ResMed(US:RMD)2025-10-31 00:01Financial Performance - Total net revenue for the three months ended September 30, 2025, was $1,335,582, representing an increase of 9.1% compared to $1,224,509 for the same period in 2024[10] - Gross profit for the same period was $820,820, up from $717,219, indicating a gross margin improvement[10] - Net income for the three months ended September 30, 2025, was $348,536, compared to $311,355 for the same period in 2024, reflecting a year-over-year increase of 11.9%[12] - Basic earnings per share increased to $2.38 for the three months ended September 30, 2025, compared to $2.12 for the same period in 2024[10] - Total revenue for the three months ended September 30, 2025, was $1.336 billion, compared to $1.225 billion in 2024, reflecting a year-over-year increase of about 9.1%[28] - Revenue from the Sleep and Breathing Health segment reached $1.169 billion, up from $1.068 billion in the prior year, indicating a growth of approximately 9.5%[28] - Net operating profit for the Sleep and Breathing Health segment was $530,624, up from $460,975, reflecting a growth of 15.0% year-over-year[52] - The Residential Care Software segment reported net operating profit of $54,018, an increase of 13.0% from $47,621 in the prior year[52] Assets and Liabilities - Total assets as of September 30, 2025, were $8,308,352, an increase from $8,174,391 as of June 30, 2025[8] - Total current liabilities increased to $1,255,502 as of September 30, 2025, compared to $1,019,120 at the end of the previous quarter, indicating a rise in short-term obligations[8] - Total liabilities decreased to $2,187.1 million from $2,206.5 million, showing a decline of about 0.9%[8] - Total stockholders' equity rose to $6,121,264 as of September 30, 2025, compared to $5,967,859 at the end of the previous quarter[8] Cash Flow and Liquidity - Cash and cash equivalents increased to $1,383,848 as of September 30, 2025, from $1,209,450 as of June 30, 2025, showing improved liquidity[8] - Cash flows from operating activities for the three months ended September 30, 2025, were $457.321 million, compared to $325.538 million in 2024, marking an increase of about 40.4%[20] - Cash provided by operating activities was $457.3 million for the three months ended September 30, 2025, compared to $325.5 million for the same period in 2024, reflecting a $131.8 million increase[160] - Cash used in investing activities was $52.6 million for the three months ended September 30, 2025, compared to cash provided of $2.1 million for the same period in 2024, indicating increased capital expenditures[161] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $87,323, up from $79,524 in the same period last year, indicating a focus on innovation[10] - Research and development investment was $87.3 million, representing 6.5% of net revenues for the three months ended September 30, 2025[119] - Research and development expenses increased by $7.8 million, or 10%, to $87.3 million for the three months ended September 30, 2025, compared to $79.5 million for the same period in 2024[136] Dividends and Shareholder Returns - The company declared a dividend of $0.60 per share for the three months ended September 30, 2025, compared to $0.53 per share in the same period in 2024[10] - The company repurchased $150.0 million of treasury stock during the three months ended September 30, 2025, compared to $50.0 million during the same period in 2024[163] Legal and Regulatory Matters - ResMed Corp. filed a lawsuit seeking a declaration of non-infringement for U.S. Patent No. 11,602,284, with the case transferred to the Northern District of Ohio in November 2023[87] - Cleveland Medical's counterclaims against ResMed include allegations of infringement on five additional patents, with ongoing legal proceedings expected to continue into 2026[88] Accounting and Standards - The company is currently evaluating the impact of adopting ASU 2025-06 on its consolidated financial statements and disclosures, which will be effective in the first quarter of the fiscal year ending June 30, 2029[43] - The company is evaluating the impact of adopting ASU 2023-09 on its consolidated financial statements, which focuses on improvements to income tax disclosures[46] Currency and Hedging - The company recognized a loss of $9.97 million on foreign currency hedging instruments for the three months ended September 30, 2025[108] - The notional value of outstanding foreign cross-currency swaps was $1,124.7 million as of September 30, 2025, maturing before December 31, 2029[98] - ResMed's foreign currency hedging program aims to manage financial impacts from exposures mainly in Euros, Australian, and Singapore dollars[99]