Resmed Inc. Announces Results for the Third Quarter of Fiscal Year 2025
ResMed (NYSE: RMD) reported strong Q3 fiscal 2025 results with revenue growing 8% to $1.3 billion and operating profit up 14% to $426.3 million. The company achieved a gross margin improvement of 140 basis points to 59.3% and generated operating cash flow of $579 million.
Key financial metrics include diluted earnings per share of $2.48 and non-GAAP diluted earnings per share of $2.37. Revenue growth was driven by increased demand for sleep devices and masks portfolio, with U.S., Canada, and Latin America growing 9%, while Europe, Asia, and other markets grew 8% on a constant currency basis.
During the quarter, ResMed paid $78 million in dividends and repurchased 314,000 shares for $75 million. The board declared a quarterly dividend of $0.53 per share, payable on June 12, 2025.
ResMed (NYSE: RMD) ha riportato solidi risultati nel terzo trimestre fiscale 2025 con un fatturato in crescita dell'8%, raggiungendo 1,3 miliardi di dollari, e un utile operativo in aumento del 14% a 426,3 milioni di dollari. L'azienda ha ottenuto un miglioramento del margine lordo di 140 punti base arrivando al 59,3% e ha generato un flusso di cassa operativo di 579 milioni di dollari.
I principali indicatori finanziari includono un utile diluito per azione di 2,48 dollari e un utile diluito per azione non-GAAP di 2,37 dollari. La crescita del fatturato è stata trainata da una maggiore domanda per dispositivi per il sonno e maschere, con gli Stati Uniti, Canada e America Latina in crescita del 9%, mentre Europa, Asia e altri mercati sono cresciuti dell'8% a valuta costante.
Nel trimestre, ResMed ha distribuito 78 milioni di dollari in dividendi e ha riacquistato 314.000 azioni per 75 milioni di dollari. Il consiglio di amministrazione ha dichiarato un dividendo trimestrale di 0,53 dollari per azione, pagabile il 12 giugno 2025.
ResMed (NYSE: RMD) reportó sólidos resultados en el tercer trimestre fiscal 2025 con un crecimiento de ingresos del 8% alcanzando 1,3 mil millones de dólares y un aumento del beneficio operativo del 14% hasta 426,3 millones de dólares. La compañía logró una mejora en el margen bruto de 140 puntos básicos hasta el 59,3% y generó un flujo de caja operativo de 579 millones de dólares.
Las métricas financieras clave incluyen un beneficio diluido por acción de 2,48 dólares y un beneficio diluido por acción no GAAP de 2,37 dólares. El crecimiento de ingresos fue impulsado por una mayor demanda de dispositivos para el sueño y portafolio de máscaras, con Estados Unidos, Canadá y América Latina creciendo un 9%, mientras que Europa, Asia y otros mercados crecieron un 8% en moneda constante.
Durante el trimestre, ResMed pagó 78 millones de dólares en dividendos y recompró 314,000 acciones por 75 millones de dólares. La junta declaró un dividendo trimestral de 0,53 dólares por acción, pagadero el 12 de junio de 2025.
ResMed (NYSE: RMD)는 2025 회계연도 3분기 실적에서 매출이 8% 증가하여 13억 달러를 기록했으며, 영업이익은 14% 증가한 4억 2,630만 달러를 달성했습니다. 회사는 총 마진이 140 베이시스 포인트 개선되어 59.3%에 이르렀고, 영업 현금 흐름은 5억 7,900만 달러를 창출했습니다.
주요 재무 지표로는 희석 주당순이익 2.48달러와 비 GAAP 희석 주당순이익 2.37달러가 포함됩니다. 매출 성장은 수면 기기 및 마스크 포트폴리오에 대한 수요 증가에 힘입었으며, 미국, 캐나다, 라틴 아메리카는 9% 성장했고, 유럽, 아시아 및 기타 시장은 환율 변동을 제외하고 8% 성장했습니다.
