ResMed Posts Strong Q1 Growth, Net Income Jumps 11.9%

TL;DR

**ResMed is crushing it, with double-digit net income growth and strong cash flow, making it a solid buy in the healthcare tech space.**

AI Summary

ResMed Inc. reported a robust financial performance for the three months ended September 30, 2025, with net revenue increasing by 9.1% to $1,335,582 thousand, up from $1,224,509 thousand in the prior year. This growth was driven by both segments: Sleep and Breathing Health products revenue rose 9.5% to $1,169,446 thousand, and Residential Care Software revenue increased 6.0% to $166,136 thousand. Net income saw a significant jump of 11.9% to $348,536 thousand, compared to $311,355 thousand in the same period last year. Diluted earnings per share also improved to $2.37 from $2.11. The company's gross profit increased by 14.4% to $820,820 thousand, despite a rise in total operating expenses by 13.4% to $374,283 thousand, which included $15,810 thousand in restructuring expenses. Cash and cash equivalents increased to $1,383,848 thousand from $1,209,450 thousand at June 30, 2025, reflecting strong cash flow from operating activities of $457,321 thousand. The company also declared a dividend of $0.60 per share, an increase from $0.53 per share in the prior year.

Why It Matters

ResMed's strong performance, particularly in its Sleep and Breathing Health segment, signals continued dominance in a critical healthcare market, which is positive for investors. The 9.5% revenue growth in this segment, alongside a 6.0% increase in Residential Care Software, demonstrates effective strategy and market penetration, potentially putting pressure on competitors like Philips. For employees, this growth could mean job security and expansion opportunities, while customers benefit from continued innovation in sleep and respiratory care. The increased dividend of $0.60 per share also directly rewards shareholders, reinforcing investor confidence in the company's financial health and future prospects.

Risk Assessment

Risk Level: medium — While ResMed shows strong financial performance, the company incurred $15,810 thousand in restructuring expenses during the quarter, which could indicate ongoing operational adjustments or cost-cutting measures. Additionally, the 'Gain (loss) on equity investments' showed a loss of $6,190 thousand, a significant increase from a loss of $680 thousand in the prior year, suggesting potential volatility or underperformance in its investment portfolio.

Analyst Insight

Investors should consider increasing their position in ResMed, given the robust revenue growth across both segments and the substantial 11.9% increase in net income. The strong cash flow from operations, totaling $457,321 thousand, provides financial flexibility and supports the increased dividend of $0.60 per share, indicating a healthy and growing business.

Financial Highlights

debt To Equity

0.36

revenue

$1,335,582,000

operating Margin

33.4%

total Assets

$8,308,352,000

total Debt

$668,560,000

net Income

$348,536,000

eps

$2.37

gross Margin

61.5%

cash Position

$1,383,848,000

revenue Growth

+9.1%

Revenue Breakdown

Key Numbers

• $1.34B — Net Revenue (Increased 9.1% from $1.22B in Q1 2024)
• $348.5M — Net Income (Increased 11.9% from $311.4M in Q1 2024)
• $2.37 — Diluted EPS (Increased from $2.11 in Q1 2024)
• $0.60 — Dividend Per Share (Increased from $0.53 in Q1 2024)
• $457.3M — Net Cash from Operating Activities (Increased from $325.5M in Q1 2024)
• $1.17B — Sleep and Breathing Health Revenue (Increased 9.5% from $1.07B in Q1 2024)
• $166.1M — Residential Care Software Revenue (Increased 6.0% from $156.8M in Q1 2024)
• $820.8M — Gross Profit (Increased 14.4% from $717.2M in Q1 2024)
• $15.8M — Restructuring Expenses (New expense in Q1 2025, zero in Q1 2024)
• $1.38B — Cash and Cash Equivalents (Increased from $1.21B at June 30, 2025)

Key Players & Entities

• RESMED INC (company) — registrant
• Bloomberg (company) — publisher
• SEC (regulator) — filing authority
• $1,335,582 thousand (dollar_amount) — net revenue for Q1 2025
• $1,224,509 thousand (dollar_amount) — net revenue for Q1 2024
• $348,536 thousand (dollar_amount) — net income for Q1 2025
• $311,355 thousand (dollar_amount) — net income for Q1 2024
• $0.60 (dollar_amount) — dividend declared per share for Q1 2025
• $0.53 (dollar_amount) — dividend declared per share for Q1 2024
• $15,810 thousand (dollar_amount) — restructuring expenses for Q1 2025

