Recent Updates
Recently added Catalysts
RMD Positive Sentiment Score: 85/100

For investors For media +1 858-836-5000 +1 619-510-1281 investorrelations@resmed.com news@resmed.com ResMed Inc. Announces Results for the Second Quarter of Fiscal Year 2025 Year-over-year revenue grows 10%, operating pr

Key Takeaway: ResMed Inc. reported a strong second quarter for fiscal year 2025, highlighting a 10% increase in revenue compared to the previous year. Gross margins improved by 230 basis points, and the company achieved a net income rise of 65%, reaching $344.6 million. The positive results were attributed to heightened demand for their sleep and breathing health products, as well as advancements in digital health solutions. The company is well-positioned to leverage growing opportunities in connected health technologies.

Market Sentiment Analysis

POSITIVE FACTORS

  • 10% year-over-year revenue growth demonstrates strong market demand.
  • Significant improvement in gross margin by 230 basis points.
  • Increased operating cash flow of $309 million indicates solid financial health.

Full Press Release Details

For investors For media
+1 858-836-5000 +1 619-510-1281
investorrelations@resmed.com news@resmed.com
ResMed Inc. Announces Results for the Second Quarter of Fiscal Year 2025
Note: A webcast of ResMed s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com
SAN DIEGO, January 30, 2025 ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended December 31, 2024.
Second Quarter 2025 Highlights
All comparisons are to
the prior year period
Our second quarter fiscal year 2025 top-line growth, margin expansion,
and double-digit EPS growth were the result of increased demand for our sleep health and breathing health products and digital health solutions that people love, as well as our laser-focus on operational excellence, said ResMed s Chairman
and CEO, Mick Farrell. We delivered 10% year-over-year revenue growth, 230 bps improvement in gross margin, and $309 million of operating cash flow. These results are a continuation of the incredible commitment from our team to create a
clear market-leading value proposition in connected digital health. Our ecosystem is unmatched and ResMed is well-positioned to capitalize on the
once-in-a-generation opportunities we have with the recent introduction and adoption of consumer wearables that track sleep
health, as well as use of GLP-1 therapies. We believe these developments will drive increased patient flow as we continue to educate people on the benefits of healthy sleep and breathing, with care delivered
right in their own home.
Financial Results and Operating Metrics
Unaudited; $ in millions, except for per share amounts
Three Months Ended
December 31, 2024 December 31, 2023 % Change Constant Currency (A)
Revenue $ 1,282.1 $ 1,162.8 10 % 10 %
Gross margin 58.6 % 55.6 % 5
Non-GAAP gross margin (B) 59.2 % 56.9 % 4
Selling, general, and administrative expenses 241.6 222.2 9 9
Research and development expenses 81.4 73.9 10 10
Income from operations 417.2 275.1 52
Non-GAAP income from operations (B) 435.9 365.5 19
Net income 344.6 208.8 65
Non-GAAP net income (B) 358.3 277.3 29
Diluted earnings per share $ 2.34 $ 1.42 65
Non-GAAP diluted earnings per share (B) $ 2.43 $ 1.88 29
Six Months Ended
December 31, 2024 December 31, 2023 % Change Constant Currency (A)
Revenue $ 2,506.6 $ 2,265.1 11 % 11 %
Gross margin 58.6 % 55.1 % 6
Non-GAAP gross margin (B) 59.2 % 56.4 % 5
Selling, general, and administrative expenses 480.6 445.0 8 8
Research and development expenses 160.9 149.6 8 7
Income from operations 804.6 564.1 43
Non-GAAP income from operations (B) 842.3 684.3 23
Net income 656.0 428.2 53
Non-GAAP net income (B) 683.7 518.5 32
Diluted earnings per share $ 4.45 $ 2.90 53
Non-GAAP diluted earnings per share (B) $ 4.63 $ 3.51 32
Discussion of Second Quarter Results
All comparisons are to the prior year period unless otherwise noted
Other Business and Operational Highlights
The ResMed board of directors today declared a quarterly cash dividend of $0.53 per share. The dividend will have a record date of February 13, 2025,
