Track market-moving stories before they get noisy

LAS VEGAS--(BUSINESS WIRE)--Rubrik FORWARD — Rubrik (NYSE: RBRK), the Security and AI Operations company, today unveiled the next stage of Rubrik Annapurna, establishing the AI-ready unstructured data layer for enterprise Data Intelligence platforms of choice. Annapurna scans and catalogs unstructured data in place across distributed systems, publishes a queryable catalog into a lakehouse, and eliminates the data duplication and Extract, Transform, Load (ETL) overhead that has historically kept.

-

Delivers Runtime Agent Security and Agent Rewind for Code Repository and Agentic Harness

LAS VEGAS--(BUSINESS WIRE)--Rubrik FORWARD--Rubrik (NYSE: RBRK), the Security and AI Operations Company, today announced Rubrik Agent Cloud (RAC) for Anthropic’s Claude Code and Claude Cowork. Organizations can now deploy Claude-powered agents at scale with observability, control, and the industry’s only agent rewind to reverse unintended actions, and immutable codebase recovery when an incorrect action outruns version control. A new, additional layer of resilience for Claude agents backs up, monitors, and restores the configuration that governs how agents behave.

AI agents now write, push, and deploy code autonomously, but enterprise security infrastructure was built assuming humans are always in the loop. A gap could enable rogue commits, repo ransomware, prompt injection, and IP exfiltration at machine speed - with blast radius far beyond what traditional DevSecOps controls were designed to handle.

“Organizations are adopting Claude faster than any agentic technology we have seen, and every security leader asks the same question: how do we stay in control when an agent can act?” said Anneka Gupta, Chief Product Officer, Rubrik. “Rubrik Agent Cloud gives organizations a resilience layer for Claude, which allows them to see what agents can access, govern what they do, rewind their actions, and recover both the code and the agent’s own configuration when something is destroyed or tampered with. Working with Anthropic, a leader in AI, lets us bring that control to customers from day one.”

RAC for Claude Code and Cowork: Delivers enterprise control and resilience layers for organizations deploying Anthropic’s Claude. The autonomous environment is secured with the following capabilities:

Semantic AI Governance Engine (SAGE): The industry’s first AI governance engine, designed to secure and control autonomous agents in real time. SAGE replaces static, manual oversight with intent-driven governance to safely scale the enterprise AI workforce. Agent Inventory: Delivers 360-degree visibility into risk, access permissions, and policy violations across all deployed agents. Agent Rewind: Provides the power to instantly and precisely reverse unintended actions from custom agents to agents developed in popular agentic tools, including agentic development environments like Claude Code and Cowork. Codebase Resilience: Enhanced rewind for code & developer pipelines maintains continuous, immutable snapshots of GitHub and Azure DevOps repositories, stored outside the repo and beyond the reach of compromised credentials. When an agent or an attacker exploiting one takes an action that version control cannot undo, such as force-pushing over commit history or deleting every branch, RAC restores a known-good state with one-click repository or org-level recovery, including ransomware rollback for code. Resilience for Claude Agents: Backs up, version-tracks, and restores the configuration that governs how Claude agents behave (system prompts, tool permissions, skills, and key files such as CLAUDE.md and settings) across organization, repository, and user levels. Rubrik continuously monitors for configuration drift and flags changes that appear malicious or unauthorized before they propagate. Rather than a blunt rollback, Rubrik’s intelligent recovery is able to autonomously tie the detected drift to the healthy backup snapshots to enable fast, orchestrated recovery. For more information, check out the Rubrik Agent Cloud for Claude Code and Cowork here.

Learn more breaking news at Rubrik FORWARD:

Rubrik Now Available as AI Agent Rubrik Unlocks Unstructured Data Rubrik Introduces Autonomous Business Recovery Solution for Cloud Applications Global Systems Integrators Partner with Rubrik to Deliver Rubrik Agent Cloud for Anthropic's Claude Code Rubrik Advances Identity Resilience Through Strata Acquisition and Identity Roll Forward Innovation SAFE HARBOR STATEMENT: Any unreleased services or features referenced in this document are not currently available and may not be made generally available on time or at all, as may be determined in our sole discretion. Any such referenced services or features do not represent promises to deliver, commitments, or obligations of Rubrik, Inc. and may not be incorporated into any contract. Customers should make their purchase decisions based upon services and features that are currently generally available.

About Anthropic

Anthropic is an AI safety and research company dedicated to building reliable, interpretable, and steerable AI systems. Its Claude family of models enables advanced capabilities across a wide range of applications, including code understanding and security analysis.

About Rubrik

Rubrik (NYSE: RBRK), the Security and AI Operations Company, leads at the intersection of data protection, cyber resilience, and enterprise AI acceleration. Rubrik Security Cloud delivers complete cyber resilience by securing, monitoring, and recovering data, identities, and workloads across clouds. Rubrik Agent Cloud accelerates trusted AI agent deployments at scale by monitoring and auditing agentic actions, enforcing real-time guardrails, fine-tuning for accuracy and undoing agentic mistakes. For more information, please visit www.rubrik.com and follow @rubrikInc on X (formerly Twitter) and Rubrik on LinkedIn.

More News From Rubrik

Back to Newsroom

Rubrik FORWARD — Rubrik (NYSE: RBRK), the Security and AI Operations company, today unveiled the next stage of Rubrik Annapurna, establishing the AI-ready unstructured data layer for enterprise Data Intelligence platforms of choice. Annapurna scans and catalogs unstructured data in place across distributed systems, publishes a queryable catalog into a lakehouse, and eliminates the data duplication and Extract, Transform, Load (ETL) overhead that has historically kept enterprise unstructured data out of AI pipelines.

Unstructured data represents 90% of most modern enterprise footprints. Because organizations lack visibility into these file estates, critical business data has historically remained siloed, untracked, and unreachable by data science and AI applications. Costly extract, transform, and load (ETL) pipelines and infrastructure-heavy legacy architectures have forced organizations to duplicate entire environments into a data lake, then spend months on manual engineering to surface the less than 10% of data that AI operations actually need, all while incurring significant ongoing costs for the unused remainder.

“For years, the model to make unstructured data usable for AI meant to move, transform, and store it twice, while paying for the whole estate just to use a fraction," said Anneka Gupta, Chief Product Officer, Rubrik. “Annapurna completely inverts that model. It activates data right where it lives, delivers only what Data Intelligence platforms actually need and aligns infrastructure costs to consumption. That is how enterprises truly scale AI.”

The Unstructured Data Layer for Data Science and AI

Annapurna turns unstructured estates into AI-ready inputs for Data Intelligence platform workflows without moving source files. Operating on Rubrik Security Cloud, the unified management plane, it auto-discovers, scans, and indexes billions of files across NAS, S3, and object stores. In hours rather than weeks, Annapurna publishes a queryable catalog of file metadata directly into a lakehouse. Organizations pull only the precise subsets they need for training, fine-tuning, and inference, allowing pipeline costs to scale 1:1 with consumption.

“In financial services, managing petabytes of highly distributed, regulated, and siloed unstructured data across legacy and modern platforms was operationally limiting,” said Corey West, Chief Technology Officer, Piper Sandler & Co. “Annapurna provides an automated approach to map, govern, and index our estate for AI initiatives, reducing the friction of cross-functional configurations and data sovereignty requirements without needing another ETL stack or compromising our compliance posture.”

Key Annapurna Capabilities

Automated Data Discovery: Auto-discover, scan, and index the full unstructured estate across NAS, S3, and object stores. Raw source files are processed in place with no need to copy or migrate.Native Lakehouse Integration: Automates the handoff to downstream Data Intelligence platform applications by publishing a queryable catalog of unstructured file metadata directly into a lakehouse. Data engineers query the index to pinpoint exact file targets, and Annapurna stages only that subset for downstream workflows.Demand-Driven Pipeline Economics: Pipeline costs scale 1:1 with the data AI actually pulls. Customers pay only for what they pull, not for duplicating their full estate.Continuous Governance: Preserves native source-system access controls directly within the catalog so Data Intelligence platforms can continuously enforce controls in downstream workflows, closing the security gap created when traditional ETL strips access permissions in transit.Immutable Chain of Custody: Leverages Rubrik’s Zero Trust foundation to ensure every file Annapurna stages into its managed object store carries verifiable lineage and versioning from source through AI output, with provenance capabilities that directly support general data protection regulation (GDPR) and other compliance programs.Built on Rubrik Security Cloud: Extends Rubrik Security Cloud, the unified management plane, into the AI-ready unstructured data layer for the enterprise. Annapurna deploys alongside an organization’s existing storage and lakehouse environments, with no new infrastructure or agents to install.Availability

Rubrik Annapurna is available today for qualified enterprise partners and will feature native lakehouse connector support in future releases.

To learn more about how Rubrik can secure and accelerate your AI data pipelines, visit here.

Learn more breaking news at Rubrik FORWARD:

Rubrik Now Available as AI AgentRubrik Launches Rubrik Agent Cloud for Anthropic's Claude CodeRubrik Introduces Introduces Autonomous Business Recovery Solution for Cloud ApplicationsGlobal Systems Integrators Partner with Rubrik to Deliver Rubrik Agent Cloud for Anthropic's Claude CodeRubrik Advances Identity Resilience Through Strata Acquisition and Identity Roll Forward InnovationSAFE HARBOR STATEMENT

Any unreleased services or features referenced in this document are not currently available and may not be made generally available on time or at all, as may be determined in our sole discretion. Any such referenced services or features do not represent promises to deliver, commitments, or obligations of Rubrik, Inc. and may not be incorporated into any contract. Customers should make their purchase decisions based upon services and features that are currently generally available.

About Rubrik

Rubrik (NYSE: RBRK), the Security and AI Operations Company, leads at the intersection of data protection, cyber resilience, and enterprise AI acceleration. Rubrik Security Cloud delivers complete cyber resilience by securing, monitoring, and recovering data, identities, and workloads across clouds. Rubrik Agent Cloud accelerates trusted AI agent deployments at scale by monitoring and auditing agentic actions, enforcing real-time guardrails, fine-tuning for accuracy and undoing agentic mistakes. For more information, please visit www.rubrik.com and follow @rubrikInc on X (formerly Twitter) and Rubrik on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260609759618/en/

Rubrik FORWARD -- Rubrik (NYSE: RBRK), the Security and AI Operations Company, today announced the launch of Rubrik AI, which transforms its platform with agentic-first experiences to operate at AI speed. Rubrik AI adapts to each organization’s context and security threats and autonomously acts at machine speed across Rubrik’s product portfolio.

From day one, Rubrik built an API-first platform to provide the industry’s leading cyber resilience for customers. Now, the company has innovated the Rubrik platform even further for the agentic era. Rubrik AI powers a new way of interaction with Rubrik’s solution suites that is fully agent first: Customers define the business outcomes, and Rubrik AI reasons and autonomously acts to deliver those outcomes.

"Today, Rubrik becomes an agent. Our Agentic Cyber Resilience is designed to mitigate risks from both external AI attacks and internal agent deployments,” said Bipul Sinha, CEO, Chairman and Co-Founder, Rubrik. “Rubrik AI will deliver agentic automation to enable resilience against machine-speed cyber breaches and compromised AI agents.”

Rubrik AI: Patent pending design reasons, acts, and recovers at machine speed, and features:

Agentic Mode: One agent across RSC and RAC, reasoning over data, identity, and the agents customers deploy. Agentic Guardrails: Built-in controls with RAC ensure every autonomous action is auditable, attributable, and reversible, preventing runaway AI risks. Orchestrated Workflows: Multi-step recovery sequences that once took human teams weeks now complete in minutes. For more information on Rubrik AI, check out the link here.

Learn more breaking news at Rubrik FORWARD:

Rubrik Launches Rubrik Agent Cloud for Anthropic's Claude CodeRubrik Unlocks Unstructured DataRubrik Introduces Introduces Autonomous Business Recovery Solution for Cloud ApplicationsGlobal Systems Integrators Partner with Rubrik to Deliver Rubrik Agent Cloud for Anthropic's Claude CodeRubrik Advances Identity Resilience Through Strata Acquisition and Identity Roll Forward InnovationSAFE HARBOR STATEMENT: Any unreleased services or features referenced in this document are not currently available and may not be made generally available on time or at all, as may be determined in our sole discretion. Any such referenced services or features do not represent promises to deliver, commitments, or obligations of Rubrik, Inc. and may not be incorporated into any contract. Customers should make their purchase decisions based upon services and features that are currently generally available.

About Rubrik

Rubrik (NYSE: RBRK), the Security and AI Operations Company, leads at the intersection of data protection, cyber resilience, and enterprise AI acceleration. Rubrik Security Cloud delivers complete cyber resilience by securing, monitoring, and recovering data, identities, and workloads across clouds. Rubrik Agent Cloud accelerates trusted AI agent deployments at scale by monitoring and auditing agentic actions, enforcing real-time guardrails, fine-tuning for accuracy and undoing agentic mistakes. For more information, please visit www.rubrik.com and follow @rubrikInc on X (formerly Twitter) and Rubrik on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260609936387/en/

Rubrik (NYSE:RBRK) used its Forward Conference in Las Vegas to roll out a wave of AI-powered products and lay out long-term profitability targets, drawing a positive reception from Wedbush analysts.

The cybersecurity firm launched its Agentic Cyber Suite, a set of AI-focused resilience tools built within a single platform that consolidates data and identity management across enterprise ecosystems.

At the centre of the launch is Rubrik AI, a reasoning and autonomous agent designed to deliver operational insights and recovery solutions, which the company positions within a $45 billion addressable opportunity.

Rubrik AI ships with three new integrations: an agent mode spanning Rubrik Security Cloud and Rubrik Agentic Cloud; agent guardrails with built-in controls to contain risks from autonomous AI actions; and orchestrated workflows capable of executing multi-step recovery sequences.

Customer adoption metrics presented at the conference pointed to growing cross-product engagement. Rubrik said 75% of its customers now use multiple products across new categories, and 70% of new customers are landing with two or more products. The average deal size for that cohort stood at approximately $157,000, representing a 50% compound annual growth rate since the first quarter of fiscal 2025.

On the financial side, management outlined long-term targets including non-GAAP gross margins in the 77% to 82% range and non-GAAP operating income margins above 20%, with AI adoption cited as a driver of further operating leverage at scale.

Wedbush noted the company is targeting a total addressable market exceeding $125 billion with its expanding resilience portfolio.

Rubrik, Inc. (RBRK) Analyst/Investor Day Transcript

VAUGHAN, Ontario--(BUSINESS WIRE)--Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced European commercial availability of the preloaded enVista Envy full range of vision intraocular lens (IOL), which offers excellent dysphotopsia tolerance on the widely used enVista IOL platform. “Bausch + Lomb now offers two full range of vision premium IOLs - enVista Envy and LuxLife™ to meet the evolving needs.

The skin recovery emulsion for dry, sensitive, or stressed skin is now available through select online channels

, /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) and its dermatology business, Ortho Dermatologics, today announced Biafine® Skin Recovery Emulsion is now offered through convenient online ordering in the United States. The well-known French skincare formula is available through select online channels.

First developed in France in 1971, Biafine® is a lightweight emulsion formula designed to support the skin's natural barrier function while helping to maintain skin hydration and comfort. For decades, the formula has been recognized by dermatologists and consumers for its unique texture and versatility in skincare routines. The renowned formulation is gentle enough for sensitive skin, helps soothe skin, and is clinically proven to support the skin barrier. Its versatility in skincare routines has contributed to Biafine's recognition among dermatologists and consumers alike.

Tom Stern, Vice President and General Manager of the Ortho Dermatologics business reflected, "We are proud to offer dermatology practices and patients access to a formula that has earned the trust of both professionals and consumers for decades."

Biafine is available directly to patients through select online channels, including Amazon. Dermatology practices can provide the product through the Ortho Dermatologics Direct platform which supports in-office access when a dermatologist recommends it as part of a skincare regimen.

For more information about Biafine, please visit www.biafine.com. 

About Biafine®
Biafine® is a French-developed skincare emulsion introduced in 1971, designed to support the skin's natural barrier function while maintaining hydration and comfort. For decades, the formula has been recognized by dermatologists and consumers for its unique texture and versatility in skincare routines. Biafine is offered in the United States as a cosmetic for skincare.

About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. Our dermatology business, Ortho Dermatologics is one of the largest prescription and aesthetic dermatology businesses dedicated to helping patients in the treatment of a range of conditions, including psoriasis, onychomycosis, actinic keratosis, acne, atopic dermatitis and other dermatoses. More information can be found at https://www.ortho-dermatologics.com and connect with us on LinkedIn. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.

Biafine is a registered trademark of Ortho Dermatologics or its affiliates.
© 2026 Ortho Dermatologics or its affiliates.

Investor Contact:

Media Contact:

Garen Sarafian

 Katie Savastano

[email protected]

[email protected]

877-281-6642 (toll-free)

(908) 569-3692

BHC-PRODUCT

SOURCE Bausch Health Companies Inc.

First Quarter Consolidated Revenues of $2.52 billion, up 12% on a Reported basis and 7% on an Organic (non-GAAP)1 basis over the prior year period GAAP Net Loss Attributable to Bausch Health of $1,423 million and GAAP Net Loss of $1,431 million, inclusive of a $1,426 million goodwill impairment charge GAAP Loss per Share of ($3.82) (basic and diluted) compared to ($0.16) in the prior year period Adjusted Earnings per Diluted Share (non-GAAP) of $0.78 compared to $0.59 in the prior year period, an increase of 32% Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1 of $837 million, up 27% on a Reported basis over the prior year period BAUSCH HEALTH EXCLUDING BAUSCH + LOMB FIRST QUARTER 2026 RESULTS

Delivered twelfth consecutive quarter of year-over-year Revenue growth and Adjusted EBITDA (non-GAAP)1 growth, with 14% Reported and 9% Organic (non-GAAP)1 Revenue growth and 17% Adjusted EBITDA (non-GAAP)1 growth Generated $319 million in Adjusted Cash Flow from Operations (non-GAAP)1 Reaffirming full-year 2026 Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted Cash Flow from Operations (non-GAAP)1 guidance , /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) ("Bausch Health" or the "Company" or "we" or "our") today announced its first quarter 2026 financial results and other key updates from the quarter.

