ResMed Reports Q2 FY25 Results

TL;DR

ResMed's Q2 FY25 is in, check the numbers for Sleep & Breathing Health and Residential Care Software.

AI Summary

ResMed Inc. reported its second quarter results for the fiscal year 2025, ending December 31, 2024. The company's filing covers the period from October 1, 2024, to December 31, 2024, and includes comparative data from the same period in the prior year. The report details financial performance across its key segments, including Sleep and Breathing Health and Residential Care Software.

Why It Matters

This filing provides investors with an update on ResMed's financial health and operational performance, crucial for understanding the company's trajectory in the medical device and software sectors.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating immediate or significant new risks.

Key Numbers

• 2024-12-31 — Reporting Period End Date (Indicates the end of the fiscal second quarter for 2025.)
• 2023-12-31 — Prior Year Period End Date (Provides a comparative point for the current quarter's performance.)
• 2024-07-01 — Fiscal Year Start Date (Marks the beginning of the fiscal year 2025.)

Key Players & Entities

• ResMed Inc. (company) — Filer of the 10-Q report
• 2024-12-31 (date) — End of the reporting period for the current quarter
• 2023-12-31 (date) — End of the reporting period for the comparative prior year quarter
• Sleep and Breathing Health (company) — Key business segment
• Residential Care Software (company) — Key business segment

FAQ

Key Financial Figures

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

Filing Documents

• rmd-20241231.htm (10-Q) — 1445KB
• rmd-20241231xex311.htm (EX-31.1) — 10KB
• rmd-20241231xex312.htm (EX-31.2) — 10KB
• rmd-20241231xex32.htm (EX-32) — 10KB
• 0000943819-25-000004.txt ( ) — 6858KB
• rmd-20241231.xsd (EX-101.SCH) — 41KB
• rmd-20241231_cal.xml (EX-101.CAL) — 69KB
• rmd-20241231_def.xml (EX-101.DEF) — 182KB
• rmd-20241231_lab.xml (EX-101.LAB) — 553KB
• rmd-20241231_pre.xml (EX-101.PRE) — 381KB
• rmd-20241231_htm.xml (XML) — 996KB

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 24 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4

Controls and Procedures

Controls and Procedures 40 Part II Other Information 41 Item 1

Legal Proceedings

Legal Proceedings 41 Item 1A

Risk Factors

Risk Factors 41 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 41 Item 3 Defaults Upon Senior Securities 41 Item 4 Mine Safety Disclosures 41 Item 5 Other Information 41 Item 6 Exhibits 43

Signatures

Signatures 44 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) December 31, 2024 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 521,944 $ 238,361 Accounts receivable, net of allowances of $ 20,666 and $ 21,132 at December 31, 2024 and June 30, 2024, respectively 859,937 837,275 Inventories (note 3) 882,103 822,250 Prepaid expenses and other current assets (note 3) 572,193 459,833 Total current assets 2,836,177 2,357,719 Non-current assets: Property, plant and equipment, net (note 3) 520,162 548,025 Operating lease right-of-use assets 151,012 151,121 Goodwill (note 4) 2,805,353 2,842,055 Other intangible assets, net (note 3) 438,003 485,904 Deferred income taxes 209,445 203,569 Prepaid taxes and other non-current assets 181,182 284,001 Total non-current assets 4,305,157 4,514,675 Total assets $ 7,141,334 $ 6,872,394 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 220,313 $ 237,728 Accrued expenses 352,541 377,678 Operating lease liabilities, current 27,812 25,278 Deferred revenue 156,508 152,554 Income taxes payable 84,880 107,517 Short-term debt, net (note 7) 9,906 9,900 Total current liabilities 851,960 910,655 Non-current liabilities: Deferred revenue 146,512 137,343 Deferred income taxes 77,004 79,339 Operating lease liabilities, non-current 139,159 141,444 Other long-term liabilities 10,831 42,257 Long-term debt, net (note 7) 662,859 697,313 Total non-current liabilities 1,036,365 1,097,696 Total liabilities 1,888,325 2,008,351 Commitments and contingencies (note 9) 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; 190,049,242 issued and 146,856,329 outstanding at December 31, 2024 and 189,565,112 issued and 146,901,045 outstanding at June 30, 2024 760

