Core Insights - ResMed Inc. reported adjusted earnings per share (EPS) of $2.37 for Q3 fiscal 2025, reflecting an 11.3% year-over-year increase and surpassing the Zacks Consensus Estimate by 0.4% [1] - The company's revenues for the same quarter reached $1.29 billion, marking a 7.5% year-over-year growth and exceeding the Zacks Consensus Estimate by 0.5% [3] Financial Performance - Adjusted gross profit increased by 10.5% to $773.8 million, with an adjusted gross margin of 59.9%, up 138 basis points year over year [9] - Selling, general and administrative expenses rose 6.7% to $245.3 million, while research and development expenses increased by 8.9% to $83.9 million [10] - Adjusted operating income was $444.6 million, up 13% from the previous year, with an adjusted operating margin of 34.4%, expanding by 154 basis points [10] Revenue Breakdown - The Sleep and Breathing Health segment generated revenues of $1.13 billion, an 8% increase year over year, with global device sales totaling $676.2 million, up 6% [6] - In the Residential Care Software segment, revenues grew 9% year over year to $161.2 million, slightly below projections [8] Market Reaction - Following the earnings announcement, ResMed's shares rose by 2.6% in after-market trading [2] Strategic Developments - The company launched the NightOwl, an FDA-cleared home sleep apnea test, and introduced a brand evolution to unify its brand portfolio [15]

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Financial Data and Key Metrics Changes - Group revenue for Q3 FY2025 was $1.29 billion, representing an 8% increase year-over-year and a 9% increase in constant currency terms [44] - Gross margin increased by 140 basis points to 59.9%, driven by manufacturing and logistics efficiencies, as well as favorable shifts in product mix [48][49] - Net income for the March quarter increased by 11%, with non-GAAP diluted earnings per share also increasing by 11% to $2.37 [54] Business Line Data and Key Metrics Changes - Device sales globally increased by 7%, while masks and other sales increased by 12% on a constant currency basis [46] - In the US, Canada, and Latin America, device sales increased by 6%, and masks and other sales increased by 13% [47] - Residential care software revenue increased by 10% on a constant currency basis, supported by strong performance from the Medifox DAN software vertical [47] Market Data and Key Metrics Changes - Sales in Europe, Asia, and other regions increased by 8% on a constant currency basis [45] - The company is closely monitoring the evolving global trade environment, particularly in the area of tariffs, but does not expect significant impacts due to existing tariff exemptions [11][55] Company Strategy and Development Direction - The company is focused on expanding its digital health ecosystem and enhancing its brand awareness to capture a larger share of the sleep health market [27][29] - A new manufacturing facility in Calabasas, California, is set to open in June 2025, which will double the manufacturing footprint in the US and increase production capacity [57] - The company aims to improve the lives of 500 million people by 2030, emphasizing its commitment to innovation and patient care [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid global uncertainties, citing a strong balance sheet and operational efficiency [13][60] - The company is actively tracking metrics related to patient flow and treatment adherence, aiming to reduce wait times for diagnostics and therapy [81][82] - Management highlighted the importance of ongoing investments in R&D, which are expected to drive long-term growth [18][52] Other Important Information - The company plans to increase its share buyback program to approximately $100 million per quarter starting in Q4 FY2025 [60] - Cash flow from operations for the quarter was $579 million, including a tax refund of $107 million [58] Q&A Session Summary Question: Can you talk us through the factors that attributed to the gross margin expansion? - Management indicated that manufacturing and distribution efficiencies were the primary drivers, along with favorable product mix and component costs [67][68] Question: How are you tracking the investments related to sleep apnea diagnostics? - Management is tracking metrics such as time to titration and therapy onset, emphasizing the importance of reducing backlogs in sleep labs [81][82] Question: Can you provide an update on the GLP-1 medications and their impact on new patient funnels for CPAP? - Management noted that while GLP-1s are being rolled out, they are proactively educating primary care physicians to drive referrals for sleep apnea therapy [103][106] Question: What is the expected impact of US tariffs on your financial results? - Management confirmed that existing tariff exemptions apply to their products, and they do not expect significant financial impacts from new tariffs [55][132] Question: Can you elaborate on the increase in share buybacks and capital allocation? - Management expressed confidence in increasing share buybacks due to strong operating cash flows and a robust business model, while also considering M&A opportunities [92][96]

