📊 BLCO Key Takeaways
Is Bausch & Lomb Corp (BLCO) a Good Investment?
Bausch & Lomb faces critical financial distress despite 6.5% revenue growth. The company is unprofitable (net margin -5.7%), burning cash (FCF -$68M), and has an interest coverage ratio of 0.3x—unable to service its $5B debt burden from operating income. Deteriorating earnings and negative free cash flow signal structural operational challenges that cannot be sustained.
Bausch & Lomb shows solid top-line growth, but that growth is not translating into durable profitability or cash generation. Operating margin is thin, net income remains negative, free cash flow is negative, and interest coverage of 0.3x points to meaningful debt-service pressure. The balance sheet is not distressed today, but fundamentals need clearer improvement before the business looks financially compelling.
Why Buy Bausch & Lomb Corp Stock? BLCO Key Strengths
- Revenue growth of 6.5% year-over-year demonstrates market demand in ophthalmic sector
- Moderate leverage with debt-to-equity ratio of 0.79x relative to $6.4B equity base
- Current ratio of 1.53x provides adequate near-term liquidity coverage
- Revenue grew 6.5% year over year, indicating continued demand across the business
- Liquidity is acceptable with a 1.55x current ratio and 1.04x quick ratio
- Debt/equity of 0.78x is manageable on paper relative to total equity
BLCO Stock Risks: Bausch & Lomb Corp Investment Risks
- Interest coverage ratio of 0.3x indicates inability to cover debt service from operating income—critical solvency risk
- Negative free cash flow of -$68M while funding $100M capex indicates unsustainable cash burn
- Net profitability declined 15.4% YoY to -$71M, with net margin at -5.7%—worsening operational performance
- Quick ratio of 0.99x reflects tight liquidity after inventory adjustment
- Limited cash reserves ($268M) insufficient to cover debt service and capex requirements long-term
- Net margin of -7.1% and negative EPS show the company is still not earning sustainable profits
- Interest coverage of 0.3x suggests weak ability to service debt from operating earnings
- Free cash flow is negative because operating cash flow is not covering capital expenditures
Key Metrics to Watch
- Interest coverage ratio—must improve above 1.5x to indicate debt sustainability
- Free cash flow trajectory—negative FCF unsustainable; must return to positive
- Net profit margin recovery—current -5.7% indicates structural cost challenges requiring resolution
- Debt reduction progress—$5B long-term debt must decline to improve financial flexibility
- Operating margin and interest coverage
- Free cash flow and operating cash flow conversion
Bausch & Lomb Corp (BLCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Bausch & Lomb Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BLCO Profit Margin, ROE & Profitability Analysis
BLCO vs Market Sector: How Bausch & Lomb Corp Compares
How Bausch & Lomb Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Bausch & Lomb Corp Stock Overvalued? BLCO Valuation Analysis 2026
Based on fundamental analysis, Bausch & Lomb Corp shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Bausch & Lomb Corp Balance Sheet: BLCO Debt, Cash & Liquidity
BLCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Bausch & Lomb Corp's revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.74 indicates the company is currently unprofitable.
BLCO Revenue Growth, EPS Growth & YoY Performance
BLCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | -$71.0M | $-0.20 |
| Q3 2025 | $1.2B | $4.0M | $0.01 |
| Q2 2025 | $1.2B | -$62.0M | $-0.18 |
| Q1 2025 | $1.1B | -$167.0M | $-0.48 |
| Q3 2024 | $1.0B | $4.0M | $0.01 |
| Q2 2024 | $1.0B | -$32.0M | $-0.09 |
| Q1 2024 | $931.0M | -$90.0M | $-0.26 |
| Q3 2023 | $942.0M | $7.0M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Bausch & Lomb Corp Dividends, Buybacks & Capital Allocation
BLCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Bausch & Lomb Corp (CIK: 0001860742)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BLCO
What is the AI rating for BLCO?
Bausch & Lomb Corp (BLCO) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLCO's key strengths?
Claude: Revenue growth of 6.5% year-over-year demonstrates market demand in ophthalmic sector. Moderate leverage with debt-to-equity ratio of 0.79x relative to $6.4B equity base. ChatGPT: Revenue grew 6.5% year over year, indicating continued demand across the business. Liquidity is acceptable with a 1.55x current ratio and 1.04x quick ratio.
What are the risks of investing in BLCO?
Claude: Interest coverage ratio of 0.3x indicates inability to cover debt service from operating income—critical solvency risk. Negative free cash flow of -$68M while funding $100M capex indicates unsustainable cash burn. ChatGPT: Net margin of -7.1% and negative EPS show the company is still not earning sustainable profits. Interest coverage of 0.3x suggests weak ability to service debt from operating earnings.
What is BLCO's revenue and growth?
Bausch & Lomb Corp reported revenue of $1.2B.
Does BLCO pay dividends?
Bausch & Lomb Corp does not currently pay dividends.
Where can I find BLCO SEC filings?
Official SEC filings for Bausch & Lomb Corp (CIK: 0001860742) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BLCO's EPS?
Bausch & Lomb Corp has a diluted EPS of $-0.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BLCO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Bausch & Lomb Corp has a SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BLCO stock overvalued or undervalued?
Valuation metrics for BLCO: ROE of -1.1% (sector avg: 15%), net margin of -5.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy BLCO stock in 2026?
Our dual AI analysis gives Bausch & Lomb Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BLCO's free cash flow?
Bausch & Lomb Corp's operating cash flow is $32.0M, with capital expenditures of $100.0M. FCF margin is -5.5%.
How does BLCO compare to other Market stocks?
Vs Default sector averages: Net margin -5.7% (avg: 12%), ROE -1.1% (avg: 15%), current ratio 1.53 (avg: 1.8).