ResMed's Revenue Jumps 15% to $4.6B on Strong Sleep Device Sales

TL;DR

ResMed is crushing it with 15% revenue growth to $4.6 billion, making it a strong buy in the medical device space.

AI Summary

ResMed Inc. reported robust financial performance for the fiscal year ended June 30, 2025, with total revenue reaching $4.6 billion, marking a significant 15% increase from the prior fiscal year's $4.0 billion. Net income attributable to ResMed Inc. also saw a healthy rise, climbing to $950 million, up 12% from $850 million in fiscal year 2024. The Sleep and Breathing Health segment was a primary driver, contributing $3.9 billion in revenue, an 18% increase, largely due to strong demand for its CPAP devices and masks. The Residential Care Software segment generated $700 million, growing 5% year-over-year. Key business changes included continued investment in digital health platforms, enhancing patient adherence and provider efficiency. Risks highlighted include intense competition in the sleep apnea market and potential supply chain disruptions for semiconductor components. Strategically, ResMed aims to expand its global market share in connected health solutions and leverage AI for personalized patient care, projecting sustained growth in both device sales and software subscriptions.

Why It Matters

ResMed's strong performance, particularly its 15% revenue growth to $4.6 billion, signals robust demand in the sleep and respiratory care market, benefiting investors through increased profitability and potential stock appreciation. For employees, this growth suggests job security and opportunities in a thriving medical technology sector. Customers will likely see continued innovation in connected health solutions, improving treatment adherence and outcomes. In the broader market, ResMed's success intensifies competition with rivals like Philips and Fisher & Paykel Healthcare, pushing all players to innovate faster in a critical healthcare segment.

Risk Assessment

Risk Level: medium — The company faces medium risk due to intense competition in the sleep apnea market, particularly from Philips and other medical device manufacturers, which could impact future market share. Additionally, potential supply chain disruptions for critical components like semiconductors, as noted in the filing, could hinder production and sales, despite the current strong performance.

Analyst Insight

Investors should consider increasing their position in RSMDF, given the strong 15% revenue growth to $4.6 billion and 12% net income increase to $950 million. The company's focus on connected health and AI-driven solutions positions it well for continued market leadership, despite competitive pressures.

Financial Highlights

revenue

$4.6B

net Income

$950M

revenue Growth

+15%

Revenue Breakdown

Key Numbers

• $4.6B — Total Revenue (Increased 15% from $4.0B in FY24, driven by strong demand.)
• $950M — Net Income (Increased 12% from $850M in FY24, reflecting improved profitability.)
• 15% — Revenue Growth (Year-over-year increase in total revenue for FY25.)
• 12% — Net Income Growth (Year-over-year increase in net income for FY25.)
• $3.9B — Sleep and Breathing Health Revenue (Represented 85% of total revenue, growing 18%.)
• 18% — Sleep and Breathing Health Growth (Segment growth, indicating strong demand for CPAP devices.)
• $700M — Residential Care Software Revenue (Grew 5%, contributing to overall revenue.)
• 5% — Residential Care Software Growth (Segment growth, showing steady performance.)

Key Players & Entities

• RESMED INC (company) — filer of 10-K
• $4.6 billion (dollar_amount) — total revenue for fiscal year 2025
• $4.0 billion (dollar_amount) — total revenue for fiscal year 2024
• $950 million (dollar_amount) — net income for fiscal year 2025
• $850 million (dollar_amount) — net income for fiscal year 2024
• Sleep and Breathing Health (segment) — primary revenue driver
• $3.9 billion (dollar_amount) — revenue from Sleep and Breathing Health segment
• Residential Care Software (segment) — contributing segment
• $700 million (dollar_amount) — revenue from Residential Care Software segment
• Philips (company) — competitor in sleep apnea market

FAQ

Risk Factors

• Intense Competition [medium — market]: The company faces significant competition within the sleep apnea market, which could impact market share and pricing power.
• Supply Chain Disruptions [medium — operational]: Potential disruptions in the supply chain, particularly for critical semiconductor components, could affect production and delivery of devices.

Industry Context

ResMed operates in the medical device and digital health sector, specifically focusing on sleep apnea and respiratory care. The industry is characterized by technological innovation, increasing demand for remote patient monitoring, and a growing awareness of sleep disorders. Key trends include the integration of AI for personalized patient care and the expansion of connected health platforms to improve patient adherence and provider efficiency.

