ResMed Files Q1 2025 10-Q: Sleep & Breathing Health Update

TL;DR

ResMed's Q1 2025 10-Q is in, showing performance for Sleep & Breathing Health and Residential Care Software.

AI Summary

ResMed Inc. filed its 10-Q for the period ending September 30, 2024. The company, a leader in surgical and medical instruments, reported its financial performance for the first quarter of fiscal year 2025. Key financial data and segment information for their Sleep and Breathing Health and Residential Care Software businesses were disclosed.

Why It Matters

This filing provides investors with the latest financial performance data for ResMed, a key player in the medical device industry, impacting its stock valuation and future investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• Q1 2025 — Fiscal Quarter (Reporting period for the 10-Q)
• 20240930 — Reporting Date (End date of the financial reporting period)

Key Players & Entities

• RESMED INC (company) — Filer of the 10-Q
• September 30, 2024 (date) — End of the reporting period
• 20240930 (date) — Conformed period of report
• 9001 SPECTRUM CENTER BLVD. (address) — Company's business and mailing address
• SAN DIEGO, CA (address) — Company's business and mailing city and state
• 8587462400 (phone_number) — Company's business phone number

FAQ

Key Financial Figures

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

Filing Documents

• rmd-20240930.htm (10-Q) — 1079KB
• exhibit101-resmedincnonxem.htm (EX-10.1) — 20KB
• rmd-20240930xex311.htm (EX-31.1) — 10KB
• rmd-20240930xex312.htm (EX-31.2) — 10KB
• rmd-20240930xex32.htm (EX-32) — 10KB
• 0000943819-24-000027.txt ( ) — 5880KB
• rmd-20240930.xsd (EX-101.SCH) — 38KB
• rmd-20240930_cal.xml (EX-101.CAL) — 68KB
• rmd-20240930_def.xml (EX-101.DEF) — 168KB
• rmd-20240930_lab.xml (EX-101.LAB) — 528KB
• rmd-20240930_pre.xml (EX-101.PRE) — 364KB
• rmd-20240930_htm.xml (XML) — 754KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) 3 Condensed Consolidated Statements of Operations (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5 Condensed Consolidated Statements of Changes in Equity (Unaudited) 6 Condensed Consolidated Statements of Cash Flows (Unaudited) 8 Notes to the Condensed Consolidated Financial Statements (Unaudited) 9 Item 2

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4

Controls and Procedures

Controls and Procedures 35 Part II Other Information 36 Item 1

Legal Proceedings

Legal Proceedings 36 Item 1A

Risk Factors

Risk Factors 36 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 36 Item 3 Defaults Upon Senior Securities 36 Item 4 Mine Safety Disclosures 36 Item 5 Other Information 36 Item 6 Exhibits 38

Signatures

Signatures 39 2 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

Financial Statements

Item 1. Financial Statements RESMED INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In US$ and in thousands, except share and per share data) September 30, 2024 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 426,361 $ 238,361 Accounts receivable, net of allowances of $ 23,600 and $ 21,132 at September 30, 2024 and June 30, 2024, respectively 811,198 837,275 Inventories (note 3) 917,982 822,250 Prepaid expenses and other current assets (note 3) 485,584 459,833 Total current assets 2,641,125 2,357,719 Non-current assets: Property, plant and equipment, net (note 3) 560,211 548,025 Operating lease right-of-use assets 157,068 151,121 Goodwill (note 4) 2,886,017 2,842,055 Other intangible assets, net (note 3) 478,613 485,904 Deferred income taxes 220,530 203,569 Prepaid taxes and other non-current assets 278,853 284,001 Total non-current assets 4,581,292 4,514,675 Total assets $ 7,222,417 $ 6,872,394 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 249,278 $ 237,728 Accrued expenses 365,749 377,678 Operating lease liabilities, current 28,278 25,278 Deferred revenue 157,188 152,554 Income taxes payable 93,690 107,517 Short-term debt, net (note 6) 9,896 9,900 Total current liabilities 904,079 910,655 Non-current liabilities: Deferred revenue 144,453 137,343 Deferred income taxes 83,521 79,339 Operating lease liabilities, non-current 144,490 141,444 Other long-term liabilities 83,270 42,257 Long-term debt, net (note 6) 667,578 697,313 Total non-current liabilities 1,123,312 1,097,696 Total liabilities 2,027,391 2,008,351 Commitments and contingencies (note 8) Stockholders' equity: Preferred stock, $ 0.01 par value, 2,000,000 shares authorized; none issued — — Common stock, $ 0.004 par value, 350,000,000 shares authorized; 189,662,212 issued and 146,776,149 outstanding at September 30, 2024 and 189,565,112 issued and 146,901,045 outstanding at June 30, 2024