분기 동안 ResMed는 7,800만 달러의 배당금을 지급하고 31만 4,000주를 7,500만 달러에 재매입했습니다. 이사회는 주당 0.53달러의 분기 배당금을 선언했으며, 2025년 6월 12일에 지급될 예정입니다.
ResMed (NYSE : RMD) a publié de solides résultats pour le troisième trimestre de l'exercice 2025 avec une croissance du chiffre d'affaires de 8% atteignant 1,3 milliard de dollars et un bénéfice d'exploitation en hausse de 14% à 426,3 millions de dollars. L'entreprise a enregistré une amélioration de la marge brute de 140 points de base à 59,3 % et généré un flux de trésorerie opérationnel de 579 millions de dollars.
Les principaux indicateurs financiers incluent un bénéfice dilué par action de 2,48 dollars et un bénéfice dilué par action non-GAAP de 2,37 dollars. La croissance du chiffre d'affaires a été portée par une demande accrue pour les dispositifs de sommeil et le portefeuille de masques, les États-Unis, le Canada et l'Amérique latine enregistrant une croissance de 9 %, tandis que l'Europe, l'Asie et les autres marchés ont progressé de 8 % à taux de change constants.
Au cours du trimestre, ResMed a versé 78 millions de dollars de dividendes et racheté 314 000 actions pour 75 millions de dollars. Le conseil d'administration a déclaré un dividende trimestriel de 0,53 dollar par action, payable le 12 juin 2025.
ResMed (NYSE: RMD) meldete starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit einem Umsatzwachstum von 8% auf 1,3 Milliarden US-Dollar und einem operativen Gewinnanstieg von 14% auf 426,3 Millionen US-Dollar. Das Unternehmen erzielte eine Verbesserung der Bruttomarge um 140 Basispunkte auf 59,3 % und generierte einen operativen Cashflow von 579 Millionen US-Dollar.
Wichtige Finanzkennzahlen umfassen ein verwässertes Ergebnis je Aktie von 2,48 US-Dollar sowie ein nicht-GAAP verwässertes Ergebnis je Aktie von 2,37 US-Dollar. Das Umsatzwachstum wurde durch eine erhöhte Nachfrage nach Schlafgeräten und Maskenportfolios angetrieben, wobei die USA, Kanada und Lateinamerika um 9 % wuchsen, während Europa, Asien und andere Märkte auf konstanter Währungsbasis um 8 % zunahmen.
Im Quartal zahlte ResMed 78 Millionen US-Dollar an Dividenden und kaufte 314.000 Aktien für 75 Millionen US-Dollar zurück. Der Vorstand erklärte eine Quartalsdividende von 0,53 US-Dollar je Aktie, zahlbar am 12. Juni 2025.
- Revenue increased 8% to $1.3 billion
- Operating profit grew 14% to $426.3 million
- Gross margin improved 140 basis points to 59.3%
- Strong operating cash flow of $579 million
- Diluted EPS increased 22% to $2.48
- Residential Care Software revenue grew 10%
- SG&A expenses increased 8% due to higher employee-related costs
- R&D expenses rose 9% to $83.9 million
Insights
Resmed delivered strong Q3 results with 8% revenue growth, expanding margins, and 14% operating profit growth, demonstrating operational excellence.
Resmed's Q3 fiscal 2025 results showcase robust financial execution across multiple dimensions. The 8% revenue growth (9% constant currency) to
The company's operational discipline is evident in its SG&A ratio improving to
Cash flow generation remains exceptional with
The balanced regional performance (9% growth in Americas, 8% in Europe/Asia) indicates broad global acceptance rather than dependence on a single market. Meanwhile, the
With this strong cash generation, Resmed maintained its capital allocation strategy, returning
Resmed's NightOwl home sleep test launch and positive CPAP mortality study strengthen their leadership position in respiratory care technology.