"Our first quarter performance marks twelve consecutive periods of year‑over‑year growth in revenue, adjusted EBITDA for Bausch Health excluding Bausch + Lomb, reflecting strategic execution and disciplined accountability across our organization. We continue to invest in our pipeline, including the advancement of larsucosterol to treat alcohol‑associated hepatitis, while pursuing business development opportunities aligned with our strategic priorities. With this momentum, we reaffirm our full‑year 2026 outlook and remain focused on driving sustainable performance and shareholder value," said Thomas J. Appio, Chief Executive Officer, Bausch Health.

1

This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Information" section of this news release. Please also refer to tables at the end of this
news release for a reconciliation of this and other non-GAAP measures and ratios to the most directly comparable GAAP measure.

First Quarter 2026 Revenue Performance

Total consolidated reported revenues were $2.52 billion for the first quarter of 2026, compared with $2.26 billion in the first quarter of 2025, an increase of $265 million, or 12%. Excluding the impact of foreign exchange of $71 million, acquisitions of $33 million, and divestitures and discontinuations of $4 million, revenue increased 7% on an organic1 basis compared with the first quarter of 2025.

Reported revenues by segment were as follows:

Three Months Ended
March 31,

Reported Change

Change at
Constant
Currency1

(Non-GAAP)

Change in
Organic
Revenue1

(Non-GAAP)

(in millions)

2026

2025

Amount

Pct.

Total Bausch Health Revenues

$2,524

$2,259

$265

12 %

9 %

7 %

Bausch Health (excl. B+L)

$1,280

$1,122

$158

14 %

11 %

9 %

Salix segment

$639

$542

$97

18 %

18 %

18 %

International segment

$285

$262

$23

9 %

(1 %)

— %

Solta Medical segment

$171

$113

$58

51 %

48 %

19 %

Diversified segment

$185

$205

($20)

(10 %)

(10 %)

(10 %)

Bausch + Lomb segment

$1,244

$1,137

$107

9 %

6 %

6 %

Salix Segment
Salix segment reported revenues were $639 million for the first quarter of 2026, compared with $542 million for the first quarter of 2025, an increase of $97 million, or 18%. Segment revenues increased 18% on an organic1 basis compared with the first quarter of 2025. Xifaxan® was the primary contributor to growth, with 21% revenue growth in the first quarter of 2026.

International Segment
International segment reported revenues were $285 million for the first quarter of 2026, compared with $262 million for the first quarter of 2025, an increase of $23 million, or 9%. Excluding the impact of foreign exchange of $25 million and divestitures and discontinuations of $1 million, segment revenues were relatively flat on an organic1 basis compared with the first quarter of 2025, with strength in EMEA offset by reduction in Loss Of Exclusivity portfolio in Canada versus the prior year period.

Solta Medical Segment
Solta Medical segment reported revenues were $171 million for the first quarter of 2026, compared with $113 million in the first quarter of 2025, an increase of $58 million, or 51% and aided by the acquisition of Shibo's full service aesthetics business in China. Excluding a $4 million favorable impact from foreign exchange and acquisitions of $32 million, segment revenues increased by 19% on an organic1 basis compared with the first quarter of 2025, led by growth in APAC, most notably in China and South Korea.

Diversified Segment
Diversified segment reported revenues were $185 million for the first quarter of 2026, compared with $205 million for the first quarter of 2025, a decrease of $20 million, or 10%. Segment revenues decreased 10% on an organic1 basis compared with the first quarter of 2025.

Bausch + Lomb Segment
Bausch + Lomb segment reported revenues were $1.24 billion for the first quarter of 2026, compared with $1.14 billion for the first quarter of 2025, an increase of $107 million, or 9%. Excluding the impact of foreign exchange of $42 million, acquisitions of $1 million and divestitures and discontinuations of $3 million, segment revenues increased 6% on an organic1 basis compared with the first quarter of 2025.

Consolidated Operating (Loss) Income
Consolidated operating loss was ($950) million for the first quarter of 2026, compared with consolidated operating income of $276 million for the first quarter of 2025, a decrease of $1,226 million, primarily attributable to a goodwill impairment charge related to Salix's RED-C program of $1,426 million, partially offset by higher gross profit. 

Consolidated Net Loss Attributable to Bausch Health
Consolidated net loss attributable to Bausch Health for the first quarter of 2026 was $1,423 million, compared with consolidated net loss attributable to Bausch Health of $58 million for the first quarter of 2025. The increase in the loss of $1,365 million is primarily due to the goodwill impairment charge of $1,426 million.

Consolidated Adjusted Net Income Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted net income attributable to Bausch Health (non-GAAP)1 for the first quarter of 2026 was $296 million, compared with $220 million for the first quarter of 2025, an increase of $76 million, primarily due to an increase in gross profit partially offset by higher interest expense.

Consolidated Loss Per Share Attributable to Bausch Health
Consolidated loss per share attributable to Bausch Health for the first quarter of 2026 was ($3.82), compared with consolidated loss per share of ($0.16) for the first quarter of 2025. The decrease of $3.66 per share is primarily due to the goodwill impairment charge of $1,426 million, or ($3.76) per share.

Consolidated Adjusted Earnings Per Share Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted earnings per share attributable to Bausch Health (non-GAAP)1 for the first quarter of 2026 was $0.78, compared with $0.59 for the first quarter of 2025.

Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted EBITDA attributable to Bausch Health (non-GAAP)1 was $837 million for the first quarter of 2026, compared with $661 million for the first quarter of 2025, an increase of $176 million.

Consolidated Cash Provided by Operating Activities
The Company generated $230 million of cash from operating activities in the first quarter of 2026, an increase of 9% versus $211 million in the first quarter of 2025.

Balance Sheet and Other Notable Highlights

Consolidated cash and cash equivalents of $1,299 million as of March 31, 2026. Larsucosterol (Epigenetic modulator) Phase 3 program for the treatment of alcohol-associated hepatitis remains on track; potential additional indications are under consideration. Bausch Health continues to focus on strengthening its balance sheet and delivering value to shareholders. Focus on Strategic Priorities

The Company delivered strong financial momentum three months into 2026, with revenue and earnings growth across multiple segments. Upon the successful completion of major refinancing initiatives in the prior twelve-month period, the Company materially improved its debt maturity profile. The Company remains committed to evaluating all options for unlocking shareholder value, including maximizing the value of our Bausch Health and Bausch + Lomb assets.

2026 Financial Outlook

The Company updated its Consolidated full-year Revenue and Adjusted EBITDA (non-GAAP)1 guidance for 2026.

Bausch Health (excluding Bausch + Lomb) maintained its full year Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted Cash Flow from Operations (non-GAAP)1 guidance, which includes the currently estimated impact of applicable tariffs for the calendar year as of the date of this release.

Current Guidance (as of April 29, 2026)

BHC

BHC

(excl. B+L)

B+L

Revenues (in Billions)

$10.670 - $10.920

$5.250 - $5.400

$5.420 - $5.520

Revenue growth vs. Prior Year

2% - 5%

Adjusted EBITDA1 (in Billions)

$3.885 - $4.010

$2.875 - $2.950

$1.010 - $1.060

Adj. EBITDA1 growth vs. Prior Year

3% - 5%

Adjusted Cash Flow from Operations1 (in Billions)

$1.200 - $1.275

Other than with respect to GAAP revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)1 to GAAP net income (loss) or forward-looking Adjusted Cash Flow from Operations (non-GAAP)1 to GAAP cash generated from operations, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) and payments (such as payments of legal settlements, transformation costs, separation costs and separation-related costs, interest charged against premium, financing fees paid in connection with the debt refinancing transactions and acquired IPR&D expense) used to calculate Adjusted Cash Flow from Operations (non-GAAP)1 vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of projected net income (loss) or cash generated from operations at this time. The amount of these adjustments may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP)1. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. The rapid recent developments in the evolving landscape of tariffs and responses have resulted in uncertainty regarding these measures and the effects they may have. We continue to assess the direct and indirect impacts on our businesses of such tariffs, including retaliatory tariffs and other trade protectionist measures as the situation develops, and there can be no assurance that such impacts will not be adverse.

Conference Call Details

Date:         Wednesday, April 29, 2026

Time:          5:00 p.m. EDT

Webcast:    http://ir.bauschhealth.com/events-and-presentations

A replay of the conference call will be available on the investor relations website.

About Bausch Health

Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.

Forward-looking Statements

This news release contains forward-looking information and statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws (collectively, "forward-looking statements"), including, but not limited to, statements relating to the Company's: future prospects and performance, financial guidance, research and development efforts and anticipated timing or results thereof, proposed plan to separate its eye health business, including the timing thereof, management of its balance sheet, generation of cash, ability to launch and commercialize new products, including the timing of regulatory processes with respect to the Company's product pipeline, ability to enforce and defend its Xifaxan® intellectual property rights, ability to execute its growth strategies and strategic priorities generally, and other corporate and strategic transactions. Forward-looking statements may generally be identified by the use of the words "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "estimates," "potential," "target," or "continue" and positive and negative variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements, including the full-year guidance, are based upon the current expectations and beliefs of management. The Company's 2026 financial outlook and full-year guidance are included to provide further information about management's expectations about the Company's future business operations, activities and results and may not be appropriate for other purposes.

These forward-looking statements are subject to certain factors, risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: our ability to execute our business strategy, business plans and operational efficiency initiatives; demand for, competitive positioning of and pricing for our current and anticipated products and our ability to achieve expected revenues, margins and expense levels; the successful development, regulatory approval, manufacture and timing of launches and commercialization of pipeline and other products; the completion, timing, integration and expected benefits of acquisitions and other strategic transactions (including the planned separation of our eye health business consisting of our Bausch + Lomb global Vision Care, Surgical and Pharmaceuticals businesses) on anticipated terms, timing and costs; the scope, duration and financial and operational impact of product quality matters; the continued availability and performance of key third-party distribution, fulfillment and other arrangements and the stability of global supply chains; the continuation of patent protection and regulatory exclusivity for key products; the expected impacts of the Inflation Reduction Act, and the selection by the Centers for Medicare & Medicaid Services of Xifaxan® for inclusion in the drug price negotiation program with negotiated pricing expected to become effective in 2027, and other healthcare reform measures and our ability to mitigate the impact thereof; our ability to generate cash flows and access liquidity to meet working capital needs, satisfy debt maturities as they become due, reduce debt levels and comply with financial and other covenants under our financing arrangements; the expected scope and impact of tariffs, counter-tariffs and other trade restrictions and the effectiveness of mitigation actions; macroeconomic and geopolitical conditions (including inflation, recessionary pressures, foreign currency exchange rates and interest rates), changes in tax laws and related guidance (including legislation referred to as the One Big Beautiful Bill Act and Organisation for Economic Co-operation and Development related measures); the expected outcomes of litigation and other contingencies; and other factors, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors, risks and uncertainties are incorporated herein by reference.

We caution that, as it is not possible to predict or identify all relevant factors that may impact forward-looking statements, the factors referred above are not exhaustive and should not be considered a complete statement of all potential risks and uncertainties. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the aforementioned factors and other uncertainties and potential events. These forward-looking statements speak only as of the date made. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, except as required by law.

Non-GAAP Information

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures and non-GAAP ratios to provide supplemental information to readers. Management uses these non-GAAP measures and ratios as key metrics in the evaluation of the Company's performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP measures and ratios address questions the Company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors.

However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP financial measures and ratios used by other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

The reconciliations of these historical non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below. However, as indicated above, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP Net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Many of the adjustments and exclusions used to calculate the projected non-GAAP measures may vary significantly based on actual events, so the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of these projected amounts. The amounts of these adjustments may be material and, therefore, could result in the GAAP amount being materially different from (including materially less than) the projected non-GAAP measures.

Commencing in the third quarter of 2025, the Company now includes payments of Acquired IPR&D in the calculation of Adjusted Cash Flow From Operations (non-GAAP). Prior-period amounts presented herein have been restated to conform to the current year's presentation.

Description of Non-GAAP Financial Measures 

EBITDA (non-GAAP), Adjusted EBITDA (non-GAAP) and Adjusted EBITDA Attributable to Bausch Health (non-GAAP)

EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization, and certain other items described below. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) as defined below.

Management believes that Adjusted EBITDA (non-GAAP) and Adjusted EBITDA attributable to Bausch Health (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets.

Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization and the following items:

Restructuring, integration and transformation costs: The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. With regard to infrastructure and operational improvements which the Company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. Additionally, the Company is launching certain transformation initiatives that will result in certain changes to and investment in its organizational structure and operations. These transformation initiatives arise outside of the ordinary course of continuing operations and, as is the case with the Company's restructuring efforts, costs associated with these transformation initiatives are expected to fluctuate between periods in amount, size and timing. These out-of-the-ordinary-course charges include third-party advisory costs, as well as certain severance-related costs. Investors should understand that the outcome of these transformation initiatives may result in future restructuring actions and certain of these charges could recur. The Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Asset impairments: The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, as well as impairments of assets held for sale, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes impairments of intangible assets and assets held for sale from measuring the performance of the Company and the business, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation. Goodwill impairments: The Company excludes the impact of goodwill impairments. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. The amount of goodwill impairment is measured as the excess of a reporting unit's carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business. Share-based compensation: The Company has excluded costs relating to share-based compensation. The Company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted. Acquisition-related costs and adjustments (excluding amortization of intangible assets): The Company has excluded the impact of acquisition-related costs and fair value inventory step-up resulting from acquisitions as the amounts and frequency of such costs and adjustments are not consistent and are significantly impacted by the timing and size of its acquisitions. In addition, the Company excludes acquisition-related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates, and the amount and frequency of such adjustments are not consistent and are significantly impacted by the timing and size of the Company's acquisitions, as well as the nature of the agreed-upon consideration. Loss (gain) on extinguishment of debt: The Company has excluded loss (gain) on extinguishment of debt as this represents a gain or loss from refinancing our existing debt and is not a reflection of our operations for the period. Further, the amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities regarding the separation of the eye-health business. Separation costs are incremental costs directly related to effectuating the separation of the eye-health business, and include, but are not limited to, legal, audit and advisory fees. Separation-related costs are incremental costs indirectly related to the separation of the eye-health business and include, but are not limited to, rebranding costs and costs associated with facility relocation and/or modification. As these costs arise from events outside of the ordinary course of continuing operations, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Other adjustments: The Company has excluded certain other amounts, including legal and other professional fees incurred in connection with legal and governmental proceedings, investigations and information requests regarding certain of our legacy distribution, marketing, pricing, disclosure and accounting practices, litigation and other matters, and net (gain) loss on sale of assets or other disposition of assets. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. In addition, as opposed to more ordinary course matters, the Company considers that each of the recent proceedings, investigations and information requests, given their nature and frequency, are outside of the ordinary course and relate to unique circumstances. The Company has also excluded IT infrastructure investments that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. The Company has also excluded certain other costs, including professional fees associated with contemplated, but not completed, strategic transactions. The Company excluded these costs as the consideration of such matters are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP). Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.

Adjusted Net Income (non-GAAP) and Adjusted Net Income attributable to Bausch Health (non-GAAP)

Adjusted net income (non-GAAP) is Net income (its most directly comparable GAAP financial measure), adjusted for asset impairments, goodwill impairments, restructuring, integration and transformation costs, acquisition-related costs and adjustments (excluding amortization of intangible assets), gain (loss) on extinguishment of debt, separation costs and separation-related costs and other non-GAAP adjustments as these adjustments are described above, and amortization of intangible assets and write down of financing fees as described below:

Amortization of intangible assets: The Company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes the amortization of intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Write down of financing fees: In addition to excluding Loss (gain) on extinguishment of debt, the Company has excluded the impact of the write down of financing fees from Adjusted net income (non-GAAP). The amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. In addition, the Company excluded these costs as they are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. Adjusted net income attributable to Bausch Health (non-GAAP) is Adjusted net income (non-GAAP) further adjusted to exclude the Adjusted net income attributable to noncontrolling interest (non-GAAP). Adjusted net income attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.

Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as described above) that may obscure trends in the Company's underlying performance. By disclosing this non-GAAP measure, it is management's intention to provide investors with a meaningful, supplemental comparison of the Company's operating results and trends for the periods presented. Management believes that this measure is also useful to investors as such measure allows investors to evaluate the Company's performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, the Company believes that Adjusted net income (non-GAAP) is useful to investors in their assessment of the Company's operating performance. It is also noted that, in recent periods, our GAAP Net income (loss) was significantly lower than our Adjusted net income (non-GAAP).

Adjusted Earnings Per Share (non-GAAP)

Adjusted earnings per share (non-GAAP) is calculated as Basic and Diluted loss per share attributable to Bausch Health (its most directly comparable GAAP financial measure), adjusted for the non-GAAP adjustments to reconcile Net income (loss) attributable to Bausch Health to Adjusted income attributable to Bausch Health (non-GAAP) and the diluted effect of stock options and restricted stock units excluded in the determination of Basic and Diluted loss per share attributable to Bausch Health during the period as the effect of including them would have been antidilutive.  Management believes this non-GAAP measure excludes certain factors that could distort the visibility of the Company's underlying performance per share and offers investors a clearer, supplemental view of the Company's performance and trends over the reported periods. As a result, the Company considers Adjusted earnings per share (non-GAAP) to be beneficial for investors evaluating the Company's operating results, overall valuation, and potential return on investment. Management notes that for the periods presented, the Company's GAAP EPS was notably lower than its Adjusted earnings per share (non-GAAP).

Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP)

Organic revenue (non-GAAP) and Change in organic revenue (non-GAAP), are defined as GAAP Revenue and change in GAAP Revenue (the most directly comparable GAAP financial measures), adjusted for changes in foreign currency exchange rates (if applicable) and excluding the impact of recent acquisitions, divestitures and discontinuations, as defined below.