– 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 December 31, Six Months Ended December 31, 2024 2023 2024 2023 Net revenue - Sleep and Breathing Health products $ 1,125,593 $ 1,017,855 $ 2,193,330 $ 1,980,892 Net revenue - Residential Care Software 156,496 144,946 313,268 284,230 Net revenue 1,282,089 1,162,801 2,506,598 2,265,122 Cost of sales - Sleep and Breathing Health products 473,388 460,721 924,700 905,182 Cost of sales - Residential Care Software 49,792 46,889 98,100 95,782 Cost of sales (exclusive of amortization shown separately below) 523,180 507,610 1,022,800 1,000,964 Amortization of acquired intangible assets - Sleep and Breathing Health products 1,230 1,324 2,440 3,240 Amortization of acquired intangible assets - Residential Care Software 6,404 6,933 12,864 13,924 Amortization of acquired intangible assets 7,634 8,257 15,304 17,164 Total cost of sales 530,814 515,867 1,038,104 1,018,128 Gross profit 751,275 646,934 1,468,494 1,246,994 Selling, general, and administrative 241,613 222,155 480,592 445,029 Research and development 81,372 73,880 160,897 149,590 Amortization of acquired intangible assets 11,047 11,577 22,451 24,056 Restructuring expenses (note 11) — 64,228 — 64,228 Total operating expenses 334,032 371,840 663,940 682,903 Income from operations 417,243 275,094 804,554 564,091 Other income (loss), net: Interest (expense) income, net ( 775 ) ( 13,805 ) ( 2,436 ) ( 28,762 ) Gain (loss) attributable to equity method investments (note 5) 1,077 739 2,040 ( 3,156 ) Gain (loss) on equity investments (note 5) ( 1,439 ) ( 1,888 ) ( 2,119 ) ( 2,491 ) Other, net 2,216 ( 686 ) ( 219 ) 1,963 Total other income (loss), net 1,079 ( 15,640 ) ( 2,734 ) ( 32,446 ) Income before income taxes 418,322 259,454 801,820 531,645 Income taxes 73,700 50,654 145,843 103,423 Net inco

