Core Insights - Resmed has elected Nicole Mowad-Nassar to its board of directors, effective August 15, 2025, while thanking Rich Sulpizio for his two decades of service as he retires from the board [1][5]. Group 1: Board Changes - Nicole Mowad-Nassar is currently the President of Specialty and U.S. Therapeutics Operations at AbbVie, managing a $6 billion commercial portfolio across 17 therapeutic areas and overseeing a workforce of 6,000 [2]. - Rich Sulpizio has served on Resmed's board since 2005, chairing the Compensation Committee and serving on the Audit Committee and Nominating and Governance Committee [5][6]. - Mowad-Nassar will serve as an independent director and has been appointed to the Compensation and Leadership Development Committee, standing for reelection at the 2025 Annual Meeting of Stockholders [4]. Group 2: Professional Background - Mowad-Nassar has over 30 years of experience in strategic, commercial, and operational roles within the pharmaceutical and healthcare sectors, with a focus on digital innovation [7]. - At AbbVie, she played a key role in the commercial integration of the $63 billion Allergan acquisition, ensuring continuity in product launches while minimizing operational disruption [3]. Group 3: Leadership Perspectives - Mick Farrell, Resmed's Chairman and CEO, highlighted Mowad-Nassar's extensive experience and commitment to patient access and digital engagement, indicating her potential to enhance the board's strategic direction [4]. - Farrell expressed gratitude for Sulpizio's contributions, noting his energy and people-first mindset during board discussions [6].

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) ResMed is a global leader in digital health and cloud-connected medical devices for sleep apnea, COPD, and residential care software, operating in over 140 countries [General Overview and Corporate History](index=4&type=section&id=General%20Overview%20and%20Corporate%20History) ResMed, founded in 1989, is a global leader in digital health and cloud-connected medical devices for sleep and breathing health, recently acquiring VirtuOx - ResMed is a **global leader** in **digital health** and **cloud-connected medical devices** for treating **sleep apnea, COPD**, and other chronic diseases, with a focus on **out-of-hospital care**[14](index=14&type=chunk) - The company operates in **two segments**: **Sleep and Breathing Health** and **Residential Care Software**[25](index=25&type=chunk) - In **May 2025**, ResMed **acquired VirtuOx**, a **software-enabled independent diagnostic testing facility (IDTF)**, to strengthen its position in **home-based diagnostics** and **patient monitoring**[19](index=19&type=chunk) [The Market](index=5&type=section&id=The%20Market) ResMed targets underpenetrated global markets for sleep apnea (over 936 million affected), COPD (480 million), and residential care software - A 2019 study estimated that mild to severe Obstructive Sleep Apnea (OSA) impacts more than **936 million people worldwide**, with over **424 million** having moderate to severe cases; diagnosis rates remain low, estimated at less than **20% in the U.S.** and **10% or less in other markets**[30](index=30&type=chunk) - A 2022 study published in CHEST found that consistent PAP therapy use increased survival chances for sleep apnea patients by **39% over a three-year period** compared to untreated patients[32](index=32&type=chunk) - Chronic Obstructive Pulmonary Disease (COPD) is the world's **third leading cause of death** and is estimated to affect approximately **480 million people globally**[43](index=43&type=chunk) - The **Residential Care Software business** targets providers in **home medical equipment (HME), home infusion, home health, hospice, skilled nursing facilities, and senior living communities**, helping them manage operational and compliance complexities[50](index=50&type=chunk) [Business Strategy](index=10&type=section&id=Business%20Strategy) ResMed's strategy focuses on differentiating sleep apnea products, accelerating market growth, expanding into adjacent health, investing in digital health, and aligning residential care software - Grow and differentiate the core sleep apnea portfolio by integrating **AI/ML** and simplifying diagnostic pathways, as demonstrated by the **acquisition of VirtuOx**[55](index=55&type=chunk) - Accelerate market growth by increasing awareness of **sleep apnea and COPD** among the general population, medical specialists, and special interest groups[55](index=55&type=chunk) - Leverage its installed base of over **30 million cloud-connected devices** on AirView and **10 million patients** on myAir to enable personalized and data-driven care[57](index=57&type=chunk) - Utilize Residential Care Software solutions to drive **revenue synergies and interoperability**, supporting over **160 million individual patient accounts**[57](index=57&type=chunk) [Products](index=11&type=section&id=Products) ResMed's product portfolio comprises Devices (52% of FY2025 revenue), Mask Systems (36%), and Residential Care Software (12%) for sleep, respiratory, and out-of-hospital care Revenue by Product Category (FY2023-2025) | Product Category | FY2025 Revenue % | FY2024 Revenue % | FY2023 Revenue % | | :--- | :--- | :--- | :--- | | Devices | 52% | 52% | 54% | | Masks, diagnostics, accessories | 36% | 35% | 34% | | Residential Care Software | 12% | 12% | 12% | [Sales, Manufacturing, and Reimbursement](index=14&type=section&id=Sales%2C%20Manufacturing%2C%20and%20Reimbursement) ResMed markets globally, operates a worldwide manufacturing network facing supply constraints, and relies on third-party reimbursement subject to healthcare reforms - The company markets products in over **140 countries** through a network of distributors and direct sales staff, with tailored approaches for different geographies[79](index=79&type=chunk) - ResMed operates a globally distributed manufacturing network with main facilities in **Singapore, Australia, California, Malaysia, and Georgia** to optimize quality, cost, and supply chain resilience[86](index=86&type=chunk)[90](index=90&type=chunk) - The supply chain is subject to disruptions and constraints for electronic components like **semiconductor chips and magnets**; changes in trade policy, such as **tariffs**, also pose inflation risks[87](index=87&type=chunk)[88](index=88&type=chunk) - Business success is highly dependent on **third-party payor reimbursement**, which is subject to cost-containment measures such as the **DMEPOS Competitive Bidding Program** and other healthcare reforms in the U.S. and abroad[91](index=91&type=chunk)[95](index=95&type=chunk) [Competition, IP, and Regulations](index=17&type=section&id=Competition%2C%20IP%2C%20and%20Regulations) ResMed faces intense competition and alternative therapies, protects its technology with 10,000 patents, and is subject to extensive regulations including FDA, MDR, and data privacy laws - Primary competitors in the Sleep and Breathing Health market include **Philips BV, Fisher & Paykel Healthcare**, and several other regional and new-entrant manufacturers[106](index=106&type=chunk) - The company faces competition from alternative therapies, including surgical procedures, dental appliances, and new pharmaceuticals like **GLP-1 weight loss drugs**, which may reduce the severity of OSA[107](index=107&type=chunk) - ResMed relies on a portfolio of approximately **10,000 pending, allowed, or granted patents and designs globally** to protect its proprietary technology[110](index=110&type=chunk) - The company's products are subject to extensive regulation by the **FDA in the U.S.