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Resmed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2025

1. RMD's Q4 revenue increased by 10% to $1.3 billion. 2. Operating profit rose 19%, contributing to a $539 million cash flow. 3. Quarterly dividend increased by 13% to $0.60 per share. 4. The acquisition of VirtuOx aims to enhance diagnostic services. 5. Significant growth in digital health ecosystem drives future success.

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RMD's strong earnings performance and increased revenue suggest resilience, attracting investor confidence. Historical context shows growth amidst industry demand typically boosts stock performance.

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The article outlines substantial revenue and profit growth along with strategic acquisitions, positioning RMD favorably. High financial metrics and positive cash flow bolster confidence among investors.

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Improvements in earnings and cash flow will likely drive immediate positive market reactions. Seasonal stock performance trends indicate that popular growth reports translate into quick upward price movements.

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RMD
July 31, 2025 16:05 ET  | Source: Resmed, Inc. Year-over-year revenue grows 10%, operating profit up 19%, non-GAAP operating profit up 19%Operating cash flow of $539 millionQuarterly dividend increases 13% to $0.60 per share Note: A webcast of Resmed’s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com SAN DIEGO, July 31, 2025 (GLOBE NEWSWIRE) -- Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended June 30, 2025. Fourth Quarter 2025 HighlightsAll comparisons are to the prior year period Revenue increased by 10% to $1.3 billion; up 9% on a constant currency basis Gross margin improved 230 bps to 60.8%; non-GAAP gross margin improved 230 bps to 61.4%Income from operations increased 19%; non-GAAP income from operations up 19%Operating cash flow of $539 millionDiluted earnings per share of $2.58; non-GAAP diluted earnings per share of $2.55 Full Year 2025 HighlightsAll comparisons are to the prior year period Revenue increased by 10% to $5.1 billion; up 10% on a constant currency basis Gross margin improved 270 bps to 59.4%; non-GAAP gross margin improved 230 bps to 60.0%Income from operations increased 28%; non-GAAP income from operations up 19%Operating cash flow of $1.8 billionDiluted earnings per share of $9.51; non-GAAP diluted earnings per share of $9.55 “Our strong finish to fiscal year 2025 reflects ongoing momentum across our business, driven by robust global demand for our market-leading sleep and breathing health devices, as well as our expanding digital health ecosystem,” said Resmed’s Chairman and CEO, Mick Farrell. “In the fourth quarter, we delivered 10% headline revenue growth, 230 basis points in non-GAAP gross margin expansion, and 23% non-GAAP EPS growth. These results are a testament to the value that our best-in-class solutions deliver to our customers, and the unwavering dedication of our global team. Our connected care platform continues to set the standard for digital health innovation, empowering millions of people to take control of their sleep and breathing health with hardware, software and healthcare solutions delivered in their own homes. “As we move into fiscal year 2026, we will continue to invest in innovation, scale our digital health capabilities, and partner with patients, providers, payers, and policymakers to ensure more people around the world have access to the care they need to sleep better, breathe better, and live longer and healthier lives.” Financial Results and Operating Metrics Unaudited; $ in millions, except for per share amounts  Three Months Ended June 30,2025 June 30,2024 % Change ConstantCurrency (A)Revenue$1,348.0  $1,223.2  10% 9%Gross margin 60.8%  58.5% 4   Non-GAAP gross margin (B) 61.4%  59.1% 4   Selling, general, and administrative expenses 265.1   242.2  9  8 Research and development expenses 86.4   80.9  7  7 Income from operations 454.5   381.2  19   Non-GAAP income from operations (B) 476.4   400.5  19   Net income 379.7   292.2  30   Non-GAAP net income (B) 374.5   306.3  22   Diluted earnings per share$2.58  $1.98  30   Non-GAAP diluted earnings per share (B)$2.55  $2.08  23     Twelve Months Ended June 30,2025 June 30,2024 % Change ConstantCurrency (A)Revenue$5,146.3  $4,685.3  10% 10%Gross margin 59.4%  56.7% 5   Non-GAAP gross margin (B) 60.0%  57.7% 4   Selling, general, and administrative expenses 991.0   917.1  8  8 Research and development expenses 331.3   307.5  8  8 Income from operations 1,685.4   1,319.9  28   Non-GAAP income from operations (B) 1,763.3   1,478.4  19   Net income 1,400.7   1,021.0  37   Non-GAAP net income (B) 1,406.8   1,139.3  23   Diluted earnings per share$9.51  $6.92  37   Non-GAAP diluted earnings per share (B)$9.55  $7.72  24    (A)In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.  (B)See the reconciliation of non-GAAP financial measures in the table at the end of the press release.   Discussion of Fourth Quarter ResultsAll comparisons are to the prior year period unless otherwise noted Revenue grew by 9 percent on a constant currency basis, driven by increased demand for our sleep devices and masks portfolio, as well as solid growth across our Residential Care Software business. Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9 percent.Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 9 percent on a constant currency basis.Residential Care Software revenue increased by 9 percent on a constant currency basis, reflecting continued organic growth in our Residential Care Software portfolio. Gross margin increased by 230 basis points mainly due to procurement, manufacturing and logistics efficiencies as well as favorable foreign currency movements. Non-GAAP gross margin increased by 230 basis points due to the same factors.Selling, general, and administrative expenses increased by 8 percent on a constant currency basis. The increase in SG&A expenses was mainly due to increases in employee-related costs and marketing expenses, including investments associated with our recent global brand launch along with demand generation activities. SG&A expenses improved to 19.7 percent of revenue in the quarter, compared with 19.8 percent in the same period of the prior year.Income from operations increased by 19 percent and non-GAAP income from operations increased by 19 percent.Net income for the quarter was $380 million and diluted earnings per share was $2.58. Non-GAAP net income increased by 22 percent to $375 million, and non-GAAP diluted earnings per share increased by 23 percent to $2.55, predominantly attributable to strong sales growth and gross margin improvement.Operating cash flow for the quarter was $539 million, compared to net income in the current quarter of $380 million and non-GAAP net income of $375 million.During the quarter, we paid $78 million in dividends to shareholders and repurchased 419,000 shares for consideration of $100 million as part of our ongoing capital management. Other Business and Operational Highlights Announced our acquisition of VirtuOx, a leading independent diagnostic testing facility (IDTF) for sleep, respiratory, and cardiac conditions. With VirtuOx’s at-home diagnostic services, we will be better positioned to support patients earlier in their journey and help healthcare providers and homecare companies deliver care in a simpler, more connected way.Named the Official Sleep Partner of the Qatar Airways British and Irish Lions Tour to Australia and launched ‘Tackle Your Sleep,’ a digital and content focused campaign featuring legendary rugby players.Showcased our research at the SLEEP 2025 conference, reinforcing our leadership in sleep science and innovation. Focus areas included presentations on PAP therapy adherence and healthcare utilization, gender disparities in OSA diagnosis, patient-reported outcomes and quality of life, and the use of AI to better understand the provider’s role in therapy engagement. Dividend programThe Resmed board of directors today declared a quarterly cash dividend of $0.60 per share. The dividend will have a record date of August 14, 2025, payable on September 18, 2025. The dividend will be paid in U.S. currency to holders of Resmed’s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests (“CDIs”) trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be August 13, 2025, for common stockholders and for CDI holders. Resmed has received a waiver from the ASX’s settlement operating rules, which will allow Resmed to defer processing conversions between its common stock and CDI registers from August 13, 2025, through August 14, 2025, inclusive.  