payable on March 20, 2025. The dividend will be paid in U.S. currency to holders of ResMed s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests ( CDIs ) trading on the Australian Securities
Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will
be February 12, 2025, for common stockholders and for CDI holders. ResMed has received a waiver from the ASX s settlement operating rules, which will allow ResMed to defer processing conversions between its common stock and CDI registers
from February 12, 2025, through February 13, 2025, inclusive.
ResMed will discuss its second quarter fiscal year 2025 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be
accessed on ResMed s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the Q2 2025 Earnings Webcast to register and listen to the live webcast. A replay of
the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the
passcode 13750689. The telephone replay will be available until February 13, 2025.
At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that 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, COPD, and other chronic diseases. Our
comprehensive out-of-hospital 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, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit ResMed.com and follow @ResMed.
Safe harbor statement
Statements contained
in this release that are not historical facts are forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements including statements regarding ResMed s
projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax
outlook, and the expected impact of macroeconomic conditions of our business are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements.
Additional risks and uncertainties are discussed in ResMed s periodic reports on file with the U.S. Securities & Exchange Commission. ResMed does not undertake to update its forward-looking statements.
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited; $ in thousands, except for per share amounts)
Three Months Ended Six Months Ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
Net revenue $ 1,282,089 $ 1,162,801 $ 2,506,598 $ 2,265,122
Cost of sales 523,180 501,259 1,022,800 986,702
Amortization of acquired intangibles (1) 7,634 8,257 15,304 17,164
Masks with magnets field safety notification expenses (1) 6,351 6,351
Astral field safety notification expenses (1) 7,911
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 intangibles (1) 11,047 11,577 22,451 24,056
Restructuring expenses (1) 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 (expenses), net:
Interest (expense) income, net $ (775 ) $ (13,805 ) $ (2,436 ) $ (28,762 )
Gain (loss) attributable to equity method investments 1,077 739 2,040 (3,156 )
Gain (loss) on equity investments (1) (1,439 ) (1,888 ) (2,119 ) (2,491 )
Other, net 2,216 (686 ) (219 ) 1,963
Total other income (expenses), 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 income $ 344,622 $ 208,800 $ 655,977 $ 428,222
Basic earnings per share $ 2.35 $ 1.42 $ 4.47 $ 2.91
Diluted earnings per share $ 2.34 $ 1.42 $ 4.45 $ 2.90
Non-GAAP diluted earnings per share (1) $ 2.43 $ 1.88 $ 4.63 $ 3.51
Basic shares outstanding 146,810 147,132 146,835 147,104
Diluted shares outstanding 147,481 147,545 147,520 147,572
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
December 31, 2024 June 30, 2024
Assets
Current assets:
Cash and cash equivalents $ 521,944 $ 238,361
Accounts receivable, net 859,937 837,275
Inventories 882,103 822,250
Prepayments and other current assets 572,193 459,833
Total current assets $ 2,836,177 $ 2,357,719
Non-current assets:
Property, plant, and equipment, net $ 520,162 $ 548,025
Operating lease right-of-use assets 151,012 151,121
Goodwill and other intangibles, net 3,243,356 3,327,959
Deferred income taxes and other non-current assets 390,627 487,570
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 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 662,859 697,313
Total non-current liabilities $ 1,036,365 $ 1,097,696
Total liabilities $ 1,888,325 $ 2,008,351