Organic revenue (non-GAAP) is impacted by changes in product volumes and price. The price component is made up of two key drivers: (i) changes in product gross selling price and (ii) changes in sales deductions. The Company uses organic revenue (non-GAAP) and change in organic revenue (non-GAAP) to assess performance of its reportable segments, and the Company in total. The Company believes that providing these non-GAAP measures is useful to investors as they provide a supplemental period-to-period comparison.

The adjustments to GAAP Revenue to determine Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP) are as follows:

Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management's control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact of changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue and change in organic revenue exclude from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. 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. Constant Currency

Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company's financial results and financial position. To assist investors in evaluating the Company's performance, we have adjusted for the effects of changes in foreign currencies. The impact of changes in foreign currency exchange rates is determined by comparing the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.

Please also see the reconciliation tables below for further information as to how these non-GAAP measures and ratios are calculated for the periods presented.

Adjusted Cash Flow from Operations (non-GAAP)

Adjusted cash flow from operations (non-GAAP) is Cash generated from operations (its most directly comparable GAAP financial measure) adjusted for: (i) payments of legacy legal settlements, net of insurance recoveries and restitutions, (ii) payments of transformation costs, (iii) payments for separation costs and separation-related costs, (iv) interest payments charged against premium, (v) fees paid in connection with the debt refinancing transactions and (vi) payments of acquired IPR&D.

As these payments arise from events outside of the ordinary course of continuing operations as discussed above, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's cash from operations, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.

Adjusted EBITDA excluding Bausch + Lomb (non-GAAP)

Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) is Adjusted EBITDA (non-GAAP) adjusted to remove Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP). Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP) is Income (loss) before income taxes of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's interest expense, depreciation, amortization and other adjustments as described above, allocated or attributable to Bausch + Lomb.

Adjusted EBITDA excluding Bausch + Lomb is not intended to be, and may not be, representative of income from continuing operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to Bausch Health excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented.

Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP)

Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP) is Adjusted Cash Flow from Operations (non-GAAP) adjusted to remove Adjusted Cash Flow from Operations attributable to Bausch + Lomb (non-GAAP). Adjusted Cash Flow from Operations attributable to Bausch + Lomb (non-GAAP) is Cash Flow from Operations of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's payment of separation costs, separation-related costs and other adjustments as described above, allocated or attributable to Bausch + Lomb.

Adjusted Cash Flow from Operations excluding Bausch + Lomb is not intended to be, and may not be, representative of Cash Flow from Operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to BHC excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the cash flow or Adjusted Cash Flow from Operations attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented.

Management believes that Adjusted EBITDA excluding Bausch + Lomb (non-GAAP), Adjusted Cash Flow from Operations (non-GAAP) and Adjusted Cash Flow from Operations excluding Bausch + Lomb (non-GAAP), along with the GAAP and other non-GAAP measures used by management, most appropriately reflects how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the actual financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) and Adjusted Cash Flow (non-GAAP) targets.

Bausch Health Companies Inc.

Table 1

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Three Months Ended

March 31,

(in millions)

2026

2025

Revenues

Product sales

$

2,500

$

2,227

Other revenues

24

32

2,524

2,259

Expenses

Cost of goods sold (excluding amortization and impairments of intangible assets)

721

683

Cost of other revenues

17

18

Selling, general and administrative

861

867

Research and development

163

143

Amortization of intangible assets

241

256

Goodwill impairments

1,426

—

Restructuring, integration and separation costs

13

1

Other expense, net

32

15

3,474

1,983

Operating (loss) income

(950)

276

Interest income

10

11

Interest expense

(402)

(330)

Loss on extinguishment of debt

(1)

—

Foreign exchange and other

(11)

(4)

Loss before income taxes

(1,354)

(47)

Provision for income taxes

(77)

(39)

Net loss

(1,431)

(86)

Net loss attributable to noncontrolling interest

8

28

Net loss attributable to Bausch Health Companies Inc.

$

(1,423)

$

(58)

Bausch Health Companies Inc.

Table 2

Reconciliation of Net Loss Attributable to Bausch Health Companies Inc.

  to Adjusted Net Income Attributable to Bausch Health Companies Inc. (non-GAAP)

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Three Months Ended

March 31,

(in millions)

2026

2025

Net loss attributable to Bausch Health Companies Inc.

$

(1,423)

$

(58)

Non-GAAP adjustments: (a)

Amortization of intangible assets

241

256

Goodwill impairments

1,426

—

Restructuring, integration and transformation costs

19

29

Acquisition-related costs and adjustments (excluding amortization of intangible assets)

16

12

Loss on extinguishment of debt and write down of financing fees

9

—

Separation costs and separation-related costs

1

5

Gain on sale of assets, net

(3)

—

Litigation and other matters, net of insurance recoveries and restitutions

10

(3)

Other

8

12

Tax effect of non-GAAP adjustments

6

(15)

Noncontrolling interest portion of the non-GAAP adjustments

(14)

(18)

Adjusted net income attributable to Bausch Health Companies Inc. (non-GAAP)

$

296

$

220

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

$

(3.82)

$

(0.16)

Adjusted diluted earnings per share attributable to Bausch Health Companies Inc. (non-GAAP) (b)

$

0.78

$

0.59

Basic weighted average common shares

372.8

369.6

Diluted weighted average common shares

378.9

373.8

(a)

The components of and further details respecting each of these non-GAAP adjustments and the financial statement line item to which each component relates can be found on Table 2a.

(b)

Adjusted diluted earnings per share attributable to Bausch Health Companies Inc. is calculated using Diluted weighted average common shares of 378.9 million and 373.8 million which includes the diluted effect of stock options and restricted stock units of 6.1 million and 4.2 million (the "Dilutive Shares") for the three months ended March 31, 2026 and 2025, respectively. The Dilutive Shares were not included in the determination of Basic and diluted loss per share attributable to Bausch Health Companies Inc. as the effect of including them would have been antidilutive.

Bausch Health Companies Inc.

Table 2a

Reconciliation of GAAP to Non-GAAP Financial Information

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Three Months Ended

March 31,

(in millions)

2026

2025

Cost of goods sold reconciliation:

  GAAP Cost of goods sold (excluding amortization and impairments of intangible

 assets)

$

721

$

683

     Fair value inventory step-up resulting from acquisitions (a)

(3)

(22)

 Adjusted cost of goods sold (excluding amortization and impairments of intangible assets) (non-GAAP)

$

718

$

661

Selling, general and administrative reconciliation:

     GAAP Selling, general and administrative

$

861

$

867

     IT infrastructure investment (b)

(5)

(8)

     Legal and other professional fees (b)

—

(3)

     Separation-related costs (c)

(1)

(5)

     Transformation costs (d)

(6)

(28)

   Adjusted selling, general and administrative (non-GAAP)

$

849

$

823

Amortization of intangible assets reconciliation:

     GAAP Amortization of intangible assets

$

241

$

256

     Amortization of intangible assets (e)

(241)

(256)

  Adjusted amortization of intangible assets (non-GAAP)

$

—

$

—

Goodwill impairments reconciliation:

     GAAP Goodwill impairments

$

1,426

$

—

     Goodwill impairments (f)

(1,426)

—

  Adjusted goodwill impairments (non-GAAP)

$

—

$

—

Restructuring, integration and separation costs reconciliation:

     GAAP Restructuring, integration and separation costs

$

13

$

1

     Restructuring and integration costs (d)

(13)

(1)

  Adjusted restructuring, integration and separation costs (non-GAAP)

$

—

$

—

Other expense, net reconciliation:

     GAAP Other expense, net

$

32

$

15

     Litigation and other matters, net of insurance recoveries and restitutions (g)

(10)

3

     Acquisition-related contingent consideration (a)

(12)

11

     Gain on sale of assets, net (h)

3

—

     Acquisition-related costs (a)

(1)

(1)

  Adjusted other expense, net (non-GAAP)

$

12

$

28

Bausch Health Companies Inc.

Table 2a (continued)

Reconciliation of GAAP to Non-GAAP Financial Information

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Three Months Ended

March 31,

(in millions)

2026

2025

Loss on extinguishment of debt reconciliation:

     GAAP Loss on extinguishment of debt

$

(1)

$

—

     Loss on extinguishment of debt (i)

1

—

  Adjusted Loss on extinguishment of debt (non-GAAP)

$

—

$

—

Interest expense reconciliation:

     GAAP Interest expense

$

(402)

$

(330)

     Write-down of financing fees (i)

8

—

  Adjusted Interest expense (non-GAAP)

$

(394)

$

(330)

Foreign exchange and other reconciliation:

     GAAP Foreign exchange and other

$

(11)

$

(4)

     Other professional fees (b)

3

(1)

  Adjusted foreign exchange and other (non-GAAP)

$

(8)

$

(5)

Provision for income taxes reconciliation:

     GAAP Provision for income taxes

$

(77)

$

(39)

     Tax effect of non-GAAP adjustments (j)

6

(15)

  Adjusted provision for income taxes (non-GAAP)

$

(71)

$

(54)

Net loss attributable to noncontrolling interest reconciliation:

     GAAP Net loss attributable to noncontrolling interest

$

8

$

28

     Noncontrolling interest portion of amortization of intangible assets (k)

(7)

(8)

     Noncontrolling interest portion of all other adjustments (k)

(7)

(10)

  Adjusted net loss attributable to noncontrolling interest (non-GAAP)

$

(6)

$

10

(a)

Represents the three components of the non-GAAP adjustment of "Acquisition-related costs and adjustments (excluding amortization of intangible assets)" (see Table 2).

(b)

Represents the three components of the non-GAAP adjustment of "Other" (see Table 2).

(c)

Represents the one component of the non-GAAP adjustment of "Separation costs and separation-related costs" (see Table 2).

(d)

Represents the two components of the non-GAAP adjustment of "Restructuring, integration and transformation costs" (see table 2).

(e)

Represents the sole component of the non-GAAP adjustment of "Amortization of intangible assets" (see Table 2).

(f)

Represents the sole component of the non-GAAP adjustment of "Goodwill impairments" (see Table 2).

(g)

Represents the sole component of the non-GAAP adjustment of "Litigation and other matters, net of insurance recoveries and restitutions" (see Table 2).

(h)

Represents the sole component of the non-GAAP adjustment of "Gain on sale of assets, net" (see Table 2).

(i)

Represents the two components of the non-GAAP adjustment of "Loss on extinguishment of debt and write-down of financing fees" (see Table 2).

(j)

Represents the sole component of the non-GAAP adjustment of "Tax effect of non-GAAP adjustments" (see Table 2).

(k)

Represents the portion of the non-GAAP adjustments attributable to noncontrolling interest (see Table 2). 

Bausch Health Companies Inc.

Table 2b

Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP)

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Three Months Ended

March 31,

(in millions)

2026

2025

Net loss

$

(1,431)

$

(86)

Interest expense, net

392

319

Provision for income taxes

77

39

Depreciation and amortization

295

305

EBITDA

(667)

577

Adjustments:

Goodwill impairments

1,426

—

Restructuring, integration and transformation costs

19

29

Acquisition-related costs and adjustments (excluding amortization of intangible assets)

16

12

Loss on extinguishment of debt

1

—

Share-based compensation

52

43

Separation costs and separation-related costs

1

5

Other adjustments:

Litigation and other matters, net of insurance recoveries and restitutions

10

(3)

Gain on sale of assets, net

(3)

—

Other

8

12

Adjusted EBITDA (non-GAAP) (a)

863

675

Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) (b)

(26)

(14)

Adjusted EBITDA attributable to Bausch Health Companies Inc. (non-GAAP) (c)

$

837

$

661

(a)

Includes the impact of Acquired IPR&D charges of $11 million and $28 million for the three months ended March 31, 2026 and 2025, respectively.

(b)

Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net loss attributable to noncontrolling interest adjusted for the noncontrolling interest portion of the adjustments above as follows:

Three Months Ended

March 31,

(in millions)

2026

2025

Net loss attributable to noncontrolling interest

$

8

$

28

Noncontrolling interest portion of adjustments for:

Interest expense, net

(12)

(12)

Depreciation and amortization

(13)

(13)

All other adjustments

(9)

(17)

Adjusted EBITDA attributable to noncontrolling interest (non-GAAP)

$

(26)

$

(14)

(c)

Includes the impact of Acquired IPR&D charges net of noncontrolling interest (non-GAAP) of $10 million and $24 million for the three months ended March 31, 2026 and 2025, respectively.

Bausch Health Companies Inc.

Table 3

Organic Growth (non-GAAP) - by Segment

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Calculation of Organic Revenue for the Three Months Ended

March 31, 2026

March 31, 2025

Change in
GAAP Revenues

Change in
Organic Revenue

(in millions)

Revenue
as
Reported

Changes in
Exchange Rates (a)

Acquisitions

Organic

Revenue
(Non-GAAP) (b)

Revenue
as
Reported

Divestitures
and Discontinuations

Organic
Revenue (Non-
GAAP) (b)

Amount

Pct.

Amount

Pct.

Bausch Health (excl. B+L)

Salix

$

639

$

—

$

—

$

639

$

542

$

—

$

542

$

97

18

%

$

97

18 %

International

285

(25)

—

260

262

(1)

261

23

9

%

(1)

— %

Solta Medical

171

(4)

(32)

135

113

—

113

58

51

%

22

19 %

Diversified

Neuroscience

113

—

—

113

118

—

118

(5)

(4)

%

(5)

(4) %

Dermatology

33

—

—

33

46

—

46

(13)

(28)

%

(13)

(28) %

Generics

18

—

—

18

18

—

18

—

—

%

—

— %

Dentistry

21

—

—

21

23

—

23

(2)

(9)

%

(2)

(9) %

Total Diversified

185

—

—

185

205

—

205

(20)

(10)

%

(20)

(10) %

Bausch Health (excl. B+L) revenues

1,280

(29)

(32)

1,219

1,122

(1)

1,121

158

14

%

98

9 %

Bausch + Lomb

Vision Care

711

(25)

—

686

656

(2)

654

55

8

%

32

5 %

Surgical

228

(12)

(1)

215

214

214

14

7

%

1

—

Pharmaceuticals

305

(5)

—

300

267

(1)

266

38

14

%

34

13 %

Total Bausch + Lomb revenues

1,244

(42)

(1)

1,201

1,137

(3)

1,134

107

9

%

67

6 %

Total Bausch Health Companies Inc.
   revenues

$

2,524

$

(71)

$

(33)

$

2,420

$

2,259

$

(4)

$

2,255

$

265

12

%

$

165

7 %

(a)

The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.

(b)

To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. For additional information about the Company's use of such non-GAAP financial measures, refer to the body of the news release to which these tables are attached. Organic revenue (non-GAAP) for the three months ended March 31, 2026 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release). Organic revenue (non-GAAP) for the three months ended March 31, 2025 is calculated as revenue as reported less revenues attributable to divestitures and discontinuances 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.

Bausch Health Companies Inc.

Table 4

Other Financial Information

(unaudited)

(in millions)

March 31,
2026

December 31,
2025

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents

$

1,299

$

1,309

Restricted cash

13

16

Cash, cash equivalents and restricted cash

$

1,312

$

1,325

(in millions)

March 31,
2026

December 31,
2025

Debt Obligations

Senior Secured Credit Facilities:

Revolving Credit Facilities

$

100

$

100

Term Loan Facilities

5,779

5,787

Senior Secured Notes

10,223

10,235

Senior Unsecured Notes

4,098

4,098

Other

12

12

Total long-term debt and other, net of premiums, discounts and issuance costs

20,212

20,232

Plus: Unamortized premiums, discounts and issuance costs

552

585

Total long-term debt and other

$

20,764

$

20,817

(in millions)

March 31,
2026

December 31,
2025

Maturities of Debt Obligations (at principal amount)

  Remainder of 2026

$

44

58

‌  2027

701

701

‌  2028

3,765

4,240

‌  2029

1,667

1,662

‌  2030

4,123

4,118

‌  2031

3,912

3,453

 Thereafter

6,000

6,000

 Total debt obligations

$

20,212

$

20,232

Three Months Ended
March 31,

(in millions)

2026

2025

Cash provided by operating activities

$

230

$

211

Net cash impact of legacy legal matters (a)

158

15

Payments of transformation costs

7

4

Payments of separation costs and separation-related costs

—

7

Interest payments charges against debt premium

(44)

(127)

Fees paid in connection with debt refinancing

11

—

Payments of Acquired IPR&D

12

28

Adjusted cash flow from operations (non-GAAP)

$

374

$

138

(a)

Payments of legacy legal settlements, net of insurance recoveries and restitutions.

Bausch Health Companies Inc.

Table 5

Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA (non-GAAP)

For the Three Months Ended March 31, 2026 and 2025

(unaudited)

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

(in millions)

Bausch Health
Companies, Inc.

Bausch + Lomb
Corporation

Bausch Health
(excluding B+L)

Bausch Health
Companies, Inc.

Bausch + Lomb
Corporation

Bausch Health
(excluding B+L)

Net (Loss) Income

$(1,431)

$(70)

$(1,361)

$(86)

$(211)

$125

Interest expense, net

392

93

299

319

91

228

Provision for income taxes

77

6

71

39

31

8

Depreciation and amortization

295

101

194

305

106

199

EBITDA(a)

(667)

130

(797)

577

17

560

Adjustments:

Goodwill impairments

1,426

—

1,426

—

—

—

Restructuring, integration and transformation costs

19

12

7

29

27

2

Acquisition-related costs and adjustments (excluding
  amortization of intangible assets)

16

3

13

12

14

(2)

Loss on extinguishment of debt

1

1

—

—

—

—

Share-based compensation

52

34

18

43

28

15

Separation costs and separation-related costs

1

1

—

5

3

2

Other adjustments:

Litigation and other matters, net of insurance
recoveries and restitutions

10

7

3

(3)

1

(4)

Gain on sale of assets, net

(3)

(3)

—

—

—

—

Other

8

5

3

12

9

3

Adjusted EBITDA (non-GAAP) (a),(b)

$863

$190

$673

$675

$99

$576

Impact of Acquired IPR&D

$11

$11

$—

$28

$28

$—

(a)

This is a non-GAAP measure. Management considers the presentation of Adjusted EBITDA for Bausch Health (excluding B+L) (non-GAAP) to be meaningful information and utilizes it in decision making and for compensation purposes. Adjusted EBITDA for Bausch Health Excluding B+L (non-GAAP) is not intended to be representative of GAAP continuing operations and Adjusted EBITDA for B+L is not intended to be representative of discontinued operations as the criteria for that accounting has not been met. As such, Adjusted EBITDA for Bausch Health excluding B+L (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if B+L met the criteria to be treated as a discontinued operation during any of the periods presented.

