including that a specified amount of Bausch + Lomb shares are added to the Bausch + Lomb Share Collateral based on the amount of such incremental term loan facilities or incremental equivalent debt incurred.

In addition, the Company, 126NumberCo and the guarantors shall be able to incur junior indebtedness in an amount such that after giving effect to the incurrence of any such debt, the Company would be in compliance, on a pro forma basis after giving effect to such incurrence of such indebtedness, with either a (i) Fixed Charge Coverage Ratio (as defined in the 2025 Credit Agreement) that is no less than 2.00 to 1.00 or (ii) Total Leverage Ratio (as defined in the 2025 Credit Agreement) that is no greater than 6.50 to 1.00, provided that, in each case, the terms of such junior indebtedness are not materially more favorable than the terms of the 2025 Senior Secured Credit Facilities, the weighted average life to maturity of such junior indebtedness is not shorter than the remaining weighted average life to maturity of any term loans outstanding, and the final maturity date of such junior indebtedness is no earlier than 91 days after the Latest Maturity Date (as defined in the 2025 Credit Agreement) then in effect.

The 2030 Revolving Credit Facility contains financial maintenance covenants that require the Company to maintain (1) a Blended First Lien Leverage Ratio of not greater than (i) 4.25:1.00, prior to the Covenant Step Up Date (as defined in the 2025 Credit Agreement) and (ii) 5.75:1.00 on and after such date and (2) minimum liquidity of not less than $400 million on and after the Covenant Step Up Date.

Description of Accounts Receivable Credit Facility

On June 30, 2023, we entered into the AR Facility Agreement with certain third-party lenders, providing for a non-recourse financing facility collateralized by certain of the Company’s accounts receivable.

The AR Facility Agreement provides for an up to $600 million facility.

On July 28, 2025 we gave notice to the administrative agent under our AR Facility Agreement of our intention to repay using cash on hand all outstanding amounts under our AR Credit Facility and to terminate the AR Credit Facility effective October 27, 2025.

See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for additional details.

Description of B+L Senior Secured Credit Facilities

Borrowings under the B+L 2030 Revolving Credit Facility in:

dollars bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either:

(a) a term SOFR-based rate or (b) a U.S.

dollar base rate, (ii) Canadian dollars bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either:

(a) a term CORRA-based rate or (b) a Canadian dollar prime rate, (iii) euros bear interest at a rate per annum equal to the Euro Interbank Offered Rate (“EURIBOR”) and (iv) pounds sterling bear interest at a rate per annum equal to Sterling Overnight Index Average (“SONIA”) (provided, however, that the term SOFR-based rate, term CORRA-based rate, EURIBOR and SONIA shall be no less than 0.00% per annum at any time and the U.S.

dollar base rate and the Canadian dollar prime rate shall be no less than 1.00% per annum at any time), in each case, plus the Applicable Rate (as defined in the B+L Amended Credit Agreement).

Term SOFR-based borrowings under the B+L 2030 Revolving Credit Facility are not subject to any credit spread adjustment.

The Applicable Rate under the B+L 2030 Revolving Credit Facility is between 0.75% to 1.75% with respect to U.S.

dollar base rate or Canadian dollar prime rate borrowings and between 1.75% to 2.75% with respect to SOFR, CORRA, EURIBOR or SONIA borrowings based on Bausch + Lomb’s total net leverage ratio.

In addition, Bausch + Lomb is required to pay commitment fees of 0.25% per annum in respect of the unutilized commitments under the B+L 2030 Revolving Credit Facility, payable quarterly in arrears.

Bausch + Lomb is also required to pay letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on SOFR borrowings under the B+L 2030 Revolving Credit Facility on a per annum basis, payable quarterly in arrears, as well as customary fronting fees for the issuance of letters of credit and agency fees.

Borrowings under the B+L September 2028 Term Loan B Facility bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either:

(i) a term SOFR-based rate, plus an applicable margin of 4.00%, or (ii) a U.S.

dollar base rate, plus an applicable margin of 3.00% (provided, however, that the term SOFR-based rate shall be no less than 0.00% per annum at any time and the U.S.

dollar base rate shall not be lower than 1.00% per annum at any time).

Term SOFR-based borrowings

under the B+L September 2028 Term Loan B Facility are not subject to any credit spread adjustment.

The stated rate of interest under the B+L September 2028 Term Loan B Facility at June 30, 2025 was 8.33% per annum.

Borrowings under the B+L January 2031 Term Loan B Facility bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either:

(i) a term SOFR-based rate, plus an applicable margin of 4.25%, or (ii) a U.S.

dollar base rate, plus an applicable margin of 3.25% (provided, however, that the term SOFR-based rate shall be no less than 0.00% per annum at any time and the U.S.

dollar base rate shall not be lower than 1.00% per annum at any time).

Term SOFR-based borrowings under the B+L January 2031 Term Loan B Facility are not subject to any credit spread adjustment.

The stated rate of interest under the B+L January 2031 Term Loan B Facility at June 30, 2025 was 8.57% per annum.

Subject to certain exceptions and customary baskets set forth in the B+L Amended Credit Agreement, Bausch + Lomb is required to make mandatory prepayments of the loans under the B+L Term Facilities under certain circumstances, including from:

(i) 100% of the net cash proceeds of insurance and condemnation proceeds for property or asset losses (subject to reinvestment rights, decrease based on leverage ratios and a net proceeds threshold), (ii) 100% of the net cash proceeds from the incurrence of debt (other than permitted debt as described in the B+L Amended Credit Agreement), (iii) 50% of Excess Cash Flow (as defined in the B+L Amended Credit Agreement) subject to decrease based on leverage ratios and subject to a threshold amount and (iv) 100% of net cash proceeds from asset sales (subject to reinvestment rights, decrease based on leverage ratios and a net proceeds threshold).

These mandatory prepayments may be used to satisfy future amortization.

The amortization rate for the B+L September 2028 Term Loan B Facility is 1.00% per annum, or $5 million, payable in quarterly installments.

Bausch + Lomb may direct that prepayments be applied to such amortization payments in order of maturity.

As of June 30, 2025, the remaining mandatory quarterly amortization payments for the B+L September 2028 Term Loan B Facility were $15 million through June 2028, with the remaining term loan balance being due in September 2028.

The amortization rate for the B+L January 2031 Term Loan B Facility is 1.00% per annum, or $23 million, payable in quarterly installments, with the first installment to be paid on September 30, 2025.

Bausch + Lomb may direct that prepayments be applied to such amortization payments in order of maturity.

As of June 30, 2025, aggregate remaining mandatory quarterly amortization payments for the B+L January 2031 Term Loan B Facility were $128 million through December 2030, with the remaining term loan balance being due in January 2031.

The B+L Senior Secured Credit Facilities are secured by substantially all of the assets of Bausch + Lomb and its material, wholly-owned Canadian, U.S., Dutch and Irish subsidiaries, subject to certain exceptions.