Stockholders equity
Common stock $ 760 $ 588
Additional paid-in capital 1,957,359 1,896,604
Retained earnings 5,492,038 4,991,647
Treasury stock (1,898,258 ) (1,773,267 )
Accumulated other comprehensive income (298,890 ) (251,529 )
Total stockholders equity $ 5,253,009 $ 4,864,043
Total liabilities and stockholders equity $ 7,141,334 $ 6,872,394
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited; $ in thousands)
Three Months Ended Six Months Ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
Cash flows from operating activities:
Net income $ 344,622 $ 208,800 $ 655,977 $ 428,222
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization 46,439 44,784 91,169 89,718
Amortization of right-of-use assets 9,463 8,586 18,443 17,094
Stock-based compensation costs 22,634 19,840 42,790 38,350
(Gain) loss attributable to equity method investments, net of dividends received (1,077 ) (739 ) (2,040 ) 3,156
(Gain) loss on equity investments 1,439 1,888 2,119 2,491
Non-cash restructuring expenses 33,239 33,239
Changes in operating assets and liabilities:
Accounts receivable, net (67,853 ) (26,802 ) (31,436 ) (20,269 )
Inventories, net (7,641 ) 50,184 (77,895 ) 77,095
Prepaid expenses, net deferred income taxes and other current assets (43,623 ) (32,575 ) (43,746 ) (74,590 )
Accounts payable, accrued expenses, income taxes payable and other 4,219 (34,373 ) (21,220 ) (35,391 )
Net cash provided by (used in) operating activities $ 308,622 $ 272,832 $ 634,161 $ 559,115
Cash flows from investing activities:
Purchases of property, plant, and equipment (20,644 ) (23,353 ) (38,484 ) (53,388 )
Patent registration and acquisition costs (2,825 ) (1,205 ) (4,592 ) (12,036 )
Business acquisitions, net of cash acquired (670 ) (7,504 ) (670 ) (110,688 )
Purchases of investments (1,000 ) (3,625 ) (2,350 ) (7,305 )
Proceeds from exits of investments 250 4,378 250
Proceeds (payments) on maturity of foreign currency contracts (11,803 ) (5,456 ) 7,172 (6,956 )
Net cash provided by (used in) investing activities $ (36,692 ) $ (41,143 ) $ (34,546 ) $ (190,123 )
Cash flows from financing activities:
Proceeds from issuance of common stock, net 26,877 19,524 35,260 20,507
Purchases of treasury stock (74,986 ) (50,007 ) (124,991 ) (50,007 )
Taxes paid related to net share settlement of equity awards (16,734 ) (7,797 ) (17,123 ) (8,022 )
Payments of business combination contingent consideration (855 ) (1,293 )
Proceeds from borrowings, net of borrowing costs 105,000
Repayment of borrowings (5,000 ) (130,000 ) (35,000 ) (315,000 )
Dividends paid (77,695 ) (70,678 ) (155,586 ) (141,275 )
Net cash provided by (used in) financing activities $ (147,538 ) $ (238,958 ) $ (298,295 ) $ (390,090 )
Effect of exchange rate changes on cash $ (28,809 ) $ 8,416 $ (17,737 ) $ 3,454
Net increase (decrease) in cash and cash equivalents 95,583 1,147 283,583 (17,644 )
Cash and cash equivalents at beginning of period 426,361 209,100 238,361 227,891
Cash and cash equivalents at end of period $ 521,944 $ 210,247 $ 521,944 $ 210,247
RESMED INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited; $ in thousands, except for per share amounts)
The measures non-GAAP gross profit
and non-GAAP gross margin exclude amortization expense from acquired intangibles and restructuring expense related to cost of sales and are reconciled below:
Three Months Ended Six Months Ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
Revenue $ 1,282,089 $ 1,162,801 $ 2,506,598 $ 2,265,122
GAAP cost of sales $ 530,814 $ 515,867 $ 1,038,104 $ 1,018,128
Less: Amortization of acquired intangibles (A) (7,634 ) (8,257 ) (15,304 ) (17,164 )
Less : Masks with magnets field safety notification expenses (A) (6,351 ) (6,351 )
Less : Astral field safety notification expenses (A) (7,911 )
Non-GAAP cost of sales $ 523,180 $ 501,259 $ 1,022,800 $ 986,702
GAAP gross profit $ 751,275 $ 646,934 $ 1,468,494 $ 1,246,994
GAAP gross margin 58.6 % 55.6 % 58.6 % 55.1 %
Non-GAAP gross profit $ 758,909 $ 661,542 $ 1,483,798 $ 1,278,420
Non-GAAP gross margin 59.2 % 56.9 % 59.2 % 56.4 %