The nationwide rollout of Resmed's FDA-cleared NightOwl™ home sleep apnea test represents a significant advancement in sleep diagnosis accessibility. This strategic product expansion addresses a critical bottleneck in sleep apnea care – diagnosis – by moving testing from clinical settings to patients' homes. The timing is particularly relevant as the company's Global Sleep Survey (with 30,026 respondents across 13 markets) confirmed widespread sleep disruption, with people losing nearly three nights of restorative sleep weekly.
The publication of a landmark meta-analysis in The Lancet Respiratory Medicine demonstrating CPAP therapy significantly reduces mortality risk for OSA patients provides crucial clinical validation. This high-impact journal publication strengthens the medical case for CPAP therapy adoption and insurance coverage, potentially expanding the addressable patient population.
Resmed's recognition as one of the "Top 100 Global Innovators" by LexisNexis affirms their R&D effectiveness, supported by the
The company's comprehensive brand evolution initiative demonstrates a strategic focus on market education and unified messaging across their expanding product portfolio. This cohesive approach aims to strengthen their position against competitors while addressing the stated market of 2.3 billion people globally with sleep and breathing health issues.
- Year-over-year revenue grows
8% , operating profit up14% , non-GAAP operating profit up13% - Operating cash flow of
$579 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, April 23, 2025 (GLOBE NEWSWIRE) -- Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended March 31, 2025.
Third Quarter 2025 Highlights
All comparisons are to the prior year period
- Revenue increased by
8% to$1.3 billion ; up9% on a constant currency basis - Gross margin improved 140 bps to
59.3% ; non-GAAP gross margin improved 140 bps to59.9% - Income from operations increased
14% ; non-GAAP income from operations up13% - Operating cash flow of
$579 million - Diluted earnings per share of
$2.48 ; non-GAAP diluted earnings per share of$2.37
“Our positive fiscal year 2025 performance continued in the third quarter, with strong top-line revenue growth, margin expansion, and double-digit EPS growth resulting from solid customer demand for our best-in-class products and software solutions,” 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 | |||||||||||||
| March 31, 2025 | March 31, 2024 | % Change | Constant Currency(A) | ||||||||||
| Revenue | $ | 1,291.7 | $ | 1,197.0 | 8 | % | 9 | % | |||||
| Gross margin | 59.3 | % | 57.9 | % | 2 | ||||||||
| Non-GAAP gross margin(B) | 59.9 | % | 58.5 | % | 2 | ||||||||
| Selling, general, and administrative expenses | 245.3 | 229.9 | 7 | 8 | |||||||||
| Research and development expenses | 83.9 | 77.1 | 9 | 11 | |||||||||
| Income from operations | 426.3 | 374.6 | 14 | ||||||||||
| Non-GAAP income from operations(B) | 444.6 | 393.6 | 13 | ||||||||||
| Net income | 365.0 | 300.5 | 21 | ||||||||||
| Non-GAAP net income(B) | 348.5 | 314.4 | 11 | ||||||||||
| Diluted earnings per share | $ | 2.48 | $ | 2.04 | 22 | ||||||||
| Non-GAAP diluted earnings per share(B) | $ | 2.37 | $ | 2.13 | 11 | ||||||||
| Nine Months Ended | |||||||||||||
| March 31, 2025 | March 31, 2024 | % Change | Constant Currency(A) | ||||||||||
| Revenue | $ | 3,798.3 | $ | 3,462.1 | 10 | % | 10 | % | |||||
| Gross margin | 58.8 | % | 56.0 | % | 5 | ||||||||
| Non-GAAP gross margin(B) | 59.4 | % | 57.2 | % | 4 | ||||||||
| Selling, general, and administrative expenses | 725.9 | 674.9 | 8 | 8 | |||||||||
| Research and development expenses | 244.8 | 226.7 | 8 | 9 | |||||||||
| Income from operations | 1,230.8 | 938.7 | 31 | ||||||||||
| Non-GAAP income from operations(B) | 1,286.9 | 1,077.9 | 19 | ||||||||||
| Net income | 1,021.0 | 728.7 | 40 | ||||||||||
| Non-GAAP net income(B) | 1,032.2 | 833.0 | 24 | ||||||||||
| Diluted earnings per share | $ | 6.93 | $ | 4.94 | 40 | ||||||||
| Non-GAAP diluted earnings per share(B) | $ | 7.00 | $ | 5.65 | 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 Third Quarter Results
All 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 8 percent on a constant currency basis.