The B+L Term Facilities are denominated in U.S.

dollars, and borrowings under the B+L Revolving Credit Facility may be made available in U.S.

dollars, euros, pounds sterling (and, subject to the B+L Suspension of Rights Agreement, Canadian dollars).

As of March 31, 2025, the B+L Revolving Credit Facility had $160 million of outstanding borrowings, $36 million of issued and outstanding letters of credit and $304 million of remaining availability.

dollars, and borrowings under the B+L 2030 Revolving Credit Facility can be made in U.S.

dollars, euros, pounds sterling and Canadian dollars.

As of June 30, 2025, the principal amounts outstanding under the B+L September 2028 Term Loan B Facility and the B+L January 2031 Term Loan B Facility were $491 million and $2,325 million, respectively.

See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for additional details.

Description of Senior Secured Notes

2032 Senior Secured Notes

The 2032 Senior Secured Notes are:

(i) secured, subject to customary limitations, by a first priority lien on substantially all of the assets of 126NumberCo, including a pledge of 185,468,421 common shares of Bausch + Lomb owned by 126NumberCo and (ii) jointly and severally guaranteed by (x) the Company and subsidiaries of the Company that guarantee the Existing Senior Notes (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements) (the “BHC Existing Note Guarantors”), with such guarantees secured by the assets of such guarantors, subject to customary limitations, by a first-priority lien that ranks pari passu with the liens securing the Company’s Existing Senior Secured Notes (as defined below) and the 2025 Credit Agreement and (y) certain subsidiaries of the Company that do not guarantee the Company’s Existing Senior Notes (the “NumberCo Note Guarantors”), with such guarantees secured by the assets of the NumberCo Note Guarantors (including the Bausch + Lomb Share Collateral) and the assets of the BHC Existing Note Guarantors, subject to customary limitations, by a first-priority lien that ranks pari passu with the liens securing the 2025 Credit Agreement.

The 2032 Senior Secured Notes are redeemable at the option of 126NumberCo, in whole or in part, at any time on or after April 15, 2028, at the redemption prices set forth in the indenture that governs the 2032 Senior Secured Notes.

Prior to April 15, 2028, 126NumberCo may redeem all or a portion of the 2032 Senior Secured Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the date of redemption, plus a “make-whole” premium.

The 2032 Senior Secured Notes are subject to mandatory redemption upon (i) the receipt of net cash proceeds from the sale of Bausch + Lomb Share Collateral, (ii) the receipt of any dividends, distributions or other amounts on account of such Bausch + Lomb Share Collateral if such amounts received exceed $50 million or (iii) the receipt of funds from any repayment of principal on certain intercompany obligations.

Upon the occurrence of a change of control (as defined in the indenture that governs the 2032 Senior Secured Notes), holders of 2032 Senior Secured Notes may require 126NumberCo to repurchase such holder’s 2032 Senior Secured Notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest to, but not including, the purchase date applicable to the 2032 Senior Secured Notes.

Description of Existing Senior Secured Notes

Senior secured notes issued prior to 2025 (the “Existing Senior Secured Notes”) are guaranteed by the BHC Existing Note Guarantors.

126NumberCo and its direct parent, 1530065 B.C.

(“153NumberCo”) are non-guarantor restricted subsidiaries with respect to the Existing Senior Secured Notes.

The Existing Senior Secured Notes and their related guarantees rank equally in right of payment with all existing and future unsubordinated indebtedness and rank senior to any future subordinated indebtedness of both the Company and the BHC Existing Note Guarantors.

Additionally, the Existing Senior Secured Notes and their guarantees are effectively pari passu with any existing and future indebtedness of the Company and the BHC Existing Note Guarantors that is secured by a first-priority lien on the same collateral.

They are effectively senior to any unsecured indebtedness, including the Company’s senior unsecured notes (the “Senior Unsecured Notes”), or indebtedness secured by junior liens, in each case to the extent of the value of the collateral securing the Existing Senior Secured Notes.

Furthermore, the Existing Senior Secured Notes are structurally subordinated to:

(i) all liabilities of the Company’s subsidiaries that do not guarantee the Existing Senior Secured Notes (including 153NumberCo and its subsidiary, 126NumberCo) and (ii) any of the Company’s debt that is secured by assets not included in the collateral package (such as the Bausch + Lomb Share Collateral).

Upon the occurrence of a change in control (as defined in the indentures that govern the Existing Senior Secured Notes), holders of the Existing Senior Secured Notes may require the Company to repurchase such holder’s Existing Senior Secured Notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest to, but not including, the purchase date applicable to the Existing Senior Secured Notes.

Description of B+L Senior Secured Notes

B+L 8.375% Senior Secured Notes due October 2028

On September 29, 2023, Bausch + Lomb issued $1,400 million aggregate principal amount of 8.375% Senior Secured Notes due October 2028 (the “B+L October 2028 Senior Secured Notes”) which are guaranteed by each of Bausch + Lomb’s subsidiaries that is a guarantor under the B+L Amended Credit Agreement (the “B+L Note Guarantors”).

The B+L October 2028 Senior Secured Notes and the guarantees related thereto are senior obligations and are secured, subject to permitted liens and certain other exceptions, by the same first priority liens that secure Bausch + Lomb’s obligations under the B+L Amended Credit Agreement under the terms of the indentures that govern the B+L October 2028 Senior Secured Notes.

The B+L October 2028 Senior Secured Notes and their related guarantees rank equally in right of payment with all existing and future unsubordinated indebtedness and rank senior to any future subordinated indebtedness of both Bausch + Lomb and the B+L Note Guarantors.

Additionally, these notes and guarantees are effectively pari passu with any existing and future indebtedness of Bausch + Lomb and the B+L Note Guarantors that is secured by a first-priority lien on the same collateral.

They are effectively senior to any unsecured indebtedness or indebtedness secured by junior liens, in each case to the extent of the value of the collateral securing the B+L October 2028 Senior Secured Notes.

Furthermore, the B+L October 2028 Senior Secured Notes are structurally subordinated to:

(i) all liabilities of Bausch + Lomb’s subsidiaries that do not guarantee the notes and (ii) any of Bausch + Lomb’s debt secured by assets that are not included in the collateral package.

Upon the occurrence of a change in control (as defined in the indentures that govern the B+L October 2028 Senior Secured Notes), unless Bausch + Lomb has exercised its right to redeem all of the notes of a series, holders of the B+L October 2028 Senior Secured Notes may require Bausch + Lomb to repurchase such holders’ notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, but not including, the date of purchase.

The B+L October 2028 Senior Secured Notes are redeemable at the option of Bausch + Lomb, in whole or in part, at any time on or after October 1, 2025, at the redemption prices set forth in the indenture.

Prior to October 1, 2025, Bausch + Lomb may redeem the B+L October 2028 Senior Secured Notes in whole or in part at a redemption price equal to the principal amount of the Notes redeemed plus a make-whole premium.