** (typically via 510(k) clearance) and the **European Medical Device Regulation (MDR) in the EEA**, which requires CE marking[112](index=112&type=chunk)[124](index=124&type=chunk) - ResMed must comply with numerous healthcare fraud and abuse laws (e.g., **Anti-Kickback Statute**), data privacy regulations (**HIPAA, GDPR, CCPA**), and emerging laws governing **Artificial Intelligence** (e.g., EU AI Act)[133](index=133&type=chunk)[149](index=149&type=chunk)[160](index=160&type=chunk) [Human Capital](index=26&type=section&id=Human%20Capital) As of June 30, 2025, ResMed employed approximately 10,600 people globally, with a 12% turnover rate, fostering an inclusive, performance-based culture Employee Distribution by Function and Region (as of June 30, 2025) | Category | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | **Total Employees** | **~10,600** | **100%** | | **By Function** | | | | Cost of Sales (Warehousing/Manufacturing) | ~4,240 | 40% | | Research and Development | ~1,990 | 19% | | Sales, Marketing & Administration | ~4,370 | 41% | | **By Region** | | | | U.S., Canada & Latin America | ~3,250 | 31% | | Asia | ~3,250 | 31% | | Europe | ~2,530 | 24% | | Australia | ~1,570 | 14% | - The average global employee turnover rate for fiscal year 2025 was approximately **12%**[168](index=168&type=chunk) - The company supports **nineteen employee-driven Employee Resource Groups (ERGs)** to foster community and inclusion[170](index=170&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) ResMed faces significant risks from intense competition, alternative therapies, macroeconomic conditions, supply chain disruptions, cybersecurity, and evolving regulatory and reimbursement policies - Competition from new technologies, including pharmaceuticals like **GLP-1s for weight loss**, could reduce the severity or existence of OSA, potentially making the company's products noncompetitive[193](index=193&type=chunk) - Global macroeconomic conditions, including **inflation, supply chain disruptions** (e.g., for rare earth materials from China), and **tariffs**, could adversely affect operations and profitability[196](index=196&type=chunk)[225](index=225&type=chunk) - The company is increasingly dependent on IT systems and is vulnerable to **cybersecurity threats**, including **AI-driven attacks**, which could lead to data breaches, business disruption, and legal liability under regulations like **HIPAA and GDPR**[227](index=227&type=chunk)[228](index=228&type=chunk)[230](index=230&type=chunk) - Healthcare reform, cost-cutting measures, and changes in reimbursement policies by payors like **Medicare** (e.g., competitive bidding) may negatively impact sales and pricing[255](index=255&type=chunk)[266](index=266&type=chunk) - The **acquisition of VirtuOx** subjects ResMed to new areas of direct healthcare oversight, including compliance with rules for Medicare-enrolled suppliers and heightened risk under fraud and abuse laws[221](index=221&type=chunk) [Item 1C. Cybersecurity](index=54&type=section&id=Item%201C.%20Cybersecurity) ResMed manages cybersecurity risks through a NIST and ISO 27001-aligned program, overseen by the Board and CISO, with no material incidents reported to date - The cybersecurity program is aligned with standard industry frameworks such as **NIST and ISO 27001** and is integrated into the overall enterprise risk management program[327](index=327&type=chunk)[328](index=328&type=chunk) - The Board of Directors oversees cybersecurity risk management, receiving at least **annual updates from the Chief Information Security Officer (CISO)**[333](index=333&type=chunk) - The **CISO**, who has over **20 years of experience**, manages a team responsible for day-to-day threat management and incident response[335](index=335&type=chunk)[336](index=336&type=chunk) - The company is not aware of any past cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[332](index=332&type=chunk) [Item 2. Properties](index=55&type=section&id=Item%202.%20Properties) ResMed operates global properties, including owned executive offices in San Diego and manufacturing in Sydney, with other key facilities across the U.S., Asia, and Europe Principal Properties (as of June 30, 2025) | Location | Ownership | Square Footage | Primary Usage | | :--- | :--- | :--- | :--- | | San Diego, CA | Owned | 230,000 | Corporate HQ, R&D, Sales | | Sydney, Australia | Owned | 437,000 | Manufacturing, R&D, Sales | | Suzhou, China | Owned | 53,000 | Manufacturing, Warehouse, R&D | | Atlanta, GA | Leased | 467,000 | Manufacturing, Warehouse | | Singapore | Leased | 305,000 | Manufacturing, R&D, Sales | | Johor, Malaysia | Leased | 284,000 | Manufacturing, R&D | [Item 3. Legal Proceedings](index=56&type=section&id=Item%203.%20Legal%20Proceedings) ResMed is involved in ordinary course legal proceedings, including patent infringement cases with NYU and Cleveland Medical Devices, with no material adverse financial impact expected - The company is defending against a patent infringement lawsuit from **New York University (NYU)** regarding its AutoSet/AutoRamp features; the **PTAB has invalidated the challenged claims**, and the case is stayed pending NYU's appeal[610](index=610&type=chunk) - ResMed is also involved in patent infringement litigation with **Cleveland Medical Devices Inc.** concerning its connected devices and data platforms; these cases are in various stages, with some proceedings stayed pending PTAB reviews[611](index=611&type=chunk)[614](index=614&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=57&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ResMed's common stock trades on NYSE (RMD), with 10.8 million shares remaining for repurchase and $100.0 million in repurchases during Q4 FY2025 - During the three months ended June 30, 2025, the company repurchased **418,734 shares** of its common stock at an average price of **$238.81 per share**[346](index=346&type=chunk) - As of June 30, 2025, **10.8 million shares** can still be repurchased under the company's approved share repurchase program[346](index=346&type=chunk) [Item 6. Selected Financial Data](index=58&type=section&id=Item%206.