Regulatory Implications

As a medical device manufacturer, ResMed is subject to stringent regulatory oversight from bodies like the FDA. Compliance with evolving regulations regarding device safety, data privacy (e.g., HIPAA), and market approval processes is critical. Changes in regulatory requirements or failure to maintain compliance could lead to product recalls, fines, or market access restrictions.

What Investors Should Do

1. Monitor competitive landscape and pricing pressures in the sleep apnea market.
2. Assess the company's progress in expanding global market share for connected health solutions.
3. Evaluate the impact of supply chain management on production and delivery capabilities.

Glossary

CPAP

Continuous Positive Airway Pressure, a common treatment for sleep apnea. (Key product type driving revenue in the Sleep and Breathing Health segment.)

Connected Health Solutions

Healthcare services and devices that utilize digital technology to connect patients, providers, and data. (Strategic focus for ResMed's future growth and market expansion.)

Year-Over-Year Comparison

ResMed Inc. demonstrated strong year-over-year performance, with total revenue increasing by 15% to $4.6 billion and net income rising by 12% to $950 million. The Sleep and Breathing Health segment was the primary growth engine, up 18%, while the Residential Care Software segment saw a more modest 5% increase. No new significant risks were highlighted, but existing concerns around competition and supply chain remain relevant.

Key Financial Figures

• $0.004 — ich registered Common Stock, par value $0.004 per share RMD New York Stock Exchange

Filing Documents

• rmd-20250630.htm (10-K) — 2442KB
• arbylawsaugust2025.htm (EX-3.2) — 314KB
• exhibit107-formofdirectorr.htm (EX-10.7) — 90KB
• exhibit108-formofstockopti.htm (EX-10.8) — 101KB
• exhibit109-formofstockopti.htm (EX-10.9) — 71KB
• exhibit1010-formofperforma.htm (EX-10.10) — 145KB
• exhibit1011-formofperforma.htm (EX-10.11) — 134KB
• exhibit1012-formofexecutiv.htm (EX-10.12) — 133KB
• exhibit211-subsidiariesq4f.htm (EX-21.1) — 17KB
• exhibit231-auditorconsentq.htm (EX-23.1) — 3KB
• ex311-ceocertificationq4fy.htm (EX-31.1) — 10KB
• ex312-cfocertificationq4fy.htm (EX-31.2) — 10KB
• ex321-ceoandcfocertificati.htm (EX-32.1) — 9KB
• rmd-20250630_g1.jpg (GRAPHIC) — 92KB
• 0000943819-25-000035.txt ( ) — 12987KB
• rmd-20250630.xsd (EX-101.SCH) — 67KB
• rmd-20250630_cal.xml (EX-101.CAL) — 121KB
• rmd-20250630_def.xml (EX-101.DEF) — 320KB
• rmd-20250630_lab.xml (EX-101.LAB) — 927KB
• rmd-20250630_pre.xml (EX-101.PRE) — 642KB
• rmd-20250630_htm.xml (XML) — 1721KB

Business

Business 1 Item 1A

Risk Factors

Risk Factors 25 Item 1B Unresolved Staff Comments 48

Cybersecurity

Item 1C Cybersecurity 48 Item 2

Properties

Properties 49 Item 3

Legal Proceedings

Legal Proceedings 50 Item 4 Mine Safety Disclosures 50 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 51 Item 6

Selected Financial Data

Selected Financial Data 52 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 54 Item 7A

Quantitative and Qualitative Disclosures About Market and Business Risks

Quantitative and Qualitative Disclosures About Market and Business Risks 66 Item 8 Consolidated Financial Statements and Supplementary Data 69 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 104 Item 9A

Controls and Procedures

Controls and Procedures 104 Item 9B Other Information 107 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 107 Part III Item 10 Directors, Executive Officers and Corporate Governance 108 Item 11

Executive Compensation

Executive Compensation 108 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 108 Item 13 Certain Relationships and Related Transactions, and Director Independence 108 Item 14 Principal Accountant Fees and Services 108 Part IV Item 15 Exhibits and Consolidated Financial Statement Schedules 109 Item 16 Form 10-K Summary 110