- Residential Care Software revenue increased by 10 percent on a constant currency basis, reflecting continued organic growth in our Residential Care Software portfolio.
- Gross margin increased by 140 basis points mainly due to manufacturing and logistics efficiencies as well as favorable shifts in product mix, partially offset by unfavorable foreign currency movements. Non-GAAP gross margin increased by 140 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. SG&A expenses improved to 19.0 percent of revenue in the quarter, compared with 19.2 percent in the same period of the prior year.
- Income from operations increased by 14 percent and non-GAAP income from operations increased by 13 percent.
- Net income for the quarter was
$365 million and diluted earnings per share was$2.48 . Non-GAAP net income increased by 11 percent to$349 million , and non-GAAP diluted earnings per share increased by 11 percent to$2.37 , predominantly attributable to strong sales growth and gross margin improvement. - Operating cash flow for the quarter was
$579 million , compared to net income in the current quarter of$365 million and non-GAAP net income of$349 million . We received$107 million in tax refunds from the IRS during the quarter, of which$100 million had been previously recorded as a receivable. Operating cash flows excluding the impact of these tax refunds was$471 million . - During the quarter, we paid
$78 million in dividends to shareholders and repurchased 314,000 shares for consideration of$75 million as part of our ongoing capital management.
Other Business and Operational Highlights
- Announced that our home sleep apnea test, NightOwl™, is now available across the United States. NightOwl is an FDA-cleared home sleep apnea test (HSAT) designed to offer healthcare providers a simplified, accurate, and efficient way to diagnose obstructive sleep apnea from the comfort of an individual’s home.
- Unveiled the findings of our fifth annual Global Sleep Survey. With insights from 30,026 respondents across 13 markets, the study underscored a widespread global sleep crisis, with people losing an average of nearly three nights of restorative sleep each week.
- Announced a comprehensive brand evolution designed to unify our brand portfolio to serve more people and healthcare providers worldwide and reflect our future physician and customer education.
- Announced the publication of a landmark meta-analysis in The Lancet Respiratory Medicine, demonstrating that CPAP therapy significantly reduces the risk of death for people with obstructive sleep apnea (OSA).
- Awarded as one of the “Top 100 Global Innovators” from LexisNexis. This prestigious award includes a roster of companies around the world that are driving innovation in the global economy.
Dividend program
The Resmed board of directors today declared a quarterly cash dividend of
Webcast details
Resmed will discuss its third 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 “Q3 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 13752711. The telephone replay will be available until May 7, 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.
