SHERIDAN, WYOMING – May 7, 2025 – Resmed Inc. (NYSE: RMD, ASX: RMD), a global leader in connected health solutions for sleep and respiratory care, has announced impressive third-quarter fiscal 2025 results. The company achieved a substantial year-over-year revenue growth of 8%, underscoring the continued demand for its innovative products and digital health solutions. With a focus on operational excellence and expanding its global footprint, Resmed has delivered a strong performance, further solidifying its position as a market leader in the healthcare sector.
Key Financial Highlights
- Revenue: $1.3 billion, reflecting an 8% increase compared to the previous year, with a 9% growth on a constant currency basis.
- Gross Margin: 59.3%, up 140 basis points from the prior year, driven by manufacturing and logistics efficiencies.
- Operating Income: $426.3 million, a 14% increase, with non-GAAP income from operations rising by 13%.
- Earnings per Share: Diluted EPS reached $2.48, reflecting a 22% increase compared to the same period last year. Non-GAAP diluted EPS was $2.37, marking an 11% growth.
- Operating Cash Flow: $579 million, supported by strong operational performance and efficient capital management.
Resmed's Chairman and CEO, Mick Farrell, expressed confidence in the company's continued growth trajectory. "Our positive fiscal year 2025 performance continued in the third quarter, with strong top-line revenue growth, margin expansion, and double-digit EPS growth resulting from solid customer demand for our best-in-class products and software solutions," said Farrell. "Our team’s commitment to providing superior healthcare through connected digital health solutions has allowed us to meet the needs of over 2.3 billion people globally with sleep and breathing health issues."
Growth Across Key Business Segments
Resmed’s growth was driven by strong performances across its core segments, particularly its sleep and respiratory care products, as well as its Residential Care Software division.
- Sleep Devices and Masks: Revenue from Resmed's sleep devices and masks portfolio increased by 6% globally, with a notable 9% rise in the U.S., Canada, and Latin America. The company continues to lead in the sleep apnea and respiratory care space, bolstered by rising awareness of the importance of sleep health.
- Residential Care Software: This segment posted a remarkable 10% growth on a constant currency basis. Resmed’s software solutions are playing a crucial role in transforming home healthcare, helping providers offer more personalized and efficient care for patients with chronic respiratory conditions.
Operating Efficiencies and Cost Management
Resmed's focus on operational efficiencies has paid off, with gross margin improving by 140 basis points. The company achieved these results through:
- Improved Product Mix: A shift towards higher-margin products has contributed to the overall margin expansion.
- Manufacturing and Logistics Efficiencies: Strategic investments in supply chain management and automation have streamlined operations and reduced costs.
Strong Cash Flow and Strategic Investments
In addition to robust financial results, Resmed's operating cash flow of $579 million highlights the company's strong financial foundation. The company has reinvested these funds into strategic initiatives, including its ongoing commitment to research and development (R&D). R&D expenses increased by 9%, reflecting Resmed’s continuous efforts to innovate and expand its product offerings.
Global Sleep Crisis: Resmed’s Continued Commitment
Resmed's commitment to addressing the global sleep crisis was also evident in its recent announcements:
- NightOwl™ Home Sleep Apnea Test: Resmed launched the FDA-cleared NightOwl home sleep apnea test across the U.S., offering a simplified and efficient method for healthcare providers to diagnose obstructive sleep apnea (OSA) in the comfort of patients’ homes.
- Fifth Annual Global Sleep Survey: The survey revealed a growing global sleep crisis, with an average loss of nearly three nights of restorative sleep per week, highlighting the increasing demand for effective sleep health solutions.
Dividend Declaration and Shareholder Returns
As part of its ongoing capital management strategy, Resmed declared a quarterly cash dividend of $0.53 per share. The dividend is scheduled for payment on June 12, 2025, with a record date of May 8, 2025.
Conclusion and Future Outlook
Looking ahead, Resmed remains committed to expanding its global presence, driving innovation in digital health solutions, and improving the lives of patients worldwide. The company's continued growth, driven by strong product demand and operational efficiencies, positions it well to capitalize on the growing global healthcare needs.
Learn more about Resmed and its innovations in sleep and respiratory care at www.resmed.com.