(b)

Adjusted EBITDA (non-GAAP) above includes Adjusted EBITDA attributable to noncontrolling interests. For Bausch Health Companies Inc., this amounted to $26 million and $14 million for the three months ended March 31, 2026 and 2025, respectively, which includes $1 million related to B+L in each period.

SOURCE Bausch Health Companies Inc.

Bausch Health (BHC - Free Report) came out with quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -3.11%. A quarter ago, it was expected that this drugmaker would post earnings of $1.21 per share when it actually produced earnings of $1.08, delivering a surprise of -10.74%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Bausch, which belongs to the Zacks Medical - Generic Drugs industry, posted revenues of $2.52 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.72%. This compares to year-ago revenues of $2.26 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Bausch shares have lost about 18.4% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for Bausch?While Bausch has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Bausch was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.95 on $2.63 billion in revenues for the coming quarter and $4.15 on $10.68 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Generic Drugs is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Supernus Pharmaceuticals (SUPN - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.

This drugmaker is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -33.3%. The consensus EPS estimate for the quarter has been revised 19.1% higher over the last 30 days to the current level.

Supernus Pharmaceuticals' revenues are expected to be $188.45 million, up 25.8% from the year-ago quarter.

Key Takeaways Bausch Health reported Q1 EPS of 78 cents, missing estimates, while revenues rose 12% y/y to $2.5B.BHC's growth was driven by Salix, Solta and International units, with Xifaxan sales up 21%.BHC raised the 2026 revenue outlook and advanced pipeline programs, including larsucosterol phase III. Bausch Health Companies Inc. (BHC - Free Report) reported mixed results for the first quarter of 2026.

Adjusted earnings per share (EPS) of 78 cents missed the Zacks Consensus Estimate of 81 cents but were up from 59 cents recorded in the year-ago quarter.

Total revenues of $2.5 billion were up 12% year over year. The top line beat the Zacks Consensus Estimate of $2.4 billion.

Excluding the impact of a foreign exchange of $71 million, acquisitions of $33 million and divestitures and discontinuations of $4 million, revenues increased 7% organically year over year.

BHC’s shares have lost 19.5% year to date compared to the industry’s decline of 2.9%.

Image Source: Zacks Investment Research

BHC's Q1 in DetailThe company reports revenues under two segments: Bausch Health and Bausch + Lomb.

Bausch Health’s revenues came in at $1.3 billion, up 14% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.

Salix’s revenues totaled $639 million, up 18% year over year. Within this segment, Xifaxan is the top revenue generator, generating sales of $559 million, up 21%, led by strong demand growth. Relistor’s revenues were $40 million. However, Trulance’s revenues of $31 million were down 2% year over year.

Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.

Salix’s revenues beat the Zacks Consensus Estimate of $575 million and our model estimate of $589 million.

International revenues totaled $285 million, up 9% year over year, led by 12% growth in EMEA markets. Latin America markets also put up a solid performance driven by commercial product growth, offset by lower volume. However, sales in Canada were down 4% year over year.

The reported figure beat the Zacks Consensus Estimate of $272 million and our model estimate of $268 million. Excluding the impact of foreign exchange of $25 million and divestitures and discontinuations of $1 million, revenues were relatively flat on an organic basis.

Solta Medical reported revenues of $171 million, up 51% year over year, driven by China and South Korea. The figure beat the Zacks Consensus Estimate of $122 million and our model estimate of $117 million. Results also benefited from Solta’s acquisition of Shibo's full service aesthetics distribution business in China.

Diversified Product’s revenues amounted to $185 million, down 10% from the year-ago level. Within this segment, neuroscience sales decreased 4% year over year due to lower volume. The Dermatology business was down 28% due to partial channel destocking despite solid Cabtreo and Jublia demand. Sales from the Dentistry business were $21 million. The Generics business generated sales of $21 million.

Diversified Product’s revenues missed the Zacks Consensus Estimate of $219 million and our model estimate of $228 million.

Revenues from Bausch + Lomb totaled $1.24 billion, up 9% year over year, driven by growth across each business — vision care, surgical and pharmaceuticals. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.22 billion.

Excluding the impact of foreign exchange of $42 million, acquisitions of $1 million and divestitures and discontinuations of $3 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.

BHC’s Pipeline DevelopmentThe registrational phase III program on larsucosterol to evaluate the safety & efficacy in patients with severe Alcohol-Associated Hepatitis (AH) was initiated in early 2026.

The FDA earlier granted Breakthrough Therapy Designation to larsucosterol for the treatment of AH.

An internal review on amiselimod, an S1P modulator, a once-daily oral treatment of mild- to moderate ulcerative colitis, is ongoing.

The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, the Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. The treatment received approval from the Chinese National Medical Products in August 2025. The company also received approval in Australia in December 2025. It was launched in Canada in February 2026.

BHC Updates 2026 GuidanceBHC now expects 2026 revenues to be in the range of $10.670-$10.920 billion (previous guidance: $10.625-$10.875 billion). The Zacks Consensus Estimate for the same is pegged at $10.68 billion.

Excluding Bausch + Lomb, revenues are still projected to be in the range of $5.250-$5.400 billion. Bausch + Lomb revenues are now expected to be in the range of $5.420-$5.520 billion (previous guidance: $5.375-$5.475 billion).

Our Take on BHC’s Q1 PerformanceWhile earnings missed estimates in the first quarter, revenue growth was impressive, driven by Salix, Solta and International businesses. Xifaxan continues to drive growth.BHC recently acquired Shibo’s full-service aesthetics distribution business in China.

The acquisition expands its geographic footprint, provides direct access to a large and growing customer base, and enhances its ability to meet rising demand for aesthetic treatments, boosting the long-term growth potential of its global aesthetics franchise.

Nonetheless, the colossal debt continues to weigh on the stock. As of March 31, 2026, the company’s total debt obligations amounted to $20.7 billion, and its cash balance totaled $1.3 billion.

BHC’s Zacks Rank & Stocks to ConsiderBausch currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Agenus (AGEN - Free Report) , Amarin (AMRN - Free Report) and Castle Biosciences (CSTL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Agenus’ 2026 earnings per share have risen from 54 cents to $1.30, while loss-per-share estimates for 2027 have narrowed from $1.91 to $1.52. AGEN shares have gained 22.3% year to date.

Agenus’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 31.42%.

Over the past 90 days, Amarin's loss-per-share estimates for 2026 have narrowed from $7.32 to $6.36, and the same for 2027 have narrowed from $5.97 to $4.64.

Amarin's earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 51.29%.

Over the past 60 days, Castle Biosciences’ 2026 loss-per-share estimates have narrowed from $1.42 to $1.40. CSTL shares have rallied 67.3% over the past six months.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 34.69%.

Bausch Health delivered a Q1 revenue and net profit beat, but organic growth remains weak and demand is stagnant. BHC's improved margins stem from reduced rebates and discounts, but underlying sales volumes declined, especially in key segments. The investment thesis hinges on deleveraging; if debt is reduced by 20-30%, shares could rise 15-30%, but risks remain high.

, /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) today announced that members of company management will participate in a fireside chat at the Barclays 30th Annual Leveraged Finance Conference in Austin, Texas on Tuesday, May 19, 2026. A live audio webcast of the event will be accessible on the Investor Relations section of Bausch Health's website.

Details

Date:           Tuesday, May 19, 2026

Time:           10:25 a.m. U.S. ET

Webcast:     http://ir.bauschhealth.com/events-and-presentations

A replay of the event will be available on the investor relations website following the event.

About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.

Forward-looking Statements
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference.  Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Investor Contact:

 Media Contact:

Garen Sarafian

 Katie Savastano

[email protected]

[email protected]

(877) 281-6642 (toll free)

(908) 569-3692

BHC-FINANCIAL

SOURCE Bausch Health Companies Inc.

VAUGHAN, Ontario--(BUSINESS WIRE)--Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced the U.S. launch of PreserVision AREDS3 eye vitamins, which combine the clinically proven AREDS2 nutrients recommended by the NEI to help reduce the risk of moderate-to-advanced AMD progression with a unique B-vitamin complex.* Built on decades of leadership in AREDS-based vitamins, PreserVision AREDS3 is the most advanced PreserVision formula, intended to support a broader range of people, including those in earlier stages.*

For decades, nutritional support for AMD has been centered on stage-specific intervention, with clinically proven AREDS2 nutrients serving as a way to help reduce the risk of progression in people with moderate-to-advanced AMD. PreserVision AREDS3 eye vitamins build on that scientific foundation by incorporating a proprietary B-vitamin complex informed by decades of research, enabling eye care professionals to initiate nutritional support earlier and engage a broader population.*

“AMD affects millions of people, often long before symptoms meaningfully change day-to-day life,” said John Ferris, president, Consumer, Bausch + Lomb. “Historically, options to support macular health earlier in the condition have been limited. PreserVision AREDS3 reflects decades of research, and our commitment to advancing eye health through science, offering an option for a broader range of people looking to support their macular health.”*

AMD is the leading cause of vision loss among older Americans, impacting approximately 28 million people in the U.S.1 This progressive condition can impact central vision in one or both eyes, causing people to have difficulty with daily activities like driving, reading or recognizing the faces of loved ones.3

PreserVision AREDS3 eye vitamins build on the trusted AREDS2 nutrients by adding a research-backed, unique B-vitamin complex.* The formula is designed to provide triple-action support:

Protects: AREDS2 nutrients help protect macular health by neutralizing free radicals and replenishing the eyes’ natural filter* Nourishes: Unique B‑vitamin complex, containing thiamin (B1), riboflavin (B2), niacin (B3), pantothenic acid (B5), vitamin B6, biotin (B7), folate (B9) and vitamin B12, which was designed to promote healthy cellular eye function* Boosts: Formulated to provide two times better absorption of key nutrients‡ “Nutritional support for AMD management has to evolve as the science evolves,” said Julie Poteet, OD, MS, CNS. “PreserVision AREDS3 eye vitamins reflect the most current thinking in nutritional support for macular health, building on the established AREDS2 nutrients and incorporating a unique B-vitamin complex backed by more than two decades of scientific research on B vitamins.2 That matters in practice, because it gives me greater confidence and flexibility when discussing nutritional options with a broader group of patients, including those in earlier stages.”*

The development of PreserVision AREDS3 was guided by a growing body of scientific evidence examining the role of certain B vitamins in AMD, including certain studies described in a recently published narrative review in Ophthalmology and Therapy.2 The review drew on more than two decades of human research, synthesizing findings from more than 20 human studies involving nearly 30,000 individuals, including large randomized clinical trials such as the Women’s Antioxidant and Folic Acid Cardiovascular Study, which reported a statistically significant association between specific B‑vitamin supplementation and reduced AMD risk. This body of evidence helped shape the inclusion of B vitamins in PreserVision AREDS3 eye vitamins and supports ongoing research in this area, including plans for a future long‑term clinical trial evaluating the formulation.*

Now Available
PreserVision AREDS3 eye vitamins are now available in the eye care aisle or online at most retailers nationwide, including Amazon, Target, Walgreens and Walmart. For more information, visit www.preservision.com.

About PreserVision Eye Vitamins
PreserVision eye vitamins are the most studied AREDS‑based eye vitamin brand, and PreserVision is the No. 1 eye doctor‑recommended AREDS brand.4 The PreserVision portfolio has been developed through decades of ongoing scientific collaboration and research, guided by evolving evidence and ongoing study. PreserVision AREDS 2 eye vitamins contain the exact nutrient formula recommended by the NEI to help reduce the risk of moderate-to-advanced AMD progression,*6 and the portfolio now also includes PreserVision AREDS3 eye vitamins, our latest formula designed to build on the AREDS2 nutrients with added B vitamins.* For more information, visit www.preservision.com.

About the AREDS, AREDS2 and 10-Year Follow-on AREDS2 Study Results
The AREDS and AREDS2 studies are landmark clinical studies conducted over 20 years by the NEI. The AREDS study in 2001 demonstrated that taking a specific combination of antioxidants and zinc could help reduce the risk of progression of AMD in those with moderate to advanced AMD.* In 2012, the NEI completed the AREDS2 study, which tested several changes to the formulation, such as adding omega-3 fatty acids, substituting lutein and zeaxanthin for beta-carotene, and/or reducing zinc. The current AREDS2 nutrient formula recommended by the NEI is the result of this study.*

The NEI 10-Year Follow-on Study results evaluated the long-term results of participants who were involved in the AREDS2 study. Consisting of 3,882 people (6,351 study eyes) with moderate to advanced AMD over a 10-year period, the follow-on study further validates the original findings of the AREDS2 formulation with lutein and zeaxanthin, demonstrating an incremental reduction in risk of the progression to late-stage AMD.*5

About Bausch + Lomb
Our mission is simple – we help people see better to live better, all over the world. For nearly two centuries we’ve evolved with the changing needs of patients and customers, and our commitment to innovation and improving the standard of care in eye health has never been stronger. From contact lenses to prescription products, over-the-counter options, surgical devices and more, we’re turning bold ideas into better outcomes through passion, perseverance and purpose. Learn more at www.bausch.com and connect with us on Facebook, Instagram, LinkedIn, X and YouTube.

‡Based on AUC of lutein and zeaxanthin compared to original PreserVision AREDS 2 Soft Gel

References

American Academy of Ophthalmology. What is Macular Degeneration? https://www.aao.org/eye-health/diseases/amd-macular-degeneration. Accessed May 4, 2026. Poteet J, Koetting C, Vakharia PS. Role of B Vitamins in Preventing the Development and Progression of Age-Related Macular Degeneration. Ophthalmology and Therapy. Dec. 7, 2025. https://doi.org/10.1007/s40123-025-01281-1. Accessed May 4, 2026. National Eye Institute. Age-Related Macular Degeneration. https://www.nei.nih.gov/learn-about-eye-health/eye-conditions-and-diseases/age-related-macular-degeneration. Accessed May 4, 2026. Bausch + Lomb. AREDS SOR Q1 2025 Data. Chew EY, Clemons TE, Agrón E, et al. Long-term Outcomes of Adding Lutein/Zeaxanthin and ω-3 Fatty Acids to the AREDS Supplements on Age-Related Macular Degeneration Progression: AREDS2 Report 28. JAMA Ophthalmology. 2022;140(7):692–698. Published online June 2, 2022. https://jamanetwork.com/journals/jamaophthalmology/fullarticle/2792855. Accessed May 4, 2026. Based on the AREDS and AREDS2 clinical studies. AREDS and AREDS2 are registered trademarks of the United States Department of Health and Human Services (HHS).
©2026 Bausch + Lomb.
PVN3.0082.USA.26

, /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) today announced that shareholders elected all 10 director nominees at its 2026 Annual Meeting of Shareholders ("Annual Meeting") held on May 19, 2026, including Eiry W. Roberts, M.D., who was elected as a new director. Dr. Roberts brings extensive pharmaceutical leadership experience, including expertise in clinical development, medical strategy and business development, and previously served as Chief Medical Officer of Neurocrine Biosciences, Inc. Dr. Roberts will serve as chair of the Science and Technology Committee.

Detailed results of the vote follow:

Name

For

Withheld

Broker Non-Votes

Thomas J. Appio

196,814,621

2,743,810

79,859,605

Christian A. Garcia

196,711,908

2,846,523

79,859,605

Michael Goettler

196,757,828

2,800,603

79,859,605

Sarah B. Kavanagh

188,459,870

11,098,561

79,859,605

Frank D. Lee

183,885,617

15,672,814

79,859,605

Sandra Leung

195,931,772

3,626,659

79,859,605

John A. Paulson

196,214,806

3,343,625

79,859,605

Robert N. Power

186,236,066

13,322,365

79,859,605

Eiry W. Roberts, M.D.

196,972,752

2,585,679

79,859,605

Amy B. Wechsler, M.D.

195,813,955

3,744,476

79,859,605

Shareholders also approved, on a non-binding advisory vote, the compensation of the Company's named executive officers, appointment of PricewaterhouseCoopers LLP to serve as the Company's auditor until the close of the Company's 2027 Annual Meeting of Shareholders, and the authorization for the board of directors to fix the auditor's remuneration.

The final vote tabulation on all matters voted on at the Annual Meeting will be reported to the U.S. Securities and Exchange Commission on a current report on Form 8-K, and such report will be made available on the Company's SEDAR+ profile and on the Company's website at www.bauschhealth.com.

About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn. 

Investor Contact:

Media Contact:

Garen Sarafin

Katie Savastano

[email protected]

[email protected] 

(877) 281-6642 (toll free)            

(908) 569-3692

BHC-AGM 

SOURCE Bausch Health Companies Inc.

Thermage®, a pioneer in non-invasive skin tightening, was awarded the AAA Well-Known Trademark Certification, the highest recognition in China's domestic trademark evaluation system.

, /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC), a global, diversified pharmaceutical company, and Solta Medical, a global leader in the medical aesthetics market, are proud to announce that their flagship brand, Thermage®, was awarded the prestigious AAA Well-Known Trademark Certification ("AAA") by the China Trademark Association (CTA), a renowned accreditation reserved for top-tier brands. This elite distinction—earned by only 217 brands across mainland China—recognizes Thermage's exceptional brand reputation, consumer confidence, and market influence.

"Joining an elite group of only 217 brands nationwide, this distinction cements Thermage's position as a leader in medical aesthetics and is a powerful validation of the reliability and confidence we have established with consumers and practitioners in China," said Thomas J. Appio, CEO of Bausch Health. "It underscores our commitment to innovation with the highest standards of quality and safety."