Prior to October 1, 2025, Bausch + Lomb may, on any one or more occasions redeem up to 40% of the aggregate principal amount of the B+L October 2028 Senior Secured Notes

at a redemption price of 108.375% of the principal amount thereof, redeemed plus accrued and unpaid interest to, but not including, the date of redemption with the proceeds of one or more equity offerings.

B+L Senior Secured Notes due January 2031

On June 26, 2025, the “B+L Issuers issued €675 million aggregate principal amount of Senior Secured Floating Rate Notes due January 2031 (the “B+L January 2031 Senior Secured Notes”, and together with the B+L October 2028 Senior Secured Notes, the “B+L Senior Secured Notes”).

The proceeds from the B+L January 2031 Senior Secured Notes, along with the proceeds of the B+L January 2031 Term Loan B Facility (as described above), were used by Bausch + Lomb to:

(i) repay in full outstanding borrowings under the B+L May 2027 Revolving Credit Facility, (ii) refinance, in full, its outstanding term loans due 2027 and (iii) pay related fees and expenses.

The B+L January 2031 Senior Secured Notes accrue interest at a rate per annum of:

(i) three-month EURIBOR (subject to a 0% floor) plus (ii) 3.875%, reset quarterly, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year, commencing on January 15, 2026.

At June 30, 2025, the B+L January 2031 Senior Secured Notes bore interest at 5.87% per annum.

The B+L January 2031 Senior Secured Notes are guaranteed by Bausch + Lomb and each of its subsidiaries (other than the B+L Issuers) that is a guarantor under the B+L Amended Credit Agreement (collectively the “B+L 2031 Note Guarantors”).

The B+L January 2031 Senior Secured Notes and the guarantees related thereto are senior obligations and are secured, subject to permitted liens and certain other exceptions, by the same first priority liens that secure the borrowings under the B+L Amended Credit Agreement and the obligations under the B+L October 2028 Senior Secured Notes.

The B+L January 2031 Senior Secured Notes and their related guarantees rank pari passu in right of payment with all existing and future unsubordinated indebtedness and rank senior to any existing and future indebtedness of both the B+L Issuers and the B+L 2031 Note Guarantors that is expressly subordinated to the B+L January 2031 Senior Secured Notes and the related guarantees.

These notes and guarantees are effectively pari passu with the existing and future indebtedness of the B+L Issuers and the B+L 2031 Note Guarantors that is secured by a first-priority lien on the collateral securing the obligations under the B+L Senior Secured Credit Facilities, the B+L October 2028 Senior Secured Notes and the B+L January 2031 Senior Secured Notes.

They are also effectively senior to any unsecured indebtedness and indebtedness secured by junior liens, in each case to the extent of the value of the shared collateral.

In addition, the B+L January 2031 Senior Secured Notes are structurally subordinated to:

(i) all liabilities of Bausch + Lomb’s subsidiaries (other than the B+L Issuers) that do not guarantee the notes, to the extent of the value of those subsidiaries’ assets and (ii) any of Bausch + Lomb’s debt secured by assets that are not included in the collateral package.

Upon the occurrence of a change in control (as defined in the indenture governing the B+L January 2031 Senior Secured Notes), unless the B+L Issuers have exercised their right to redeem all of the B+L January 2031 Senior Secured Notes, holders of the B+L January 2031 Senior Secured Notes may require the B+L Issuers to repurchase such holders’ B+L January 2031 Senior Secured Notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, but not including, the date of purchase.

The B+L January 2031 Senior Secured Notes are redeemable at the option of the B+L Issuers, in whole or in part, at any time on or after June 30, 2026, at a redemption price of 100.000% of the principal amount thereof, redeemed plus accrued and unpaid interest to, but not including, the date of redemption.

Prior to June 30, 2026, the B+L Issuers may redeem the B+L January 2031 Senior Secured Notes in whole or in part at a redemption price equal to the principal amount of the B+L January 2031 Senior Secured Notes redeemed plus a make-whole premium.

Prior to June 30, 2026, the B+L Issuers may on any one or more occasions redeem up to 40% of the aggregate principal amount of the B+L January 2031 Senior Secured Notes at a redemption price of 103.875% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the date of redemption with the net cash proceeds of one or more equity offerings, subject to certain conditions.

Description of Senior Unsecured Notes

The Senior Unsecured Notes issued by the Company are the Company’s senior unsecured obligations and are jointly and severally guaranteed on a senior unsecured basis by each of its subsidiaries that is a guarantor under the 2022 Amended Credit Agreement (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements).

The Senior Unsecured Notes issued by Bausch Health Americas, Inc.

(“BHA”) are senior unsecured obligations of BHA and are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its subsidiaries (other than BHA) that is a guarantor under the 2022 Amended Credit Agreement.

Future subsidiaries of the Company and BHA, if any, may be required to guarantee the Senior Unsecured Notes.

In connection with the closing of the B+L IPO, the discharge of the April 2025 Unsecured Notes Indenture and the related release under the 2022 Amended Credit Agreement, the guarantees and related security provided by Bausch + Lomb and its subsidiaries in respect of the Existing Senior Notes of the Company and BHA were released.

On a non-consolidated basis, the non-guarantor subsidiaries under the indentures that govern the Company’s Existing Senior Notes had total assets of $24,414 million and

total liabilities of $15,869 million as of June 30, 2025, and revenues of $2,802 million and an operating loss of $115 million for the six months ended June 30, 2025.

Accounting for the 2022 Exchange

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The portion of each contractual interest payment allocated to reduce the recorded premium is determined as the difference between the payment due and the calculated interest at the effective interest rate of the underlying carry amount of the associated note.

During the three months ended March 31, 2025 and 2024, the Company made contractual interest payments of $143 million and $45 million, respectively, related to the 2022 Secured Notes, of which $127 million and $39 million, respectively, was recorded as a reduction of the premium.

During the six months ended June 30, 2025 and 2024, the Company made contractual interest payments of $184 million and $167 million, respectively, related to the 2022 Secured Notes, of which $164 million and $147 million, respectively, was recorded as a reduction of the premium.

In connection with the April 2025 Refinancing Transactions, we redeemed the 9.00% Intermediate Holdco Senior Secured Notes issued in connection with the 2022 Exchange.

The following table presents the future scheduled contractual interest payments of our 11.00% First Lien Secured Notes due 2028 and 14.00% Second Lien Secured Notes due 2030 (together, the “2022 Remaining Secured Notes”).

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The amount of interest which reduces the recorded premium will be reported as a financing activity in the Consolidated Statements of Cash Flows.

The 9.00% Intermediate Holdco Senior Secured Notes have not been included in the table below as they were refinanced as part of the April 2025 Refinancing Transactions.

The accounting conclusions regarding the April 2025 Refinancing Transactions have not been finalized and therefore it is possible that additional premiums may be recorded in connection with certain of the debt issued as part of this refinancing.