Condensed Consolidated Statements of Operations
(Unaudited; $ in thousands, except for per share amounts)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | ||||||||||||
| Net revenue | $ | 1,291,736 | $ | 1,196,980 | $ | 3,798,334 | $ | 3,462,102 | |||||||
| Cost of sales | 517,883 | 496,387 | 1,540,684 | 1,483,088 | |||||||||||
| Amortization of acquired intangibles(1) | 7,444 | 7,812 | 22,748 | 24,976 | |||||||||||
| Masks with magnets field safety notification expenses(1) | — | — | — | 6,351 | |||||||||||
| Astral field safety notification expenses(1) | — | — | — | 7,911 | |||||||||||
| Total cost of sales | $ | 525,327 | $ | 504,199 | $ | 1,563,432 | $ | 1,522,326 | |||||||
| Gross profit | $ | 766,409 | $ | 692,781 | $ | 2,234,902 | $ | 1,939,776 | |||||||
| Selling, general, and administrative | 245,302 | 229,919 | 725,894 | 674,948 | |||||||||||
| Research and development | 83,944 | 77,074 | 244,840 | 226,664 | |||||||||||
| Amortization of acquired intangibles(1) | 10,895 | 11,204 | 33,345 | 35,259 | |||||||||||
| Restructuring expenses(1) | — | — | — | 64,228 | |||||||||||
| Total operating expenses | $ | 340,141 | $ | 318,197 | $ | 1,004,079 | $ | 1,001,099 | |||||||
| Income from operations | $ | 426,268 | $ | 374,584 | $ | 1,230,823 | $ | 938,677 | |||||||
| Other income (expenses), net: | |||||||||||||||
| Interest (expense) income, net | $ | 793 | $ | (11,026 | ) | $ | (1,643 | ) | $ | (39,787 | ) | ||||
| Gain (loss) attributable to equity method investments | 335 | 440 | 2,375 | (2,716 | ) | ||||||||||
| Gain (loss) on equity investments | (5,647 | ) | 13,919 | (7,765 | ) | 11,429 | |||||||||
| Other, net | (4,056 | ) | (2,496 | ) | (4,277 | ) | (537 | ) | |||||||
| Total other income (expenses), net | (8,575 | ) | 837 | (11,310 | ) | (31,611 | ) | ||||||||
| Income before income taxes | $ | 417,693 | $ | 375,421 | $ | 1,219,513 | $ | 907,066 | |||||||
| Income taxes | 52,652 | 74,929 | 198,495 | 178,351 | |||||||||||
| Net income | $ | 365,041 | $ | 300,492 | $ | 1,021,018 | $ | 728,715 | |||||||
| Basic earnings per share | $ | 2.49 | $ | 2.04 | $ | 6.96 | $ | 4.96 | |||||||
| Diluted earnings per share | $ | 2.48 | $ | 2.04 | $ | 6.93 | $ | 4.94 | |||||||
| Non-GAAP diluted earnings per share(1) | $ | 2.37 | $ | 2.13 | $ | 7.00 | $ | 5.65 | |||||||
| Basic shares outstanding | 146,719 | 146,959 | 146,797 | 147,056 | |||||||||||
| Diluted shares outstanding | 147,220 | 147,450 | 147,432 | 147,549 | |||||||||||
(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)
| March 31, 2025 | June 30, 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 932,711 | $ | 238,361 | |||
| Accounts receivable, net | 907,825 | 837,275 | |||||
| Inventories | 862,641 | 822,250 | |||||
| Prepayments and other current assets | 505,243 | 459,833 | |||||
| Total current assets | $ | 3,208,420 | $ | 2,357,719 | |||
| Non-current assets: | |||||||
| Property, plant, and equipment, net | $ | 535,339 | $ | 548,025 | |||
| Operating lease right-of-use assets | 152,603 | 151,121 | |||||
| Goodwill and other intangibles, net | 3,279,030 | 3,327,959 | |||||
| Deferred income taxes and other non-current assets | 391,430 | 487,570 | |||||
| Total non-current assets | $ | 4,358,402 | $ | 4,514,675 | |||
| Total assets | $ | 7,566,822 | $ | 6,872,394 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 222,561 | $ | 237,728 | |||