Webcast detailsResmed will discuss its fourth quarter fiscal year 2025 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on Resmed’s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the “Q4 2025 Earnings Webcast” to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13754703. The telephone replay will be available until August 14, 2025. About ResmedAt Resmed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit Resmed.com and follow @Resmed. Safe harbor statementStatements contained in this release that are not historical facts are “forward-looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements – including statements regarding Resmed’s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions of our business – are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in Resmed’s periodic reports on file with the U.S. Securities & Exchange Commission. Resmed does not undertake to update its forward-looking statements. Condensed Consolidated Statements of Operations(Unaudited; $ in thousands, except for per share amounts)  Three Months Ended Twelve Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024        Net revenue$1,347,993  $1,223,195  $5,146,327  $4,685,297         Cost of sales 520,068   499,681   2,060,753   1,982,769 Amortization of acquired intangibles (1) 9,367   7,987   32,116   32,963 Masks with magnets field safety notification expenses (1) (1,512)  —   (1,512)  6,351 Astral field safety notification expenses (1) —   —   —   7,911 Total cost of sales$527,923  $507,668  $2,091,357  $2,029,994 Gross profit$820,070  $715,527  $3,054,970  $2,655,303         Selling, general, and administrative 265,125   242,187   991,019   917,136 Research and development 86,443   80,861   331,284   307,525 Amortization of acquired intangibles (1) 11,928   11,262   45,273   46,521 Restructuring expenses (1) —   —   —   64,228 Acquisition related expenses (1) 2,031   —   2,031   — Total operating expenses$365,527  $334,310  $1,369,607  $1,335,410 Income from operations$454,543  $381,217  $1,685,363  $1,319,893         Other income (expenses), net:       Interest (expense) income, net$5,757  $(5,920) $4,114  $(45,708)Gain (loss) attributable to equity method investments 1,269   868   3,644   (1,848)Gain (loss) on equity investments (2,533)  (15,473)  (10,299)  (4,045)Other, net (983)  (2,960)  (5,256)  (3,494)Total other income (expenses), net 3,510   (23,485)  (7,797)  (55,095)Income before income taxes$458,053  $357,732  $1,677,566  $1,264,798 Income taxes 78,348   65,495   276,843   243,847 Net income$379,705  $292,237  $1,400,723  $1,020,951         Basic earnings per share$2.59  $1.99  $9.55  $6.94 Diluted earnings per share$2.58  $1.98  $9.51  $6.92 Non-GAAP diluted earnings per share (1)$2.55  $2.08  $9.55  $7.72         Basic shares outstanding 146,472   146,915   146,716   147,021 Diluted shares outstanding 147,037   147,533   147,340   147,550  (1)See the reconciliation of non-GAAP financial measures in the table at the end of the press release.   Condensed Consolidated Balance Sheets(Unaudited; $ in thousands)  June 30,2025 June 30,2024Assets   Current assets:   Cash and cash equivalents$1,209,450  $238,361 Accounts receivable, net 939,492   837,275 Inventories 927,711   822,250 Prepayments and other current assets 428,952   459,833 Total current assets$3,505,605  $2,357,719 Non-current assets:   Property, plant, and equipment, net$550,790  $548,025 Operating lease right-of-use assets 167,497   151,121 Goodwill and other intangibles, net 3,511,541   3,327,959 Deferred income taxes and other non-current assets 438,958   487,570 Total non-current assets$4,668,786  $4,514,675 Total assets$8,174,391  $6,872,394 Liabilities and Stockholders’ Equity   Current liabilities:   Accounts payable$278,157  $237,728 Accrued expenses 402,253   377,678 Operating lease liabilities, current 30,506   25,278 Deferred revenue 166,030   152,554 Income taxes payable 132,274   107,517 Short-term debt 9,900   9,900 Total current liabilities$1,019,120  $910,655 Non-current liabilities:   Deferred revenue$156,803  $137,343 