Financial Data and Key Metrics Changes - ResMed reported a 9% increase in revenue for Q1 FY2026, with an 8% increase on a constant currency basis, reaching $1.34 billion [4][31] - Gross margin improved by 280 basis points year-over-year to 62%, driven by component cost improvements and manufacturing efficiencies [34] - Operating profit increased by 19%, with operating margin improving to 36.1% compared to 33.2% in the prior year [37] - Net income rose by 15%, and non-GAAP diluted earnings per share increased by 16% [38] Business Line Data and Key Metrics Changes - Device sales in the U.S., Canada, and Latin America increased by 10%, while masks and other sales grew by 12% [32] - In Europe, Asia, and other regions, device sales increased by 7%, and masks and other sales increased by 4% on a constant currency basis [33] - The Residential Care Software (RCS) business saw a 5% increase in revenue, with strong performance from the MEDIFOX DAN platform [33] Market Data and Key Metrics Changes - The U.S. market penetration for sleep apnea treatment is estimated to be between 15% to 20%, with Europe at 10% to 15%, and Asia-Pacific below 5% [60] - The prevalence of obstructive sleep apnea (OSA) is projected to rise significantly, with estimates suggesting it will affect nearly 77 million U.S. adults by 2050 [20] Company Strategy and Development Direction - ResMed is focused on expanding its mask portfolio and driving mask resupply through education and awareness initiatives [5][6] - The company is investing in digital health technologies, including AI and machine learning, to enhance patient care and adherence [14][17] - ResMed's strategy includes increasing U.S. manufacturing capacity and establishing a new distribution center in Indianapolis to improve delivery speed [12][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit growth in the masks and other category, supported by new product innovations [5][6] - The company remains committed to operating excellence and driving growth amidst global macroeconomic uncertainties [10][22] - Management highlighted the importance of ongoing investments in R&D and SG&A to support long-term growth [18][22] Other Important Information - ResMed returned over $238 million to shareholders through dividends and share repurchases during the quarter [28][39] - The company announced a quarterly dividend of $0.60 per share and plans to continue share repurchases at a rate of approximately $150 million per quarter [39] Q&A Session Summary Question: Can you highlight the unique attributes of the new mask launched in Australia and the U.S.? - The AirTouch F30i is a full-face mask with innovative fabric-based technology designed for comfort and high margins, targeting patients who breathe through both their nose and mouth [40][41] Question: Can you discuss the potential tuck-in acquisitions and their impact on the patient funnel? - ResMed has made tuck-in acquisitions to improve access to home sleep apnea testing tools, which have positively impacted growth in the U.S. device market [44][46] Question: What are the plans for U.S. manufacturing and product development? - ResMed is expanding its U.S. manufacturing capabilities to include not just motors but also masks and devices, aiming for a robust supply chain [49][51] Question: How does ResMed measure the effectiveness of demand generation initiatives? - The company employs sophisticated targeting strategies for demand generation, focusing on demographics and healthcare access to optimize patient acquisition [52][54] Question: What is the current market penetration for sleep apnea treatment in the U.S.? - The U.S. market penetration for sleep apnea treatment is estimated to be between 15% to 20%, with significant room for growth as awareness increases [60]