"With over a decade of presence in China, and over 5 million treatments performed worldwide, Thermage® has earned its reputation as a leader in non‑invasive aesthetic treatments," said Jiny Kim, Senior Vice President, Solta Medical, Bausch Health. "The AAA rating serves as a credible "mark of trust," allowing consumers to choose Thermage® with confidence in its legitimacy and product integrity."

About Thermage® FLX system

INDICATIONS

The radiofrequency energy only delivery components of the Thermage® FLX system and accessories are indicated for use in: Dermatologic and general surgical procedures for electrocoagulation and hemostasis Non-invasive treatment of wrinkles around the eyes, including upper and lower eyelids Non-invasive treatment of wrinkles The simultaneous application of radiofrequency energy and skin vibration by the Thermage® FLX system and accessories are indicated for use in: Dermatologic and general surgical procedures for electrocoagulation and hemostasis Non-invasive treatment of wrinkles around the eye Non-invasive treatment of wrinkles Temporary improvement in the appearance of cellulite Relief of minor muscle aches and pain Relief of muscle spasms Temporary improvement of local circulation (blood circulation) IMPORTANT SAFETY INFORMATION

Do not undergo Thermage® treatment if you have a cardiac pacemaker, a cardioverter, a defibrillator, or any other electrical implant. Let your doctor know if you have an electrical implant or if you have any questions about whether you should undergo a Thermage® treatment. Solta Medical has not studied the use of the Thermage® system: Over skin fillers (lips, cheeks, facial wrinkles and skin folds) In people who are pregnant and/or breast feeding, diabetic, have an auto-immune disease such as lupus, have cold sores, have genital herpes, or have epilepsy In people who have permanent make-up and/or tattoos In children The most commonly reported adverse effect during treatment is mild to moderate pain in the area being treated. The most commonly reported adverse effects after treatment include the following: Mild redness may occur and typically resolves within 24 hours. Swelling may occur and typically resolves within 5 days but can remain up to several weeks. The following adverse effects occur infrequently: The procedure may produce heating in the upper layers of the skin, causing burns and subsequent blister and scab formation. There is a possibility of scar formation. Skin surface irregularities may appear up to 1 or more months post-treatment. Numbness, tingling" or temporary paralysis may occur; typically resolves in a short period of time but may persist up to several weeks. Lumps or nodules may occur under the skin primarily in the neck area, and usually resolve within 1 or 2 weeks without chronic or long-term complications. Skin may darken, but normally resolves within several months. Talk to your doctor for more information about Thermage® and see thermage.com for additional details.

About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. Our aesthetic business, Solta Medical, is a global leader in the aesthetics market, whose vision is to develop and support trusted aesthetic brands that provide value to our customers and patients. More information about Solta Medical can be found at www.solta.com. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.

Forward-looking Statements
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Investor Contact:

Media Contact:

Garen Sarafian

Katie Savastano

[email protected]

[email protected]

(877) 281-6642 (toll free)

(908) 569-3692

BHC-PRODUCTS

SOURCE Bausch Health Companies Inc.

First Quarter 2026 Highlights

Net income of $24.1 million, or basic earnings per common share of $35.91 and diluted earnings per common share of $35.34; diluted earnings per common share up 7.6% compared to the first quarter of 2025;Diluted earnings per common share of $136.49 over the trailing twelve months, up 10.68% versus $123.32 over the same trailing period a year ago and $116.37 for the same period two years ago;Tangible book value per common share increased 15.01% to $928.99 compared to $807.72 as of March 31, 2025;Achieved return on average assets of 1.68% and return on average equity of 14.69%;Net interest income of $56.9 million, up $3.8 million, or 7.08% compared to the first quarter of 2025; net interest margin (tax equivalent basis) of 4.25%, up from 4.20% in the first quarter of 2025;Total assets grew $146.6 million, or 2.6%, to $5.84 billion, and deposits grew $138.4 million, or 2.8%, to $5.12 billion as of March 31, 2026 compared to December 31, 2025;Liquidity position remains strong with $384.2 million in cash, $1.6 billion in investment securities, of which $901.9 million are available-for-sale, no borrowings and a borrowing capacity of $2.2 billion as of March 31, 2026;Continued to grow our solid capital position with a total risk-based capital ratio of 15.71%, common equity tier 1 ratio of 14.23%, tier 1 leverage ratio of 11.35% and a tangible common equity ratio of 11.05%;Credit quality remains resilient with an allowance for credit losses on loans and leases of 2.12%; net recoveries for the quarter of $43,000 and only one non-accrual loan of $730,000 at quarter-end. LODI, Calif., April 20, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), reported net income of $24.1 million, or $35.34 per diluted common share, for the first quarter of 2026 compared with $23.0 million, or $32.86 per diluted common share, for the first quarter of 2025. The annualized return on average assets was 1.68% and return on average equity was 14.69% for the first quarter of 2026.

Net income over the trailing twelve months was $94.7 million compared with $88.7 million for the same trailing period a year earlier. Diluted earnings per common share over the trailing twelve months totaled $136.49, up 10.68% compared with $123.32 for the same trailing period a year ago and $116.37 for the same period two years ago. Basic earnings per common share over the trailing twelve months totaled $138.00, up 11.89% compared with $123.34 for the same trailing period a year ago and $116.37 for the same period two years ago. Tangible book value per common share increased to $928.99 at March 31, 2026, up 15.01% compared with $807.72 as of March 31, 2025.

CEO Commentary

Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are very pleased with the Company’s financial performance in the first quarter of 2026 highlighted by record quarterly net income of $24.1 million and a return on average assets of 1.68% and return on average equity of 14.69%. After eight consecutive years of record-setting annual earnings, we begin 2026 with another high-performing first quarter. We achieved these impressive results while continuing to maintain a strong liquidity position and balance sheet at quarter end with $384.2 million in cash, $1.6 billion in investment securities of which $901.9 million are available-for-sale, no borrowings and access to $2.2 billion in borrowing capacity. Capital levels continued to strengthen and were significantly above the regulatory thresholds for “well-capitalized” banks at quarter-end. Core deposits increased $88.4 million in the first quarter from December 31, 2025 as we continued our focus on growing deposits with both our longstanding established client relationships while developing new client relationships. Total loans and leases were $3.6 billion at the end of the first quarter, down $32.1 million or 0.88% from December 31, 2025 due primarily to seasonality in agricultural lending. Importantly, we continued to be selective in booking longer duration loans. The relatively flat interest rate yield curve, combined with aggressive loan pricing and credit structure by competitors, has diminished the attractiveness of longer duration loan assets. Overall credit quality remained resilient during the first quarter of 2026. We are still working closely with a few borrowers as they work through the current economic cycle, particularly in certain agricultural commodities where prices have been adversely impacted by negative conditions in the export market. Our Company remains in excellent financial condition and should be well positioned to navigate the challenges ahead as we have for the past 109 years.”

Earnings

Net interest income for the quarter ended March 31, 2026 was $56.9 million, an increase of $3.8 million when compared with $53.1 million for the first quarter of 2025. The Company’s net interest margin increased to 4.25% in the first quarter of 2026, compared to 4.20% in the first quarter of 2025. Loan yields increased 1 bps to 6.08% and deposit costs were flat at 1.18%. The primary driver for the increase in the net interest margin was related to the increase in yield on the investment securities portfolio from 3.20% in the first quarter of 2025 to 3.70% in the first quarter of 2026. In addition, the average balances of the investment security portfolio increased $375.9 million from the first quarter of 2025 to the first quarter of 2026. Non-interest income was $5.2 million for the first quarter of 2026, up slightly from $5.0 million when compared to the first quarter of 2025. Non-interest expense was $29.2 million for the quarter ending March 31, 2026, up $3.7 million from $25.5 million compared to the quarter ended March 31, 2025. The majority of the increase was $2.8 million in higher compensation expense primarily due to the one-time transition expenses for the new long term incentive plan. Overall operating expenses were impacted by ongoing inflation. As a result, the efficiency ratio for the first quarter of 2026 was 47.0%, up from 43.9% in the first quarter of 2025. Despite the one-time increase in operating expenses for the quarter, net income increased $1.1 million from $23.0 million for the first quarter of 2025 to $24.1 million for the first quarter of 2026.

Balance Sheet

Total assets at quarter-end were $5.8 billion, up from $5.7 billion as of December 31, 2025. Total cash and cash equivalents were $384.2 million, an increase of $239.4 million from December 31, 2025. Total loans and leases outstanding were $3.6 billion, a decrease of $32.1 million, or 0.88%, from December 31, 2025. As of March 31, 2026, our total investment securities portfolio was $1.6 billion, a decrease of $59.6 million from December 31, 2025. The portfolio is comprised of $901.9 million in available-for-sale securities and $708.3 million in held-to-maturity securities. Total deposits increased $138.4 million, or 2.78%, to $5.1 billion at March 31, 2026 compared to December 31, 2025. Our loan to deposit ratio was 71.04% as of March 31, 2026, down from 73.67% as of December 31, 2025 due to an increase in total deposits and a modest decrease in total loans and leases.

Credit Quality

The Company’s credit quality remained solid with only one $730,000 non-accrual loan as of March 31, 2026, and a negligible delinquency ratio of 0.01% of total loans and leases. Net recoveries were $43,000 in the first quarter of 2026 compared to net charge-offs of $160,000 in the first quarter of 2025. Net charge-offs over the trailing twelve months were $1.6 million or 0.04% of average total loans and leases. The total allowance for credit losses on loans and leases and unfunded commitments was $80.2 million as of March 31, 2026, compared to $79.7 million as of December 31, 2025. The allowance for credit losses on loans and leases increased by $0.5 million to $76.9 million, or 2.12%, as of March 31, 2026 compared with $76.4 million, or 2.08%, as of December 31, 2025. A provision for credit losses of $500,000 was recorded during the first quarter of 2026 compared to a $300,000 provision during the first quarter of 2025.

Capital

The Company’s regulatory capital ratios continued to strengthen during the first quarter of 2026. At March 31, 2026, the Company’s preliminary total risk-based capital ratio was 15.71%, the common equity tier 1 capital ratio was 14.23% and the tier 1 leverage capital ratio was 11.35%, an increase from 15.29%, 13.81% and 11.00% as of December 31, 2025, respectively. At March 31, 2026, all F&M Bank capital ratios exceeded the regulatory requirements to be classified as “well-capitalized”. At March 31, 2026, the tangible common equity ratio was 11.05%, up from 10.40% as of March 31, 2025.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp trades on the OTCQX under the symbol FMCB, and is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, which proudly serves California through 33 convenient locations. F&M Bank is financially strong, with $5.8 billion in assets, and is consistently recognized as one of the nation's safest banks by national bank rating firms. The Bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, longer than any other commercial bank in the State of California.

Farmers & Merchants Bancorp has paid dividends for 91 consecutive years and has increased dividends for 61 consecutive years. As a result, Farmers & Merchants Bancorp is a member of a select group of only 57 publicly traded companies referred to as “Dividend Kings,” and is ranked 17th in that group based on consecutive years of dividend increases. A “Dividend King” is a stock with 50 or more consecutive years of dividend increases.

In February 2026, F&M Bank was ranked 5th on Forbes Magazine’s list of "America’s Best Banks" for 2025 and was ranked 1st in California. In April 2024, F&M Bank was ranked 6th on Forbes Magazine’s list of "America’s Best Banks" for 2023.

In July 2025, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #3 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2024. In July 2024, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #2 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2023. In July 2023, the Bank was named by Bank Director’s Magazine as the #1 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2022.

In December 2023, F&M Bank was ranked 4th on S&P Global Market Intelligence's “Top 50 List of Best-Performing Community Banks” in the US with assets between $3.0 billion and $10.0 billion for 2023. S&P Global Market Intelligence ranks financial institutions based on several key factors including financial returns, growth, and balance sheet risk profile.

In October 2021, F&M Bank was named the “Best Community Bank in California” by Newsweek magazine. Newsweek’s ranking recognizes those financial institutions that best serve their customers’ needs in each state. This recognition speaks to the superior customer service the F&M Bank team members provide to their clients.

F&M Bank was ranked the 20th largest bank lender to agriculture in the United States as of December 31, 2025, by American Bankers Association. F&M Bank operates in the mid-Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east region of the San Francisco Bay Area, including Napa, Alameda and Contra Costa counties.

F&M Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of "Outstanding" in their last Community Reinvestment Act (“CRA”) evaluation.

Forward-Looking Statements

This press release may contain certain forward-looking statements that are based on management's current expectations regarding the Company’s financial performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements in this press release include, without limitation, statements regarding the Company’s strategic focus and priorities, and the anticipated results therefrom, financial condition, liquidity position and balance sheet, competitive positioning, and credit quality. Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from results expressed or implied by such forward-looking statements. Such risk factors include, among others: the effects of and changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board and their effects on inflation risk; financial and regulatory policies of the United States government; political and economic uncertainty, including any decline in global, domestic or local economic conditions or the stability of credit and financial markets and the impact of tariffs and the conflict in Iran and the Middle East; and other relevant risks detailed in the Company’s Form 10-K, Form 10-Qs, and various other securities law filings made periodically by the Company, copies of which are available from the Company’s website. All such factors are difficult to predict and are beyond the Company's ability to control or predict. There also may be additional risks that the Company does not presently know, or that the Company currently believes to be immaterial, that could also cause actual results to differ materially and adversely from those contained in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release or otherwise, except as may be required by applicable law.

For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.

Investor Relations Contact
Farmers & Merchants Bancorp
Bart R. Olson
Executive Vice President and Chief Financial Officer
Phone: 209-367-2485

                FINANCIAL HIGHLIGHTS          Three Months Ended(dollars in thousands, except share and per share data)  March 31, 2026 December 31, 2025 March 31, 2025Earnings and Profitability:       Interest income  $ 71,710  $ 71,701  $ 67,138 Interest expense   14,807   14,967   13,997 Net interest income   56,903   56,734   53,141 Provision for credit losses   500   1,100   300 Noninterest income   5,159   6,226   5,021 Noninterest expense   29,178   29,409   25,509 Income before taxes   32,384   32,451   32,353 Income tax expense   8,313   8,628   9,344 Net income  $ 24,071  $ 23,823  $ 23,009         Basic earnings per common share  $ 35.91  $ 34.79  $ 32.88 Diluted earnings per common share  $ 35.34  $ 34.29  $ 32.86 Weighted average shares outstanding - Basic   670,265   684,735   699,736 Weighted average shares outstanding - Diluted   681,179   694,662   700,215 Common shares outstanding   693,043   697,904   729,913 Return on average assets   1.68%  1.66%  1.70%Return on average equity   14.69%  14.64%  15.65%Loan yield   6.08%  6.06%  6.07%Investment securities yield   3.70%  3.69%  3.20%Cost of average total deposits   1.18%  1.18%  1.18%Net interest margin - tax equivalent   4.25%  4.18%  4.20%Effective tax rate   25.67%  26.59%  28.88%Efficiency ratio   47.01%  46.71%  43.86%Book value per common share (1)  $ 946.63  $ 924.93  $ 825.18 Tangible book value per common share (2)(b)  $ 928.99  $ 907.24  $ 807.72         Balance Sheet:       Total assets  $ 5,836,664  $ 5,690,110  $ 5,680,024 Cash and cash equivalents   384,224   144,864   607,254   of which held at Fed   318,125   84,242   515,758 Total investment securities   1,610,188   1,669,795   1,255,204    of which available-for-sale   901,915   951,154   495,433    of which held-to-maturity   708,273   718,641   759,771 Gross loans and leases   3,634,556   3,667,325   3,595,511 Allowance for credit losses - loans and leases   76,918   76,375   75,423 Total deposits   5,116,273   4,977,826   4,977,968 Subordinated debentures   10,310   10,310   10,310 Total shareholders' equity  $ 656,055  $ 645,514  $ 602,306         Loan-to-deposit ratio   71.04%  73.67%  72.23%Percentage of checking deposits to total deposits   46.93%  49.11%  45.76%        Capital ratios (Bancorp) (a)       Common equity tier 1 capital to risk-weighted assets   14.23%  13.81%  13.75%Tier 1 capital to risk-weighted assets   14.45%  14.04%  13.97%Risk-based capital to risk-weighted assets   15.71%  15.29%  15.23%Tier 1 leverage capital ratio   11.35%  11.00%  11.32%Tangible common equity ratio (3)(b)   11.05%  11.15%  10.40%        (a) Capital information is preliminary for March 31, 2026
(b) Non-GAAP measurement
        Non-GAAP measurement reconciliation:       (Dollars in thousands)  March 31, 2026 December 31, 2025 March 31, 2025        Shareholders' equity  $ 656,055  $ 645,514  $ 602,306 Less: Intangible assets   12,227   12,348   12,740 Tangible common equity  $ 643,828  $ 633,166  $ 589,566         Total assets  $ 5,836,664  $ 5,690,110  $ 5,680,024 Less: Intangible assets   12,227   12,348   12,740 Tangible assets  $ 5,824,437  $ 5,677,762  $ 5,667,284         Tangible common equity ratio (1)   11.05%  11.15%  10.40%        (1) Total common equity divided by common shares outstanding
(2) Tangible common equity divided by common shares outstanding
(3) Tangible common equity divided by tangible assets
        

LODI, Calif., May 12, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), declared a quarterly cash dividend of $5.35 per share, up 4.9% from $5.10 for the previous quarter which was paid on April 1, 2026. Over the trailing twelve months the total cash dividend declared was $20.50 compared to $18.60 for the same trailing period a year earlier. The cash dividend is payable on July 1, 2026, to shareholders of record on June 12, 2026. Based on the Company’s financial performance through March 31, 2026, net income over the trailing twelve months was $94.7 million compared with $88.7 million for the same trailing period a year earlier. Diluted earnings per share over the trailing twelve months totaled $136.49, up 10.7% compared with $123.32 for the same trailing period a year ago.