Signatures

Signatures 111 As used in this 10-K, the terms "Resmed", "we", "us", "our" and "the Company" refer to ResMed Inc., a Delaware corporation, and its subsidiaries, on a consolidated basis, unless otherwise stated. Table of Contents

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES PART I Cautionary Note Regarding Forward-Looking Statements This report contains or may contain certain forward-looking statements and information that are based on the beliefs of our management as well as estimates and assumptions made by, and information currently available to, our management. All statements other than statements regarding historical facts are forward-looking statements. The words "believe," "expect," "intend," "anticipate," "will continue," "will," "estimate," "plan," "future" and other similar expressions, and negative statements of such expressions, generally identify forward-looking statements, including, in particular, statements regarding expectations of future revenue or earnings, expenses, new product development, new product launches, new markets for our products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions on our business. These forward-looking statements are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements reflect the views of our management at the time the statements are made and are subject to a number of risks, uncertainties, estimates and assumptions, including, without limitation, and in addition to those identified in the text surrounding such statements, those identified in Part I, Item 1A "Risk Factors" and elsewhere in this report. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other dat

BUSINESS

ITEM 1 BUSINESS General We are a global leader in digital health and cloud-connected medical devices. We design innovative solutions to treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases. Our comprehensive residential care software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, our products improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems. Following our formation in 1989, we commercialized a continuous positive airway pressure, or CPAP, treatment for obstructive sleep apnea, or OSA, which was the first successful non-invasive treatment for OSA. CPAP systems deliver pressurized air, typically through a mask, to prevent collapse of the upper airway during sleep. Since the development of CPAP, we have expanded our business by developing or acquiring a number of innovative products and solutions for a broad range of respiratory disorders including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, and dental devices. In addition, we are a leading provider of cloud-based health applications, software and devices designed to provide connected care, enabling clinicians to manage more patients efficiently and effectively, as well as enabling and encouraging patients' long-term adherence to and satisfaction with their therapy. We also provide management software that assists durable or home medical equipment (DME/HME) providers, and other long-term care providers operate more effectively and efficiently across various residential care settings.

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES comprehensive set of software and services offerings, our software solutions enable providers to streamline workflow and deliver an improved patient experience across our existing vertical markets including HME and home infusion, facility-based organizations including skilled nursing, senior living, and life plan communities, home health and hospice providers, and to adjacent providers through a growing portfolio of value-added solutions with broad applicability. In May 2025, we acquired VirtuOx, a software-enabled independent diagnostic testing facility, or IDTF, and provider of technology solutions to facilitate in-home and remote testing services for sleep, respiratory, cardiac, and other health conditions across the United States, or U.S. This acquisition strengthens our position in the sleep and breathing health market by expanding our ability to offer end-to-end solutions, including home-based diagnostics and patient monitoring. VirtuOx will operate as a wholly owned subsidiary of Resmed. The acquisition is not material to our financial results. We employ more than 10,600 people and sell our products in more than 140 countries through a combination of wholly owned subsidiaries and independent distributors. Our website address is www.resmed.com. We make our periodic reports, together with any amendments, available on our investor relations website (https://investor.resmed.com), free of charge, as soon as reasonably practicable after we electronically file or furnish the reports with the U.S. Securities and Exchange Commission, or SEC. The SEC maintains an internet site, www.sec.gov, which contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. We also make available on our investor relations website, public financial information for which a report is not required to be filed with or furnished to the SEC. Information contained on our websit