%20Selected%20Financial%20Data) ResMed showed consistent five-year growth, with net revenue increasing from **$3.20 billion to $5.15 billion** and net income from **$474.5 million to $1.40 billion** by FY2025 Selected Financial Data (2021-2025) | (In millions, except per share data) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $5,146.3 | $4,685.3 | $4,223.0 | $3,578.1 | $3,196.8 | | **Gross profit** | $3,055.0 | $2,655.3 | $2,355.7 | $2,024.3 | $1,839.1 | | **Income from operations** | $1,685.4 | $1,319.9 | $1,131.9 | $1,000.3 | $903.7 | | **Net income** | $1,400.7 | $1,021.0 | $897.6 | $779.4 | $474.5 | | **Diluted earnings per share** | $9.51 | $6.92 | $6.09 | $5.30 | $3.24 | | **Total assets** | $8,174.4 | $6,872.4 | $6,751.7 | $5,095.9 | $4,728.1 | | **Total stockholders' equity** | $5,967.9 | $4,864.0 | $4,129.9 | $3,360.8 | $2,885.7 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2025, ResMed's net revenue grew **10% to $5.15 billion**, gross margin improved to **59.4%**, and net income reached **$1.40 billion**, supported by strong liquidity [Results of Operations (FY2025 vs. FY2024)](index=61&type=section&id=Results%20of%20Operations%20(FY2025%20vs.%20FY2024)) In FY2025, net revenue grew **10% to $5.15 billion**, gross margin expanded to **59.4%**, and net income significantly increased to **$1.40 billion**, driven by segment growth and efficiencies Net Revenue by Segment and Product (FY2025 vs. FY2024) | (In millions) | FY 2025 | FY 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Net Revenue** | **$5,146.3** | **$4,685.3** | **10%** | | **Sleep and Breathing Health** | $4,504.9 | $4,101.2 | 10% | | - Devices | $2,665.2 | $2,444.0 | 9% | | - Masks and other | $1,839.7 | $1,657.2 | 11% | | **Residential Care Software** | $641.4 | $584.1 | 10% | - Gross margin increased to **59.4% in FY2025** from **56.7% in FY2024**, primarily due to procurement, manufacturing, and logistics efficiencies, as well as lower expenses related to field safety notifications for masks with magnets and Astral devices[376](index=376&type=chunk) - Net income for FY2025 was **$1,400.7 million ($9.51 per diluted share)**, a significant increase from **$1,021.0 million ($6.92 per diluted share) in FY2024**[390](index=390&type=chunk) - The effective income tax rate decreased to **16.5% in FY2025** from **19.3% in FY2024**, primarily due to an IRS refund of interest and penalties and tax benefits from the cessation of certain business activities[386](index=386&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) ResMed's liquidity strengthened in FY2025, with cash and equivalents rising to **$1.21 billion**, operating cash flow at **$1.75 billion**, and a fully available **$1.5 billion** credit facility Cash Flow Summary (FY2025 vs. FY2024) | (In millions) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,751.6 | $1,401.3 | | Net cash used in investing activities | ($200.0) | ($269.8) | | Net cash used in financing activities | ($606.3) | ($1,119.3) | | **Net increase in cash** | **$971.1** | **$10.5** | - As of June 30, 2025, the company had cash and cash equivalents of **$1,209.5 million** and total debt of **$670.0 million**[397](index=397&type=chunk)[405](index=405&type=chunk) - The company had full availability of its **$1,500.0 million revolving credit facility** as of June 30, 2025[398](index=398&type=chunk)[403](index=403&type=chunk) - During FY2025, ResMed paid **$310.9 million in dividends ($2.12 per share)** and repurchased **$300.0 million of treasury stock**[410](index=410&type=chunk)[411](index=411&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market and Business Risks](index=72&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20and%20Business%20Risks) ResMed faces market risks from foreign currency, interest rates, and inflation, mitigating currency exposure with a hedging program totaling **$2.54 billion** notional value - The company has significant foreign currency exposure from its manufacturing in **Australia and Singapore** and its international sales operations[434](index=434&type=chunk) - ResMed uses a foreign currency hedging program, including **cross-currency swaps, options, and forward contracts**, to manage exposures mainly in **Euros, Australian dollars, and Singapore dollars**[435](index=435&type=chunk)[439](index=439&type=chunk) - As of June 30, 2025, the notional value of outstanding foreign cross-currency swaps (designated hedges) was **$1.13 billion**, and non-designated hedges was **$1.41 billion**[438](index=438&type=chunk)[440](index=440&type=chunk) - The company is exposed to interest rate risk on its **$1.21 billion in cash and cash equivalents** and **$170.0 million in variable-rate debt**; a **10% change in rates** in FY2025 would not have been material[446](index=446&type=chunk) [Item 8. Consolidated Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section presents ResMed's audited consolidated financial statements for FY2025, including notes and KPMG LLP's unqualified opinion on financials and internal controls [Consolidated Financial Statements](index=78&type=section&id=Consolidated%20Financial%20Statements) For FY2025, ResMed reported strong financial health with total assets at **$8.17 billion**, net revenue of **$5.15 billion**, and net income of **$1.40 billion** Key Financial Statement Figures (FY2025) | Metric | Amount (in billions) | | :--- | :--- | | Total Assets | $8.17 | | Total Liabilities | $2.21 | | Total Stockholders' Equity | $5.97 | | Net Revenue | $5.15 | | Net Income | $1.40 | | Diluted EPS | $9.51 | | Net Cash from Operations | $1.75 | [Notes to Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue recognition, goodwill (**$3.05 billion**), total debt (**$668.3 million**), stock-based compensation (**$91.7 million** expense), and segment operating profits for FY2025 - The goodwill balance was **$3.05 billion** as of June 30, 2025, primarily split between the Residential Care Software (**$2.16 billion**) and Sleep and Breathing Health (**$0.88 billion**) segments; no impairment was recorded during the year[534](index=534&type=chunk) - Total debt as of June 30, 2025, was **$668.3 million**, consisting of a term loan, senior notes, and other short-term debt[542](index=542&type=chunk) - The company recognized **$91.7 million in stock-based compensation costs in FY2025**; as of June 30, 2025, **11.9 million shares** remained available for future issuance under the 2009 Incentive Award Plan[566](index=566&type=chunk)[580](index=580&type=chunk) Segment Net Operating Profit (FY2025) | Segment | Net Operating Profit (in millions) | | :--- | :--- | | Sleep and Breathing Health | $1,964.4 | | Residential Care Software | $205.0 | | **Total** | **$2,169.4** | [Item 9A. Controls and Procedures](index=110&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of June 30, 2025, management and KPMG LLP concluded that ResMed's disclosure controls and internal control over financial reporting were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[636](index=636&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of June 30, 2025, based on the COSO framework[643](index=643&type=chunk) - KPMG LLP issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of June 30, 2025[646](index=646&type=chunk) [Item 9B. Other Information](index=113&type=section&id=Item%209B.