For the quarter ended March 31, 2026, Farmers & Merchants Bancorp reported record net income of $24.1 million, or $35.34 per diluted common share, a 7.6% increase over the prior year. For the first quarter of 2026, annualized return on average assets was 1.68% and return on average equity was 14.69%. Total assets at quarter-end were $5.8 billion. The Company’s credit quality remained solid with an allowance for credit losses on loans and leases at quarter-end of 2.12% and a negligible delinquency ratio of 0.01% of total loans and leases as of March 31, 2026. The Company’s regulatory capital ratios continued to strengthen during the first quarter of 2026. At March 31, 2026, the Company’s common equity tier 1 ratio was 14.23% and the total risk-based capital ratio was 15.71%. All F&M Bank capital ratios exceeded the regulatory requirements to be classified as “well-capitalized” at March 31, 2026. For further details on our first quarter results, please see our press release dated April 20, 2026.

Kent A. Steinwert, Chairman, President and CEO noted, “The Board is very pleased with the Company’s strong financial results during the first quarter of 2026 and as a result, on May 11, 2026, the Board unanimously approved our fourth quarterly cash dividend since the Company moved from a semi-annual dividend to a quarterly dividend. This year marks the 91st consecutive year that Farmers & Merchants Bancorp has paid cash dividends and the 61st consecutive year we have increased dividends. As a result of the consistency of our cash dividends over many decades, we remain a member of a select group of only 57 publicly traded companies referred to as “Dividend Kings” by Sure Dividend where Farmers & Merchants Bancorp is currently ranked 17th.”

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp trades on the OTCQX under the symbol FMCB, and is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, which proudly serves California through 33 convenient locations. F&M Bank is financially strong, with $5.8 billion in assets, and is consistently recognized as one of the nation's safest banks by national bank rating firms. The Bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, longer than any other commercial bank in the State of California.

Farmers & Merchants Bancorp has paid dividends for 91 consecutive years and has increased dividends for 61 consecutive years. As a result, Farmers & Merchants Bancorp is a member of a select group of only 57 publicly traded companies referred to as “Dividend Kings,” and is ranked 17th in that group based on consecutive years of dividend increases. A “Dividend King” is a stock with 50 or more consecutive years of dividend increases.

In February 2026, F&M Bank was ranked 5th on Forbes Magazine’s list of “America’s Best Banks” for 2025 and was ranked 1st in California. In April 2024, F&M Bank was ranked 6th on Forbes Magazine’s list of “America’s Best Banks” for 2023.

In July 2025, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #3 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2024. In July 2024, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #2 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2023. In July 2023, the Bank was named by Bank Director’s Magazine as the #1 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2022.

In December 2023, F&M Bank was ranked 4th on S&P Global Market Intelligence's “Top 50 List of Best-Performing Community Banks” in the US with assets between $3.0 billion and $10.0 billion for 2023. S&P Global Market Intelligence ranks financial institutions based on several key factors including financial returns, growth, and balance sheet risk profile.

In October 2021, F&M Bank was named the “Best Community Bank in California” by Newsweek magazine. Newsweek’s ranking recognizes those financial institutions that best serve their customers’ needs in each state. This recognition speaks to the superior customer service the F&M Bank team members provide to their clients.

F&M Bank was ranked the 20th largest bank lender to agriculture in the United States as of December 31, 2025, by American Bankers Association. F&M Bank operates in the mid-Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east region of the San Francisco Bay Area, including Napa, Alameda and Contra Costa counties.

F&M Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of “Outstanding” in their last Community Reinvestment Act (“CRA”) evaluation.

Forward-Looking Statements

This press release may contain certain forward-looking statements that are based on management's current expectations regarding the Company’s financial performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements in this press release include, without limitation, statements regarding earnings performance and the frequency and amount of future dividend payments (if any). Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from results expressed or implied by such forward-looking statements. Such risk factors include, among others: the effects of and changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board and their effects on inflation risk; financial and regulatory policies of the United States government; political and economic uncertainty, including any decline in global, domestic or local economic conditions or the stability of credit and financial markets and the impact of tariffs and the conflict in Iran and the Middle East; and other relevant risks detailed in the Company’s Form 10-K, Form 10-Qs, and various other securities law filings made periodically by the Company, copies of which are available from the Company’s website. All such factors are difficult to predict and are beyond the Company's ability to control or predict. There also may be additional risks that the Company does not presently know, or that the Company currently believes to be immaterial, that could also cause actual results to differ materially and adversely from those contained in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release or otherwise, except as may be required by applicable law.

For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.

Investor Relations Contact

Farmers & Merchants Bancorp
Bart R. Olson
Executive Vice President and Chief Financial Officer
Phone: 209-367-2485

LODI, Calif., June 11, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) announced today that Jehna Silva was appointed to the Board of Directors effective as of June 8, 2026. Ms. Silva brings more than 15 years of commercial banking experience to the Board, including extensive knowledge of relationship banking, lending and risk mitigation. Most recently, she served as Vice President, Shareholder Relations, of the Company where she managed shareholder communications, supported governance and managed shareholder reporting. That combination of community banking depth and shareholder-facing experience positions her to contribute to the Board’s strategic oversight while strengthening governance and continued growth.

Throughout her career, Ms. Silva has actively supported local communities by serving on boards as well as raising funds for United Way and other local charities. Currently, Ms. Silva serves on the board for the St. Joseph’s Foundation of San Joaquin and has previously served on the boards of Lodi Adopt-A-Child as Chair and the Leadership Stockton Alumni Association. She earned her Bachelor of Science degree in Business Administration from the University of the Pacific as well as attended Southern Methodist University’s Graduate Banking program at the Cox School of Business.

"On behalf of the Board of Directors, I want to welcome Jehna to the Board. She brings a history of professional experience, leadership, and commitment to exceptional corporate governance practices to our Board,” said Kent A. Steinwert, Chairman, President, and Chief Executive Officer of FMCB. “I look forward to working with her as we continue to serve the needs of the Company’s five key constituents, which are the shareholders, customers, employees, the communities we serve, and government, in a balanced manner.”

Ms. Silva has been appointed to serve on the CRA, Budget and Finance, and ALCO Committees of F&M Bank.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp trades on the OTCQX under the symbol FMCB, and is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank that proudly serves California through 33 convenient locations. F&M Bank is financially strong, with $5.8 billion in assets, and is consistently recognized as one of the nation’s safest banks by national bank rating firms. The Bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, longer than any other commercial bank in the State of California.

Farmers & Merchants Bancorp has paid dividends for 91 consecutive years and has increased dividends for 61 consecutive years. As a result, Farmers & Merchants Bancorp is a member of a select group of only 57 publicly traded companies referred to as “Dividend Kings,” and is ranked 17th in that group based on consecutive years of dividend increases. A “Dividend King” is a stock with 50 or more consecutive years of dividend increases.

In February 2026, F&M Bank was ranked 5th on Forbes Magazine’s list of “America’s Best Banks” for 2025 and was ranked 1st in California. In April 2024, F&M Bank was ranked 6th on Forbes Magazine’s list of “America’s Best Banks” for 2023.

In July 2025, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #3 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2024. In July 2024, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #2 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2023. In July 2023, the Bank was named by Bank Director’s Magazine as the #1 best-performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2022.

In December 2023, F&M Bank was ranked 4th on S&P Global Market Intelligence’s “Top 50 List of Best-Performing Community Banks” in the US with assets between $3.0 billion and $10.0 billion for 2023. S&P Global Market Intelligence ranks financial institutions based on several key factors including financial returns, growth, and balance sheet risk profile.

In October 2021, F&M Bank was named the “Best Community Bank in California” by Newsweek magazine. Newsweek’s ranking recognizes those financial institutions that best serve their customers’ needs in each state. This recognition speaks to the superior customer service the F&M Bank team members provide to their clients.

F&M Bank was ranked the 20th largest bank lender to agriculture in the United States as of December 31, 2025, by American Bankers Association. F&M Bank operates in the mid-Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east region of the San Francisco Bay Area, including Napa, Alameda and Contra Costa counties.

F&M Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of “Outstanding” in their last Community Reinvestment Act (“CRA”) evaluation.

Forward-Looking Statements

This press release may contain certain forward-looking statements that are based on management’s current expectations regarding the Company’s financial performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from results expressed or implied by such forward-looking statements. Such risk factors include, among others: the effects of and changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board and their effects on inflation risk; financial and regulatory policies of the United States government; political and economic uncertainty, including any decline in global, domestic or local economic conditions or the stability of credit and financial markets and the impact of tariffs and the conflict in Iran and the Middle East; and other relevant risks detailed in the Company’s Form 10-K, Form 10-Qs, and various other securities law filings made periodically by the Company, copies of which are available from the Company’s website. All such factors are difficult to predict and are beyond the Company’s ability to control or predict. There also may be additional risks that the Company does not presently know, or that the Company currently believes to be immaterial, that could also cause actual results to differ materially and adversely from those contained in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release or otherwise, except as may be required by applicable law.

For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.

Investor Relations Contact

Farmers & Merchants Bancorp
Bart R. Olson
Executive Vice President and Chief Financial Officer
Phone: 209-367-2485

-

LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the “Company”) (NYSE: BANC) announced today that its Board of Directors approved an extension of the Company’s existing stock repurchase program, which was originally announced on March 17, 2025 and subsequently upsized from $150 million to $300 million on April 23, 2025. Since inception of the program, the Company has repurchased approximately $217 million of its common stock, $31 million of which was repurchased in 2026, leaving approximately $83 million available for future repurchases. The stock repurchase program, which was previously scheduled to expire in March 2026, has been extended through March 16, 2027. Repurchases under the program may be made from time to time in open market transactions, in block transactions on or off an exchange, in privately negotiated transactions, or by other means as determined by the Company’s management and in accordance with the regulations of the Securities and Exchange Commission. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, market conditions, and corporate and regulatory requirements.

The Company also announced Banc of California’s intent to redeem the entire outstanding $385 million aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”) originally issued by Pacific Western Bank, which are scheduled to reset to a floating rate equal to three-month term SOFR plus 252 bps beginning on May 1, 2026. The Notes are redeemable in whole or in part beginning on May 1, 2026 at a redemption price equal to 100% of principal amount of the Notes redeemed, plus any accrued and unpaid interest.

The proposed redemption is part of the Company’s ongoing capital management strategy and reflects its robust liquidity and strong capital position.

“Extending our stock repurchase program enables us to continue returning excess capital to stockholders through disciplined share repurchases,” said Jared Wolff, Chairman and CEO of Banc of California. “At the same time, retiring higher-cost subordinated debt improves our funding profile, reduces interest expense, and strengthens our overall capital structure. Together, these actions demonstrate our continued commitment to prudent capital management and delivering sustainable long-term returns to our stockholders.”

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to the Company’s expectations regarding use of its stock repurchase program, confidence in its earnings outlook and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. Such statements are based on current beliefs and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including factors described in “Part I—Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which is filed with the Securities and Exchange Commission ("SEC"), as such factors may be update from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $34 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 79 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. Member FDIC. For more information, please visit us at www.bancofcal.com.

More News From Banc of California, Inc.

Back to Newsroom

-

LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the “Company”) (NYSE: BANC) today announced it will release financial results for the first quarter ended March 31, 2026 after market close on Wednesday, April 22, 2026. The Company will host a conference call to discuss these financial results the following day on Thursday, April 23, 2026, at 10:00 a.m. Pacific Time (PT).

Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5670833. A link to the live audio webcast and the slide presentation for the call will be available on the Company’s investor relations website prior to the call. An audio archive of the conference call will be available on the Company’s investor relations website within 24 hours after the end of the call.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $34 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 79 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet ™ . The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. Member FDIC. For more information, please visit us at www.bancofcal.com.

More News From Banc of California, Inc.

Back to Newsroom

Banc of California (BANC - Free Report) closed the last trading session at $17.63, gaining 3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $23.18 indicates a 31.5% upside potential.

The average comprises 11 short-term price targets ranging from a low of $20.50 to a high of $25.00, with a standard deviation of $1.76. While the lowest estimate indicates an increase of 16.3% from the current price level, the most optimistic estimate points to a 41.8% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for BANC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why BANC Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.1%.

Moreover, BANC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much BANC could gain, the direction of price movement it implies does appear to be a good guide.

Wall Street expects a year-over-year increase in earnings on higher revenues when Banc of California (BANC - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on April 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis banking service and lending company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +46.2%.

Revenues are expected to be $290.8 million, up 9.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.81% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Banc of California?For Banc of California, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Banc of California will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Banc of California would post earnings of $0.38 per share when it actually produced earnings of $0.42, delivering a surprise of +10.53%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Banc of California doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerBOK Financial (BOKF - Free Report) , another stock in the Zacks Banks - Southwest industry, is expected to report earnings per share of $2.3 for the quarter ended March 2026. This estimate points to a year-over-year change of +23.7%. Revenues for the quarter are expected to be $546.8 million, up 8.9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for BOK Financial has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.22%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that BOK Financial will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC):

Quarter Highlights

$0.39

Earnings Per Share

$19.80
Book Value Per Share

$17.77
Tangible Book Value

Per Share(1)

3.24%
Net Interest Margin

4%
Loan Average Annualized Growth

4%
Noninterest-bearing Deposit Average Annualized Growth

Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the first quarter ended March 31, 2026. The Company reported net earnings available to common and equivalent stockholders of $62.0 million, or $0.39 per diluted common share, for the first quarter of 2026, compared to $67.4 million, or $0.42 per diluted common share for the fourth quarter of 2025.

During the quarter, the Company extended its existing $300 million stock repurchase program through March 2027 and announced plans to redeem $385 million of subordinated debt, reflecting continued capital flexibility and commitment to creating value for our shareholders.

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our first quarter results reflect disciplined execution and continued strength in our core earnings drivers. We delivered positive operating leverage and significant earnings growth year over year, supported by net interest margin expansion, disciplined expense management, and continued progress in improving the mix and earnings power of the balance sheet. Supported by our healthy capital and liquidity position, we also efficiently deployed capital through opportunistic share repurchases and announced the redemption of subordinated debt. As we look ahead, we are well positioned for continued earnings growth, supported by strong pipelines, embedded asset repricing opportunities, and our attractive market position.”

First Quarter 2026 Financial Highlights:

Total revenue of $286.9 million, up 8% year over year, with pre-tax pre-provision income(1) of $105.6 million, up 28% year over year. Net interest margin expanded 4 basis points to 3.24% compared to fourth quarter 2025, driven by an 11 basis point decline in deposit costs. Average total deposits increased by $103.4 million, and average noninterest-bearing deposits grew $81.2 million to 28.9% of average total deposits. First quarter loan production and disbursements totaled $2.1 billion, with a weighted average interest rate on production of 6.65%, supporting our balance sheet remixing and providing embedded earnings upside as higher-rate production replaces lower-yielding fixed-rate and hybrid loans. Average total loans increased $267.5 million. Total noninterest expense of $181.4 million, down 1% year over year. Maintained allowance for credit losses coverage of 1.12% of total loans held for investment. Repurchased $31.9 million of common stock and common equivalent stock at a weighted average price per share of $18.68. Growth in book value per share to $19.80 and tangible book value per share(1) to $17.77, up 9% and 10% year over year, respectively. Healthy capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.54% Tier 1 capital ratio and 10.18% CET 1 capital ratio. INCOME STATEMENT HIGHLIGHTS

Three Months Ended

March 31,

December 31,

March 31,

Summary Income Statement

2026

2025

2025

(In thousands)

Total interest income

$

407,442

$

416,948

$

406,655

Total interest expense

155,825

165,586

174,291

Net interest income

251,617

251,362

232,364

Provision for credit losses

9,800

12,500

9,300

Gain on sale of loans

7

18

211

Other noninterest income

35,321

41,553

33,439

Total noninterest income

35,328

41,571

33,650

Total revenue

286,945

292,933

266,014

Total noninterest expense

181,391

180,644

183,653

Earnings before income taxes

95,754

99,789

73,061

Income tax expense

23,802

22,398

19,493

Net earnings

71,952

77,391

53,568

Preferred stock dividends

9,947

9,947

9,947

Net earnings available to common and equivalent stockholders

$

62,005

$

67,444

$

43,621

Diluted earnings per share

$

0.39

$

0.42

$

0.26

Net Interest Income and Margin

First Quarter of 2026 Compared to Fourth Quarter of 2025

Net interest income increased by $0.3 million to $251.6 million for the first quarter, up from $251.4 million in the fourth quarter. This increase was primarily driven by a $9.7 million decrease in interest expense on deposits, reflecting lower interest rates due to the full quarter impact of the federal funds rate cuts of 50 basis points in the fourth quarter and two fewer days in the quarter. Additionally, interest income from investment securities rose by $2.3 million, supported by higher average balances from security purchases and a Federal Home Loan Bank (FHLB) special dividend. These positive factors were offset partially by a $9.3 million decrease in interest income from loans, mainly due to two fewer days in the quarter and lower average yields resulting from the federal funds rate cuts. Interest income from deposits in financial institutions also declined by $2.5 million, driven by lower average balances and interest rates.

Net interest margin was 3.24% for the first quarter, up 4 basis points from 3.20% for the fourth quarter primarily driven by lower average total cost of funds, offset partially by lower average yield on interest-earning assets. The average total cost of funds decreased to 2.10% from 2.20%, as a result of an 11 basis point decrease in the average total cost of deposits to 1.78%, and an 11 basis point decrease in the average cost of borrowings to 4.63%. The average yield on interest-earning assets decreased to 5.25% from 5.31%, as a result of a 9 basis point decrease in the average yield on loans and leases to 5.74%. Declines in both funding costs and asset yield reflect the full quarter impact of rate cuts that occurred in fourth quarter.

Average total deposits increased by $103.4 million, with a $81.2 million increase in average noninterest-bearing deposits and $22.2 million increase in average interest-bearing deposits. Average noninterest-bearing deposits represented 28.9% of average total deposits in the first quarter, up from 28.7% in the fourth quarter.