The measure non-GAAP income from operations is reconciled with
GAAP income from operations below:
Three Months Ended Six Months Ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
GAAP income from operations $ 417,243 $ 275,094 $ 804,554 $ 564,091
Amortization of acquired intangibles cost of sales (A) 7,634 8,257 15,304 17,164
Amortization of acquired intangibles operating expenses (A ) 11,047 11,577 22,451 24,056
Restructuring (A) 64,228 64,228
Masks with magnets field safety notification expenses (A) 6,351 6,351
Astral field safety notification expenses (A) 7,911
Acquisition-related expenses (A) 483
Non-GAAP income from operations $ 435,924 $ 365,507 $ 842,309 $ 684,284
RESMED INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited; $ in thousands, except for per share amounts)
The measures non-GAAP net income
and non-GAAP diluted earnings per share are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:
Three Months Ended Six Months Ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
GAAP net income $ 344,622 $ 208,800 $ 655,977 $ 428,222
Amortization of acquired intangibles cost of sales (A) 7,634 8,257 15,304 17,164
Amortization of acquired intangibles operating expenses (A) 11,047 11,577 22,451 24,056
Restructuring expenses (A) 64,228 64,228
Masks with magnets field safety notification expenses (A) 6,351 6,351
Astral field safety notification expenses (A) 7,911
Acquisition-related expenses (A) 483
Income tax effect on non-GAAP adjustments (A) (4,962 ) (21,868 ) (10,033 ) (29,886 )
Non-GAAP net income (A) $ 358,341 $ 277,345 $ 683,699 $ 518,529
GAAP diluted shares outstanding 147,481 147,545 147,520 147,572
GAAP diluted earnings per share $ 2.34 $ 1.42 $ 4.45 $ 2.90
Non-GAAP diluted earnings per share (A) $ 2.43 $ 1.88 $ 4.63 $ 3.51
ResMed believes that non-GAAP diluted earnings
per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting,
and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed s performance from core operations and provides
consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like
all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under
RESMED INC. AND SUBSIDIARIES
Revenue by Product and Region
millions, except for per share amounts)
Three Months Ended
December 31, 2024 (A) December 31, 2023 (A) % Change Constant Currency (B)
U.S., Canada, and Latin America
Devices $ 414.5 $ 371.3 12 %
Masks and other 334.5 298.0 12
Total U.S., Canada and Latin America $ 748.9 $ 669.3 12
Combined Europe, Asia, and other markets
Devices $ 254.8 $ 234.7 9 % 9 %
Masks and other 121.8 113.9 7 7
Total Combined Europe, Asia and other markets $ 376.6 $ 348.5 8 8
Global revenue
Total Devices $ 669.3 $ 606.0 10 % 11 %
Total Masks and other 456.3 411.9 11 11
Total Sleep and Breathing Health $ 1,125.6 $ 1,017.9 11 11
Residential Care Software 156.5 144.9 8 8
Total $ 1,282.1 $ 1,162.8 10 10
Six Months Ended
December 31, 2024 (A) December 31, 2023 (A) % Change Constant Currency (B)
U.S., Canada, and Latin America
Devices $ 799.0 $ 717.2 11 %
Masks and other 657.3 590.5 11
Total U.S., Canada and Latin America $ 1,456.3 $ 1,307.7 11
Combined Europe, Asia, and other markets
Devices $ 496.1 $ 453.5 9 % 9 %
Masks and other 241.0 219.7 10 9
Total Combined Europe, Asia and other markets $ 737.1 $ 673.2 9 9
Global revenue
Total Devices $ 1,295.1 $ 1,170.7 11 % 10 %
Total Masks and other 898.2 810.2 11 11
Total Sleep and Breathing Health $ 2,193.3 $ 1,980.9 11 11
Residential Care Software 313.3 284.2 10 10
Total $ 2,506.6 $ 2,265.1 11 11

Frequently Asked Questions

What were ResMed's Q2 2025 revenue figures?

ResMed reported revenue of $1,282.1 million for Q2 2025.

How much did ResMed grow its earnings per share?

Earnings per share increased to $2.34, up 65% year-over-year.

What was ResMed's gross margin in Q2 2025?

The gross margin for Q2 2025 was 58.6%, up from 55.6%.

When is ResMed's quarterly dividend payment?

ResMed's quarterly dividend of $0.53 per share will be paid on March 20, 2025.

What drove ResMed's revenue growth?

Increased demand for their sleep and breathing health products spurred growth.

Last updated: Jan 30, 2025