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].

ResMed Inc.'s (RMD) adjusted earnings per share (EPS) in the third quarter of fiscal 2025 were $2.37, up 11.3% year over year. The metric beat the Zacks Consensus Estimate by 0.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, along with the income tax effect on those adjustments. GAAP EPS in the reported quarter was $2.48, up 21.6% from the year-ago level. Following the ...