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Unaudited) (In US$ and in thousands) Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Net income $ 344,622 $ 208,800 $ 655,977 $ 428,222 Other comprehensive income, net of taxes: Unrealized gains (losses) on designated hedging instruments 43,675 ( 19,891 ) 21,873 ( 36,984 ) Foreign currency translation gain (loss) adjustments ( 210,410 ) 131,687 ( 69,234 ) 101,160 Comprehensive income $ 177,887 $ 320,596 $ 608,616 $ 492,398 See the accompanying notes to the unaudited condensed consolidated financial statements. 5 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, 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 Common stock issued on exercise of options 63 — 6,904 — — — — 6,904 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 215 2 ( 16,736 ) — — — — ( 16,734 ) Common stock issued on employee stock purchase plan 109 — 19,973 — — — — 19,973 Treasury stock purchases — — — ( 307 ) ( 74,986 ) — — ( 74,986 ) Stock-based compensation costs — — 22,634 — — — — 22,634 Other comprehensive income — — — — — — ( 166,735 ) ( 166,735 ) Net income — — — — — 344,622 — 344,622 Dividends declared ($ 0.53 per common share) — — — — — ( 77,695 ) — ( 77,695 ) Balance, December 31, 2024 190,049 $ 760 $ 1,957,359 ( 43,193 ) $ ( 1,898,258 ) $ 5,492,038 $ ( 298,890 ) $ 5,253,009 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 Common stock issued on exercise of options 24 — 1,557 — — — — 1,557 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 163 1 ( 7,798 ) — — — — ( 7,797 ) Common stock issued on employee stock purchase plan 151 1 17,966 — — — — 17,967 Treasury stock purchases — ( 2 ) 2 ( 336 ) ( 50,007 ) — — ( 50,007 ) Stock-based compensation costs — — 19,840 — — — — 19,840 Other comprehensive income — — — — — — 111,796 111,796 Net income — — — — — 208,800 — 208,800 Dividends declared ($ 0.48 per common share) — — — — — ( 70,678 ) — ( 70,678 ) Balance, December 31, 2023 189,259 $ 588 $ 1,822,918 ( 42,172 ) $ ( 1,673,263 ) $ 4,539,963 $ ( 208,352 ) $ 4,481,854 See the accompanying notes to the unaudited condensed consolidated financial statements. 7 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In US$ and in thousands) Six Months Ended December 31, 2024 2023 Cash flows from operating activities: Net income $ 655,977 $ 428,222 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 91,169 89,718 Amortization of right-of-use assets 18,443 17,094 Stock-based compensation costs 42,790 38,350 (Gain) loss attributable to equity method investments (note 5) ( 2,040 ) 3,156 (Gain) loss on equity investments (note 5) 2,119 2,491 Non-cash restructuring expenses (note 11) — 33,239 Changes in operating assets and liabilities: Accounts receivable ( 31,436 ) ( 20,269 ) Inventories ( 77,895 ) 77,095 Prepaid expenses, net deferred income taxes and other current assets ( 43,746 ) ( 74,590 ) Accounts payable, accrued expenses, income taxes payable and other ( 21,220 ) ( 35,391 ) Net cash provided by (used in) operating activities 634,161 559,115 Cash flows from investing activities: Purchases of property, plant and equipment ( 38,484 ) ( 53,388 ) Patent registration and acquisition costs ( 4,592 ) ( 12,036 ) Business acquisitions, net of cash acquired ( 670 ) ( 110,688 ) Purchases of investments (note 5) ( 2,350 ) ( 7,305 ) Proceeds from exits of investments (note 5) 4,378 250 Proceeds (payments) on maturity of foreign currency contracts 7,172 ( 6,956 ) Net cash provided by (used in) investing activities ( 34,546 ) ( 190,123 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 35,260 20,507 Taxes paid related to net share settlement of equity awards ( 17,123 ) ( 8,022 ) Purchases of treasury stock ( 124,991 ) ( 50,007 ) Payments of business combination contingent consideration ( 855 ) ( 1,293 ) Proceeds from borrowings, net of borrowing costs — 105,000 Repayment of borrowings ( 35,000 ) ( 315,000 ) Dividends paid ( 155,586

– 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 six months ended December 31, 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 consisted

– 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 December 31, Six Months Ended December 31, 2024 2023 2024 2023 U.S., Canada and Latin America Devices $ 414,453 $ 371,336 $ 798,983 $ 717,233 Masks and other 334,496 297,994 657,271 590,455 Total U.S., Canada and Latin America $ 748,949 $ 669,330 $ 1,456,254 $ 1,307,688 Combined Europe, Asia and other markets Devices $ 254,849 $ 234,661 $ 496,104 $ 453,492 Masks and other 121,795 113,864 240,972 219,712 Total Combined Europe, Asia and other markets $ 376,644 $ 348,525 $ 737,076 $ 673,204 Global revenue Total Devices $ 669,302 $ 605,997 $ 1,295,087 $ 1,170,725 Total Masks and other 456,291 411,858 898,243 810,167 Total Sleep and Breathing Health $ 1,125,593 $ 1,017,855 $ 2,193,330 $ 1,980,892 Residential Care Software 156,496 144,946 313,268 284,230 Total $ 1,282,089 $ 1,162,801 $ 2,506,598 $ 2,265,122 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

– 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

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) our consolidated financial condition, results of operations or cash flows. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and subsequent interim periods. Early adoption is permitted and the amendments must be applied retrospectively to all prior periods presented. 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 Disclosu

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