ResMed Inc. Announces Results for the Second Quarter of Fiscal Year 2025
ResMed (NYSE: RMD) reported strong Q2 FY2025 financial results with significant growth across key metrics. Revenue increased 10% to $1.3 billion, while operating profit surged 52% to $417.2 million. The company achieved notable margin improvements, with gross margin expanding 300 basis points to 58.6%.
Key highlights include operating cash flow of $309 million and diluted earnings per share of $2.34. The company's growth was driven by increased demand for sleep health and breathing products, along with digital health solutions. During the quarter, ResMed paid $78 million in dividends and repurchased 307,000 shares for $75 million.
The board declared a quarterly cash dividend of $0.53 per share, payable on March 20, 2025, to shareholders of record as of February 13, 2025.
ResMed (NYSE: RMD) ha riportato risultati finanziari solidi per il secondo trimestre dell'anno fiscale 2025, con una crescita significativa in diversi indicatori chiave. I ricavi sono aumentati del 10% a $1.3 miliardi, mentre l'utile operativo è balzato del 52% a $417.2 milioni. L'azienda ha ottenuto notevoli miglioramenti nei margini, con il margine lordo che è aumentato di 300 punti base al 58.6%.
I punti salienti includono flusso di cassa operativo di $309 milioni e utili diluiti per azione di $2.34. La crescita dell'azienda è stata guidata dall'aumento della domanda per i prodotti per la salute del sonno e per la respirazione, insieme a soluzioni di salute digitale. Durante il trimestre, ResMed ha distribuito $78 milioni in dividendi e ha riacquistato 307.000 azioni per un totale di $75 milioni.
Il consiglio ha dichiarato un dividendo trimestrale in contante di $0.53 per azione, che sarà pagato il 20 marzo 2025 agli azionisti registrati al 13 febbraio 2025.
ResMed (NYSE: RMD) informó resultados financieros sólidos para el segundo trimestre del año fiscal 2025, con un crecimiento significativo en métricas clave. Los ingresos aumentaron un 10% a $1.3 mil millones, mientras que el beneficio operativo se disparó un 52% a $417.2 millones. La compañía logró mejoras notables en los márgenes, con un margen bruto que se expandió 300 puntos básicos al 58.6%.
Los aspectos más destacados incluyen flujo de caja operativo de $309 millones y ganancias por acción diluidas de $2.34. El crecimiento de la empresa fue impulsado por la mayor demanda de productos de salud del sueño y respiración, junto con soluciones de salud digital. Durante el trimestre, ResMed pagó $78 millones en dividendos y recompró 307,000 acciones por $75 millones.
La junta declaró un dividendo en efectivo trimestral de $0.53 por acción, pagadero el 20 de marzo de 2025, a los accionistas registrados a partir del 13 de febrero de 2025.
ResMed (NYSE: RMD)는 2025 회계연도 2분기에 강력한 재무 실적을 보고하였으며, 주요 지표에서 상당한 성장세를 기록했습니다. 매출은 10% 증가하여 13억 달러에 달했으며, 영업 이익은 52% 급증하여 4억 1천 720만 달러에 이르렀습니다. 회사는 300 베이시스 포인트 증가하여 총 58.6%로 확대된 매출 총이익률을 기록하며 주목할 만한 개선을 이루었습니다.
주요 성과로는 3억 9천만 달러의 운영 현금 흐름과 주당 희석 이익이 2.34 달러에 달했습니다. 회사의 성장은 수면 건강 및 호흡 제품에 대한 수요 증가와 디지털 건강 솔루션에 힘입어 이루어졌습니다. 분기 동안 ResMed는 7천 800만 달러의 배당금을 지급하고 75백만 달러에 307,000주를 재매입했습니다.
이사회는 주당 0.53달러의 분기 배당금을 선언했으며, 이는 2025년 3월 20일에 지급될 예정으로, 2025년 2월 13일 기준으로 주주들에게 지급될 것입니다.
ResMed (NYSE: RMD) a annoncé de solides résultats financiers pour le deuxième trimestre de l'exercice 2025, avec une croissance significative sur des indicateurs clés. Les revenus ont augmenté de 10% à 1,3 milliard de dollars, tandis que le bénéfice d'exploitation a bondi de 52% pour atteindre 417,2 millions de dollars. L'entreprise a réalisé des améliorations notables de ses marges, la marge brute s'étendant de 300 points de base à 58,6%.