Core Insights - ResMed reported $1.29 billion in revenue for the quarter ended March 2025, a year-over-year increase of 7.9% and an EPS of $2.37 compared to $2.13 a year ago, exceeding the Zacks Consensus Estimate of $1.28 billion by 0.53% [1] Financial Performance - The company delivered an EPS surprise of 0.42%, with the consensus EPS estimate being $2.36 [1] - Shares of ResMed have returned -3.3% over the past month, while the Zacks S&P 500 composite changed by -6.6% [3] Regional Performance - U.S., Canada, and Latin America - Devices: $422.70 million, a change of +5.9% year over year, compared to the average estimate of $426.47 million [4] - U.S., Canada, and Latin America - Masks and other: $326.70 million, representing a +13.4% change year over year, exceeding the estimate of $318.76 million [4] - Combined Europe, Asia, and other markets - Total: $381.30 million, a +5.5% change year over year, compared to the estimate of $377.86 million [4] - Combined Europe, Asia, and other markets - Devices: $253.50 million, a +6.1% change year over year, exceeding the estimate of $249.75 million [4] - Combined Europe, Asia, and other markets - Masks and other: $127.70 million, a +4.2% change year over year, slightly below the estimate of $128.11 million [4] - U.S., Canada, and Latin America - Total: $749.30 million, a +9% change year over year, compared to the estimate of $745.22 million [4] Global Revenue Breakdown - Global revenue - Total Sleep and Breathing Health: $1.13 billion, a +7.8% change year over year, exceeding the estimate of $1.12 billion [4] - Global revenue - Residential Care Software: $161.20 million, a +8.9% change year over year, slightly above the estimate of $161.15 million [4] - Global revenue - Total Devices: $676.20 million, a +6% change year over year, in line with the estimate of $676.22 million [4] - Global revenue - Total Masks and other: $454.40 million, a +10.6% change year over year, exceeding the estimate of $446.86 million [4]

