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.