Three Months Ended

Increase (Decrease)

March 31, 2026

December 31, 2025

QoQ

Summary Average Balance and Yield/Cost Data

Interest

Average

Interest

Average

Average

Average

Income/

Yield/

Average

Income/

Yield/

Average

Yield/

Balance

Expense

Cost

Balance

Expense

Cost

Balance

Cost

(Dollars in thousands)

Assets:

Loans and leases(1)

$

24,710,609

$

349,943

5.74

%

$

24,443,089

$

359,268

5.83

%

$

267,520

(0.09

)%

Investment securities

5,018,002

41,873

3.38

%

4,891,281

39,557

3.21

%

126,721

0.17

%

Deposits in financial institutions

1,742,657

15,626

3.64

%

1,834,773

18,123

3.92

%

(92,116

)

(0.28

)%

Total interest-earning assets

$

31,471,268

$

407,442

5.25

%

$

31,169,143

$

416,948

5.31

%

$

302,125

(0.06

)%

Liabilities:

Noninterest-bearing demand deposits

$

7,890,489

$

7,809,326

$

81,163

Total interest-bearing deposits

19,429,112

$

120,233

2.51

%

19,406,865

$

129,896

2.66

%

22,247

(0.15

)%

Total deposits

$

27,319,601

120,233

1.78

%

$

27,216,191

129,896

1.89

%

$

103,410

(0.11

)%

Total interest-bearing liabilities

$

22,148,512

$

155,825

2.85

%

$

22,020,144

$

165,586

2.98

%

$

128,368

(0.13

)%

Net interest income(1)

$

251,617

$

251,362

Net interest margin

3.24

%

3.20

%

0.04

%

Total funds(2)

$

30,039,001

$

155,825

2.10

%

$

29,829,470

$

165,586

2.20

%

$

209,531

(0.10

)%

Provision For Credit Losses

First Quarter of 2026 Compared to Fourth Quarter of 2025

The provision for credit losses was $9.8 million for the first quarter compared to $12.5 million for the fourth quarter.

The first quarter provision for loan losses and unfunded loan commitments was primarily driven by net charge off activity and changes in loan risk ratings including specific reserves, offset partially by lower balances in the held for investment ("HFI") portfolio and lower qualitative reserves.

The fourth quarter provision for loan losses and unfunded loan commitments was primarily driven by changes in loan risk ratings including specific reserves, and higher loan balances and unfunded commitments, offset partially by lower qualitative reserves.

Noninterest Income

First Quarter of 2026 Compared to Fourth Quarter of 2025

Noninterest income decreased by $6.2 million to $35.3 million for the first quarter from $41.6 million for the fourth quarter due mainly to a $7.9 million decrease in leased equipment income, offset partially by the increase of $1.5 million in commission and fees and $1.1 million in other income. The decrease in leased equipment income was due mainly to higher gains on early lease terminations in the fourth quarter.

Noninterest Expense

First Quarter of 2026 Compared to Fourth Quarter of 2025

Noninterest expense increased by $0.7 million to $181.4 million for the first quarter from $180.6 million for the fourth quarter due mainly to a $5.2 million increase in compensation expense, offset partially by the decrease of $2.5 million in other professional services and $1.1 million in customer related expense. The increase in compensation expense was mainly driven by seasonality, reflecting higher incentive compensation and annual reset of payroll related taxes and benefits in the first quarter. The decline in other professional services was driven by lower project spend, while customer related expenses decreased due to lower earnings credit rate payments following the federal funds rate cuts in the fourth quarter.

Income Taxes

First Quarter of 2026 Compared to Fourth Quarter of 2025

Income tax expense of $23.8 million was recorded for the first quarter resulting in an effective tax rate of 24.9% compared to income tax expense of $22.4 million and an effective tax rate of 22.4% for the fourth quarter.

BALANCE SHEET HIGHLIGHTS

March 31,

December 31,

March 31,

Increase (Decrease)

Selected Balance Sheet Items

2026

2025

2025

QoQ

YoY

(In thousands)

Cash and cash equivalents

$

2,217,269

$

2,307,965

$

2,343,889

$

(90,696

)

$

(126,620

)

Securities available-for-sale

2,656,332

2,454,058

2,334,058

202,274

322,274

Securities held-to-maturity

2,313,548

2,308,636

2,311,912

4,912

1,636

Loans held for sale

259,049

182,936

25,797

76,113

233,252

Loans and leases held for investment

24,780,347

25,032,679

24,126,527

(252,332

)

653,820

Total loans and leases

25,039,396

25,215,615

24,152,324

(176,219

)

887,072

Total assets

34,724,241

34,797,442

33,779,918

(73,201

)

944,323

Noninterest-bearing deposits

$

7,797,542

$

7,822,787

$

7,593,950

$

(25,245

)

$

203,592

Total deposits

27,322,134

27,843,357

27,193,191

(521,223

)

128,943

Borrowings

2,551,250

2,063,819

1,670,782

487,431

880,468

Total liabilities

31,170,915

31,256,165

30,258,262

(85,250

)

912,653

Total stockholders' equity

3,553,326

3,541,277

3,521,656

12,049

31,670

Securities

Securities available-for-sale ("AFS") increased by $202.3 million during the first quarter to $2.7 billion at March 31, 2026. The increase was primarily driven by $343.4 million of purchases, offset partially by $119.8 million of principal paydowns, $10.8 million of maturities, $9.2 million decrease in the fair value of AFS securities, and $1.3 million of net amortization. As of March 31, 2026, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $143.3 million, up from $136.6 million at December 31, 2025, driven by higher interest rates.

The balance of securities held-to-maturity ("HTM") increased by $4.9 million in the first quarter to $2.3 billion at March 31, 2026. As of March 31, 2026, HTM securities had aggregate unrealized net after-tax losses in AOCI of $127.2 million remaining from the balance established at the time of transfer from AFS.

Loans and Leases

The following table sets forth the composition, by loan category, of our loan and lease portfolio HFI as of the dates indicated:

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

(Dollars in thousands)

Composition of Loans and Leases

Real estate mortgage:

Commercial

$

4,093,386

$

4,314,637

$

4,292,625

$

4,369,401

$

4,489,543

Multi-family

5,955,102

6,089,417

6,124,673

6,280,791

6,216,084

Other residential

3,458,410

3,346,733

3,162,564

3,157,616

2,787,031

Total real estate mortgage

13,506,898

13,750,787

13,579,862

13,807,808

13,492,658

Real estate construction and land:

Commercial

364,575

379,387

395,150

381,449

733,684

Residential

1,527,754

1,568,240

1,759,676

1,920,642

2,127,354

Total real estate construction and land

1,892,329

1,947,627

2,154,826

2,302,091

2,861,038

Total real estate

15,399,227

15,698,414

15,734,688

16,109,899

16,353,696

Commercial:

Asset-based

3,209,338

2,951,010

2,742,519

2,462,351

2,305,325

Venture capital

2,322,261

2,222,097

1,907,601

2,002,601

1,733,074

Other commercial

3,501,388

3,804,099

3,356,537

3,288,305

3,340,400

Total commercial

9,032,987

8,977,206

8,006,657

7,753,257

7,378,799

Consumer

348,133

357,059

369,297

382,737

394,032

Total loans and leases HFI

$

24,780,347

$

25,032,679

$

24,110,642

$

24,245,893

$

24,126,527

Total unfunded loan commitments

$

5,549,325

$

5,433,357

$

4,822,917

$

4,673,596

$

4,858,960

Composition as % of Total Loans and Leases

Real estate mortgage:

Commercial

17

%

17

%

18

%

18

%

19

%

Multi-family

24

%

24

%

25

%

26

%

26

%

Other residential

14

%

14

%

13

%

13

%

11

%

Total real estate mortgage

55

%

55

%

56

%

57

%

56

%

Real estate construction and land:

Commercial

2

%

2

%

2

%

1

%

3

%

Residential

6

%

6

%

7

%

8

%

9

%

Total real estate construction and land

8

%

8

%

9

%

9

%

12

%

Total real estate

63

%

63

%

65

%

66

%

68

%

Commercial:

Asset-based

13

%

12

%

11

%

10

%

9

%

Venture capital

9

%

9

%

8

%

8

%

7

%

Other commercial

14

%

15

%

14

%

14

%

14

%

Total commercial

36

%

36

%

33

%

32

%

30

%

Consumer

1

%

1

%

2

%

2

%

2

%

Total loans and leases HFI

100

%

100

%

100

%

100

%

100

%

Total loans and leases HFI decreased by $252.3 million in the first quarter and totaled $24.8 billion at March 31, 2026. The decrease in loans and leases HFI was due primarily to decreased balances in other commercial loans, commercial real estate mortgage loans, and multi-family real estate mortgage loans, offset partially by increases in asset-based loans, other residential real mortgage loans, and venture capital loans. Loan production and disbursements totaled $2.1 billion in the first quarter with a weighted average interest rate on production of 6.65%.

Total loans and leases held for sale ("HFS") increased by $76.1 million in the first quarter and totaled $259.0 million at March 31, 2026. The increase in loans HFS was primarily driven by a $72.1 million loan transfer during the first quarter that subsequently sold at par in April 2026.

Credit Quality

March 31,

December 31,

September 30,

June 30,

March 31,

Asset Quality Information and Ratios

2026

2025

2025

2025

2025

(Dollars in thousands)

Delinquent loans and leases held for investment:

30 to 89 days delinquent

$

263,530

$

108,303

$

56,416

$

53,900

$

100,664

90+ days delinquent

81,599

92,655

104,952

95,566

99,976

Total delinquent loans and leases

$

345,129

$

200,958

$

161,368

$

149,466

$

200,640

Total delinquent loans and leases to loans and leases HFI

1.39

%

0.80

%

0.67

%

0.62

%

0.83

%

Nonperforming assets, excluding loans held for sale:

Nonaccrual loans and leases

$

185,734

$

159,168

$

174,541

$

167,516

$

213,480

90+ days delinquent loans and still accruing

—

—

—

—

—

Total nonperforming loans and leases ("NPLs")

185,734

159,168

174,541

167,516

213,480

Foreclosed assets, net

18,055

17,115

4,790

7,806

5,474

Total nonperforming assets ("NPAs")

$

203,789

$

176,283

$

179,331

$

175,322

$

218,954

Classified loans and leases HFI

$

842,834

$

800,330

$

763,582

$

656,556

$

764,723

Special mention loans and leases HFI

688,659

458,683

505,979

661,568

937,014

Criticized loans and leases HFI

$

1,531,493

$

1,259,013

$

1,269,561

$

1,318,124

$

1,701,737

Allowance for loan and lease losses

$

241,600

$

245,612

$

240,501

$

229,344

$

234,986

Allowance for loan and lease losses to NPLs

130.08

%

154.31

%

137.79

%

136.91

%

110.07

%

NPLs to loans and leases HFI

0.75

%

0.64

%

0.72

%

0.69

%

0.88

%

NPAs to total assets

0.59

%

0.51

%

0.53

%

0.51

%

0.65

%

Classified loans and leases to loans and leases HFI

3.40

%

3.20

%

3.17

%

2.71

%

3.17

%

Special mention loans and leases to loans and leases HFI

2.78

%

1.83

%

2.10

%

2.73

%

3.88

%

Asset quality metrics primarily reflect migration in a limited number of loans within a few larger relationships during the quarter. These were largely isolated situations, reflect proactive risk management actions, and the credits are supported by strong collateral and defined resolution paths.

At March 31, 2026, total delinquent loans and leases were $345.1 million, compared to $201.0 million at December 31, 2025. The 30 to 89 days delinquent category increased by $114.1 million in residential real estate construction and land loans, $32.9 million in commercial real estate construction and land loans, and $7.0 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were decreases of $5.4 million in commercial real estate mortgage loans and $5.3 million in other residential real estate mortgage loans.

At March 31, 2026, nonperforming loans and leases were $185.7 million, compared to $159.2 million at December 31, 2025. During the first quarter, nonperforming loans and leases increased by $26.6 million due to additions of $54.6 million, offset partially by payoffs and paydowns of $20.0 million, charge-offs of $5.2 million, and transfers to accrual status of $2.8 million.

At March 31, 2026, nonperforming assets were $203.8 million, or 0.59% of total assets, compared to $176.3 million, or 0.51% of total assets, as of December 31, 2025. At March 31, 2026, nonperforming assets included $18.1 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans

Three Months Ended

March 31,

December 31,

March 31,

Allowance for Credit Losses - Loans

2026

2025

2025

(Dollars in thousands)

Allowance for loan and lease losses ("ALLL"):

Balance at beginning of period

$

245,612

$

240,501

$

239,360

Charge-offs

(16,097

)

(5,541

)

(16,551

)

Recoveries

2,285

2,852

2,477

Net charge-offs

(13,812

)

(2,689

)

(14,074

)

Provision for loan losses

9,800

7,800

9,700

Balance at end of period

$

241,600

$

245,612

$

234,986

Reserve for unfunded loan commitments ("RUC"):

Balance at beginning of period

$

34,921

$

30,221

$

29,071

Provision for credit losses

—

4,700

500

Balance at end of period

$

34,921

$

34,921

$

29,571

Allowance for credit losses ("ACL") - Loans:

Balance at beginning of period

$

280,533

$

270,722

$

268,431

Charge-offs

(16,097

)

(5,541

)

(16,551

)

Recoveries

2,285

2,852

2,477

Net charge-offs

(13,812

)

(2,689

)

(14,074

)

Provision for credit losses

9,800

12,500

10,200

Balance at end of period

$

276,521

$

280,533

$

264,557

ALLL to loans and leases HFI

0.97

%

0.98

%

0.97

%

ACL to loans and leases HFI

1.12

%

1.12

%

1.10

%

ACL to NPLs

148.88

%

176.25

%

123.93

%

ACL to NPAs

135.69

%

159.14

%

120.83

%

Annualized net charge-offs to average loans and leases

0.23

%

0.04

%

0.24

%

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $276.5 million, or 1.12% of total loans and leases at March 31, 2026, compared to $280.5 million, or 1.12% of total loans and leases at December 31, 2025. The $4.0 million decrease in the allowance was driven by net charge-offs of $13.8 million, offset partially by the provision of $9.8 million.

Our ability to absorb credit losses is also bolstered by (i) $105.0 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.1 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $14.3 million on approximately $1.2 billion of purchased loans without credit deterioration. When the loss coverage from the credit-linked notes and unearned credit marks is added to our allowance for credit losses, this provides additional economic coverage on top of our ACL ratio. We refer to this adjusted ACL ratio as our economic coverage ratio(1), which equaled 1.60% of total loans and leases at March 31, 2026 compared to 1.62% at December 31, 2025.

The ACL coverage of nonperforming loans and leases was 149% at March 31, 2026 compared to 176% at December 31, 2025.

Net charge-offs were 0.23% of average loans and leases (annualized) for the first quarter, compared to net charge-offs of 0.04% for the fourth quarter.

Deposits and Client Investment Funds

The following table sets forth the composition of our deposits at the dates indicated:

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

(Dollars in thousands)

Composition of Deposits

Noninterest-bearing checking

$

7,797,542

$

7,822,787

$

7,603,748

$

7,441,116

$

7,593,950

Interest-bearing:

Checking

8,178,485

8,509,587

7,930,951

7,974,452

7,747,051

Money market

4,643,349

4,917,857

4,974,177

5,375,080

5,367,788

Savings

1,991,010

1,905,863

1,949,369

1,932,906

1,999,062

Time deposits:

Non-brokered

2,149,564

2,254,293

2,468,017

2,492,890

2,490,639

Brokered

2,562,184

2,432,970

2,258,503

2,311,989

1,994,701

Total time deposits

4,711,748

4,687,263

4,726,520

4,804,879

4,485,340

Total interest-bearing

19,524,592

20,020,570

19,581,017

20,087,317

19,599,241

Total deposits

$

27,322,134

$

27,843,357

$

27,184,765

$

27,528,433

$

27,193,191

Composition as % of

Total Deposits

Noninterest-bearing checking

29

%

28

%

28

%

27

%

28

%

Interest-bearing:

Checking

30

%

30

%

29

%

29

%

29

%

Money market

17

%

18

%

19

%

20

%

20

%

Savings

7

%

7

%

7

%

7

%

7

%

Time deposits:

Non-brokered

8

%

8

%

9

%

9

%

9

%

Brokered

9

%

9

%

8

%

8

%

7

%

Total time deposits

17

%

17

%

17

%

17

%

16

%

Total interest-bearing

71

%

72

%

72

%

73

%

72

%

Total deposits

100

%

100

%

100

%

100

%

100

%

Total deposits decreased by $521.2 million to $27.3 billion at March 31, 2026 from $27.8 billion at December 31, 2025, driven by a decrease in interest-bearing deposits of $496.0 million and a decrease in noninterest-bearing deposits of $25.2 million. Interest-bearing deposits decreased due mainly to lower balances in checking accounts of $331.1 million and lower money market accounts of $274.5 million, offset partially by higher savings accounts of $85.1 million and higher brokered and non-brokered time deposits of $24.5 million.

At March 31, 2026, noninterest-bearing checking deposits totaled $7.8 billion, or 29% of total deposits, compared to $7.8 billion, or 28% of total deposits, at December 31, 2025.

At March 31, 2026, uninsured and uncollateralized deposits totaled $7.8 billion, or 28% of total deposits, compared to $7.7 billion, or 28% of total deposits, at December 31, 2025.

In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These off-balance sheet client funds totaled $1.2 billion as of March 31, 2026 and December 31, 2025.

Borrowings

Borrowings increased by $487.4 million to $2.6 billion at March 31, 2026 from $2.1 billion at December 31, 2025, mainly due to higher overnight and short-term borrowings.

Equity

During the first quarter, total stockholders’ equity increased by $12.0 million to $3.6 billion and tangible common equity(1) increased by $18.2 million to $2.7 billion at March 31, 2026. The increase in total stockholders’ equity for the first quarter resulted primarily from net earnings of $72.0 million, offset partially by the repurchase of common stock of $31.9 million and common and preferred stock dividends of $29.1 million.

At March 31, 2026, book value per common share increased to $19.80 compared to $19.56 at December 31, 2025, and tangible book value per common share(1) increased to $17.77 compared to $17.51 at December 31, 2025.

For the three-month period ended March 31, 2026, the Company repurchased 1,709,935 shares of common and common equivalent stock at a weighted average price per share of $18.68, or $31.9 million in the aggregate. As of March 31, 2026, $82.6 million remained available under the current stock repurchase authorization, which expires in March 2027.