分组1 - ResMed reported quarterly earnings of $2.37 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and up from $2.13 per share a year ago, representing an earnings surprise of 0.42% [1] - The company achieved revenues of $1.29 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.53%, compared to $1.2 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 declined approximately 6.4% since the beginning of the year, while the S&P 500 has decreased by 10.1% [3] - The current consensus EPS estimate for the upcoming quarter is $2.45 on revenues of $1.32 billion, and for the current fiscal year, it is $9.47 on revenues of $5.11 billion [7] - The Zacks Industry Rank for Medical - Products is in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Net revenue for Sleep and Breathing Health products reached $1,130,575, an increase of 7.8% compared to $1,049,023 in the same quarter last year[12]. - Total net revenue for the quarter was $1,291,736, up 7.9% from $1,196,980 in the prior year[12]. - Gross profit for the quarter was $766,409, representing a gross margin of approximately 59.3%[12]. - Net income for the quarter was $365,041, a 21.5% increase from $300,492 in the same quarter last year[12]. - Basic earnings per share increased to $2.49, up from $2.04 in the prior year[12]. - Total revenue for the nine months ended March 31, 2025, reached $3,798,334, up 9.7% from $3,462,102 in the prior year[29]. - Net income for the nine months ended March 31, 2025, was $1,021,018, an increase of 40% compared to $728,715 for the same period in 2024[21]. - Diluted earnings per share for the nine months ended March 31, 2025, was $6.93, compared to $4.94 for the same period in 2024[84]. - For the three months ended March 31, 2025, net revenue increased to $1,291.7 million, up $94.8 million or 8% from $1,197.0 million for the same period in 2024[130]. - Net income for the three months ended March 31, 2025, was $365.0 million, an increase of $64.5 million or 21% from $300.5 million for the same period in 2024[167]. Assets and Liabilities - Total current assets increased to $3,208,420, compared to $2,357,719 as of June 30, 2024[8]. - Total assets reached $7,566,822, up from $6,872,394 in the previous year[8]. - Total liabilities were $2,020,689, slightly up from $2,008,351 as of June 30, 2024[8]. - Stockholders' equity increased to $5,546,133, compared to $4,864,043 in the previous year[8]. - Cash and cash equivalents at the end of the period were $932,711, significantly up from $237,910 at the end of the previous year[21]. - Total inventories as of March 31, 2025, amounted to $862,641 thousand, up from $822,250 thousand on June 30, 2024, representing an increase of 4.9%[53]. - Total prepaid expenses and other current assets increased to $505,243 thousand as of March 31, 2025, compared to $459,833 thousand as of June 30, 2024, reflecting an increase of approximately 9.1%[55]. - Net property, plant, and equipment decreased to $535,339 thousand as of March 31, 2025, from $548,025 thousand as of June 30, 2024, a decline of about 2.7%[55]. - Total debt decreased to $673,032 thousand as of March 31, 2025, from $707,213 thousand as of June 30, 2024, a reduction of approximately 4.8%[69]. Dividends and Shareholder Returns - The company declared a dividend of $0.53 per share, up from $0.48 in the same quarter last year[12]. - The company declared dividends of $0.48 per common share, totaling $233,290 for the nine months ended March 31, 2025[21]. - Cash dividends paid during the three months ended March 31, 2025, totaled $77.7 million, with a declared cash dividend of $0.53 per common share[189]. Research and Development - Research and development investment for the three months ended March 31, 2025, was $83.9 million, representing 6.5% of net revenues[124]. - Research and development expenses for the three months ended March 31, 2025, increased to $83.9 million, up $6.9 million or 9% from $77.1 million for the same period in 2024[153]. - For the nine months ended March 31, 2025, research and development expenses rose to $244.8 million, an increase of $18.2 million or 8% compared to $226.7 million for the same period in 2024[155]. Cash Flow and Investments - The company reported a net cash provided by operating activities of $1,212,822 for the nine months ended March 31, 2025, compared to $961,146 in 2024, representing a 26% increase[21]. - Cash provided by operating activities increased to $1,212.8 million for the nine months ended March 31, 2025, up from $961.1 million for the same period in 2024, representing a 26.2% increase[185]. - Cash used in investing activities decreased to $66.3 million for the nine months ended March 31, 2025, compared to $223.3 million for the same period in 2024, a reduction of 70.3%[187]. - Cash used in financing activities was $442.4 million for the nine months ended March 31, 2025, down from $726.0 million in the prior year, a decrease of 39.2%[188]. Segment Performance - Revenue from the Sleep and Breathing Health segment for the nine months ended March 31, 2025, was $3,323,905, compared to $3,029,915 in 2024, reflecting a growth of 9.7%[29]. - Total net revenue for the Sleep and Breathing Health segment was $1,130,575 thousand for the three months ended March 31, 2025, compared to $1,049,023 thousand for the same period in 2024, reflecting an increase of 7.8%[51]. - Total net revenue for the Residential Care Software segment was $161,161 thousand for the three months ended March 31, 2025, compared to $147,957 thousand for the same period in 2024, indicating an increase of 8.5%[51]. - Total net operating profit for the Sleep and Breathing Health segment was $494,796 thousand for the three months ended March 31, 2025, compared to $456,182 thousand for the same period in 2024, an increase of 8.5%[51]. - Net revenue from Residential Care Software for the three months ended March 31, 2025, increased to $161.2 million, an increase of $13.2 million or 9% compared to $148.0 million for the same period in 2024[136]. Debt and Financing - The company has a senior unsecured revolving credit facility of $1,500 million, with $1,500 million available for drawdown as of March 31, 2025[75]. - The interest rate on outstanding principal amounts under the credit agreements was 5.1% as of March 31, 2025[73]. - The company maintained a consolidated funded debt to consolidated EBITDA ratio of no more than 3.50 to 1.00, in compliance with debt covenants[78]. - The company was in compliance with its debt covenants as of March 31, 2025, with $675.0 million outstanding under various credit agreements[80]. Other Key Metrics - The effective income tax rate for the three months ended March 31, 2025, was 12.6%, down from 20.0% for the same period in 2024[163]. - The company recorded no restructuring expenses during the three and nine months ended March 31, 2025, compared to $64.2 million in restructuring charges for the same period in 2024[159]. - The company recorded net unrealized losses of $8.2 million for equity investments in non-marketable and marketable securities for the nine months ended March 31, 2025[65]. - The company executed foreign cross-currency swaps as net investment hedges to mitigate foreign currency risk associated with changes in spot rates between USD and EUR[99].