Les points saillants incluent flux de trésorerie d'exploitation de 309 millions de dollars et bénéfices par action dilués de 2,34 dollars. La croissance de l'entreprise a été propulsée par une demande accrue de produits liés à la santé du sommeil et de la respiration, ainsi que par des solutions de santé numérique. Au cours du trimestre, ResMed a versé 78 millions de dollars en dividendes et racheté 307 000 actions pour 75 millions de dollars.
Le conseil d'administration a déclaré un dividende trimestriel en espèces de 0,53 dollars par action, payable le 20 mars 2025, aux actionnaires inscrits au 13 février 2025.
ResMed (NYSE: RMD) berichtete über starke Finanz Ergebnisse im 2. Quartal des Geschäftsjahres 2025, mit einem erheblichen Wachstum in wichtigen Kennzahlen. Der Umsatz stieg um 10% auf 1,3 Milliarden Dollar, während der Betriebsgewinn um 52% auf 417,2 Millionen Dollar anstieg. Das Unternehmen erzielte bemerkenswerte Margenverbesserungen, wobei die Bruttomarge um 300 Basispunkte auf 58,6% anstieg.
Zu den wichtigsten Höhepunkten gehören ein operativer Cashflow von 309 Millionen Dollar und verwässerte Ergebnisse pro Aktie von 2,34 Dollar. Das Wachstum des Unternehmens wurde durch die gestiegene Nachfrage nach Produkten für Schlafgesundheit und Atmungsprodukte sowie digitalen Gesundheitslösungen vorangetrieben. Im Laufe des Quartals zahlte ResMed 78 Millionen Dollar an Dividenden und kaufte 307.000 Aktien für 75 Millionen Dollar zurück.
Der Vorstand erklärte eine vierteljährliche Bargelddividende von 0,53 Dollar pro Aktie, die am 20. März 2025 an die Aktionäre mit einem Stichtag vom 13. Februar 2025 ausgezahlt wird.
- Revenue growth of 10% to $1.3 billion
- Operating profit increased 52% to $417.2 million
- Gross margin improved 300 basis points to 58.6%
- Strong operating cash flow of $309 million
- Diluted EPS grew 65% to $2.34
- U.S., Canada, and Latin America revenue grew 12%
- SG&A expenses increased 9%
- R&D expenses rose 10%
Insights
ResMed's Q2 FY2025 results demonstrate exceptional operational execution and financial discipline. The
The standout metric is the substantial margin improvement, with gross margin expanding 300bps to
Strategic capital allocation remains balanced, with
Two emerging catalysts deserve attention: 1) The increasing adoption of consumer sleep-tracking wearables, which could drive greater sleep health awareness and diagnosis rates. 2) The rise of GLP-1 therapies, which may increase CPAP device demand as weight loss often reveals underlying sleep apnea. These trends, combined with ResMed's digital health ecosystem and market leadership, position the company for sustained growth.
The launch of the Kontor Head Strap for Apple Vision Pro represents an innovative diversification into premium accessories, leveraging ResMed's expertise in comfort and wearability. While likely not material to near-term financials, it demonstrates the company's ability to extend its core competencies into adjacent markets.
- Year-over-year revenue grows
10% , operating profit up52% , non-GAAP operating profit up19% - Operating cash flow of
$309 million
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, Jan. 30, 2025 (GLOBE NEWSWIRE) -- ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended December 31, 2024.