FAQ

Risk Factors

• Supply Chain Disruptions [medium — operational]: The company relies on global manufacturing and distribution. Disruptions due to geopolitical events, natural disasters, or pandemics could impact inventory levels and product availability, as seen with past global supply chain challenges affecting the medical device industry.
• Regulatory Compliance [high — regulatory]: ResMed operates in a highly regulated industry. Changes in healthcare regulations, product approval processes (e.g., FDA, EMA), or compliance requirements could increase costs and affect market access. The company's manufacturing sites in China and other regions are subject to varying regulatory environments.
• Competition and Technological Advancements [medium — market]: The sleep and respiratory care market is competitive, with both established players and emerging companies. Failure to innovate and keep pace with technological advancements, such as advancements in connected care and digital health solutions, could lead to market share erosion.
• Foreign Currency Exchange Rate Fluctuations [low — financial]: With significant international operations and sales, ResMed is exposed to fluctuations in foreign currency exchange rates. Adverse movements could impact reported revenues, expenses, and the value of foreign assets and liabilities, as indicated by the foreign currency translation adjustments in comprehensive income.
• Restructuring Expenses [medium — operational]: The company incurred $15,810,000 in restructuring expenses in the current quarter, which were not present in the prior year. While not a recurring risk, significant restructuring can indicate underlying business challenges or strategic shifts that may impact future performance.
• Intellectual Property Protection [low — legal]: Protecting its intellectual property is crucial for ResMed's competitive advantage. Litigation or challenges to its patents and proprietary technologies could result in significant costs and impact its product development and market position.

Industry Context

ResMed operates in the rapidly evolving medical device and digital health sectors, focusing on sleep-disordered breathing and other respiratory conditions. The industry is characterized by increasing demand for home-based care solutions, driven by aging populations and the prevalence of chronic respiratory diseases. Key trends include the integration of connected devices for remote patient monitoring, data analytics for personalized treatment, and the shift towards value-based healthcare models.

Regulatory Implications

ResMed faces significant regulatory oversight from bodies like the FDA and EMA, requiring strict adherence to quality standards and product approval processes. Changes in healthcare reimbursement policies and data privacy regulations (e.g., HIPAA, GDPR) also pose compliance challenges and can impact market access and profitability.

What Investors Should Do

1. Monitor restructuring expenses and their impact on future profitability.
2. Evaluate the growth drivers for both Sleep and Breathing Health and Residential Care Software segments.
3. Assess the impact of increased short-term debt on the company's leverage and liquidity.
4. Review the company's strategy regarding treasury stock purchases.

Key Dates

• 2025-09-30: End of First Quarter Fiscal Year 2025 — Reporting period for the financial results discussed in the 10-Q.
• 2025-06-30: End of Fiscal Year 2025 — Balance sheet comparison date for cash and cash equivalents and other assets/liabilities.
• 2024-09-30: End of First Quarter Fiscal Year 2024 — Prior year comparable period for revenue, net income, EPS, and cash flow metrics.

Glossary

ASC Topic 606

Accounting Standard Codification Topic 606, 'Revenue from Contracts with Customers,' provides a single, comprehensive revenue model for all entities in GAAP. (Governs how ResMed recognizes revenue from its product sales and software services.)

SaaS

Software as a Service, a software distribution model that provides licensing and delivery of applications over the internet. (Describes ResMed's Residential Care Software business segment.)

Treasury Stock

Shares of a company's own stock that it has repurchased from the open market. (ResMed actively repurchases its own stock, as shown by the significant negative balance in the Treasury Stock account and cash outflows for purchases.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net assets. (ResMed holds substantial goodwill ($3,044,123,000 as of Sept 30, 2025), indicating past acquisitions, which is subject to impairment testing.)

Operating lease right-of-use assets

Assets recognized under ASC 842 for a lessee's right to use an identified asset for a specified period of time. (Represents ResMed's long-term rental agreements for facilities and equipment.)

Year-Over-Year Comparison

ResMed Inc. demonstrated strong year-over-year performance in the first quarter of fiscal year 2025. Net revenue increased by 9.1% to $1.34 billion, outpacing the prior year's growth. Gross profit saw a substantial increase of 14.4%, leading to a higher gross margin, while net income grew by 11.9% and diluted EPS improved to $2.37. Notably, the company incurred $15.8 million in restructuring expenses this quarter, a new item not present in the prior year's comparable period. Cash flow from operations significantly improved, contributing to a robust increase in the company's cash position.