| Accrued expenses | 386,325 | 377,678 | |||||
| Operating lease liabilities, current | 28,749 | 25,278 | |||||
| Deferred revenue | 160,445 | 152,554 | |||||
| Income taxes payable | 132,530 | 107,517 | |||||
| Short-term debt | 9,906 | 9,900 | |||||
| Total current liabilities | $ | 940,516 | $ | 910,655 | |||
| Non-current liabilities: | |||||||
| Deferred revenue | $ | 151,090 | $ | 137,343 | |||
| Deferred income taxes | 78,983 | 79,339 | |||||
| Operating lease liabilities, non-current | 137,991 | 141,444 | |||||
| Other long-term liabilities | 48,983 | 42,257 | |||||
| Long-term debt | 663,126 | 697,313 | |||||
| Total non-current liabilities | $ | 1,080,173 | $ | 1,097,696 | |||
| Total liabilities | $ | 2,020,689 | $ | 2,008,351 | |||
| Stockholders’ equity | |||||||
| Common stock | $ | 761 | $ | 588 | |||
| Additional paid-in capital | 1,990,137 | 1,896,604 | |||||
| Retained earnings | 5,779,375 | 4,991,647 | |||||
| Treasury stock | (1,973,284 | ) | (1,773,267 | ) | |||
| Accumulated other comprehensive income | (250,856 | ) | (251,529 | ) | |||
| Total stockholders’ equity | $ | 5,546,133 | $ | 4,864,043 | |||
| Total liabilities and stockholders’ equity | $ | 7,566,822 | $ | 6,872,394 | |||
Condensed Consolidated Statements of Cash Flows
(Unaudited; $ in thousands)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 365,041 | $ | 300,492 | $ | 1,021,018 | $ | 728,715 | |||||||
| Adjustment to reconcile net income to cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 43,675 | 43,474 | 134,845 | 133,192 | |||||||||||
| Amortization of right-of-use assets | 8,235 | 11,168 | 26,678 | 28,262 | |||||||||||
| Stock-based compensation costs | 24,120 | 20,442 | 66,910 | 58,792 | |||||||||||
| (Gain) loss attributable to equity method investments, net of dividends received | (335 | ) | (440 | ) | (2,375 | ) | 2,716 | ||||||||
| (Gain) loss on equity investments | 5,647 | (13,919 | ) | 7,765 | (11,429 | ) | |||||||||
| Non-cash restructuring expenses | — | — | — | 33,239 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable, net | (40,033 | ) | (56,486 | ) | (71,469 | ) | (76,755 | ) | |||||||
| Inventories, net | 29,864 | 86,199 | (48,032 | ) | 163,294 | ||||||||||
| Prepaid expenses, net deferred income taxes and other current assets | 79,357 | (24,386 | ) | 35,612 | (98,976 | ) | |||||||||
| Accounts payable, accrued expenses, income taxes payable and other | 63,091 | 35,488 | 41,870 | 96 | |||||||||||
| Net cash provided by (used in) operating activities | $ | 578,662 | $ | 402,032 | $ | 1,212,822 | $ | 961,146 | |||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchases of property, plant, and equipment | (20,796 | ) | (21,191 | ) | (59,280 | ) | (74,579 | ) | |||||||
| Patent registration and acquisition costs | (2,992 | ) | (1,918 | ) | (7,584 | ) | (13,954 | ) | |||||||
| Business acquisitions, net of cash acquired | — | (3,080 | ) | (670 | ) | (113,767 | ) | ||||||||
| Purchases of investments | (2,053 | ) | (2,387 | ) | (4,403 | ) | (9,692 | ) | |||||||
| Proceeds from exits of investments | — | — | 4,378 | 250 | |||||||||||
| Proceeds (payments) on maturity of foreign currency contracts | (5,945 | ) | (4,577 | ) | 1,227 | (11,533 | ) | ||||||||
| Net cash provided by (used in) investing activities | $ | (31,786 | ) | $ | (33,153 | ) | $ | (66,332 | ) | $ | (223,275 | ) | |||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from issuance of common stock, net | 9,022 | 4,892 | 44,283 | 25,399 | |||||||||||