Second Quarter 2025 Highlights
All comparisons are to the prior year period
- Revenue increased by
10% to$1.3 billion ; up10% on a constant currency basis - Gross margin improved 300 bps to
58.6% ; non-GAAP gross margin improved 230 bps to59.2% - Income from operations increased
52% ; non-GAAP income from operations up19% - Operating cash flow of
$309 million - Diluted earnings per share of
$2.34 ; non-GAAP diluted earnings per share of$2.43
“Our second quarter fiscal year 2025 top-line growth, margin expansion, and double-digit EPS growth were the result of increased demand for our sleep health and breathing health products and digital health solutions that people love, as well as our laser-focus on operational excellence,” said ResMed’s Chairman and CEO, Mick Farrell. “We delivered
Financial Results and Operating Metrics
Unaudited; $ in millions, except for per share amounts
| Three Months Ended | |||||||||||||
| December 31, 2024 | December 31, 2023 | % Change | Constant Currency (A) | ||||||||||
| Revenue | $ | 1,282.1 | $ | 1,162.8 | 10 | % | 10 | % | |||||
| Gross margin | 58.6 | % | 55.6 | % | 5 | ||||||||
| Non-GAAP gross margin (B) | 59.2 | % | 56.9 | % | 4 | ||||||||
| Selling, general, and administrative expenses | 241.6 | 222.2 | 9 | 9 | |||||||||
| Research and development expenses | 81.4 | 73.9 | 10 | 10 | |||||||||
| Income from operations | 417.2 | 275.1 | 52 | ||||||||||
| Non-GAAP income from operations (B) | 435.9 | 365.5 | 19 | ||||||||||
| Net income | 344.6 | 208.8 | 65 | ||||||||||
| Non-GAAP net income (B) | 358.3 | 277.3 | 29 | ||||||||||
| Diluted earnings per share | $ | 2.34 | $ | 1.42 | 65 | ||||||||
| Non-GAAP diluted earnings per share (B) | $ | 2.43 | $ | 1.88 | 29 | ||||||||
| Six Months Ended | |||||||||||||
| December 31, 2024 | December 31, 2023 | % Change | Constant Currency (A) | ||||||||||
| Revenue | $ | 2,506.6 | $ | 2,265.1 | 11 | % | 11 | % | |||||
| Gross margin | 58.6 | % | 55.1 | % | 6 | ||||||||
| Non-GAAP gross margin (B) | 59.2 | % | 56.4 | % | 5 | ||||||||
| Selling, general, and administrative expenses | 480.6 | 445.0 | 8 | 8 | |||||||||
| Research and development expenses | 160.9 | 149.6 | 8 | 7 | |||||||||
| Income from operations | 804.6 | 564.1 | 43 | ||||||||||
| Non-GAAP income from operations (B) | 842.3 | 684.3 | 23 | ||||||||||
| Net income | 656.0 | 428.2 | 53 | ||||||||||
| Non-GAAP net income (B) | 683.7 | 518.5 | 32 | ||||||||||
| Diluted earnings per share | $ | 4.45 | $ | 2.90 | 53 | ||||||||
| Non-GAAP diluted earnings per share (B) | $ | 4.63 | $ | 3.51 | 32 | ||||||||
| (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 Second Quarter Results
All comparisons are to the prior year period unless otherwise noted
- Revenue grew by 10 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 12 percent.
- Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 8 percent on a constant currency basis.
- Residential Care Software revenue increased by 8 percent on a constant currency basis, reflecting continued organic growth in our Residential Care Software portfolio.
- Gross margin increased by 300 basis points mainly due to manufacturing and logistics efficiencies and component cost improvements. Non-GAAP gross margin increased by 230 basis points due to the same factors.
- Selling, general, and administrative expenses increased by 9 percent on a constant currency basis. The increase in SG&A expenses was mainly due to increases in employee-related expenses. SG&A expenses improved to 18.8 percent of revenue in the quarter, compared with 19.1 percent in the same period of the prior year.
- Income from operations increased by 52 percent as the prior year included
$64.2 million of restructuring related charges. Non-GAAP income from operations increased by 19 percent. - Net income for the quarter was
$345 million and diluted earnings per share was$2.34 . Non-GAAP net income increased by 29 percent to$358 million , and non-GAAP diluted earnings per share increased by 29 percent to$2.43 , predominantly attributable to strong sales growth and gross margin improvement. - Operating cash flow for the quarter was
$309 million , compared to net income in the current quarter of$345 million and non-GAAP net income of$358 million . - During the quarter, we paid
$78 million in dividends to shareholders and repurchased 307,000 shares for consideration of$75 million as part of our ongoing capital management.
Other Business and Operational Highlights
- Announced the launch of the Kontor Head Strap, a premium accessory for Apple Vision Pro, that delivers a superb balance of softness and support for extended wear-time. The Kontor Head Strap is crafted with a blend of ResMed-exclusive ultra-premium materials designed to be gentle on the skin and allow for further customization of Apple Vision Pro with the option to utilize six included modular counterweights. The Kontor Head Strap enables extended wear-time benefits for Vision Pro users. ResMed’s products are engineered to deliver exceptional comfort and performance, enhancing users' experiences across healthcare and technology.
- Reaffirmed our commitment to expanding our Singapore operations in partnership with the Singapore Economic Development Board (EDB). We will make new investments in Singapore by 2029, strengthening our global manufacturing network and positioning our Singapore presence as a key innovation hub across the Asia-Pacific.