%20Other%20Information) No Rule 10b5-1 trading arrangements were adopted or terminated in Q4 FY2025, and bylaws were amended on August 6, 2025, regarding stockholder action and board classification - No directors or executive officers adopted or terminated a **Rule 10b5-1 trading plan** in the fourth quarter of fiscal 2025[656](index=656&type=chunk) - On **August 6, 2025**, the company's bylaws were amended to modify certain limitations on stockholder action by written consent and remove references to a classified board[657](index=657&type=chunk) Part III Part III information (Items 10-14) regarding governance, compensation, and security ownership is incorporated by reference from the upcoming definitive proxy statement - Information for **Items 10, 11, 12, 13, and 14** is incorporated by reference from the company's definitive proxy statement[661](index=661&type=chunk)[664](index=664&type=chunk)[665](index=665&type=chunk) Part IV Part IV lists all exhibits filed with the Form 10-K, including corporate governance documents, material contracts, SOX certifications, and Inline XBRL financial data - This section lists all exhibits filed as part of the **Form 10-K report**, including financial statements, schedules, and required certifications[670](index=670&type=chunk)

Core Insights - ResMed Inc reported better-than-expected earnings for Q2, with earnings of $2.55 per share, surpassing the analyst consensus estimate of $2.46 per share [1] - The company achieved quarterly sales of $1.348 billion, exceeding the analyst consensus estimate of $1.321 billion [1] Company Performance - The strong finish to fiscal year 2025 is attributed to robust global demand for ResMed's sleep and breathing health devices and the expansion of its digital health ecosystem, as stated by the Chairman and CEO, Mick Farrell [2] - Following the earnings announcement, ResMed shares increased by 2.1%, trading at $277.70 [2] Analyst Ratings and Price Targets - Piper Sandler maintained a Neutral rating and raised the price target from $248 to $270 [7] - Keybanc maintained an Overweight rating and increased the price target from $274 to $298 [7] - UBS maintained a Buy rating and boosted the price target from $285 to $325 [7] - RBC Capital maintained an Outperform rating and raised the price target from $294 to $300 [7] - Stifel maintained a Hold rating and increased the price target from $240 to $270 [7] - Mizuho maintained an Outperform rating and raised the price target from $270 to $290 [7]

Core Insights - Resmed Inc. reported adjusted earnings per share (EPS) of $2.55 for Q4 fiscal 2025, reflecting a 22.6% year-over-year increase and surpassing the Zacks Consensus Estimate by 3.66% [1] - The company's total revenue for Q4 was $1.35 billion, a 10.2% increase year-over-year, also exceeding the Zacks Consensus Estimate by 1.87% [3] - For the full fiscal year, adjusted EPS was $9.55, up 23.7% from fiscal 2024, and slightly above the Zacks Consensus Estimate by 0.5% [2] Revenue Performance - Q4 revenues from the Sleep and Breathing Health segment reached $1.18 billion, a 10.2% increase year-over-year, exceeding projections [5] - Device revenues within this segment were $693.9 million, up 9.3%, with notable growth in the U.S., Canada, and Latin America [5] - The Residential Care Software segment saw revenues grow 9.9% year-over-year to $167 million, aligning with expectations [7] Margin and Cost Analysis - Adjusted gross profit for Q4 was $827.9 million, a 14.4% increase, with an adjusted gross margin of 61.4%, up 227 basis points year-over-year [9] - Adjusted operating income rose 19% to $476.4 million, with an adjusted operating margin expanding 260 basis points to 35.3% [10] Financial Position - At the end of Q4, Resmed had cash and cash equivalents of $1.21 billion, significantly up from $238.4 million at the end of fiscal 2024 [11] - Total debt decreased to $668.3 million from $707.2 million at the end of fiscal 2024 [11] - The company generated cumulative net cash from operating activities of $1.75 billion, compared to $1.40 billion in the previous year [11] Shareholder Returns - In Q4, Resmed paid out $78 million in dividends and repurchased 419,000 shares for $100 million as part of its capital management strategy [12] Strategic Developments - The growth in sales was attributed to strong global demand for sleep and breathing health devices and the expansion of the digital health ecosystem [13] - The acquisition of VirtuOx enhanced Resmed's capabilities in providing at-home diagnostic services, supporting earlier patient care [14] - Improvements in gross margin were driven by efficiencies in procurement, manufacturing, and logistics, along with favorable currency movements [15]

Core Insights - ResMed reported $1.35 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 10.2% and an EPS of $2.55 compared to $2.08 a year ago, exceeding both revenue and EPS consensus estimates [1] Revenue Performance - U.S., Canada, and Latin America - Devices generated $432.8 million, a 6.6% year-over-year increase, slightly below the average estimate of $435.08 million [4] - U.S., Canada, and Latin America - Masks and other products brought in $359.2 million, an 11.8% year-over-year increase, surpassing the average estimate of $349.01 million [4] - Combined Europe, Asia, and other markets - Total revenue reached $389 million, a 13.1% year-over-year increase, exceeding the estimated $371.49 million [4] - Global revenue for Total Sleep and Breathing Health was $1.18 billion, reflecting a 10.2% year-over-year increase, above the estimated $1.16 billion [4] Stock Performance - ResMed shares have returned +8.4% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

