ResMed Acquires VirtuOx to Expand Virtual Care and At-Home Diagnostics

ResMed has acquired VirtuOx, a leading independent diagnostic testing facility specializing in sleep, respiratory, and cardiac conditions, to enhance its virtual care offerings and streamline the diagnostic process for patients and providers. The acquisition aims to improve early access to diagnosis, reduce delays in care, and strengthen ResMed’s digital ecosystem for managing sleep-disordered breathing and related conditions.

VirtuOx’s platform provides fast, flexible, and affordable at-home testing, addressing common barriers to diagnosis—especially for conditions like obstructive sleep apnea. By integrating VirtuOx into its operations, ResMed seeks to create a more connected and efficient care pathway, from evaluation through treatment.

ResMed stated that the deal will help expand into adjacent health areas like insomnia and deepen partnerships with physicians, sleep labs, and home medical equipment providers. VirtuOx will continue to operate under its own brand, with its leadership team remaining in place.

Financial terms were not disclosed, as the transaction is not considered material to ResMed’s financial results.

ResMed Q3 FY2025 Summary


Financial Performance:
ResMed reported strong third-quarter results for fiscal 2025, driven by sustained demand for its sleep-related and software products. Revenue rose 8% year-over-year to $1.29 billion (up 9% in constant currency). Gross margin expanded by 140 basis points to 59.3% (non-GAAP: 59.9%), reflecting operational efficiencies and favorable product mix. Operating profit climbed 14% to $426 million, while non-GAAP operating income rose 13% to $445 million. Net income grew 21% to $365 million, translating to GAAP EPS of $2.48 and non-GAAP EPS of $2.37 (up 11%).

Segment Highlights:

U.S., Canada & LATAM revenue rose 9%, led by 6% growth in devices and 13% growth in masks.

Europe, Asia & other markets revenue increased 8% (constant currency), with 9% growth in devices and 7% in masks.

Residential Care Software revenue rose 10%, reflecting ongoing digital adoption in home-based care.

Operational Metrics:

Operating cash flow reached $579 million, including a $100 million IRS tax refund. Excluding this, cash flow was $471 million.

Gross margin gains were attributed to manufacturing and logistics improvements, partially offset by FX headwinds.

SG&A expenses increased 8%, while SG&A as a percent of revenue declined slightly to 19.0%.

Strategic & Product Updates:

Launched NightOwl™, an FDA-cleared home sleep apnea test.

Published landmark research in The Lancet showing CPAP therapy reduces mortality in sleep apnea patients.

Conducted a global sleep survey involving over 30,000 respondents across 13 countries, highlighting a global sleep health crisis.

Recognized as a Top 100 Global Innovator by LexisNexis.

Capital Management:

Paid $78 million in dividends and repurchased 314,000 shares for $75 million during the quarter.

Declared a quarterly dividend of $0.53 per share, payable June 12, 2025.

Balance Sheet Strength:

Ended the quarter with $933 million in cash, up from $238 million at fiscal year-end.

Total assets increased to $7.57 billion, and total equity grew to $5.55 billion.

ResMed continues to focus on global expansion of sleep care, digital health solutions, and maintaining a resilient financial position to support growth.

Resmed Names Salli Schwartz as Chief Investor Relations Officer

ResMed Launches NightOwl™ Home Sleep Apnea Test Across the U.S.

ResMed has announced the nationwide availability of its FDA-cleared home sleep apnea test, NightOwl™, across the United States. Designed for ease of use and clinical accuracy, NightOwl enables individuals to conduct sleep apnea testing at home using a small fingertip sensor and a smartphone.

The device records up to ten nights of sleep data and sends it to a cloud-based platform for physician review, helping streamline the diagnostic process for obstructive sleep apnea (OSA), a condition affecting nearly one billion people worldwide. Key features include auto-scored results, integration with ResMed’s Somnoware platform, and full disposability, eliminating the need for returns or cleaning.

NightOwl uses peripheral arterial tonometry technology and has demonstrated diagnostic accuracy in clinical validation studies. ResMed emphasizes that the test makes OSA screening more accessible and supports the company’s mission of delivering home-based, life-changing healthcare technology.

NightOwl is now available nationwide. Interested individuals should consult their healthcare provider or visit ResMed’s website for more information.

ResMed Inc. reported strong financial results for the second quarter of fiscal year 2025, driven by increased demand for its sleep and breathing health products and digital health solutions. Revenue increased by 10% year-over-year to $1.3 billion, with a 10% rise on a constant currency basis. Gross margin improved to 58.6%, reflecting manufacturing efficiencies and lower component costs.

Operating income rose significantly by 52%, while non-GAAP income from operations increased by 19%. Net income surged 65% to $345 million, with diluted earnings per share rising to $2.34. Non-GAAP net income grew 29% to $358 million, with non-GAAP diluted EPS at $2.43. Operating cash flow for the quarter was a robust $309 million.

ResMed highlighted strong regional performance, with revenue in the U.S., Canada, and Latin America (excluding Residential Care Software) growing by 12%, while revenue in Europe, Asia, and other markets increased by 8% on a constant currency basis. Residential Care Software revenue also grew by 8%.

During the quarter, ResMed repurchased 307,000 shares for $75 million and paid $78 million in dividends. The company reaffirmed its commitment to expanding operations in Singapore and continued its focus on digital health innovations.

A quarterly cash dividend of $0.53 per share was declared, payable on March 20, 2025, with a record date of February 13, 2025.