01—Abstract
Summary
Summary of the 8-K filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.
ResMed Inc. reported results for its third quarter of fiscal year 2025, the quarter ended March 31, 2025, in a press release furnished as Exhibit 99.1 to this Form 8-K.
Revenue rose 8% to $1.3 billiona ($1,291.7 million, up 9% on a constant currency basis). Gross margin improved 140 basis points to 59.3%, and income from operations increased 14% to $426.3 million. Diluted earnings per share were $2.48, and non-GAAP diluted earnings per share were $2.37, up 11%.
Net income was $365.0 millionb. Cash generation was strong, with operating cash flow of $579 million. That figure includes $107 million in IRS tax refunds, and excluding those refunds operating cash flow was $471 million.
During the quarter the company paid $78 millionc in dividends and repurchased 314,000 shares for $75 million. Cash and cash equivalents were $932.7 million at March 31, 2025, up from $238.4 million at June 30, 2024.
The filing also announces a quarterly cash dividend of $0.53d per share, with a record date of May 8, 2025, payable June 12, 2025, and an ex-dividend date of May 7, 2025. Holders of CHESS Depositary Instruments on the Australian Securities Exchange will receive an equivalent amount in Australian currency.
02—Key points
Key Highlights
- Revenue increased 8% year over year to $1,291.7 million, or 9% on a constant currency basis; Residential Care Software revenue grew 10% on a constant currency basis.
- Gross margin improved 140 basis points to 59.3% (non-GAAP gross margin 59.9%), mainly due to manufacturing and logistics efficiencies and favorable product mix.
- Income from operations rose 14% to $426.3 million; non-GAAP income from operations rose 13% to $444.6 million.
- Diluted EPS was $2.48, up from $2.04; non-GAAP diluted EPS was $2.37, up 11% from $2.13.
- Operating cash flow was $579 million, including $107 million of IRS tax refunds; excluding these refunds, operating cash flow was $471 million.
- Quarterly cash dividend of $0.53 per share declared, with a record date of May 8, 2025 and payment on June 12, 2025.
- Nine-month revenue reached $3,798.3 million, up 10%, with diluted EPS of $6.93 (non-GAAP $7.00).
03—Questions
Frequently Asked Questions
How did ResMed's revenue and margins perform in the third quarter of fiscal 2025?
Revenue increased 8% to $1,291.7 million, or 9% on a constant currency basis. Gross margin improved 140 basis points to 59.3%, mainly from manufacturing and logistics efficiencies and favorable product mix, partly offset by unfavorable foreign currency movements.
What was driving the growth in the quarter?
The filing attributes revenue growth to increased demand for sleep devices and masks, as well as solid growth in the Residential Care Software business, which grew 10% on a constant currency basis.
How much of the operating cash flow came from one-time items?
Operating cash flow of $579 million included $107 million in IRS tax refunds, of which $100 million had previously been recorded as a receivable. Excluding these refunds, operating cash flow was $471 million.
What dividend and share repurchase activity did ResMed announce or complete?
The board declared a quarterly cash dividend of $0.53 per share, with a record date of May 8, 2025 and payment on June 12, 2025. During the quarter, ResMed paid $78 million in dividends and repurchased 314,000 shares for $75 million.
What are the key dates for shareholders receiving the dividend?
The ex-dividend date is May 7, 2025 for common stockholders and CDI holders. The record date is May 8, 2025, and payment is June 12, 2025. The ASX has granted a waiver allowing ResMed to defer processing conversions between its common stock and CDI registers from May 7 through May 8, 2025.
04—Continue