分组1 - ResMed reported quarterly earnings of $2.55 per share, exceeding the Zacks Consensus Estimate of $2.46 per share, and up from $2.08 per share a year ago, representing an earnings surprise of +3.66% [1] - The company achieved revenues of $1.35 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.87%, compared to $1.22 billion in the same quarter last year [2] - ResMed has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 21.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $2.49 on revenues of $1.32 billion, and for the current fiscal year, it is $10.46 on revenues of $5.52 billion [7] - The Zacks Industry Rank indicates that the Medical - Products sector is currently in the bottom 26% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - ResMed achieved a 10% year-over-year reported revenue growth in Q4 FY2025, with a gross margin expansion of 230 basis points year-over-year [7][43] - Free cash flow for FY2025 was $1.7 billion, providing significant flexibility for investments and shareholder returns [9] - Net income increased by 22%, and non-GAAP diluted earnings per share rose by 23% [47] Business Line Data and Key Metrics Changes - Device sales globally increased by 8%, while masks and other sales rose by 11% [41] - Residential Care software revenue increased by 9% on a constant currency basis, driven by strong performance in Medifox DAN and HME verticals [42] - In the U.S., Canada, and Latin America, device sales increased by 7%, and masks and other sales increased by 12% [41] Market Data and Key Metrics Changes - Sales in Europe, Asia, and other regions increased by 9% on a constant currency basis [40] - The U.S. healthcare system's demand for home medical equipment remains strong, with ResMed focusing on partnerships with HME providers [11] Company Strategy and Development Direction - ResMed is committed to its ResMed 2030 strategy, aiming to improve the lives of over 500 million people by 2030 [8] - The company is pursuing tuck-in acquisitions to accelerate growth, with recent acquisitions including Sonderware and Vertuox [10] - ResMed is focused on expanding its digital health ecosystem and enhancing its product offerings through innovation in R&D and AI technologies [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating global macro uncertainties, emphasizing a strong balance sheet and operational excellence [9][36] - The company is well-positioned to address the growing demand for sleep apnea and respiratory care solutions, with a focus on expanding home sleep apnea testing capabilities [13][70] - Management highlighted the importance of ongoing investments in marketing and education to drive awareness and demand for sleep health solutions [24][27] Other Important Information - The Board of Directors approved a 13% increase in the quarterly dividend, reflecting confidence in the company's performance [49] - ResMed plans to increase its share buyback program to approximately $150 million per quarter starting in FY2026 [49] Q&A Session Summary Question: Growth in Rest of World Devices - Management noted strong growth in Europe, Asia, and Rest of World Devices at 10%, attributing it to various factors including market dynamics and demand generation activities [53][54] Question: Gross Margin Guidance - Management discussed the elements contributing to gross margin improvement, including foreign currency benefits and operational efficiencies [59][60] Question: Roadmap for Virtuox Post-Acquisition - Management expressed excitement about Virtuox, emphasizing its role in expanding home sleep apnea testing capabilities and integrating with existing products [66][70] Question: U.S. Mask Growth - Management acknowledged low double-digit growth in U.S. masks, attributing it to both market share gains and increased resupply frequency [77][81] Question: Competitive Bidding and Consolidation - Management discussed the potential impact of competitive bidding on the DME space, emphasizing the importance of advocating for patient access to care [86][92]

Financial Data and Key Metrics Changes - ResMed achieved a 10% year-over-year reported revenue growth in Q4 FY2025, with a gross margin expansion of 230 basis points year-over-year [6][40]. - Free cash flow for FY2025 was $1.7 billion, providing significant flexibility for investments and shareholder returns [8][48]. - Net income increased by 22%, and non-GAAP diluted earnings per share rose by 23% [47]. Business Line Data and Key Metrics Changes - Device sales globally increased by 8%, while masks and other sales grew by 11% on a constant currency basis [41]. - Residential Care software revenue increased by 9% on a constant currency basis, driven by strong performance in Medifox DAN and HME verticals [42]. Market Data and Key Metrics Changes - Sales in the U.S., Canada, and Latin America increased by 9%, while sales in Europe, Asia, and other regions also rose by 9% on a constant currency basis [40][41]. - Device sales in the U.S., Canada, and Latin America increased by 7%, with masks and other sales up by 12% [41]. Company Strategy and Development Direction - ResMed is focused on building a global digital health ecosystem encompassing sleep health, breathing health, and healthcare delivery in the home [6][7]. - The company aims to achieve its ResMed 2030 goal of improving the lives of over 500 million people [7]. - ResMed is pursuing tuck-in acquisitions to accelerate its growth strategy, with recent acquisitions including Sonderware and Vertuox [9][10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate global macro uncertainties, including tariffs and trade issues [8][36]. - The company is committed to operational excellence and driving ongoing operating leverage, with expectations for gross margin to be in the range of 61% to 63% in FY2026 [43][44]. Other Important Information - ResMed's Board of Directors authorized a 13% increase in the quarterly dividend for FY2026 and plans to significantly increase share repurchase activity [13][50]. - The company is integrating its residential care software business into the broader organization to enhance operational efficiency [29]. Q&A Session Summary Question: Growth in Rest of World Devices - Management noted strong growth in Europe, Asia, and Rest of World Devices at 10%, attributed to various factors including market dynamics and demand generation activities [54][56]. Question: Gross Margin Guidance - Management highlighted that gross margin improvements were driven by procurement efficiencies and favorable foreign currency movements, with expectations for continued improvements [61][64]. Question: Roadmap for Vertuox Post-Acquisition - Management emphasized that Vertuox is part of a broader strategy to enhance home sleep apnea testing capabilities and improve patient flow through the healthcare system [67][75]. Question: U.S. Mask Growth - Management indicated that U.S. mask growth was driven by product innovations and resupply frequency, with expectations for continued strong performance [80][84]. Question: Competitive Bidding and Consolidation - Management discussed the potential impact of competitive bidding on the DME space, emphasizing the importance of advocating for patient access to care [89][96].