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In US$ and in thousands, except per share data) Three Months Ended September 30, 2024 2023 Net revenue - Sleep and Breathing Health products $ 1,067,737 $ 963,037 Net revenue - Residential Care Software 156,772 139,284 Net revenue 1,224,509 1,102,321 Cost of sales - Sleep and Breathing Health products 451,312 444,460 Cost of sales - Residential Care Software 48,308 48,893 Cost of sales (exclusive of amortization shown separately below) 499,620 493,353 Amortization of acquired intangible assets - Sleep and Breathing Health products 1,210 1,916 Amortization of acquired intangible assets - Residential Care Software 6,460 6,992 Amortization of acquired intangible assets 7,670 8,908 Total cost of sales 507,290 502,261 Gross profit 717,219 600,060 Selling, general, and administrative 238,979 222,874 Research and development 79,524 75,710 Amortization of acquired intangible assets 11,404 12,479 Total operating expenses 329,907 311,063 Income from operations 387,312 288,997 Other income (loss), net: Interest (expense) income, net ( 1,661 ) ( 14,957 ) Gain (loss) attributable to equity method investments (note 5) 963 ( 3,895 ) Gain (loss) on equity investments (note 5) ( 680 ) ( 602 ) Other, net ( 2,437 ) 2,648 Total other income (loss), net ( 3,815 ) ( 16,806 ) Income before income taxes 383,497 272,191 Income taxes 72,142 52,769 Net income $ 311,355 $ 219,422 Basic earnings per share (note 7) $ 2.12 $ 1.49 Diluted earnings per share (note 7) $ 2.11 $ 1.49 Dividend declared per share $ 0.53 $ 0.48 Basic shares outstanding (000's) 146,861 147,075 Diluted shares outstanding (000's) 147,599 147,486 See the accompanying notes to the unaudited condensed consolidated financial statements. 4 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (In US$ and in thousands) Three Months Ended September 30, 2024 2023 Net income $ 311,355 $ 219,422 Other comprehensive income, net of taxes: Unrealized gains (losses) on designated hedging instruments ( 21,802 ) ( 17,093 ) Foreign currency translation gain (loss) adjustments 141,176 ( 30,527 ) Comprehensive income $ 430,729 $ 171,802 See the accompanying notes to the unaudited condensed consolidated financial statements. 5 Table of Contents

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PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Equity (Unaudited) (In US$ and in thousands) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shares Amount Shares Amount Balance, June 30, 2024 189,565 $ 588 $ 1,896,604 ( 42,664 ) $ ( 1,773,267 ) $ 4,991,647 $ ( 251,529 ) $ 4,864,043 Adjustment to common stock amount — 170 ( 170 ) — — — — — Common stock issued on exercise of options 92 — 8,383 — — — — 8,383 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 5 — ( 389 ) — — — — ( 389 ) Treasury stock purchases — — — ( 222 ) ( 50,005 ) — — ( 50,005 ) Stock-based compensation costs — — 20,156 — — — — 20,156 Other comprehensive income — — — — — — 119,374 119,374 Net income — — — — — 311,355 — 311,355 Dividends declared ($ 0.53 per common share) — — — — — ( 77,891 ) — ( 77,891 ) Balance, September 30, 2024 189,662 $ 758 $ 1,924,584 ( 42,886 ) $ ( 1,823,272 ) $ 5,225,111 $ ( 132,155 ) $ 5,195,026 See the accompanying notes to the unaudited condensed consolidated financial statements. 6 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Equity (Unaudited) (In US$ and in thousands) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shares Amount Shares Amount Balance, June 30, 2023 188,901 $ 588 $ 1,772,083 ( 41,836 ) $ ( 1,623,256 ) $ 4,253,016 $ ( 272,528 ) $ 4,129,903 Common stock issued on exercise of options 17 — 983 — — — — 983 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 — ( 225 ) — — — — ( 225 ) Stock-based compensation costs — — 18,510 — — — — 18,510 Other comprehensive loss — — — — — — ( 47,620 ) ( 47,620 ) Net income — — — — — 219,422 — 219,422 Dividends declared ($ 0.48 per common share) — — — — — ( 70,597 ) — ( 70,597 ) Balance, September 30, 2023 188,921 $ 588 $ 1,791,351 ( 41,836 ) $ ( 1,623,256 ) $ 4,401,841 $ ( 320,148 ) $ 4,250,376 See the accompanying notes to the unaudited condensed consolidated financial statements. 7 Table of Contents