CAPITAL AND LIQUIDITY

The following table sets forth our regulatory capital ratios as of the dates indicated:

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

Capital Ratios(1)

Banc of California, Inc.

Total risk-based capital ratio

16.55

%

16.31

%

16.69

%

16.37

%

16.93

%

Tier 1 risk-based capital ratio

12.54

%

12.34

%

12.56

%

12.34

%

12.86

%

Common equity tier 1 capital ratio

10.18

%

10.01

%

10.14

%

9.95

%

10.45

%

Tier 1 leverage ratio

9.97

%

9.99

%

9.77

%

9.74

%

10.19

%

Banc of California

Total risk-based capital ratio

15.97

%

15.61

%

15.94

%

15.65

%

16.22

%

Tier 1 risk-based capital ratio

13.50

%

13.15

%

13.42

%

13.21

%

13.74

%

Common equity tier 1 capital ratio

13.50

%

13.15

%

13.42

%

13.21

%

13.74

%

Tier 1 leverage ratio

10.73

%

10.65

%

10.44

%

10.42

%

10.88

%

At March 31, 2026, cash and cash equivalents totaled $2.2 billion, down $90.7 million from December 31, 2025.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.0 billion. Combined with total available borrowing capacity of $9.7 billion and unpledged AFS securities of $2.5 billion, total available liquidity was $14.2 billion at the end of the first quarter.

Conference Call

The Company will host a conference call to discuss its first quarter 2026 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, April 23, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5670833. A live audio webcast will also be available, and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company’s Investor Relations website at www.bancofcal.com/investor or by dialing (855) 669-9658 and referencing event code 7930561.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $34 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 79 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. Member FDIC. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by the Company with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of tariffs, supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, as well as the value of collateral supporting our loans, which may result in significant changes in valuation or recoveries; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, military activity (including the ongoing Iran war) or acts of terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and from time to time in other documents that we file with or furnish to the SEC.

Non-GAAP Financial Measures

Included in this press release are certain non-GAAP financial measures, such as tangible common equity, tangible book value per common share, return on average tangible common equity, pre-tax pre-provision income, efficiency ratio, and economic coverage ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Measures” section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

BANC OF CALIFORNIA, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

ASSETS:

(Dollars in thousands)

Cash and due from banks

$

214,120

$

181,103

$

205,364

$

222,210

$

215,591

Interest-earning deposits in financial institutions

2,003,149

2,126,862

2,192,901

2,131,342

2,128,298

Total cash and cash equivalents

2,217,269

2,307,965

2,398,265

2,353,552

2,343,889

Securities available-for-sale

2,656,332

2,454,058

2,426,734

2,246,174

2,334,058

Securities held-to-maturity

2,313,548

2,308,636

2,303,657

2,316,725

2,311,912

FRB and FHLB stock

170,342

160,442

159,337

162,243

155,330

Total investment securities

5,140,222

4,923,136

4,889,728

4,725,142

4,801,300

Loans held for sale

259,049

182,936

211,454

465,571

25,797

Loans and leases held for investment

24,780,347

25,032,679

24,110,642

24,245,893

24,126,527

Allowance for loan and lease losses

(241,600

)

(245,612

)

(240,501

)

(229,344

)

(234,986

)

Total loans and leases held for investment, net

24,538,747

24,787,067

23,870,141

24,016,549

23,891,541

Equipment leased to others under operating leases

223,558

238,232

280,872

288,692

295,032

Premises and equipment, net

146,316

146,698

132,766

138,032

140,347

Bank owned life insurance

352,707

350,083

348,051

346,142

342,810

Goodwill

214,521

214,521

214,521

214,521

214,521

Intangible assets, net

99,091

105,287

111,923

118,930

125,937

Deferred tax asset, net

653,481

656,755

672,159

691,535

702,323

Other assets

879,280

884,762

883,085

891,787

896,421

Total assets

$

34,724,241

$

34,797,442

$

34,012,965

$

34,250,453

$

33,779,918

LIABILITIES:

Noninterest-bearing deposits

$

7,797,542

$

7,822,787

$

7,603,748

$

7,441,116

$

7,593,950

Interest-bearing deposits

19,524,592

20,020,570

19,581,017

20,087,317

19,599,241

Total deposits

27,322,134

27,843,357

27,184,765

27,528,433

27,193,191

Borrowings

2,551,250

2,063,819

2,005,022

1,917,180

1,670,782

Subordinated debt

954,072

952,740

950,888

949,213

944,908

Accrued interest payable and other liabilities

343,459

396,249

405,551

428,784

449,381

Total liabilities

31,170,915

31,256,165

30,546,226

30,823,610

30,258,262

STOCKHOLDERS' EQUITY:

Preferred stock

498,516

498,516

498,516

498,516

498,516

Common stock

1,538

1,500

1,509

1,474

1,561

Class B non-voting common stock

5

5

5

5

5

Non-voting common stock equivalents

—

50

41

98

98

Additional paid-in-capital

3,501,213

3,552,483

3,563,145

3,609,109

3,732,376

Retained deficit

(180,011

)

(242,016

)

(309,460

)

(369,142

)

(387,580

)

Accumulated other comprehensive loss, net

(267,935

)

(269,261

)

(287,017

)

(313,217

)

(323,320

)

Total stockholders’ equity

3,553,326

3,541,277

3,466,739

3,426,843

3,521,656

Total liabilities and stockholders’ equity

$

34,724,241

$

34,797,442

$

34,012,965

$

34,250,453

$

33,779,918

Common shares outstanding (1)

154,262,045

155,533,403

155,522,693

157,647,137

166,403,086

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

  Three Months Ended

March 31,

December 31,

March 31,

2026

2025

2025

(In thousands, except per share amounts)

Interest income:

Loans and leases

$

349,943

$

359,268

$

346,103

Investment securities

41,873

39,557

37,862

Deposits in financial institutions

15,626

18,123

22,690

Total interest income

407,442

416,948

406,655

Interest expense:

Deposits

120,233

129,896

140,530

Borrowings

20,177

19,858

18,421

Subordinated debt

15,415

15,832

15,340

Total interest expense

155,825

165,586

174,291

Net interest income

251,617

251,362

232,364

Provision for credit losses

9,800

12,500

9,300

Net interest income after provision for credit losses

241,817

238,862

223,064

Noninterest income:

Service charges on deposit accounts

4,978

5,038

4,543

Commissions and fees

10,980

9,524

9,958

Leased equipment income

8,530

16,381

10,784

Gain on sale of loans and leases

7

18

211

Dividends and gains on equity investments

2,002

3,492

2,323

Warrant income (loss)

938

361

(295

)

LOCOM HFS adjustment

3

—

—

Other income

7,890

6,757

6,126

Total noninterest income

35,328

41,571

33,650

Noninterest expense:

Compensation

91,100

85,862

86,417

Occupancy

14,892

14,726

15,010

Information technology and data processing

14,339

13,751

15,099

Other professional services

4,236

6,774

4,513

Insurance and assessments

6,764

7,070

7,283

Intangible asset amortization

6,348

6,788

7,160

Leased equipment depreciation

5,304

6,202

6,741

Customer related expense

23,737

24,870

27,751

Loan expense

4,292

4,445

2,930

Other expense

10,379

10,156

10,749

Total noninterest expense

181,391

180,644

183,653

Earnings before income taxes

95,754

99,789

73,061

Income tax expense

23,802

22,398

19,493

Net earnings

71,952

77,391

53,568

Preferred stock dividends

9,947

9,947

9,947

Net earnings available to common and equivalent stockholders

$

62,005

$

67,444

$

43,621

Earnings per common share:

Basic

$

0.40

$

0.43

$

0.26

Diluted

$

0.39

$

0.42

$

0.26

Weighted average number of common shares outstanding: (1)

Basic

154,821

155,449

168,495

Diluted

160,832

160,094

169,434

BANC OF CALIFORNIA, INC.

SELECTED FINANCIAL DATA

(UNAUDITED)

  Three Months Ended

March 31,

December 31,

March 31,

Profitability and Other Ratios

2026

2025

2025

Return on average assets (1)

0.86

%

0.91

%

0.65

%

Return on average equity (1)

8.22

%

8.79

%

6.16

%

Return on average tangible common equity (1)(2)

9.91

%

10.75

%

7.56

%

Dividend payout ratio (3)

30.00

%

23.26

%

38.46

%

Average yield on loans and leases (1)

5.74

%

5.83

%

5.90

%

Average yield on interest-earning assets (1)

5.25

%

5.31

%

5.39

%

Average cost of interest-bearing deposits (1)

2.51

%

2.66

%

2.97

%

Average total cost of deposits (1)

1.78

%

1.89

%

2.12

%

Average cost of interest-bearing liabilities (1)

2.85

%

2.98

%

3.28

%

Average total cost of funds (1)

2.10

%

2.20

%

2.42

%

Net interest spread

2.40

%

2.33

%

2.11

%

Net interest margin (1)

3.24

%

3.20

%

3.08

%

Noninterest income to total revenue (4)

12.31

%

14.19

%

12.65

%

Noninterest expense to average total assets (1)

2.16

%

2.12

%

2.24

%

Noninterest expense to total revenue (4)

63.21

%

61.67

%

69.04

%

Efficiency ratio (2)(5)

61.00

%

59.35

%

66.35

%

Loans to deposits ratio

91.65

%

90.56

%

88.82

%

Average loans and leases to average deposits

90.45

%

89.81

%

88.36

%

Average investment securities to average total assets

14.76

%

14.49

%

14.21

%

Average stockholders' equity to average total assets

10.44

%

10.35

%

10.58

%

____________________ (1)

Annualized.

(2)

Non-GAAP measure.

(3)

Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.

(4)

Total revenue equals the sum of net interest income and noninterest income.

(5)

Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue.

BANC OF CALIFORNIA, INC.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

(UNAUDITED)

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

Interest

Average

Interest

Average

Interest

Average

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Cost

Balance

Expense

Cost

Balance

Expense

Cost

(Dollars in thousands)

Assets:

Loans and leases (1)

$

24,710,609

$

349,943

5.74

%

$

24,443,089

$

359,268

5.83

%

$

23,788,647

$

346,103

5.90

%

Investment securities

5,018,002

41,873

3.38

%

4,891,281

39,557

3.21

%

4,734,037

37,862

3.24

%

Deposits in financial institutions

1,742,657

15,626

3.64

%

1,834,773

18,123

3.92

%

2,088,139

22,690

4.41

%

Total interest-earning assets

31,471,268

407,442

5.25

%

31,169,143

416,948

5.31

%

30,610,823

406,655

5.39

%

Other assets

2,531,433

2,583,357

2,697,562

Total assets

$

34,002,701

$

33,752,500

$

33,308,385

Liabilities and Stockholders' Equity:

Interest checking

$

8,175,172

46,882

2.33

%

$

7,944,858

49,319

2.46

%

$

7,343,451

47,879

2.64

%

Money market

4,785,691

22,826

1.93

%

4,948,960

25,810

2.07

%

5,415,716

33,003

2.47

%

Savings

1,957,831

9,772

2.02

%

1,942,678

10,863

2.22

%

1,948,649

12,857

2.68

%

Time

4,510,418

40,753

3.66

%

4,570,369

43,904

3.81

%

4,498,268

46,791

4.22

%

Total interest-bearing deposits

19,429,112

120,233

2.51

%

19,406,865

129,896

2.66

%

19,206,084

140,530

2.97

%

Borrowings

1,765,661

20,177

4.63

%

1,661,808

19,858

4.74

%

1,397,720

18,421

5.34

%

Subordinated debt

953,739

15,415

6.55

%

951,471

15,832

6.60

%

942,817

15,340

6.60

%

Total interest-bearing liabilities

22,148,512

155,825

2.85

%

22,020,144

165,586

2.98

%

21,546,621

174,291

3.28

%

Noninterest-bearing demand deposits

7,890,489

7,809,326

7,714,830

Other liabilities

415,000

428,873

522,753

Total liabilities

30,454,001

30,258,343

29,784,204

Stockholders' equity

3,548,700

3,494,157

3,524,181

Total liabilities and stockholders' equity

$

34,002,701

$

33,752,500

$

33,308,385

Net interest income (1)

$

251,617

$

251,362

$

232,364

Net interest spread

2.40

%

2.33

%

2.11

%

Net interest margin

3.24

%

3.20

%

3.08

%

Total deposits (2)

$

27,319,601

$

120,233

1.78

%

$

27,216,191

$

129,896

1.89

%

$

26,920,914

$

140,530

2.12

%

Total funds (3)

$

30,039,001

$

155,825

2.10

%

$

29,829,470

$

165,586

2.20

%

$

29,261,451

$

174,291

2.42

%

____________________ (1)

Includes net loan discount accretion of $12.2 million, $12.7 million, and $16.0 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025.

(2)

Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.

(3)

Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES

We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: tangible common equity, tangible book value per common share, return on average tangible common equity, pre-tax pre-provision income, efficiency ratio, and economic coverage ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible common equity is calculated by subtracting preferred stock, as applicable, from total common equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and any goodwill impairment, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

Pre-tax pre-provision income is calculated by subtracting noninterest expense from total revenue, which is the sum of net interest income and noninterest income.

Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (the sum of net interest income and noninterest income).

Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit-linked notes and unearned credit mark from purchase accounting by loans and leases HFI.

Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following tables provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Tangible Common Equity

March 31,

December 31,

September 30,

June 30,

March 31,

and Tangible Book Value Per Share

2026

2025

2025

2025

2025

(Dollars in thousands, except per share amounts)

Stockholders' equity

$

3,553,326

$

3,541,277

$

3,466,739

$

3,426,843

$

3,521,656

Less: Preferred stock

498,516

498,516

498,516

498,516

498,516

Total common equity

3,054,810

3,042,761

2,968,223

2,928,327

3,023,140

Less: Goodwill and intangible assets

313,612

319,808

326,444

333,451

340,458

Tangible common equity

$

2,741,198

$

2,722,953

$

2,641,779

$

2,594,876

$

2,682,682

Book value per common share (1)

$

19.80

$

19.56

$

19.09

$

18.58

$

18.17

Tangible book value per common share (2)

$

17.77

$

17.51

$

16.99

$

16.46

$

16.12

Common shares outstanding (3)

154,262,045

155,533,403

155,522,693

157,647,137

166,403,086

____________________ (1)

Total common equity divided by common shares outstanding.

(2)

Tangible common equity divided by common shares outstanding.

(3)

Common shares outstanding include non-voting common stock equivalents that are participating securities. There were no non‑voting common stock equivalents outstanding as of March 31, 2026.

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

  Three Months Ended

Return on Average Tangible

March 31,

December 31,

March 31,

Common Equity ("ROATCE")

2026

2025

2025

(Dollars in thousands)

Net earnings

$

71,952

$

77,391

$

53,568

Earnings before income taxes

$

73,061

Add: Intangible asset amortization

7,160

Adjusted earnings before income taxes for ROATCE

80,221

Adjusted income tax expense (1)

20,296

Adjustments:

Intangible asset amortization

6,348

6,788

Tax impact of adjustment above (1)

(1,596

)

(1,823

)

Adjustment to net earnings

4,752

4,965

Adjusted net earnings for ROATCE

76,704

82,356

59,925

Less: Preferred stock dividends

9,947

9,947

9,947

Adjusted net earnings available to common and equivalent stockholders for ROATCE

$

66,757

$

72,409

$

49,978

Average stockholders' equity

$

3,548,700

$

3,494,157

$

3,524,181

Less: Average goodwill and intangible assets

317,215

323,295

344,610

Less: Average preferred stock

498,516

498,516

498,516

Average tangible common equity

$

2,732,969

$

2,672,346

$

2,681,055

Return on average equity (2)

8.22

%

8.79

%

6.16

%

ROATCE (3)

9.91

%

10.75

%

7.56

%

____________________ (1)

Effective tax rates of 25.14%, 26.86%, and 25.30% used for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(2)

Annualized net earnings divided by average stockholders' equity.

(3)

Annualized adjusted net earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

Three Months Ended

March 31,

December 31,

March 31,

Pre-Tax Pre-Provision Income

2026

2025

2025

(Dollars in thousands)

Net interest income (GAAP)

$

251,617

$

251,362

$

232,364

Add: Noninterest income (GAAP)

35,328

41,571

33,650

Total revenues (GAAP)

286,945

292,933

266,014

Less: Noninterest expense (GAAP)

181,391

180,644

183,653

Pre-tax pre-provision income (Non-GAAP)

$

105,554

$

112,289

$

82,361

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

  Three Months Ended

March 31,

December 31,

March 31,

Efficiency Ratio

2026

2025

2025

(Dollars in thousands)

Noninterest expense

$

181,391

$

180,644

$

183,653

Less: Intangible asset amortization

(6,348

)

(6,788

)

(7,160

)

Noninterest expense used for efficiency ratio

$

175,043

$

173,856

$

176,493

Net interest income

$

251,617

$

251,362

$

232,364

Noninterest income

35,328

41,571

33,650

Total revenue used for efficiency ratio

$

286,945

$

292,933

$

266,014

  Noninterest expense to total revenue

63.21

%

61.67

%

69.04

%

Efficiency ratio (1)

61.00

%

59.35

%

66.35

%

March 31,

December 31,

Economic Coverage Ratio

2026

2025

(Dollars in thousands)

Allowance for credit losses ("ACL")

$

276,521

$

280,533

Add: Unearned credit mark from purchase accounting (1)

14,315

15,865

Add: Credit-linked notes (2)

104,988

108,413

Adjusted allowance for credit losses

$

395,824

$

404,811

Loans and leases HFI

$

24,780,347

$

25,032,679

ACL to loans and leases HFI (3)

1.12

%

1.12

%

Economic coverage ratio (4)

1.60

%

1.62

%

____________________ (1)

Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with non-PCD loans (purchased loans without credit deterioration at the time of purchase).

(2)

Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans.

(3)

Allowance for credit losses divided by loans and leases HFI.

(4)

Adjusted allowance for credit losses divided by loans and leases HFI.

More News From Banc of California, Inc.