(in millions) Remainder of 2025 2026 2027 2028 2029 2030 Total

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$ 122 $ 244 $ 244 $ 244 $ 49 $ 50 $ 953

Senior Secured Notes

2032 Senior Secured Notes

The 2032 Senior Secured Notes are:

(i) secured, subject to customary limitations, by a first priority lien on substantially all of the assets of the Issuer, including a pledge of 185,468,421 common shares of Bausch + Lomb owned by the Issuer (representing 52.5% of the outstanding common shares of Bausch + Lomb as of April 8, 2025) and (ii) jointly and severally guaranteed by (x) the Company and subsidiaries of the Company that guarantee the Existing Senior Notes (the “BHC Existing Note Guarantors”), with such guarantees secured by the assets of such guarantors, subject to customary limitations, by a first-priority lien that ranks pari passu with the liens securing the Company’s Existing Senior Secured Notes and the 2025 Credit Agreement and (y) certain subsidiaries of the Company that do not guarantee the Company’s Existing Senior Notes (the “NumberCo Note Guarantors” and, together with the BHC Existing Note Guarantors, the “Note Guarantors”), with such guarantees secured by the assets of the NumberCo Note Guarantors (including the Bausch + Lomb Share Collateral) and the assets of the BHC Existing Note Guarantors, subject to customary limitations, by a first-priority lien that ranks pari passu with the liens securing the 2025 Credit Agreement.

The 2032 Senior Secured Notes are redeemable at the option of the Issuer, in whole or in part, at any time on or after April 15, 2028, at the redemption prices set forth in the indenture that governs the 2032 Senior Secured Notes.

Prior to April 15, 2028, the Issuer may redeem all or a portion of the 2032 Senior Secured Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the date of redemption, plus a “make-whole” premium.

The 2032 Senior Secured Notes are subject to mandatory redemption upon (i) the receipt of net cash proceeds from the sale of Bausch + Lomb Share Collateral, (ii) the receipt of any dividends, distributions or other amounts on account of such Bausch + Lomb Share Collateral in excess of $50 million or (iii) the receipt of funds from any repayment of principal on certain intercompany obligations.

Upon the occurrence of a change of control (as defined in the indenture that governs the 2032 Senior Secured Notes), holders of 2032 Senior Secured Notes may require the Issuer to repurchase such holder’s 2032 Senior Secured Notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest to, but not including, the purchase date applicable to the 2032 Senior Secured Notes.

Existing Senior Secured Notes

Senior secured notes issued prior to 2025 (the “Existing Senior Secured Notes”) are guaranteed by all of the Company’s subsidiaries that are BHC Existing Note Guarantors (together, the “BHC Existing Guarantors”).

The Issuer and its direct parent, 153NumberCo are non-guarantor restricted subsidiaries with respect to the Company’s Existing Senior Secured Notes.

The Existing Senior Secured Notes and the applicable guarantees rank equally in right of repayment with all of the Company’s and the BHC Existing Guarantors’ respective existing and future unsubordinated indebtedness and senior to the Company’s and the BHC Existing Guarantors’ respective future subordinated indebtedness.

The Existing Senior Secured Notes and the applicable guarantees related thereto are effectively pari passu with the Company’s and the BHC Existing Guarantors’ respective existing and future indebtedness secured by a first priority lien on the collateral securing the Existing Senior Secured Notes and effectively senior to the Company’s and the BHC Existing Guarantors’ respective existing and future indebtedness that is unsecured, including the existing senior unsecured notes (the “Senior Unsecured Notes”), or that is secured by junior liens, in each case to the extent of the value of the collateral that secures the Existing Senior Secured Notes.

In addition, the Existing Senior Secured Notes are structurally subordinated to:

(i) all liabilities of any of the Company’s subsidiaries that do not guarantee the Existing Senior Secured Notes (including 153NumberCo and its subsidiaries, including the Issuer) and (ii) any of the Company’s debt that is secured by assets that are not collateral (including the common shares of Bausch + Lomb owned by the Issuer).

Senior Unsecured Notes

The Senior Unsecured Notes (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements) issued by the Company are the Company’s senior unsecured obligations and are jointly and severally guaranteed on a senior unsecured basis by each of its subsidiaries that is a guarantor under the 2022 Amended Credit Agreement (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements).

The Senior Unsecured Notes issued by BHA are senior unsecured

obligations of BHA and are jointly and severally guaranteed on a senior unsecured basis by the Company and each of its subsidiaries (other than BHA) that is a guarantor under the 2022 Amended Credit Agreement.

Future subsidiaries of the Company and BHA, if any, may be required to guarantee the Senior Unsecured Notes.

On a non-consolidated basis, the non-guarantor subsidiaries under the indentures that govern the Company’s Existing Senior Notes had total assets of $16,289 million and total liabilities of $9,031 million as of March 31, 2025, and revenues of $1,320 million and operating loss of $87 million for the three months ended March 31, 2025.

Upon the occurrence of a change in control (as defined in the indentures that govern the Senior Unsecured Notes), holders of the Senior Unsecured Notes may require the Company or BHA, as applicable, to repurchase such holder’s Senior Unsecured Notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the purchase date applicable to the Senior Unsecured Notes.

Accounts Receivable Credit Facility

On June 30, 2023, we entered into the AR Credit Facility with certain third-party lenders, providing for a non-recourse financing facility collateralized by certain of the Company’s accounts receivable.

The AR Facility Agreement (as defined in Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements) provides for an up to $600 million facility, subject to certain borrowing base tests.

Under the AR Credit Facility, a special purpose entity, as borrower (the “Borrower”) purchases accounts receivable, originated by a wholly-owned subsidiary of Bausch Health, which collateralize borrowings under the AR Credit Facility.

The Borrower is a bankruptcy remote entity that is unrestricted under the Company’s debt covenants, and which is consolidated by the Company.

Borrowings under the AR Credit Facility are in U.S.

dollars and bear interest at a rate per annum equal to, the sum of the one month term SOFR plus 6.65%.

The Company is required to pay commitment fees of 0.75% multiplied by the lesser of:

(i) the unfunded portion of the lenders’ commitments or (ii) 50% of the total lenders’ commitments.

See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for additional details.

Availability Under Revolving Credit Facilities

As of April 30, 2025, there were no outstanding borrowings, $24 million of issued and outstanding letters of credit and approximately $476 million of remaining availability under the 2030 Revolving Credit Facility.

As of April 30, 2025, we have $300 million of outstanding borrowings, in the aggregate under the AR Credit Facility, and the AR Facility Agreement provides for up to an additional $300 million of availability, subject to certain borrowing base tests.

As of April 30, 2025, there were $230 million of outstanding borrowings, $36 million of issued and outstanding letters of credit and $234 million of remaining availability under the B+L Revolving Credit Facility.

As of July 30, 2025, there were no outstanding borrowings, $26 million of issued and outstanding letters of credit and approximately $474 million of remaining availability under the 2030 Revolving Credit Facility.

As of July 30, 2025, we have $300 million of outstanding borrowings, in the aggregate under the AR Credit Facility.

On July 28, 2025 we gave notice to the administrative agent under our AR Facility Agreement, of our intention to repay using cash on hand, all outstanding amounts under our AR Credit Facility, and to terminate the AR Credit Facility.