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PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In US$ and in thousands) Three Months Ended September 30, 2024 2023 Cash flows from operating activities: Net income $ 311,355 $ 219,422 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44,730 44,934 Amortization of right-of-use assets 8,980 8,508 Stock-based compensation costs 20,156 18,510 (Gain) loss attributable to equity method investments (note 5) ( 963 ) 3,895 (Gain) loss on equity investments (note 5) 680 602 Changes in operating assets and liabilities: Accounts receivable 36,417 6,534 Inventories ( 70,254 ) 26,911 Prepaid expenses, net deferred income taxes and other current assets ( 123 ) ( 42,015 ) Accounts payable, accrued expenses, income taxes payable and other ( 25,440 ) ( 1,018 ) Net cash provided by (used in) operating activities 325,538 286,283 Cash flows from investing activities: Purchases of property, plant and equipment ( 17,840 ) ( 30,035 ) Patent registration and acquisition costs ( 1,767 ) ( 10,831 ) Business acquisitions, net of cash acquired — ( 103,183 ) Purchases of investments (note 5) ( 1,350 ) ( 3,680 ) Proceeds from exits of investments (note 5) 4,128 250 Proceeds (payments) on maturity of foreign currency contracts 18,975 ( 1,501 ) Net cash provided by (used in) investing activities 2,146 ( 148,980 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 8,383 983 Taxes paid related to net share settlement of equity awards ( 389 ) ( 225 ) Purchases of treasury stock ( 50,005 ) — Payments of business combination contingent consideration ( 855 ) ( 1,293 ) Proceeds from borrowings, net of borrowing costs — 105,000 Repayment of borrowings ( 30,000 ) ( 185,000 ) Dividends paid ( 77,891 ) ( 70,597 ) Net cash provided by (used in) financing activities ( 150,757 ) ( 151,132 ) Effect of

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (1) Summary of Significant Accounting Policies Organization and Basis of Presentation ResMed Inc. (referred to herein as "we", "us", "our" or the "Company") is a Delaware corporation formed in March 1994 as a holding company for the ResMed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States. Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a software as a service ("SaaS") business in the United States and Germany that includes residential software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. During the three months ended September 30, 2024, we renamed our operating segments from Sleep and Respiratory Care to Sleep and Breathing Health and from Software as a Service to Residential Care Software in alignment with our 2030 strategy. There have been no changes in the preparation and disclosure of financial information by operating segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consis

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Disaggregation of revenue The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended September 30, 2024 2023 U.S., Canada and Latin America Devices $ 384,530 $ 345,897 Masks and other 322,776 292,461 Total U.S., Canada and Latin America $ 707,306 $ 638,358 Combined Europe, Asia and other markets Devices $ 241,255 $ 218,831 Masks and other 119,176 105,848 Total Combined Europe, Asia and other markets $ 360,431 $ 324,679 Global revenue Total Devices $ 625,785 $ 564,728 Total Masks and other 441,952 398,309 Total Sleep and Breathing Health $ 1,067,737 $ 963,037 Residential Care Software 156,772 139,284 Total $ 1,224,509 $ 1,102,321 Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Breathing Health business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our Residential Care Software business, revenue associated with cloud-hosted services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Breathing Health business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our Residential Care Software business relate primarily to the

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. Returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Breathing Health customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer's expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods. We participate in programs where we issue credits to our Sleep and Breathing Health distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. We also offer discounts to both our Sleep and Breathing Health as well as our Residential Care Software customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Breathing Health or Residential Care

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PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) must be applied retrospectively to all prior periods presented. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2026, with early application permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. (2) Segment Information We have quantitatively and qualitatively determined that we operate in two operating segments, which are the Sleep and Breathing Health segment and the Residential Care Software segment. We evaluate the performance of our segments based on net revenues and income from operations. The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the fiscal year ended June 30, 2024. Segment net revenues and segment income from operations do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed. Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, n

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements

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View this 10-Q filing on SEC EDGAR