| Purchases of treasury stock | (75,026 | ) | (50,000 | ) | (200,017 | ) | (100,007 | ) | |||||||
| Taxes paid related to net share settlement of equity awards | (364 | ) | (314 | ) | (17,487 | ) | (8,336 | ) | |||||||
| Payments of business combination contingent consideration | — | — | (855 | ) | (1,293 | ) | |||||||||
| Proceeds from borrowings, net of borrowing costs | — | — | — | 105,000 | |||||||||||
| Repayment of borrowings | — | (220,000 | ) | (35,000 | ) | (535,000 | ) | ||||||||
| Dividends paid | (77,704 | ) | (70,492 | ) | (233,290 | ) | (211,767 | ) | |||||||
| Net cash provided by (used in) financing activities | $ | (144,072 | ) | $ | (335,914 | ) | $ | (442,366 | ) | $ | (726,004 | ) | |||
| Effect of exchange rate changes on cash | $ | 7,963 | $ | (5,302 | ) | $ | (9,774 | ) | $ | (1,848 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 410,767 | 27,663 | 694,350 | 10,019 | |||||||||||
| Cash and cash equivalents at beginning of period | 521,944 | 210,247 | 238,361 | 227,891 | |||||||||||
| Cash and cash equivalents at end of period | $ | 932,711 | $ | 237,910 | $ | 932,711 | $ | 237,910 | |||||||
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 | Nine Months Ended | ||||||||||||||
| March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | ||||||||||||
| Revenue | $ | 1,291,736 | $ | 1,196,980 | $ | 3,798,334 | $ | 3,462,102 | |||||||
| GAAP cost of sales | $ | 525,327 | $ | 504,199 | $ | 1,563,432 | $ | 1,522,326 | |||||||
| Less: Amortization of acquired intangibles(A) | (7,444 | ) | (7,812 | ) | (22,748 | ) | (24,976 | ) | |||||||
| Less: Masks with magnets field safety notification expenses(A) | — | — | — | (6,351 | ) | ||||||||||
| Less: Astral field safety notification expenses(A) | — | — | — | (7,911 | ) | ||||||||||
| Non-GAAP cost of sales | $ | 517,883 | $ | 496,387 | $ | 1,540,684 | $ | 1,483,088 | |||||||
| GAAP gross profit | $ | 766,409 | $ | 692,781 | $ | 2,234,902 | $ | 1,939,776 | |||||||
| GAAP gross margin | 59.3 | % | 57.9 | % | 58.8 | % | 56.0 | % | |||||||
| Non-GAAP gross profit | $ | 773,853 | $ | 700,593 | $ | 2,257,650 | $ | 1,979,014 | |||||||
| Non-GAAP gross margin | 59.9 | % | 58.5 | % | 59.4 | % | 57.2 | % | |||||||
The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:
| Three Months Ended | Nine Months Ended | ||||||||||
| March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | ||||||||
| GAAP income from operations | $ | 426,268 | $ | 374,584 | $ | 1,230,823 | $ | 938,677 | |||
| Amortization of acquired intangibles—cost of sales(A) | 7,444 | 7,812 | 22,748 | 24,976 | |||||||
| Amortization of acquired intangibles—operating expenses(A) | 10,895 | 11,204 | 33,345 | 35,259 | |||||||
| Restructuring(A) | — | — | — | 64,228 | |||||||
| Masks with magnets field safety notification expenses(A) | — | — | — | 6,351 | |||||||
| Astral field safety notification expenses(A) | — | — | — | 7,911 | |||||||
| Acquisition-related expenses(A) | — | — | — | 483 | |||||||
| Non-GAAP income from operations | $ | 444,607 | $ | 393,600 | $ | 1,286,916 | $ | 1,077,885 | |||
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 | Nine Months Ended | ||||||||||||||
| March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | ||||||||||||
| GAAP net income | $ | 365,041 | $ | 300,492 | $ | 1,021,018 | $ | 728,715 | |||||||