As of July 30, 2025, there were no outstanding borrowings, $38 million of issued and outstanding letters of credit and $762 million of remaining availability under the B+L 2030 Revolving Credit Facility.

Absent the payment of a dividend, which would be determined by the Board of Directors of Bausch + Lomb and paid pro rata to Bausch + Lomb’s shareholders, proceeds from the B+L 2030 Revolving Credit Facility are not available to fund the operations, investing and financing activities of any other subsidiaries of Bausch Health.

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The Company, based on its current forecast, expects to remain in compliance with the financial maintenance covenants related to the 2030 Revolving Credit Facility and to meet its debt service obligations for at least the twelve months following the date of issuance of this Form 10-Q.

Any inability to comply with the covenants under the terms of our 2025 Credit Agreement, Senior Secured Notes indentures or Senior Unsecured Notes indentures could lead to a default or an event of default for which we may need to seek relief from our lenders and noteholders in order to waive the associated default or event of default and avoid a potential acceleration of the related indebtedness or cross-default or cross-acceleration to other debt.

Any inability to comply with the covenants under the terms of our 2025 Credit Agreement, AR Credit Facility, Senior Secured Notes indentures or Senior Unsecured Notes indentures could lead to a default or an event of default for which we may need to seek relief from our lenders and noteholders in order to waive the associated default or event of default and avoid a potential acceleration of the related indebtedness or cross-default or cross-acceleration to other debt.

There can be no assurance that we would be able to obtain such relief on commercially reasonable terms or otherwise and we may be required to incur significant additional costs.

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The Company may consider taking other actions, including divesting other businesses, refinancing debt, issuing equity or equity-linked securities, and the monetization of a portion of its holdings of Bausch + Lomb, as deemed appropriate, to provide additional coverage in complying with the financial maintenance covenant and meeting its debt service obligations.

As of March 31, 2025, Bausch + Lomb was in compliance with the financial and other covenants related to its debt obligations, and, based on its current forecast for the twelve months from the date of issuance of this Form 10-Q, expects to remain in compliance with its financial covenants and meet its debt service obligations over that same period.

However, as discussed in the “Forward-Looking Statements” section of this Form 10-Q, there can be no assurance of Bausch + Lomb’s ability to comply with, or if necessary, obtain a waiver or amendment of, the financial and other covenants contained in the B+L Amended Credit Agreement.

As of June 30, 2025, Bausch + Lomb was in compliance with the financial and other covenants related to its debt obligations, and, based on its current forecast for the twelve months from the date of issuance of this Form 10-Q, expects to remain in compliance with its financial covenants and meet its debt service obligations over that same period.

Weighted Average Interest Rate

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Therefore, interest expense recorded in our financial statements will differ significantly from the contractual interest rates of our debt.

As of March 31, 2025, the weighted average interest rate of our debt as reported in our financial statements was 6.21% and the weighted average stated rate of interest was 7.71%.

As of June 30, 2025, the weighted average interest rate of our debt as reported in our financial statements was 7.56% and the weighted average stated rate of interest was 8.63%.

Focus on Capitalization of the Post-separation Entities

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Credit Rating

As of April 30, 2025, the credit ratings and outlook from Moody’s, Standard & Poor’s and Fitch for certain outstanding obligations of the Company were as follows:

As of July 30, 2025, the credit ratings and outlook from Moody’s, Standard & Poor’s and Fitch for certain outstanding obligations of the Company were as follows:

Bausch Health Companies Inc.

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Rating Agency Corporate Rating Senior Secured Rating Senior Unsecured Rating Outlook Corporate Rating Senior Secured Rating Outlook

Moody’s Caa2 Caa1 Ca Stable B1 B1 Stable

Moody’s Caa2 Caa1 Ca Stable B1 Stable

Standard & Poor’s B- B- CCC+ Negative B B Developing

Fitch CCC+ B CC No Outlook B BB Rating Watch Evolving

Fitch B BB Rating Watch Evolving

Bausch Health Companies Inc.

- On March 19, 2025, Standard & Poor’s raised its corporate rating to B- from CCC+ and senior unsecured rating to CCC+ from CCC.

On April 17, 2025, Fitch raised its corporate rating to CCC+ from CCC and senior unsecured rating to CC from C following the April 2025 Refinancing Transactions which addressed our upcoming debt maturities.

Bausch + Lomb - On March 19, 2025, Standard & Poor’s upgraded its ratings assigned to Bausch + Lomb’s Corporate Rating from B- to B, its Senior Secured Rating from B- to B and changed its outlook from Positive to Developing.

On March 20, 2025, Moody’s initiated a rating assigned to Bausch + Lomb’s Corporate Rating of B1.

On April 17, 2025, Fitch upgraded its ratings assigned to Bausch + Lomb’s Corporate Rating from B- to B and its Senior Secured Rating from BB- to BB.

- On May 9, 2025, Fitch withdrew its ratings of Bausch Health Companies Inc.

There was no change to the corporate credit rating or other credit ratings of Bausch Health Companies Inc.

during the second quarter of 2025.

Bausch + Lomb Corporation - There was no change to the corporate credit rating or other credit ratings of Bausch + Lomb during the second quarter of 2025.

Any downgrade in our corporate credit ratings or other credit ratings may increase our cost of borrowing and may negatively impact our ability to raise additional debt capital.

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We are considering further acquisition opportunities within our core therapeutic areas, some of which could be sizable.

In addition to our working capital requirements, as of March 31, 2025, we expect our primary cash requirements during the remainder of 2025 to include:

• Debt repayments and interest payments —After giving effect to the April 2025 Refinancing Transactions, we anticipate making mandatory maturities and amortization payments of approximately $45 million and interest payments of approximately of $1,225 million during the period April 1, 2025 through December 31, 2025.

We have and, in the future, may also elect to make additional principal payments under certain circumstances.

Further, in the ordinary course of business, we may borrow and repay additional amounts under our credit facilities using cash on hand, cash from operations and cash provided from other financing or refinancing actions, including the sale of equity or equity-linked securities, additional debt financings, and the monetization of a portion of our holdings of Bausch + Lomb;

• Capital expenditures —We expect to make payments of approximately $225 million for property, plant and equipment during the period April 1, 2025 through December 31, 2025;

• Contingent consideration and milestone payments —We expect to make contingent consideration and milestone payments of approximately $33 million during the period April 1, 2025 through December 31, 2025.

In addition to our working capital requirements, as of June 30, 2025, we expect our primary cash requirements during the remainder of 2025 to include:

• Debt repayments and interest payments —We anticipate making mandatory maturities and amortization payments of approximately $29 million and interest payments of approximately of $919 million during the period July 1, 2025 through December 31, 2025.