Key Financial Figures

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

Filing Documents

• rmd-20250930.htm (10-Q) — 1104KB
• rmd-20250930xex311.htm (EX-31.1) — 10KB
• rmd-20250930xex312.htm (EX-31.2) — 10KB
• rmd-20250930xex32.htm (EX-32) — 9KB
• 0000943819-25-000090.txt ( ) — 6197KB
• rmd-20250930.xsd (EX-101.SCH) — 40KB
• rmd-20250930_cal.xml (EX-101.CAL) — 71KB
• rmd-20250930_def.xml (EX-101.DEF) — 178KB
• rmd-20250930_lab.xml (EX-101.LAB) — 542KB
• rmd-20250930_pre.xml (EX-101.PRE) — 373KB
• rmd-20250930_htm.xml (XML) — 820KB

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 25 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4

Controls and Procedures

Controls and Procedures 38 Part II Other Information 39 Item 1

Legal Proceedings

Legal Proceedings 39 Item 1A

Risk Factors

Risk Factors 39 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 39 Item 3 Defaults Upon Senior Securities 39 Item 4 Mine Safety Disclosures 39 Item 5 Other Information 39 Item 6 Exhibits 41

Signatures

Signatures 42 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, 2025 June 30, 2025 Assets Current assets: Cash and cash equivalents $ 1,383,848 $ 1,209,450 Accounts receivable, net of allowances of $ 24,611 and $ 22,424 at September 30, 2025 and June 30, 2025, respectively 907,271 939,492 Inventories (note 3) 945,806 927,711 Prepaid expenses and other current assets (note 3) 388,811 428,952 Total current assets 3,625,736 3,505,605 Non-current assets: Property, plant and equipment, net (note 3) 563,629 550,790 Operating lease right-of-use assets 162,007 167,497 Goodwill (note 4) 3,044,123 3,046,680 Other intangible assets, net (note 3) 447,067 464,861 Deferred income taxes 275,949 253,119 Prepaid taxes and other non-current assets 189,841 185,839 Total non-current assets 4,682,616 4,668,786 Total assets $ 8,308,352 $ 8,174,391 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 266,775 $ 278,157 Accrued expenses 395,833 402,253 Operating lease liabilities, current 29,975 30,506 Deferred revenue 167,777 166,030 Income taxes payable 135,243 132,274 Short-term debt, net (note 7) 259,899 9,900 Total current liabilities 1,255,502 1,019,120 Non-current liabilities: Deferred revenue 159,356 156,803 Deferred income taxes 77,571 77,682 Operating lease liabilities, non-current 147,817 153,015 Other long-term liabilities 138,181 141,520 Long-term debt, net (note 7) 408,661 658,392 Total non-current liabilities 931,586 1,187,412 Total liabilities 2,187,088 2,206,532 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; 190,390,128 issued and 145,940,669 outstanding at September 30, 2025 and 190,311,097 issued and 146,385,350 outstanding at June