Financial Performance - ResMed's LTM 3Q25 revenue reached $5.0 billion[7] - The company's LTM 3Q25 GAAP operating margin was 32%, while the non-GAAP operating margin was 34%[7] - Q3 FY25 revenue increased to $1.2917 billion from $1.1970 billion in Q3 FY24[36] - Q3 FY25 GAAP EPS was $2.48, compared to $2.04 in Q3 FY24[36] - Q3 FY25 non-GAAP EPS was $2.37, compared to $2.13 in Q3 FY24[36] Business Segments & Regions - Devices accounted for 52% of LTM 3Q25 revenue[8] - Masks and other products contributed 36% to LTM 3Q25 revenue[8] - Out-of-Hospital Residential Care Software (OOH RCS) represented 12% of LTM 3Q25 revenue[8] - The U S, Canada, and Latin America region accounted for 59% of LTM 3Q25 revenue[11] - Europe, Asia, and Other regions contributed 29% to LTM 3Q25 revenue[11] - OOH RCS (U S & Germany) accounted for 12% of LTM 3Q25 revenue[11] Strategy & Impact - ResMed aims to empower 500 million lives by 2030[15, 27] - The company's digital health products and cloud-based software solutions have empowered nearly 151 million lives in the last 12 months[30]

SAN DIEGO, April 23, 2025 – Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended March 31, 2025. Exhibit 99.1 Third Quarter 2025 Highlights For investors For media +1 858-836-5000 +1 619-510-1281 investorrelations@resmed.com news@resmed.com All comparisons are to the prior year period "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 ...

Core Insights - Resmed Inc. reported strong financial performance for the third quarter of fiscal year 2025, with significant revenue growth, margin expansion, and double-digit earnings per share (EPS) growth driven by robust customer demand for its products and software solutions [2][3]. Financial Performance - Revenue for the quarter ended March 31, 2025, was $1,291.7 million, an increase of 8% year-over-year, and 9% on a constant currency basis [4][6]. - Gross margin improved by 140 basis points to 59.3%, while non-GAAP gross margin also increased by 140 basis points to 59.9% [4][6]. - Income from operations rose by 14% to $426.3 million, with non-GAAP income from operations increasing by 13% to $444.6 million [4][6]. - Net income for the quarter was $365 million, representing a 21% increase compared to the previous year, and diluted EPS was $2.48, up 22% [4][6]. Operational Highlights - The company emphasized its commitment to addressing the needs of over 2.3 billion people globally with sleep health and breathing health issues [3]. - Resmed's Residential Care Software revenue grew by 10% on a constant currency basis, reflecting continued organic growth in this segment [9]. - The company reported operating cash flow of $579 million for the quarter, with $107 million received in tax refunds from the IRS [5][9]. Product and Market Performance - Revenue in the U.S., Canada, and Latin America grew by 9%, while revenue in Europe, Asia, and other markets increased by 8% on a constant currency basis [9]. - The demand for sleep devices and masks, as well as growth in the Residential Care Software business, contributed to the overall revenue increase [9][24]. Dividend Declaration - The board of directors declared a quarterly cash dividend of $0.53 per share, with a record date of May 8, 2025, and payable on June 12, 2025 [10].

Core Insights - Resmed has appointed Salli Schwartz as Chief Investor Relations Officer, effective April 21, 2025, to lead its global investor relations function [1] - Schwartz brings over two decades of experience in finance roles within health tech and financial services, previously serving as Head of Investor Relations at Illumina [2] - The appointment is seen as critical for advancing Resmed's 2030 strategy aimed at enhancing shareholder value and improving health outcomes for 500 million people globally [3] Company Overview - Resmed is a leader in health technology focused on sleep, breathing, and home care, with a mission to empower individuals in 140 countries to achieve better health [4] - The company utilizes AI-powered digital health solutions and cloud-connected devices to personalize and enhance home healthcare [4]