On July 28, 2025, we issued an irrevocable notice to redeem approximately $602 million of aggregate principal amount of our outstanding 9.25% Senior Unsecured Notes due 2026 and gave notice for the repayment in full of the $300 million drawn under our AR Credit Facility, in each case using cash on hand;

• Capital expenditures —We expect to make payments of approximately $130 million for property, plant and equipment during the period July 1, 2025 through December 31, 2025;

• Acquisition of DURECT —We expect to make an upfront cash payment of approximately $63 million at closing for the acquisition of DURECT in the third quarter of 2025, subject to the transaction closing and certain conditions satisfied, as previously discussed;

• Contingent consideration and milestone payments —We expect to make contingent consideration and milestone payments of approximately $23 million during the period July 1, 2025 through December 31, 2025.

Future Costs of B+L Separation

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In the ordinary course of business, the Company is involved in litigation, claims, government inquiries, investigations, charges and proceedings.

As of March 31, 2025, the Company’s Condensed Consolidated Balance Sheet includes accrued loss contingencies of $310 million related to matters which are both probable and reasonably estimable, however, a reliable estimate of the period in which the remaining loss contingencies will be payable, if ever, cannot be made.

As of June 30, 2025, the Company’s Condensed Consolidated Balance Sheet includes accrued loss contingencies of $232 million related to matters which are both probable and reasonably estimable, however, a reliable estimate of the period in which the remaining loss contingencies will be payable, if ever, cannot be made.

Our ability to successfully defend the Company against pending and future litigation may impact future cash flows.

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Such repurchases or exchanges, if any, will depend on prevailing market conditions, future liquidity requirements, contractual restrictions and other factors.

There have been no other material changes to the contractual obligations disclosed in Item 7.

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Our common shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “BHC”.

At April 25, 2025, we had 369,550,086 issued and outstanding common shares.

In addition, as of April 25, 2025, we had outstanding 6,132,476 stock options and 11,655,871 time-based restricted share units that each represent the right of a holder to receive one of the Company’s common shares, and 3,857,951 performance-based restricted share units that represent the right of a holder to receive a number of the Company’s common shares up to a specified maximum.

At July 25, 2025, we had 369,790,319 issued and outstanding common shares.

In addition, as of July 25, 2025, we had outstanding 5,808,087 stock options, 11,715,684 time-based restricted share units that each represent the right of a holder to receive one of the Company’s common shares and 3,804,224 performance-based restricted share units that represent the right of a holder to receive a number of the Company’s common shares up to a specified maximum.

A maximum of 7,415,196 common shares could be issued upon vesting of the performance-based restricted share units outstanding.

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Management has reassessed the critical accounting policies and estimates as disclosed in Item 7.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC and the CSA on February 19, 2025, and determined that there were no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2025.

Interim Goodwill Assessment

No events occurred or circumstances changed during the three months ended March 31, 2025, that indicated that the fair value of any reporting unit might be below its respective carrying value.

However, as a result of certain market conditions, macroeconomic factors and other business specific related factors that existed in 2024, the Company continues to monitor changes in the facts and circumstances which may impact the fair value of its Dermatology and Generics reporting units.

I f market conditions deteriorate, or if the Company is unable to execute its strategies, it may be necessary to record impairment charges in the future and any such charges could be material.

See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to goodwill.

NEW ACCOUNTING STANDARDS

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our expected primary cash and working capital requirements for this fiscal year and beyond;

the potential impacts of the IRA and the selection by the Centers for Medicare & Medicaid Services (“CMS”) of Xifaxan ® for the second round of negotiation under the drug price negotiation program for initial price applicability in 2027 and our ability to negotiate and mitigate the effects of pricing controls;

the Company’s plans for continued improvement in operational efficiency and the anticipated impact of such plans;

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our ability to comply with the financial and other covenants contained in the 2025 Credit Agreement, senior notes indentures and the AR Facility Agreement;

the ability of our subsidiary, Bausch + Lomb, to comply with the financial and other covenants contained in the B+L Senior Secured Credit Facilities and the B+L Secured Notes;

the recent voluntary recall of certain of Bausch + Lomb’s enVista IOL products and the expected impact of such recall on the Bausch + Lomb business and the anticipated timing of market re-entry and return to full market supply in the U.S.

and other countries;

the potential actions the Company may take to help mitigate the impact of the tariffs, counter-tariffs and other trade restrictions and the success of such actions;

the expected impact of the tariffs imposed by the U.S.

and counter-tariffs or other retaliatory measures imposed on the U.S.

by other countries and disruptions to global supply chains and other potential results as a result of these developments;

of our subsidiary, Bausch + Lomb, to comply with the financial and other covenants contained in the B+L Senior Secured Credit Facilities and the B+L Senior Secured Notes;

the recent voluntary recall of certain of Bausch + Lomb’s enVista IOL products and the expected impact of such recall on the Bausch + Lomb business;

the expected impact of the tariffs imposed (or proposed to be imposed) by the U.S.

(including on the countries in which we do business and sectors in which we do business) and counter-tariffs or other retaliatory measures imposed (or that may be imposed) on the U.S.

by other countries and disruptions to global supply chains and other potential results as a result of these developments and the potential actions the Company may take to help mitigate the impact of the tariffs, counter-tariffs and other trade restrictions and the success of such actions;

expected risks of loss of patent or regulatory exclusivity;

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exposure to foreign currency exchange rate changes and interest rate changes;

the potential effects of the new legislation commonly referred to as One Big Beautiful Bill Act, including the impact of such legislation on the Company’s tax provision for both 2025 and future years;

the potential impact of changes in U.S.

tax laws on the Company’s future tax liabilities and effective tax rate, including as a result of the implementation of the Organisation for Economic Co-operation and Development inclusive framework on Base Erosion and Profit Shifting and the protective measures proposed by the United States in response thereto;

the outcome of contingencies, such as litigation, subpoenas, investigations, reviews, audits and regulatory proceedings;

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the anticipated effect of macroeconomic factors, including inflation and fluctuation in exchange rates and interest rates as a result of imposition of tariff and other trade protection measures;

the anticipated impact from the ongoing conflicts between Russia and Ukraine and between Israel, Hamas and other countries and militant groups in the region;

and the Company’s plan to separate its eye health business, including the costs, structure and timing of completing such separation transaction.

the anticipated impact from the ongoing conflicts between Russia and Ukraine and between Israel, Iran, Hamas and other countries and militant groups in the region;

the Company’s plan to separate its eye health business, including the costs, structure and timing of completing such separation transaction and the transaction with DURECT.

Forward-looking statements can generally be identified by the use of words such as “believe”, “anticipate”, “expect”, “intend”, “estimate”, “plan”, “continue”, “will”, “may”, “could”, “would”, “should”, “target”, “potential”, “opportunity”, “designed”, “create”, “predict”, “project”, “forecast”, “seek”, “strive”, “ongoing”, “likely”, “evolve”, “decrease” or “increase” and variations or other similar expressions.