Q4 FY2025 Earnings July 31, 2025 Presentation of financial information & forward-looking statements Historical financial and operating data in this presentation reflect the consolidated results of ResMed Inc., its subsidiaries, and its legal entities for the periods indicated. This presentation includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial m ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Fourth Quarter 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%202025%20Highlights) Resmed reported strong Q4 FY2025 results with significant year-over-year growth in revenue, operating profit, and non-GAAP EPS Fourth Quarter 2025 Key Financial Highlights: | Metric | Value | | :-------------------------- | :------------------- | | Revenue | $1.3 billion (up 10%) | | Operating Profit | Up 19% (GAAP & non-GAAP) | | Non-GAAP Gross Margin | 61.4% (improved 230 bps) | | Operating Cash Flow | $539 million | | Diluted EPS (non-GAAP) | $2.55 (up 23%) | | Quarterly Dividend Increase | 13% to $0.60 per share | [Full Year 2025 Highlights](index=1&type=section&id=Full%20Year%202025%20Highlights) Resmed achieved substantial full-year FY2025 growth, with 10% revenue increase, improved gross margin, and strong non-GAAP EPS Full Year 2025 Key Financial Highlights: | Metric | Value | | :-------------------------- | :------------------- | | Revenue | $5.1 billion (up 10%) | | Non-GAAP Gross Margin | 60.0% (improved 230 bps) | | Operating Profit (non-GAAP) | Up 19% | | Operating Cash Flow | $1.8 billion | | Diluted EPS (non-GAAP) | $9.55 (up 24%) | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Mick Farrell highlighted strong FY2025 results from global demand and digital health, with FY2026 focused on innovation and care expansion - Strong finish to fiscal year 2025 driven by robust global demand for market-leading sleep and breathing health devices and an expanding digital health ecosystem[3](index=3&type=chunk) - Connected care platform sets the standard for digital health innovation, empowering millions with hardware, software, and healthcare solutions at home[4](index=4&type=chunk) - Plans for fiscal year 2026 include continued investment in innovation, scaling digital health capabilities, and partnering to expand access to care globally[6](index=6&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) [Fourth Quarter Financial Results](index=2&type=section&id=Fourth%20Quarter%20Financial%20Results) Resmed reported strong Q4 FY2025 results, with significant year-over-year increases in revenue, gross profit, operating income, and net income [Revenue Performance (Q4)](index=2&type=section&id=Revenue%20Performance%20(Q4)) Q4 revenue increased 10% year-over-year to $1,348.0 million (9% constant currency), demonstrating consistent growth | Metric | Q4 2025 (USD millions) | Q4 2024 (USD millions) | % Change | Constant Currency % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | :------------------------- | | Revenue | $1,348.0 | $1,223.2 | 10% | 9% | [Profitability and Margins (Q4)](index=2&type=section&id=Profitability%20and%20Margins%20(Q4)) Q4 2025 gross margin improved by 230 bps to 60.8% (GAAP) and 61.4% (non-GAAP), with operating income up 19% | Metric | Q4 2025 | Q4 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Gross margin (GAAP) | 60.8% | 58.5% | +230 bps | | Non-GAAP gross margin | 61.4% | 59.1% | +230 bps | | Income from operations (GAAP) | $454.5M | $381.2M | 19% | | Non-GAAP income from operations | $476.4M | $400.5M | 19% | [Earnings Per Share (Q4)](index=2&type=section&id=Earnings%20Per%20Share%20(Q4)) Q4 2025 diluted EPS increased significantly, with GAAP EPS up 30% to $2.58 and non-GAAP EPS up 23% to $2.55 | Metric | Q4 2025 | Q4 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Diluted EPS (GAAP) | $2.58 | $1.98 | 30% | | Non-GAAP Diluted EPS | $2.55 | $2.08 | 23% | [Full Year Financial Results](index=2&type=section&id=Full%20Year%20Financial%20Results) Resmed demonstrated robust FY2025 financial performance, with double-digit revenue growth, substantial gross margin expansion, and strong operating income increases [Revenue Performance (FY)](index=2&type=section&id=Revenue%20Performance%20(FY)) Full year FY2025 revenue reached $5,146.3 million, a 10% year-over-year increase, consistent with constant currency growth | Metric | FY 2025 (USD millions) | FY 2024 (USD millions) | % Change | Constant Currency % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | :------------------------- | | Revenue | $5,146.3 | $4,685.3 | 10% | 10% | [Profitability and Margins (FY)](index=2&type=section&id=Profitability%20and%20Margins%20(FY)) Full year gross margin improved by 270 bps (GAAP) and 230 bps (non-GAAP), with operating income increasing 28% (GAAP) and 19% (non-GAAP) | Metric | FY 2025 | FY 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Gross margin (GAAP) | 59.4% | 56.7% | +270 bps | | Non-GAAP gross margin | 60.0% | 57.7% | +230 bps | | Income from operations (GAAP) | $1,685.4M | $1,319.9M | 28% | | Non-GAAP income from operations | $1,763.3M | $1,478.4M | 19% | [Earnings Per Share (FY)](index=2&type=section&id=Earnings%20Per%20Share%20(FY)) Full year diluted EPS saw substantial growth, with GAAP EPS up 37% to $9.51 and non-GAAP EPS up 24% to $9.55 | Metric | FY 2025 | FY 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Diluted EPS (GAAP) | $9.51 | $6.92 | 37% | | Non-GAAP Diluted EPS | $9.55 | $7.72 | 24% | [Discussion of Fourth Quarter Results & Operational Highlights](index=3&type=section&id=Discussion%20of%20Fourth%20Quarter%20Results%20%26%20Operational%20Highlights) [Revenue Drivers & Regional Performance](index=3&type=section&id=Revenue%20Drivers%20%26%20Regional%20Performance) Q4 revenue grew 9% constant currency, driven by strong demand for sleep devices, masks, and Residential Care Software across all major regions - Revenue grew by 9% on a constant currency basis, driven by increased demand for sleep devices and masks portfolio, and solid growth across Residential Care Software business[9](index=9&type=chunk) - Revenue in the U.S., Canada, and Latin America (excluding Residential Care