- Named to Forbes' first-ever Most Trusted Companies in America list based on employee trust, customer trust, investor trust and media sentiment. Named for the fifth consecutive year to Wall Street Journal’s Management Top 250 ranking based on customer satisfaction, employee engagement and development, innovation, social responsibility, and financial strength.
Dividend program
The ResMed board of directors today declared a quarterly cash dividend of
Webcast details
ResMed will discuss its second 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 “Q2 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 13750689. The telephone replay will be available until February 13, 2025.
About ResMed
At 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 statement
Statements 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.
| For investors | For media |
| +1 858-836-5000 | +1 619-510-1281 |
| investorrelations@resmed.com | news@resmed.com |
Condensed Consolidated Statements of Operations
(Unaudited; $ in thousands, except for per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
| Net revenue | $ | 1,282,089 | $ | 1,162,801 | $ | 2,506,598 | $ | 2,265,122 | |||||||
| Cost of sales | 523,180 | 501,259 | 1,022,800 | 986,702 | |||||||||||
| Amortization of acquired intangibles(1) | 7,634 | 8,257 | 15,304 | 17,164 | |||||||||||
| Masks with magnets field safety notification expenses(1) | — | 6,351 | — | 6,351 | |||||||||||
| Astral field safety notification expenses(1) | — | — | — | 7,911 | |||||||||||
| Total cost of sales | $ | 530,814 | $ | 515,867 | $ | 1,038,104 | $ | 1,018,128 | |||||||
| Gross profit | $ | 751,275 | $ | 646,934 | $ | 1,468,494 | $ | 1,246,994 | |||||||
| Selling, general, and administrative | 241,613 | 222,155 | 480,592 | 445,029 | |||||||||||
| Research and development | 81,372 | 73,880 | 160,897 | 149,590 | |||||||||||
| Amortization of acquired intangibles(1) | 11,047 | 11,577 | 22,451 | 24,056 | |||||||||||
| Restructuring expenses(1) | — | 64,228 | — | 64,228 | |||||||||||
| Total operating expenses | $ | 334,032 | $ | 371,840 | $ | 663,940 | $ | 682,903 | |||||||
| Income from operations | $ | 417,243 | $ | 275,094 | $ | 804,554 | $ | 564,091 | |||||||
| Other income (expenses), net: | |||||||||||||||
| Interest (expense) income, net | $ | (775 | ) | $ | (13,805 | ) | $ | (2,436 | ) | $ | (28,762 | ) | |||
| Gain (loss) attributable to equity method investments | 1,077 | 739 | 2,040 | (3,156 | ) | ||||||||||
| Gain (loss) on equity investments(1) | (1,439 | ) | (1,888 | ) | (2,119 | ) | (2,491 | ) | |||||||
| Other, net | 2,216 | (686 | ) | (219 | ) | 1,963 | |||||||||
| Total other income (expenses), net | 1,079 | (15,640 | ) | (2,734 | ) | (32,446 | ) | ||||||||
| Income before income taxes | $ | 418,322 | $ | 259,454 | $ | 801,820 | $ | 531,645 | |||||||
| Income taxes | 73,700 | 50,654 | 145,843 | 103,423 | |||||||||||
| Net income | $ | 344,622 | $ | 208,800 | $ | 655,977 | $ | 428,222 | |||||||
| Basic earnings per share | $ | 2.35 | $ | 1.42 | $ | 4.47 | $ | 2.91 | |||||||
| Diluted earnings per share | $ | 2.34 | $ | 1.42 | $ | 4.45 | $ | 2.90 | |||||||
| Non-GAAP diluted earnings per share(1) | $ | 2.43 | $ | 1.88 | $ | 4.63 | $ | 3.51 | |||||||
| Basic shares outstanding | 146,810 | 147,132 | 146,835 | 147,104 | |||||||||||
| Diluted shares outstanding | 147,481 | 147,545 | 147,520 | 147,572 | |||||||||||
(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)
| December 31, 2024 | June 30, 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 521,944 | $ | 238,361 | |||
| Accounts receivable, net | 859,937 | 837,275 | |||||
| Inventories | 882,103 | 822,250 | |||||