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• ongoing litigation and potential additional litigation, claims, challenges and/or regulatory investigations challenging or otherwise relating to the B+L IPO and the B+L Separation and the costs, expenses, use of resources, diversion of management time and efforts, liability and damages that may result therefrom;

• with respect to the B+L Separation, the risks and uncertainties include, but are not limited to, the structure of the B+L Separation, the expected benefits and costs of the B+L Separation, the expected timing of completion of the B+L Separation and its manner and terms, the Company’s ability to complete the B+L Separation considering the various conditions to the completion of the B+L Separation (some of which are outside the Company’s control, including conditions related to regulatory matters and applicable shareholder and stock exchange approvals), that market or other conditions are no longer favorable to completing the B+L Separation, that a portion of Bausch Health’s ownership of Bausch + Lomb is pledged as collateral securing the 2025 Credit Agreement and the 2032 Senior Secured Notes, that the Xifaxan ® Generics Litigation (see “Xifaxan ® Paragraph IV Proceedings” of Note 17,

“LEGAL PROCEEDINGS” to our unaudited interim Condensed Consolidated Financial Statements) may affect the timing of, or our ability to complete the B+L Separation, that applicable shareholder, stock exchange, regulatory or other approvals are not obtained on the terms or timelines anticipated or at all, business disruption during the pendency of, or following, the B+L Separation, diversion of management time on separation transaction-related issues, retention of existing management team members, the reaction of customers and other parties to the separation transaction, the qualification (if required based on the structure of any B+L Separation) of the separation transaction as a tax-free transaction for Canadian and/or U.S.

pendency of, or following, the B+L Separation, diversion of management time on separation transaction-related issues, retention of existing management team members, the reaction of customers and other parties to the separation transaction, the qualification (if required based on the structure of any B+L Separation) of the separation transaction as a tax-free transaction for Canadian and/or U.S.

federal income tax purposes (including whether or not an advance ruling from the Canada Revenue Agency and/or the Internal Revenue Service will be sought or obtained), the ability (if required based on the structure of any B+L Separation) of the Company and the separated entity to satisfy the conditions required to maintain the tax-free status of the B+L Separation (some of which are beyond their control), limitations on the Company’s ability to sell a portion of the Company’s interest in Bausch + Lomb in order to maintain (if required based on the structure of any B+L Separation) the tax-free status of the B+L Separation (including due to dilution from B+L’s issuance of share-based compensation awards), other potential tax or other liabilities that may arise as a result of the B+L Separation, the potential dissynergy costs resulting from the B+L Separation, the impact of the B+L Separation on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets the Company is engaged in, behavior of customers, suppliers and competitors, technological developments, as well as legal and regulatory rules affecting the Company’s business.

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• ongoing or potential legal and governmental proceedings that are uncertain, costly and time-consuming and could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline;

• pricing decisions that we have implemented, or may in the future elect to implement, such as the Patient Access and Pricing Committee’s historic practice of limiting the average annual price increase for our branded prescription pharmaceutical products to single digits, or any future pricing actions we may take in 2024 or beyond following review by our Patient Access and Pricing Committee (which is responsible for the pricing of our drugs);

• pricing decisions that we have implemented, or may in the future elect to implement, such as the Patient Access and Pricing Committee’s historic practice of limiting the average annual price increase for our branded prescription pharmaceutical products to single digits, or any future pricing actions we may take following review by our Patient Access and Pricing Committee (which is responsible for the pricing of our drugs);

• legislative or policy efforts, including those that may be introduced and passed by the U.S.

Congress, designed to reduce patient out-of-pocket costs for medicines, which could result in new mandatory rebates and discounts or other pricing restrictions, controls or regulations (including mandatory price reductions);

• the impact of pricing controls, and social or governmental pressure to lower the cost of drugs, such as legislation including the IRA and the selection in January 2025 by CMS of Xifaxan ® for the second round of negotiation under the drug price negotiation program for initial price applicability in 2027, and any actions we may take in response thereto;

• ongoing oversight and review of our products and facilities by regulatory and governmental agencies, including periodic audits by the FDA and equivalent agencies outside of the U.S.

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• our substantial debt (and potential additional future indebtedness) and current and future debt service obligations, our ability to reduce our outstanding debt levels and the resulting impact on our financial condition, cash flows and results of operations;

thereto, including the ability of Bausch + Lomb to comply with or, if necessary, obtain a waiver or amendment of, the financial and other covenants and obligations under the B+L Senior Secured Credit Facilities and the B+L Secured Notes, restrictions and prohibitions such covenants impose or may impose on the way we conduct our business, including prohibitions on incurring additional debt if certain financial covenants are not met, limitations on the amount of additional obligations we are able to incur pursuant to other covenants, our ability to draw under our 2030 Revolving Credit Facility, Bausch + Lomb’s ability to draw down under the revolving credit facility under the B+L Credit Agreement and restrictions on our ability to make certain investments and other restricted payments;

• any default under the terms of our senior notes indentures or the 2025 Credit Agreement (and other current or future credit and/or debt agreements or amendments thereto) or under the terms of B+L’s Senior Secured Credit Facilities and the B+L Secured Notes, and our ability or Bausch + Lomb’s ability, if any, to cure or obtain waivers of such default;

• our ability to comply with the financial and other covenants contained in our senior notes indentures, the 2025 Credit Agreement, the AR Credit Facility and other current or future credit and/or debt agreements or amendments thereto, including the ability of Bausch + Lomb to comply with the financial and other covenants and obligations under the B+L Senior Secured Credit Facilities and the B+L Senior Secured Notes, restrictions and prohibitions such covenants impose or may impose on the way we conduct our business, including prohibitions on incurring additional debt if certain financial covenants are not met, limitations on the amount of additional obligations we are able to incur pursuant to other covenants, our ability to draw under our 2030 Revolving Credit Facility, Bausch + Lomb’s ability to draw down under the revolving credit facility under the B+L Credit Agreement and restrictions on our ability to make certain investments and other restricted payments;

• any default under the terms of our senior notes indentures or the 2025 Credit Agreement (and other current or future credit and/or debt agreements or amendments thereto) or under the terms of B+L’s Senior Secured Credit Facilities and the B+L Senior Secured Notes, and our ability or Bausch + Lomb’s ability, if any, to cure or obtain waivers of such default;

• any downgrade or additional downgrade by rating agencies in our or Bausch + Lomb’s credit ratings, which may impact, among other things, our ability to raise debt and the cost of capital for additional debt issuances;

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and Whitecap Biosciences, LLC), including risks that Bausch + Lomb may not realize the expected benefits of such acquisitions and transactions on a timely basis or at all, risks that pipeline products acquired may not be commercialized as anticipated, and risks relating to any increased levels of debt as a result of debt incurred to finance certain of these acquisitions and transactions;

• with respect to the transaction with DURECT:

uncertainties relating to the timing of the consummation of the proposed transaction;

the possibility that any or all of the conditions to the consummation of the transaction may not be satisfied or waived;

the failure to obtain requisite stockholder approval of DURECT, the effect of the announcement or pendency of the transaction on parties’ ability to maintain relationships with customers, suppliers, and other business partners;

the impact of the transaction if consummated on our business, financial position and results of operations, including with respect to expectations regarding margin expansion, accretion and deleveraging;

and risks relating to potential diversion of management attention away from the parties’ ongoing business operations.

