01—Abstract
Summary
Summary of the 10-K filed August 8, 2025. Cited figures are marked; the original filing is the authoritative source.
ResMed Inc. reported fiscal year 2025 (ended June 30, 2025) net revenue of $5,146.3 milliona, up 10% from $4,685.3 million, with net income of $1,400.7 million, or $9.51 per diluted share, versus $1,021.0 million, or $6.92 per diluted share, in fiscal 2024.
Gross margin rose to 59.4% from 56.7%, driven by procurement, manufacturing and logistics efficiencies and the absence of $14.3 millionb of field safety notification expenses recorded in fiscal 2024. Income from operations was $1,685.4 million, compared with $1,319.9 million a year earlier. Operating cash flow was $1,751.6 million, and cash and cash equivalents ended the year at $1,209.5 million, against $1,500.0 million of undrawn revolving credit capacity.
The company operates two segments: Sleep and Breathing Health, which produced $4,504.9 millionc of revenue, and Residential Care Software, which produced $641.4 million. Devices accounted for approximately 52% of net revenues in fiscal 2025, and masks, diagnostic products, accessories and other products for approximately 36%. The company acquired VirtuOx, an independent diagnostic testing facility, in May 2025, which the filing describes as not material to financial results.
The filing also flags regulatory and reimbursement uncertainty, including changes to Medicare payment rules, Medicaid funding under the One Big Beautiful Bill Act, VA sleep apnea disability rating proposals, and supply constraints tied to rare earth magnet export controls from China. Capital returns continued during the year.
The company paid dividends of $2.12d per share totaling $310.9 million and repurchased $300.0 million of treasury stock. Total debt stood at $670.0 million at June 30, 2025, and the board declared a quarterly dividend of $0.60 per share on July 31, 2025.
02—Key points
Key Highlights
- Net revenue grew 10% to $5,146.3 million; Sleep and Breathing Health contributed $4,504.9 million and Residential Care Software contributed $641.4 million.
- Net income rose to $1,400.7 million ($9.51 diluted EPS) from $1,021.0 million ($6.92), and income from operations rose to $1,685.4 million from $1,319.9 million.
- Gross margin improved to 59.4% from 56.7%, reflecting procurement, manufacturing and logistics efficiencies and the non-recurrence of $14.3 million of fiscal 2024 field safety notification expenses.
- Operating cash flow was $1,751.6 million, up from $1,401.3 million, and cash and cash equivalents reached $1,209.5 million.
- Total debt was $670.0 million at June 30, 2025, with $1,500.0 million available under the revolving credit facility.
- Shareholder returns included $310.9 million in dividends ($2.12 per share) and $300.0 million of share repurchases; a $0.60 quarterly dividend was declared on July 31, 2025.
- Key risks include Medicare and Medicaid reimbursement changes, proposed VA sleep apnea rating criteria changes, competition from pharmaceutical treatments such as GLP-1 drugs, and rare earth magnet supply constraints.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, ResMed kept $0.27.
- Revenue$5.15B100.0%
- Cost of revenue−$2.09B40.6%
- Gross profit$3.05B59.4%
- Operating costs−$1.37B26.6%
- Operating income$1.69B32.7%
- Interest, other & tax−$284.4M5.5%
- Net income$1.40B27.2%
Where FY2025 revenue went
$5.15B- Cost of revenue: $2.09B, 41% of revenue
- Net income: $1.40B, 27% of revenue
- SG&A: $993.0M, 19% of revenue
- R&D: $331.3M, 6.4% of revenue
- Other operating costs: $45.3M, 0.9% of revenue
- Interest, other & tax: $284.4M, 5.5% of revenue
Kept 27% as net incomeOther operating costs $45.3M · 0.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 8, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.15B$4.69B | +9.8% |
| Cost of Revenue | $2.09B$2.03B | +3.0% |
| Gross Profit | $3.05B$2.66B | +15.1% |
| R&D Expenses | $331.28M$307.52M | +7.7% |
| SG&A Expenses | $993.05M$917.14M | +8.3% |
| Operating Expenses | $1.37B$1.34B | +2.6% |
| Operating Income | $1.69B$1.32B | +27.7% |
| Net Income | $1.40B$1.02B | +37.2% |
| EPS (Basic) | $9.55$6.94 | +37.6% |
| EPS (Diluted) | $9.51$6.92 | +37.4% |
| Shares Outstanding (Basic) | 146.72M147.02M | −0.2% |
| Shares Outstanding (Diluted) | 147.34M147.55M | −0.1% |
05—Questions
Frequently Asked Questions
What drove the increase in ResMed's profitability in fiscal 2025?
Net revenue increased $461.0 million, or 10%, and gross margin rose to 59.4% from 56.7%, attributed mainly to procurement, manufacturing and logistics efficiencies and the absence of $14.3 million of field safety notification expenses recorded in fiscal 2024. Selling, general and administrative expenses as a percentage of net revenue improved to 19.3% from 19.6%.
How much cash and liquidity does ResMed have?
Cash and cash equivalents were $1,209.5 million at June 30, 2025, compared with $238.4 million a year earlier. The company also had $1,500.0 million available under its revolving credit facility, for a combined total of $2,709.5 million in cash and available liquidity under the revolving credit facility.
What are the main regulatory and reimbursement risks?
The filing cites Medicare fee schedule reductions for CY 2025, the expiration of Medicare telehealth flexibilities at the end of 2025, the One Big Beautiful Bill Act's Medicaid funding changes, and a proposed VA change to sleep apnea disability ratings that could reduce veterans pursuing CPAP treatment. It also notes that CMS is expected to start a new DMEPOS competitive bidding round, which could reduce Medicare payments for CPAP and bilevel devices.
What competitive threats does ResMed identify?
The company identifies competitors including Philips, Fisher & Paykel Healthcare and Lowenstein Medical, and notes that Philips operates in the U.S. under a consent decree that could change. It also cites pharmaceutical treatments, particularly injectable GLP-1 weight loss drugs that may reduce OSA severity, as a potential source of reduced demand for its products.
What did ResMed do with its capital in fiscal 2025?
ResMed paid dividends of $2.12 per share totaling $310.9 million and repurchased $300.0 million of treasury stock. Repayments under the revolving credit agreement were $40.0 million, and 10.8 million additional shares remained authorized for repurchase as of June 30, 2025.
06—Continue