| Prepayments and other current assets | 572,193 | 459,833 | |||||
| Total current assets | $ | 2,836,177 | $ | 2,357,719 | |||
| Non-current assets: | |||||||
| Property, plant, and equipment, net | $ | 520,162 | $ | 548,025 | |||
| Operating lease right-of-use assets | 151,012 | 151,121 | |||||
| Goodwill and other intangibles, net | 3,243,356 | 3,327,959 | |||||
| Deferred income taxes and other non-current assets | 390,627 | 487,570 | |||||
| Total non-current assets | $ | 4,305,157 | $ | 4,514,675 | |||
| Total assets | $ | 7,141,334 | $ | 6,872,394 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 220,313 | $ | 237,728 | |||
| Accrued expenses | 352,541 | 377,678 | |||||
| Operating lease liabilities, current | 27,812 | 25,278 | |||||
| Deferred revenue | 156,508 | 152,554 | |||||
| Income taxes payable | 84,880 | 107,517 | |||||
| Short-term debt | 9,906 | 9,900 | |||||
| Total current liabilities | $ | 851,960 | $ | 910,655 | |||
| Non-current liabilities: | |||||||
| Deferred revenue | $ | 146,512 | $ | 137,343 | |||
| Deferred income taxes | 77,004 | 79,339 | |||||
| Operating lease liabilities, non-current | 139,159 | 141,444 | |||||
| Other long-term liabilities | 10,831 | 42,257 | |||||
| Long-term debt | 662,859 | 697,313 | |||||
| Total non-current liabilities | $ | 1,036,365 | $ | 1,097,696 | |||
| Total liabilities | $ | 1,888,325 | $ | 2,008,351 | |||
| Stockholders’ equity | |||||||
| Common stock | $ | 760 | $ | 588 | |||
| Additional paid-in capital | 1,957,359 | 1,896,604 | |||||
| Retained earnings | 5,492,038 | 4,991,647 | |||||
| Treasury stock | (1,898,258 | ) | (1,773,267 | ) | |||
| Accumulated other comprehensive income | (298,890 | ) | (251,529 | ) | |||
| Total stockholders’ equity | $ | 5,253,009 | $ | 4,864,043 | |||
| Total liabilities and stockholders’ equity | $ | 7,141,334 | $ | 6,872,394 | |||
Condensed Consolidated Statements of Cash Flows
(Unaudited; $ in thousands)
| Three Months Ended | Six Months Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 344,622 | $ | 208,800 | $ | 655,977 | $ | 428,222 | |||||||
| Adjustment to reconcile net income to cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 46,439 | 44,784 | 91,169 | 89,718 | |||||||||||
| Amortization of right-of-use assets | 9,463 | 8,586 | 18,443 | 17,094 | |||||||||||
| Stock-based compensation costs | 22,634 | 19,840 | 42,790 | 38,350 | |||||||||||
| (Gain) loss attributable to equity method investments, net of dividends received | (1,077 | ) | (739 | ) | (2,040 | ) | 3,156 | ||||||||
| (Gain) loss on equity investments | 1,439 | 1,888 | 2,119 | 2,491 | |||||||||||
| Non-cash restructuring expenses | — | 33,239 | — | 33,239 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable, net | (67,853 | ) | (26,802 | ) | (31,436 | ) | (20,269 | ) | |||||||
| Inventories, net | (7,641 | ) | 50,184 | (77,895 | ) | 77,095 | |||||||||
| Prepaid expenses, net deferred income taxes and other current assets | (43,623 | ) | (32,575 | ) | (43,746 | ) | (74,590 | ) | |||||||
| Accounts payable, accrued expenses, income taxes payable and other | 4,219 | (34,373 | ) | (21,220 | ) | (35,391 | ) | ||||||||
| Net cash provided by (used in) operating activities | $ | 308,622 | $ | 272,832 | $ | 634,161 | $ | 559,115 | |||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchases of property, plant, and equipment | (20,644 | ) | (23,353 | ) | (38,484 | ) | (53,388 | ) | |||||||
| Patent registration and acquisition costs | (2,825 | ) | (1,205 | ) | (4,592 | ) | (12,036 | ) | |||||||
| Business acquisitions, net of cash acquired | (670 | ) | (7,504 | ) | (670 | ) | (110,688 | ) | |||||||