Software) grew by 9%[9](index=9&type=chunk) - Revenue in Europe, Asia, and other markets (excluding Residential Care Software) grew by 9% on a constant currency basis[9](index=9&type=chunk) [Cost & Expense Management](index=3&type=section&id=Cost%20%26%20Expense%20Management) Gross margin improved by 230 bps due to efficiencies and currency, while SG&A expenses increased 8% (constant currency) but improved to 19.7% of revenue - Gross margin increased by 230 basis points mainly due to procurement, manufacturing and logistics efficiencies as well as favorable foreign currency movements[9](index=9&type=chunk) - Selling, general, and administrative expenses increased by 8% on a constant currency basis, mainly due to increases in employee-related costs and marketing expenses[9](index=9&type=chunk) - SG&A expenses improved to 19.7% of revenue in the quarter, compared with 19.8% in the same period of the prior year[9](index=9&type=chunk) [Net Income & Operating Cash Flow](index=3&type=section&id=Net%20Income%20%26%20Operating%20Cash%20Flow) Q4 net income was $380 million (non-GAAP up 22% to $375 million), diluted EPS was $2.58 (non-GAAP up 23% to $2.55), and operating cash flow reached $539 million Q4 2025 Net Income & EPS: | Metric | Value | | :-------------------------- | :---------- | | Net income | $380 million | | Non-GAAP net income | $375 million (up 22%) | | Diluted earnings per share | $2.58 | | Non-GAAP diluted EPS | $2.55 (up 23%) | - Operating cash flow for the quarter was $539 million[9](index=9&type=chunk) [Capital Management Activities](index=3&type=section&id=Capital%20Management%20Activities) Resmed paid $78 million in dividends and repurchased 419,000 shares for $100 million as part of its capital management strategy - Paid $78 million in dividends to shareholders[9](index=9&type=chunk) - Repurchased 419,000 shares for consideration of $100 million as part of ongoing capital management[9](index=9&type=chunk) [Strategic Initiatives & Innovation](index=3&type=section&id=Strategic%20Initiatives%20%26%20Innovation) Resmed acquired VirtuOx to enhance diagnostics, partnered with Qatar Airways for a sleep health campaign, and presented research at SLEEP 2025 on therapy and AI - Acquired VirtuOx, a leading independent diagnostic testing facility (IDTF) for sleep, respiratory, and cardiac conditions, to support patients earlier in their journey and help healthcare providers deliver care[9](index=9&type=chunk) - Named Official Sleep Partner of the Qatar Airways British and Irish Lions Tour to Australia and launched 'Tackle Your Sleep' digital and content focused campaign[9](index=9&type=chunk) - Showcased research at the SLEEP 2025 conference, reinforcing leadership in sleep science and innovation, with focus areas including PAP therapy adherence, gender disparities in OSA diagnosis, patient-reported outcomes, and AI use in therapy engagement[9](index=9&type=chunk) [Dividend Program](index=4&type=section&id=Dividend%20Program) [Quarterly Cash Dividend](index=4&type=section&id=Quarterly%20Cash%20Dividend) Resmed declared a quarterly cash dividend of $0.60 per share, payable September 18, 2025, to shareholders of record August 14, 2025 - Quarterly cash dividend declared: $0.60 per share[10](index=10&type=chunk) - Record date: August 14, 2025; Payable date: September 18, 2025; Ex-dividend date: August 13, 2025[10](index=10&type=chunk) - Dividend paid in U.S. currency to NYSE common stock holders and equivalent Australian currency to ASX CDI holders (based on 10:1 ratio)[10](index=10&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [About Resmed](index=4&type=section&id=About%20Resmed) Resmed is a global leader in innovative out-of-hospital solutions for sleep apnea and chronic diseases, leveraging digital health to improve care in over 140 countries - Pioneers innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives[12](index=12&type=chunk) - Utilizes digital health technologies and cloud-connected medical devices to transform care for sleep apnea, COPD, and other chronic diseases[12](index=12&type=chunk) - Comprehensive out-of-hospital software platforms support professionals and caregivers, improving quality of life and reducing costs in over 140 countries[12](index=12&type=chunk) [Webcast Details](index=4&type=section&id=Webcast%20Details) Resmed will host a webcast on July 31, 2025, at 1:30 p.m. U.S. Pacific Time to discuss Q4 FY2025 results, with live and replay access available - Live webcast of Q4 FY2025 results on July 31, 2025, at 1:30 p.m. U.S. Pacific Time, accessible at investor.resmed.com[11](index=11&type=chunk) - Replay of the webcast will be available approximately two hours after the live event on the website[11](index=11&type=chunk) - Telephone replay available approximately three hours after the webcast until August 14, 2025, using provided dial-in numbers and passcode[11](index=11&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially from projections - Statements in the release that are not historical facts are 'forward-looking' statements under the Private Securities Litigation Reform Act of 1995[13](index=13&type=chunk) - These statements are subject to risks and uncertainties which could cause actual results to materially differ from those projected or implied[13](index=13&type=chunk) - Additional risks and uncertainties are discussed in Resmed's periodic reports on file with the U.S. Securities & Exchange Commission, and Resmed does not undertake to update its forward-looking statements[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents unaudited condensed consolidated statements of operations for Q4 and FY2025/2024, detailing revenue, gross profit, operating income, net income, and EPS Condensed Consolidated Statements of Operations (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--------------------- | :------ | :------ | :------ | :------ | | Net revenue | $1,347,993 | $1,223,195 | $5,146,327 | $4,685,297 | | Gross profit | $820,070 | $715,527 | $3,054,970 | $2,655,303 | | Income from operations | $454,543 | $381,217 | $1,685,363 | $1,319,893 | | Net income | $379,705 | $292,237 | $1,400,723 | $1,020,951 | | Diluted earnings per share | $2.58 | $1.98 | $9.51 | $6.92 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides unaudited condensed consolidated balance sheets as of June 30, 2025, and 2024, outlining assets, liabilities, and equity Condensed Consolidated Balance Sheets (USD thousands): | Metric | June 30, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------ | | Total assets | $8,174,391 | $6,872,394 | | Total liabilities | $2,206,532 | $2,008,351 | | Total stockholders' equity | $5,967,859 | $4,864,043 | | Cash and cash equivalents | $1,209,450 | $238,361 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents unaudited condensed consolidated statements of cash flows for Q4 and FY2025/2024, detailing operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :---------------------------------------- | :-------- | :-------- | :---------- | :---------- | | Net cash provided by operating activities | $538,766 | $440,113 | $1,751,588 | $1,401,260 | | Net cash used in investing activities | $(133,713) | $(46,510) | $(200,045) | $(269,784) | | Net cash used in financing activities | $(163,887) | $(393,282) | $(606,253) | $(1,119,287) | | Cash and cash equivalents at end of period | $1,209,450 | $238,361 | $1,209,450 | $238,361 | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Non-GAAP Gross Profit and Margin Reconciliation](index=8&type=section&id=Non-GAAP%20Gross%20Profit%20and%20Margin%20Reconciliation) This section reconciles GAAP to non-GAAP gross profit and margin, excluding amortization of acquired intangibles and field safety notification expenses Non-GAAP Gross Profit and Margin Reconciliation (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------ | :------ | :------ | :------ | :------ | | GAAP gross profit | $820,070 | $715,527 | $3,054,970 | $2,655,303 | | Non-GAAP gross profit | $827,925 | $723,514 | $3,085,574 | $2,702,528 | | GAAP gross margin | 60.8% | 58.5% | 59.4% | 56.7% | | Non-GAAP gross margin | 61.4% | 59.1% | 60.0% | 57.7% | [Non-GAAP Income from Operations Reconciliation](index=8&type=section&id=Non-GAAP%20Income%20from%20Operations%20Reconciliation) This section reconciles GAAP to non-GAAP income from operations, adjusting for amortization, restructuring, field safety, and acquisition expenses Non-GAAP Income from Operations Reconciliation (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | GAAP income from operations | $454,543 | $381,217 | $1,685,363 | $1,319,893 | | Non-GAAP income from operations | $476,357 | $400,466 | $1,763,300 | $1,478,400 | [Non-GAAP Net Income and Diluted EPS Reconciliation](index=9&type=section&id=Non-GAAP%20Net%20Income%20and%20Diluted%20EPS%20Reconciliation) This section reconciles GAAP to non-GAAP net income and diluted EPS, adjusting for non-recurring items and associated tax effects Non-GAAP Net Income and Diluted EPS Reconciliation (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | GAAP net income | $379,705 | $292,237 | $1,400,723 | $1,020,951 | | Non-GAAP net income | $374,545 | $306,341 | $1,406,777 | $1,139,294 | | GAAP diluted EPS | $2.58 | $1.98 | $9.51 | $6.92 | | Non-GAAP diluted EPS | $2.55 | $2.08 | $9.55 | $7.72 | [Management's Rationale for Non-GAAP Measures](index=9&type=section&id=Management's%20Rationale%20for%20Non-GAAP%20Measures) Resmed uses non-GAAP measures for better insight into core operations and consistent reporting, excluding non-recurring items for meaningful performance evaluation - Non-GAAP information is used internally for planning, forecasting, and evaluating operational results, and to compare current to past periods[22](index=22&type=chunk) - Believes non-GAAP information provides investors better insight into Resmed's performance from core operations and ensures consistent financial reporting[22](index=22&type=chunk) - Adjustments are made for items like amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition-related expenses, and associated tax effects to facilitate a more meaningful evaluation of ongoing operations[21](index=21&type=chunk)[22](index=22&type=chunk) [Revenue Breakdown by Product and Region](index=10&type=section&id=Revenue%20Breakdown%20by%20Product%20and%20Region) [Fourth Quarter Revenue Breakdown](index=10&type=section&id=Fourth%20Quarter%20Revenue%20Breakdown) Q4 2025 global revenue increased 10% (9% constant currency), with strong growth in Sleep and Breathing Health, Residential Care Software, Devices, and Masks Q4 2025 Revenue by Product and Region (USD millions): | Category | Q4 2025 | Q4 2024 | % Change | Constant Currency % Change | | :-------------------------------- | :------ | :------ | :------- | :------------------------- | | **Global Revenue** | **$1,348.0** | **$1,223.2** | **10%** | **9%** | | 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% | | **U.S., Canada, and Latin America** | **$791.9** | **$727.4** | **9%** | | | Devices | $432.8 | $406.2 | 7% | | | Masks and other | $359.2 | $321.2 | 12% | | | **Combined Europe, Asia, and other markets** | **$389.0** | **$343.9** | **13%** | **9%** | | Devices | $261.1 | $228.8 | 14% | 10% | | Masks and other | $127.9 | $115.0 | 11% | 7% | [Full Year Revenue Breakdown](index=10&type=section&id=Full%20Year%20Revenue%20Breakdown) FY2025 global revenue increased 10% (constant currency) to $5,146.3 million, driven by strong growth across Sleep and Breathing Health, Residential Care Software, Devices, and Masks Full Year 2025 Revenue by Product and Region (USD millions): | Category | FY 2025 | FY 2024 | % Change | Constant Currency % Change | | :-------------------------------- | :------ | :------ | :------- | :------------------------- | | **Global Revenue** | **$5,146.3** | **$4,685.3** | **10%** | **10%** | | 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% | | **U.S., Canada, and Latin America** | **$2,997.5** | **$2,722.6** | **10%** | | | Devices | $1,654.4 | $1,522.8 | 9% | | | Masks and other | $1,343.1 | $1,199.8 | 12% | | | **Combined Europe, Asia, and other markets** | **$1,507.4** | **$1,378.6** | **9%** | **9%** | | Devices | $1,010.8 | $921.3 | 10% | 9% | | Masks and other | $496.6 | $457.4 | 9% | 8% |