Deferred income taxes 77,682   79,339 Operating lease liabilities, non-current 153,015   141,444 Other long-term liabilities 141,520   42,257 Long-term debt 658,392   697,313 Total non-current liabilities$1,187,412  $1,097,696 Total liabilities$2,206,532  $2,008,351 Stockholders’ equity   Common stock$761  $588 Additional paid-in capital 2,033,599   1,896,604 Retained earnings 6,081,490   4,991,647 Treasury stock (2,073,292)  (1,773,267)Accumulated other comprehensive income (74,699)  (251,529)Total stockholders’ equity$5,967,859  $4,864,043 Total liabilities and stockholders’ equity$8,174,391  $6,872,394   Condensed Consolidated Statements of Cash Flows(Unaudited; $ in thousands)  Three Months Ended Twelve Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024Cash flows from operating activities:       Net income$379,705  $292,237  $1,400,723  $1,020,951 Adjustment to reconcile net income to cash provided by operating activities:       Depreciation and amortization 63,628   43,677   198,473   176,870 Amortization of right-of-use assets 10,660   11,077   37,338   39,339 Stock-based compensation costs 24,751   21,392   91,661   80,184 (Gain) loss attributable to equity method investments, net of dividends received (1,269)  (868)  (3,644)  1,848 (Gain) loss on equity investments 2,533   15,473   10,299   4,045 Non-cash restructuring expenses —   —   —   33,239 Changes in operating assets and liabilities:       Accounts receivable, net (5,215)  (57,523)  (76,684)  (134,278)Inventories, net (32,133)  8,910   (80,165)  172,203 Prepaid expenses, net deferred income taxes and other current assets 47,017   (16,237)  82,629   (115,213)Accounts payable, accrued expenses, income taxes payable and other 49,089   121,975   90,958   122,072 Net cash provided by (used in) operating activities$538,766  $440,113  $1,751,588  $1,401,260 Cash flows from investing activities:       Purchases of property, plant, and equipment (30,585)  (24,881)  (89,865)  (99,460)Patent registration and acquisition costs (3,193)  (1,442)  (10,777)  (15,396)Business acquisitions, net of cash acquired (138,578)  (19,697)  (139,248)  (133,464)Purchases of investments (2,013)  (3,073)  (6,416)  (12,765)Proceeds from exits of investments 250   750   4,628   1,000 Proceeds (payments) on maturity of foreign currency contracts 40,406   1,833   41,633   (9,699)Net cash provided by (used in) investing activities$(133,713) $(46,510) $(200,045) $(269,784)Cash flows from financing activities:       Proceeds from issuance of common stock, net 30,156   27,696   74,439   53,094 Purchases of treasury stock (100,008)  (50,004)  (300,025)  (150,011)Taxes paid related to net share settlement of equity awards (590)  (421)  (18,077)  (8,757)Payments of business combination contingent consideration —   —   (855)  (1,293)Acquisition of consolidated subsidiary (10,855)  —   (10,855)  — Proceeds from borrowings, net of borrowing costs —   —   —   105,000 Repayment of borrowings (5,000)  (300,000)  (40,000)  (835,000)Dividends paid (77,590)  (70,553)  (310,880)  (282,320)Net cash provided by (used in) financing activities$(163,887) $(393,282) $(606,253) $(1,119,287)Effect of exchange rate changes on cash$35,573  $130  $25,799  $(1,719)Net increase (decrease) in cash and cash equivalents 276,739   451   971,089   10,470 Cash and cash equivalents at beginning of period 932,711   237,910   238,361   227,891 Cash and cash equivalents at end of period$1,209,450  $238,361  $1,209,450  $238,361   Reconciliation of Non-GAAP Financial Measures(Unaudited; $ in thousands, except for per share amounts) The measures “non-GAAP gross profit” and “non-GAAP gross margin” exclude amortization expense from acquired intangibles and are reconciled below:  Three Months Ended Twelve Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024        Revenue$1,347,993  $1,223,195  $5,146,327  $4,685,297         GAAP cost of sales$527,923  $507,668  $2,091,357  $2,029,994 Less:Amortization of acquired intangibles(A) (9,367)  (7,987)  (32,116)  (32,963)Less: Masks with magnets field safety notification expenses(A) 1,512   —   1,512   (6,351)Less: Astral field safety notification expenses(A) —   —   —   (7,911)Non-GAAP cost of sales$520,068  $499,681  $2,060,753  $1,982,769         GAAP gross profit$820,070  $715,527  $3,054,970  $2,655,303 GAAP gross margin 60.8%  58.5%  59.4%  56.7%Non-GAAP gross profit$827,925  $723,514  $3,085,574  $2,702,528 Non-GAAP gross margin 61.4%  59.1%  60.0%  57.7%                 The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:  Three Months Ended Twelve Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024        GAAP income from operations$454,543  $381,217  $1,685,363  $1,319,893 Amortization of acquired intangibles—cost of sales (A) 9,367   7,987   32,116   32,963 Amortization of acquired intangibles—operating expenses (A) 11,928   11,262   45,273   46,521 Restructuring (A) —   —   —   64,228 Masks with magnets field safety notification expenses (A) (1,512)  —   (1,512)  6,351 Astral field safety notification expenses (A) —   —   —   7,911 Acquisition-related expenses (A) 2,031   —   2,031   483 Non-GAAP income from operations$476,357  $400,466  $1,763,271  $1,478,350   Reconciliation of Non-GAAP Financial Measures(Unaudited; $ in thousands, except for per share amounts) The measures “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:  Three Months Ended Twelve Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024        GAAP net income$379,705  $292,237  $1,400,723  $1,020,951 Amortization of acquired intangibles—cost of sales (A) 9,367   7,987   32,116   32,963 Amortization of acquired intangibles—operating expenses (A) 11,928   11,262   45,273   46,521 Restructuring expenses (A) —   —   —   64,228 Masks with magnets field safety notification expenses (A) (1,512)  —   (1,512)  6,351 Astral field safety notification expenses (A) —   —   —   7,911 Acquisition-related expenses (A) 2,031   —   2,031   483 Tax benefit from business cessation (21,430)  —   (21,430)  — Income tax effect of interest and penalties on income tax refunds (A) —   —   (29,976)  — Income tax effect on non-GAAP adjustments (A) (5,544)  (5,145)  (20,448)  (40,114)Non-GAAP net income (A)$374,545  $306,341  $1,406,777  $1,139,294         GAAP diluted shares outstanding 147,037   147,533   147,340   147,550 GAAP diluted earnings per share$2.58  $1.98  $9.51  $6.92 Non-GAAP diluted earnings per share (A)$2.55  $2.08  $9.55  $7.72  (A)Resmed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, and associated tax effects, in addition to tax benefits from business cessation, and the tax effect of interest and penalties on tax refunds from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.   Resmed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. Resmed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. Resmed believes this information provides investors better insight when evaluating Resmed’s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP.   Revenue by Product and Region(Unaudited; $ in millions, except for per share amounts)  Three Months Ended June 30,2025(A)June 30,2024(A)% Change ConstantCurrency (B)U.S., Canada, and Latin America       Devices$432.8 $406.2 7%  Masks and other 359.2  321.2 12   Total U.S., Canada and Latin America$791.9 $727.4 9           Combined Europe, Asia, and other markets       Devices$261.1 $228.8 14% 10%Masks and other 127.9  115.0 11  7 Total Combined Europe, Asia and other markets$389.0 $343.9 13  9         Global revenue       Total Devices$693.9 $635.1 9% 8%Total Masks and other 487.1  436.2 12  11 Total Sleep and Breathing Health$1,181.0 $1,071.3 10  9         Residential Care Software 167.0  151.9 10  9 Total$1,348.0 $1,223.2 10  9           Twelve Months Ended June 30,2025(A)June 30,2024(A)%Change ConstantCurrency (B)U.S., Canada, and Latin America       Devices$1,654.4 $1,522.8 9%  Masks and other 1,343.1  1,199.8 12   Total U.S., Canada and Latin America$2,997.5 $2,722.6 10           Combined Europe, Asia, and other markets       Devices$1,010.8 $921.3 10% 9%Masks and other 496.6  457.4 9  8 Total Combined Europe, Asia and other markets$1,507.4 $1,378.6 9  9         Global revenue       Total Devices$2,665.2 $2,444.0 9% 9%Total Masks and other 1,839.7  1,657.2 11  11 Total Sleep and Breathing Health$4,504.9 $4,101.2 10  10         Residential Care Software 641.4  584.1 10  10 Total$5,146.3 $4,685.3 10  10  (A)Totals and subtotals may not add due to rounding.  (B)In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.  

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