| Purchases of investments | (1,000 | ) | (3,625 | ) | (2,350 | ) | (7,305 | ) | |||||||
| Proceeds from exits of investments | 250 | — | 4,378 | 250 | |||||||||||
| Proceeds (payments) on maturity of foreign currency contracts | (11,803 | ) | (5,456 | ) | 7,172 | (6,956 | ) | ||||||||
| Net cash provided by (used in) investing activities | $ | (36,692 | ) | $ | (41,143 | ) | $ | (34,546 | ) | $ | (190,123 | ) | |||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from issuance of common stock, net | 26,877 | 19,524 | 35,260 | 20,507 | |||||||||||
| Purchases of treasury stock | (74,986 | ) | (50,007 | ) | (124,991 | ) | (50,007 | ) | |||||||
| Taxes paid related to net share settlement of equity awards | (16,734 | ) | (7,797 | ) | (17,123 | ) | (8,022 | ) | |||||||
| Payments of business combination contingent consideration | — | — | (855 | ) | (1,293 | ) | |||||||||
| Proceeds from borrowings, net of borrowing costs | — | — | — | 105,000 | |||||||||||
| Repayment of borrowings | (5,000 | ) | (130,000 | ) | (35,000 | ) | (315,000 | ) | |||||||
| Dividends paid | (77,695 | ) | (70,678 | ) | (155,586 | ) | (141,275 | ) | |||||||
| Net cash provided by (used in) financing activities | $ | (147,538 | ) | $ | (238,958 | ) | $ | (298,295 | ) | $ | (390,090 | ) | |||
| Effect of exchange rate changes on cash | $ | (28,809 | ) | $ | 8,416 | $ | (17,737 | ) | $ | 3,454 | |||||
| Net increase (decrease) in cash and cash equivalents | 95,583 | 1,147 | 283,583 | (17,644 | ) | ||||||||||
| Cash and cash equivalents at beginning of period | 426,361 | 209,100 | 238,361 | 227,891 | |||||||||||
| Cash and cash equivalents at end of period | $ | 521,944 | $ | 210,247 | $ | 521,944 | $ | 210,247 | |||||||
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 restructuring expense related to cost of sales and are reconciled below:
| Three Months Ended | Six Months Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
| Revenue | $ | 1,282,089 | $ | 1,162,801 | $ | 2,506,598 | $ | 2,265,122 | |||||||
| GAAP cost of sales | $ | 530,814 | $ | 515,867 | $ | 1,038,104 | $ | 1,018,128 | |||||||
| Less:Amortization of acquired intangibles(A) | (7,634 | ) | (8,257 | ) | (15,304 | ) | (17,164 | ) | |||||||
| Less: Masks with magnets field safety notification expenses(A) | — | (6,351 | ) | — | (6,351 | ) | |||||||||
| Less: Astral field safety notification expenses(A) | — | — | — | (7,911 | ) | ||||||||||
| Non-GAAP cost of sales | $ | 523,180 | $ | 501,259 | $ | 1,022,800 | $ | 986,702 | |||||||
| GAAP gross profit | $ | 751,275 | $ | 646,934 | $ | 1,468,494 | $ | 1,246,994 | |||||||
| GAAP gross margin | 58.6 | % | 55.6 | % | 58.6 | % | 55.1 | % | |||||||
| Non-GAAP gross profit | $ | 758,909 | $ | 661,542 | $ | 1,483,798 | $ | 1,278,420 | |||||||
| Non-GAAP gross margin | 59.2 | % | 56.9 | % | 59.2 | % | 56.4 | % | |||||||
The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:
| Three Months Ended | Six Months Ended | ||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||
| GAAP income from operations | $ | 417,243 | $ | 275,094 | $ | 804,554 | $ | 564,091 | |||
| Amortization of acquired intangibles—cost of sales (A) | 7,634 | 8,257 | 15,304 | 17,164 | |||||||
| Amortization of acquired intangibles—operating expenses (A) | 11,047 | 11,577 | 22,451 | 24,056 | |||||||
| Restructuring (A) | — | 64,228 | — | 64,228 | |||||||
| Masks with magnets field safety notification expenses (A) | — | 6,351 | — | 6,351 | |||||||
| Astral field safety notification expenses (A) | — | — | — | 7,911 | |||||||
| Acquisition-related expenses (A) | — | — | — | 483 | |||||||