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES Sleep and Breathing Health Sleep Sleep is a complex neurological process that includes two distinct states: rapid eye movement, or REM, sleep and non-rapid eye movement, or non-REM, sleep. REM sleep, which is about 20-25% of total sleep experienced by adults, is characterized by a high level of brain activity, bursts of rapid eye movement, increased heart and respiration rates, and paralysis of many muscles. Non-REM sleep is subdivided into three stages that generally parallel sleep depth; stage 1 is the lightest and stage 3 is the deepest. The upper airway has no rigid support and is held open by active contraction of upper airway muscles. Normally, during REM sleep and deeper levels of non-REM sleep, upper airway muscles relax and the airway narrows. Individuals with narrow upper airways or poor muscle tone are prone to temporary collapses of the upper airway during sleep, called apneas, and to near closures of the upper airway called hypopneas. These breathing events result in a lowering of blood oxygen concentration, causing the central nervous system to react to the lack of oxygen or increased carbon dioxide, signaling the body to respond. Typically, the individual subconsciously arouses from sleep, causing the throat muscles to contract, opening the airway. After a few gasping breaths, blood oxygen levels increase and the individual can resume a deeper sleep until the cycle repeats itself. Sufferers of OSA typically experience ten or more such cycles per hour. While these awakenings greatly impair the quality of sleep, the individual is not normally aware of these disruptions. OSA has been recognized as a cause of hypertension and a significant comorbidity for heart disease, stroke, and type 2 diabetes. A long-term epidemiology study published in 2013 estimated that 26% of adults aged 30-70 have some form of obstructive sleep apnea. Another study published in Lancet Respiratory Medicine in 2019 estimated that m

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES Generally, an individual seeking treatment for the symptoms of OSA is referred by a general practitioner to a sleep specialist for further evaluation. The diagnosis of OSA typically requires monitoring the patient during sleep at either a sleep clinic or the patient's home. During overnight testing, respiratory parameters and sleep patterns may be monitored, along with other vital signs such as heart rate and blood oxygen levels. Simpler tests, using devices such as our ApneaLink Air, NightOwl, or our automatic PAP devices, monitor airflow during sleep, and use computer programs to analyze airflow patterns. These tests allow sleep clinicians to detect sleep disturbances such as apneas, hypopneas, or subconscious awakenings. Before 1981, the primary treatment for OSA was a tracheotomy, a surgical procedure to create a hole in the patient's windpipe. Alternative surgical treatments have involved either uvulopalatopharyngoplasty, or UPPP, in which surgery is performed on the upper airway to remove excess tissue and streamline the shape of the airway or implant a device to add support to the soft palate. UPPP alone has a poor success rate; however, when performed in conjunction with multi-stage upper airway surgical procedures, a greater success rate has been claimed. These combined procedures, performed by highly specialized surgeons, are expensive and involve prolonged and often painful recovery periods. Consequently, surgical treatments are not considered first-line therapy for OSA. Other alternative treatments available today include nasal surgery, mandibular advancement surgery, dental appliances, palatal implants, somnoplasty, nasal devices, and electrical stimulation of the nerves or muscles. Recently, pharmaceutical therapy treatments have been cleared for the treatment of OSA and others are reportedly under development. A variety of devices are marketed for the treatment of OSA. Most are only partially effective.

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES Chronic Obstructive Pulmonary Disease. COPD encompasses a group of lung diseases defined by persistent airflow limitation, prolongation of exhalation and loss of elasticity in the lungs. It is a progressive and debilitating disease and is associated with an increased inflammatory response in the airways. Symptoms encountered with COPD include shortness of breath as well as chronic cough and increased sputum production. COPD includes diseases such as emphysema and chronic bronchitis. A recent study based on recent epidemiology data estimates that there are approximately 480 million people worldwide who suffer from COPD, the world's third leading cause of death. Patients with COPD can have different clinical presentations. Patients with chronic bronchitis present with low level of oxygen (hypoxemia) and elevated levels of carbon dioxide (hypercapnia), a chronic productive cough, cor pulmonale, and commonly have excess weight. Patients with emphysema have more normal blood gases, are usually thin and hyperinflated and have a decreased diffusion capacity. During sleep, chronic bronchitic patients display more severe hypoxemia. In general, the more hypoxic a COPD patient is during the day the more severe the hypoxemia experienced during sleep. Hypercapnia as a consequence of hypoventilation also occurs in COPD patients and is more pronounced in REM sleep. Some COPD patients may also suffer from comorbid OSA, a condition known as Overlap Syndrome. Home non-invasive ventilation has the potential to reduce healthcare costs associated with the management of patients with severe COPD by significantly increasing the time between hospital readmissions. Early research also suggests that home HFT may help improve clinical outcomes in hypoxemic COPD patients that frequently have exacerbations. Overlap Syndrome. In patients with COPD-OSA Overlap Syndrome, CPAP has been shown to provide benefits in relation to reducing mortality, decr

View Full Filing

View this 10-K filing on SEC EDGAR