| Amortization of acquired intangibles—cost of sales(A) | 7,444 | 7,812 | 22,748 | 24,976 | |||||||||||
| Amortization of acquired intangibles—operating expenses(A) | 10,895 | 11,204 | 33,345 | 35,259 | |||||||||||
| Restructuring expenses(A) | — | — | — | 64,228 | |||||||||||
| Masks with magnets field safety notification expenses(A) | — | — | — | 6,351 | |||||||||||
| Astral field safety notification expenses(A) | — | — | — | 7,911 | |||||||||||
| Acquisition-related expenses(A) | — | — | — | 483 | |||||||||||
| Income tax effect of interest and penalties on income tax refunds(A) | (29,976 | ) | — | (29,976 | ) | — | |||||||||
| Income tax effect on non-GAAP adjustments(A) | (4,871 | ) | (5,083 | ) | (14,904 | ) | (34,969 | ) | |||||||
| Non-GAAP net income(A) | $ | 348,533 | $ | 314,425 | $ | 1,032,231 | $ | 832,954 | |||||||
| GAAP diluted shares outstanding | 147,220 | 147,450 | 147,432 | 147,549 | |||||||||||
| GAAP diluted earnings per share | $ | 2.48 | $ | 2.04 | $ | 6.93 | $ | 4.94 | |||||||
| Non-GAAP diluted earnings per share(A) | $ | 2.37 | $ | 2.13 | $ | 7.00 | $ | 5.65 | |||||||
| (A) | Resmed adjusts for the impact of the amortization of acquired intangibles, interest and penalties on income tax refunds, 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 | |||||||||||
| March 31, 2025 | (A) | March 31, 2024 | (A) | % Change | Constant Currency(B) | ||||||
| U.S., Canada, and Latin America | |||||||||||
| Devices | $ | 422.7 | $ | 399.3 | 6 | % | |||||
| Masks and other | 326.7 | 288.2 | 13 | ||||||||
| Total U.S., Canada and Latin America | $ | 749.3 | $ | 687.5 | 9 | ||||||
| Combined Europe, Asia, and other markets | |||||||||||
| Devices | $ | 253.5 | $ | 238.9 | 6 | % | 9 | % | |||
| Masks and other | 127.7 | 122.6 | 4 | 7 | |||||||
| Total Combined Europe, Asia and other markets | $ | 381.3 | $ | 361.6 | 5 | 8 | |||||
| Global revenue | |||||||||||
| Total Devices | $ | 676.2 | $ | 638.2 | 6 | % | 7 | % | |||
| Total Masks and other | 454.4 | 410.8 | 11 | 12 | |||||||
| TotalSleep and Breathing Health | $ | 1,130.6 | $ | 1,049.0 | 8 | 9 | |||||
| Residential Care Software | 161.2 | 148.0 | 9 | 10 | |||||||
| Total | $ | 1,291.7 | $ | 1,197.0 | 8 | 9 | |||||
| Nine Months Ended | |||||||||||
| March 31, 2025 | (A) | March 31, 2024 | (A) | % Change | Constant Currency(B) | ||||||
| U.S., Canada, and Latin America | |||||||||||
| Devices | $ | 1,221.6 | $ | 1,116.5 | 9 | % | |||||
| Masks and other | 983.9 | 878.6 | 12 | ||||||||
| Total U.S., Canada and Latin America | $ | 2,205.6 | $ | 1,995.2 | 11 | ||||||
| Combined Europe, Asia, and other markets | |||||||||||
| Devices | $ | 749.6 | $ | 692.4 | 8 | % | 9 | % | |||
| Masks and other | 368.7 | 342.3 | 8 | 9 | |||||||
| Total Combined Europe, Asia and other markets | $ | 1,118.3 | $ | 1,034.8 | 8 | 9 | |||||
| Global revenue | |||||||||||
| Total Devices | $ | 1,971.3 | $ | 1,808.9 | 9 | % | 9 | % | |||
| Total Masks and other | 1,352.6 | 1,221.0 | 11 | 11 | |||||||
| Total Sleep and Breathing Health | $ | 3,323.9 | $ | 3,029.9 | 10 | 10 | |||||
| Residential Care Software | 474.4 | 432.2 | 10 | 10 | |||||||
| Total | $ | 3,798.3 | $ | 3,462.1 | 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. |
| For investors | For media |
| +1 858-836-5000 | +1 619-510-1281 |
| investorrelations@resmed.com | news@resmed.com |
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