| Non-GAAP income from operations | $ | 435,924 | $ | 365,507 | $ | 842,309 | $ | 684,284 | |||
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 | Six Months Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
| GAAP net income | $ | 344,622 | $ | 208,800 | $ | 655,977 | $ | 428,222 | |||||||
| Amortization of acquired intangibles—cost of sales(A) | 7,634 | 8,257 | 15,304 | 17,164 | |||||||||||
| Amortization of acquired intangibles—operating expenses(A) | 11,047 | 11,577 | 22,451 | 24,056 | |||||||||||
| Restructuring expenses(A) | — | 64,228 | — | 64,228 | |||||||||||
| Masks with magnets field safety notification expenses(A) | — | 6,351 | — | 6,351 | |||||||||||
| Astral field safety notification expenses(A) | — | — | — | 7,911 | |||||||||||
| Acquisition-related expenses(A) | — | — | — | 483 | |||||||||||
| Income tax effect on non-GAAP adjustments(A) | (4,962 | ) | (21,868 | ) | (10,033 | ) | (29,886 | ) | |||||||
| Non-GAAP net income(A) | $ | 358,341 | $ | 277,345 | $ | 683,699 | $ | 518,529 | |||||||
| GAAP diluted shares outstanding | 147,481 | 147,545 | 147,520 | 147,572 | |||||||||||
| GAAP diluted earnings per share | $ | 2.34 | $ | 1.42 | $ | 4.45 | $ | 2.90 | |||||||
| Non-GAAP diluted earnings per share(A) | $ | 2.43 | $ | 1.88 | $ | 4.63 | $ | 3.51 | |||||||
| (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 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 | |||||||||||
| December 31, 2024 | (A) | December 31, 2023 | (A) | % Change | Constant Currency (B) | ||||||
| U.S., Canada, and Latin America | |||||||||||
| Devices | $ | 414.5 | $ | 371.3 | 12 | % | |||||
| Masks and other | 334.5 | 298.0 | 12 | ||||||||
| Total U.S., Canada and Latin America | $ | 748.9 | $ | 669.3 | 12 | ||||||
| Combined Europe, Asia, and other markets | |||||||||||
| Devices | $ | 254.8 | $ | 234.7 | 9 | % | 9 | % | |||
| Masks and other | 121.8 | 113.9 | 7 | 7 | |||||||
| Total Combined Europe, Asia and other markets | $ | 376.6 | $ | 348.5 | 8 | 8 | |||||
| Global revenue | |||||||||||
| Total Devices | $ | 669.3 | $ | 606.0 | 10 | % | 11 | % | |||
| Total Masks and other | 456.3 | 411.9 | 11 | 11 | |||||||
| Total Sleep and Breathing Health | $ | 1,125.6 | $ | 1,017.9 | 11 | 11 | |||||
| Residential Care Software | 156.5 | 144.9 | 8 | 8 | |||||||
| Total | $ | 1,282.1 | $ | 1,162.8 | 10 | 10 | |||||
| Six Months Ended | |||||||||||
| December 31, 2024 | (A) | December 31, 2023 | (A) | % Change | Constant Currency (B) | ||||||
| U.S., Canada, and Latin America | |||||||||||
| Devices | $ | 799.0 | $ | 717.2 | 11 | % | |||||
| Masks and other | 657.3 | 590.5 | 11 | ||||||||
| Total U.S., Canada and Latin America | $ | 1,456.3 | $ | 1,307.7 | 11 | ||||||
| Combined Europe, Asia, and other markets | |||||||||||
| Devices | $ | 496.1 | $ | 453.5 | 9 | % | 9 | % | |||
| Masks and other | 241.0 | 219.7 | 10 | 9 | |||||||
| Total Combined Europe, Asia and other markets | $ | 737.1 | $ | 673.2 | 9 | 9 | |||||
| Global revenue | |||||||||||
| Total Devices | $ | 1,295.1 | $ | 1,170.7 | 11 | % | 10 | % | |||
| Total Masks and other | 898.2 | 810.2 | 11 | 11 | |||||||
| Total Sleep and Breathing Health | $ | 2,193.3 | $ | 1,980.9 | 11 | 11 | |||||
| Residential Care Software | 313.3 | 284.2 | 10 | 10 | |||||||
| Total | $ | 2,506.6 | $ | 2,265.1 | 11 | 11 | |||||
| (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. |
FAQ
What was ResMed's (RMD) revenue growth in Q2 2025?
How much did ResMed (RMD) improve its gross margin in Q2 2025?
What was ResMed's (RMD) dividend announcement for Q2 2025?
How much did ResMed (RMD) spend on share repurchases in Q2 2025?
What was ResMed's (RMD) operating cash flow in Q2 2025?