– 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, 2025 2024 Net revenue - Sleep and Breathing Health products $ 1,169,446 $ 1,067,737 Net revenue - Residential Care Software 166,136 156,772 Net revenue 1,335,582 1,224,509 Cost of sales - Sleep and Breathing Health products 456,118 451,312 Cost of sales - Residential Care Software 50,823 48,308 Cost of sales (exclusive of amortization shown separately below) 506,941 499,620 Amortization of acquired intangible assets - Sleep and Breathing Health products 1,420 1,210 Amortization of acquired intangible assets - Residential Care Software 6,401 6,460 Amortization of acquired intangible assets 7,821 7,670 Total cost of sales 514,762 507,290 Gross profit 820,820 717,219 Selling, general, and administrative 259,194 238,979 Research and development 87,323 79,524 Amortization of acquired intangible assets 11,956 11,404 Restructuring expenses (note 11) 15,810 — Total operating expenses 374,283 329,907 Income from operations 446,537 387,312 Other income (loss), net: Interest (expense) income, net 8,793 ( 1,661 ) Gain (loss) attributable to equity method investments (note 5) 1,489 963 Gain (loss) on equity investments (note 5) ( 6,190 ) ( 680 ) Other, net ( 3,836 ) ( 2,437 ) Total other income (loss), net 256 ( 3,815 ) Income before income taxes 446,793 383,497 Income taxes 98,257 72,142 Net income $ 348,536 $ 311,355 Basic earnings per share (note 8) $ 2.38 $ 2.12 Diluted earnings per share (note 8) $ 2.37 $ 2.11 Dividend declared per share $ 0.60 $ 0.53 Basic shares outstanding (000's) 146,182 146,861 Diluted shares outstanding (000's) 146,899 147,599 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 (Unaudited) (In US$ and in thousands) Three Months Ended September 30, 2025 2024 Net income $ 348,536 $ 311,355 Other comprehensive income, net of taxes: Unrealized gains (losses) on designated hedging instruments 1,603 ( 21,802 ) Foreign currency translation gain (loss) adjustments 12,380 141,176 Comprehensive income $ 362,519 $ 430,729 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, 2025 190,311 $ 761 $ 2,033,599 ( 43,926 ) $ ( 2,073,292 ) $ 6,081,490 $ ( 74,699 ) $ 5,967,859 Common stock issued on exercise of options 69 1 8,204 — — — — 8,205 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 10 — ( 719 ) — — — — ( 719 ) Treasury stock purchases — — — ( 523 ) ( 150,010 ) — — ( 150,010 ) Stock-based compensation costs — — 21,160 — — — — 21,160 Other comprehensive income (loss) — — — — — — 13,983 13,983 Net income — — — — — 348,536 — 348,536 Dividends declared ($ 0.60 per common share) — — — — — ( 87,750 ) — ( 87,750 ) Balance, September 30, 2025 190,390 $ 762 $ 2,062,244 ( 44,449 ) $ ( 2,223,302 ) $ 6,342,276 $ ( 60,716 ) $ 6,121,264 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, 2024 189,565 $ 588 $ 1,896,604 ( 42,664 ) $ ( 1,773,267 ) $ 4,991,647 $ ( 251,529 ) $ 4,864,043 Adjustment to common stock — 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 (loss) — — — — — — 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. 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) Three Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income $ 348,536 $ 311,355 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 47,698 44,730 Amortization of right-of-use assets 9,971 8,980 Stock-based compensation costs 21,160 20,156 (Gain) loss attributable to equity method investments (note 5) ( 1,489 ) ( 963 ) (Gain) loss on equity investments (note 5) 6,190 680 Changes in operating assets and liabilities: Accounts receivable 29,970 36,417 Inventories ( 14,663 ) ( 70,254 ) Prepaid expenses, net deferred income taxes and other current assets 2,312 ( 123 ) Accounts payable, accrued expenses, income taxes payable and other 7,636 ( 25,440 ) Net cash provided by (used in) operating activities 457,321 325,538 Cash flows from investing activities: Purchases of property, plant and equipment ( 42,965 ) ( 17,840 ) Patent registration and acquisition costs ( 2,814 ) ( 1,767 ) Business acquisitions, net of cash acquired ( 522 ) — Purchases of investments (note 5) ( 2,173 ) ( 1,350 ) Proceeds from exits of investments (note 5) — 4,128 Proceeds (payments) on maturity of foreign currency contracts ( 4,104 ) 18,975 Net cash provided by (used in) investing activities ( 52,578 ) 2,146 Cash flows from financing activities: Proceeds from issuance of common stock, net 8,205 8,383 Taxes paid related to net share settlement of equity awards ( 719 ) ( 389 ) Purchases of treasury stock ( 150,010 ) ( 50,005 ) Payments of business combination contingent consideration — ( 855 ) Repayment of borrowings — ( 30,000 ) Dividends paid ( 87,750 ) ( 77,891 ) Net cash provided by (used in) financing activities ( 230,274 ) ( 150,757 ) Effect of exchange rate changes on cash ( 71 ) 11,073 Net increase (decrease) i

– 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., or Resmed, 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, or the U.S. Major distribution and sales sites are located in the U.S., Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a software as a service, or SaaS, business in the U.S. 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission, or the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2026. The condensed consolidated financial statements for the three

– 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, 2025 2024 U.S., Canada and Latin America Devices $ 413,438 $ 384,530 Masks and other 361,316 322,776 Total U.S., Canada and Latin America $ 774,754 $ 707,306 Combined Europe, Asia and other markets Devices $ 266,872 $ 241,255 Masks and other 127,820 119,176 Total Combined Europe, Asia and other markets $ 394,692 $ 360,431 Global revenue Total Devices $ 680,310 $ 625,785 Total Masks and other 489,136 441,952 Total Sleep and Breathing Health $ 1,169,446 $ 1,067,737 Residential Care Software 166,136 156,772 Total $ 1,335,582 $ 1,224,509 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 th

– 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) Cash and Cash Equivalents Our cash and cash equivalents balance at September 30, 2025 and June 30, 2025 includes $ 406.7 million and $ 302.7 million, respectively, in institutional money market accounts held at highly rated institutions that require advance notice of up to 90 days for redemption, in accordance with the terms of the investment agreements. Recently Issued Accounting Standards Not Yet Adopted ASU 2025-06 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software In September 2025, the FASB issued ASU No. 2025-06, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software," which modernizes the recognition and disclosure framework for internal-use software costs, removing all references to software development project stages and introducing a more judgment-based approach. ASU 2025-06 is effective for us beginning in the first quarter of the fiscal year ending June 30, 2029. Early adoption is permitted and the amendments may either be applied prospectively to financial statements issued for reporting periods after the effective date of the amendment, retrospectively to all prior periods presented, or using a modified transition approach. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. ASU 2025-05 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets In July 2025, the FASB issued ASU 2025-05, "Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses for Accounts Receivable and Contract Assets," providing all entities with a practical expedient when estimating expected credit losses for

View Full Filing

View this 10-Q filing on SEC EDGAR