In particular, there can be no assurance that the conditions to closing the transaction will be satisfied or that the tender offer and the transaction will be consummated;

• the uncertainties associated with the acquisition and launch of new products, assets and businesses including, but not limited to, our ability to provide the time, resources, expertise and funds required for the commercial launch of new products, the acceptance and demand for new products, and the impact of competitive products and pricing, which could lead to material impairment charges;

• factors associated with Bausch + Lomb’s recent voluntary recall of certain of its enVista IOL products, including the timing of market reentry and return to full market supply, the success of the enhanced inspection protocols and more explicit standards for third-party suppliers that Bausch + Lomb has implemented for IOLs and any additional actions that may be taken by Bausch + Lomb and/or applicable regulatory authorities with respect to the recall or as part of the return to market of these products;

• factors associated with Bausch + Lomb’s recent voluntary recall of certain of its enVista IOL products, including Bausch + Lomb’s ability to resupply inventory to the market and the success of the enhanced inspection protocols and more explicit standards for third-party suppliers that Bausch + Lomb has implemented for IOLs;

• our ability or inability to extend the profitable life of our products, including through line extensions and other life-cycle programs;

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• our ability to develop or acquire more effective or less costly pharmaceutical or OTC products or medical devices than our competitors;

• our ability to effectively operate and grow our businesses in light of the challenges that the Company has faced and market conditions, including with respect to its substantial debt, pending investigations and legal proceedings, scrutiny of our past pricing and other practices, limitations on the way we conduct business imposed by the covenants contained in our 2025 Credit Agreement, AR Facility Agreement, the B+L Senior Secured Credit Facilities, our senior notes indentures, the senior notes indenture of Bausch + Lomb and the agreements that govern our other indebtedness;

• our ability to effectively operate and grow our businesses in light of the challenges that the Company has faced and market conditions, including with respect to its substantial debt, pending investigations and legal proceedings, scrutiny of our past pricing and other practices, limitations on the way we conduct business imposed by the covenants contained in our 2025 Credit Agreement, AR Facility Agreement, the B+L Senior Secured Credit Facilities, our senior notes indentures, the senior notes indentures of Bausch + Lomb and the agreements that govern our other indebtedness;

• the extent to which our products are reimbursed by government authorities, pharmacy benefit managers (“PBMs”) and other third-party payors;

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• the consolidation of wholesalers, retail drug chains and other customer groups and the impact of such industry consolidation on our business;

• the impact of pricing controls, social or governmental pressure to lower the cost of drugs, such as legislation including the IRA and the selection in January 2025 by Centers for Medicare & Medicaid Services of Xifaxan ® for the second round of negotiation under the drug price negotiation program for initial price applicability in 2027;

• our ability to maintain strong relationships with physicians and other healthcare professionals;

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• our eligibility for benefits under tax treaties and the availability of low effective tax rates for the business profits of certain of our subsidiaries;

• the implementation of the OECD’s Inclusive Framework, including the global minimum corporate tax rate, by the countries in which we operate;

• the implementation of the OECD’s Inclusive Framework, including the global minimum corporate tax rate, by the countries in which we operate and the potential impact of protective measures proposed by the United States in response to the Inclusive Framework, including the Trump Administration’s executive order and the agreement in principle among the United States and the other G7 countries, and any changes in tax laws by non-U.S.

countries in response thereto;

• the impacts of the new legislation commonly referred to as One Big Beautiful Bill Act on our consolidated financial statements and related disclosures;

• the outcome of any audits by taxation authorities, which outcomes may differ from the estimates and assumptions that we may use in determining our consolidated tax provisions and accruals;

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• adverse global economic conditions, including rates of inflation, and credit markets and foreign currency exchange uncertainty and volatility in certain of the countries in which we do business;

• the impact of the conflict in the Middle East involving Israel, Hamas and other countries and militant groups in the region, including its potential continued escalation and expansion and the potential impact on our operations, sale of products and revenues in this region;

• the impact of the ongoing and escalating conflict in the Middle East involving Israel, Iran, Hamas and other countries and militant groups in the region, including its potential continued escalation and expansion and the potential impact on our operations, sale of products and revenues in this region;

• risks associated with the imposition of and adverse changes to the U.S.

duty, tariff and other trading policies, and the counter-duties, counter-tariffs and/or other counter-measures implemented in response by other countries, which could increase our manufacturing, distribution and other operational costs due to the higher duties and tariffs and the increased economic risks and uncertainties to the global economy as a result of such tariffs and counter-tariffs and the potential trade wars and global supply chain issues that may be triggered by the tariff changes and changes in consumer habits as well;

duty, tariff and other trading policies on the countries in which we do business and sectors in which we do business, and the counter-duties, counter-tariffs and/or other counter-measures implemented in response by other countries, which could increase our manufacturing, distribution and other operational costs due to the higher duties and tariffs and the increased economic risks and uncertainties to the global economy as a result of such tariffs and counter-tariffs and the potential trade wars and global supply chain issues that may be triggered by the tariff changes and changes in consumer habits as well;

• risks associated with the potential actions the Company may take in response to such tariffs, counter-tariffs and other trade restrictions in order to help mitigate their impact on the Company and its business, results of operations and financial condition, including the risk that such potential actions may not be successful in mitigating the impact in the manner anticipated or at all and the costs and other risks that may be incurred in taking such actions;

• trade conflicts, including any current and potential future trade disputes between the between the U.S.

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• compliance by the Company or our third-party partners and service providers (over whom we may have limited influence), or the failure of our Company or these third parties to comply, with applicable laws and regulations, including health care “fraud and abuse” laws and other extensive regulation of our marketing, promotional and business practices (including with respect to pricing), worldwide anti-bribery laws (including the U.S.

Foreign Corrupt Practices Act and the Canadian Corruption of Foreign Public Officials Act), worldwide economic sanctions and/or export laws, worldwide environmental laws and regulation and privacy and security regulations, and to prevail in any litigation related to noncompliance;

Foreign Corrupt Practices Act and the Corruption of Foreign Public Officials Act (Canada)), worldwide economic sanctions and/or export laws, worldwide environmental laws and regulation and privacy and security regulations, and to prevail in any litigation related to noncompliance;

• the impacts of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 and any potential amendment thereof and other legislative and regulatory health care reforms in the countries in which we operate, including with respect to recent government inquiries on pricing;

• the impact of any changes in or reforms to the legislation, laws, rules, regulation and guidance that apply to the Company and its businesses and products or the enactment of any new or proposed legislation, laws, rules, regulations or guidance that will impact or apply to the Company or its businesses or products, and to the Company’s ability to sell its products profitably;

• the impact of changes in federal laws and policy that may be undertaken under the Trump administration;

regulations or guidance that will impact or apply to the Company or its businesses or products, and to the Company’s ability to sell its products profitably;

• the impact of changes in federal laws and policy that have been and may be undertaken under the Trump administration;

• illegal distribution or sale of counterfeit versions of our products;

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis