ResMed| · Earnings release

For investors

For media

investorrelations@resmed.com

news@resmed.com

Resmed Inc. Announces Results for the Third Quarter of Fiscal Year 2025

•

Year-over-year revenue grows 8%, operating profit up 14%, non-GAAPoperating profit up 13%

•

Operating cash flow of $579 million

Note: A webcast of Resmed’s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com

SAN DIEGO, April 23, 2025 – Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended March 31, 2025.

Third Quarter 2025 Highlights

All comparisons are to

the prior year period

•

Revenue increased by 8% to $1.3 billion; up 9% on a constant currency basis

•

Gross margin improved 140 bps to 59.3%; non-GAAP gross margin

•

Income from operations increased 14%; non-GAAP income from

operations up 13%

•

Operating cash flow of $579 million

•

Diluted earnings per share of $2.48; non-GAAP diluted earnings

“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-classproducts and software solutions,” said Resmed’s Chairman and CEO, Mick Farrell.

“We delivered 9% constant currency revenue growth and 140

bps improvement in non-GAAP gross margin. These results are evidence that sleep health customers recognize our products and software solutions as the gold standard for care. Our continued growth was achieved

by the incredible commitment of our team that has created a clear market-leading value proposition in connected digital health. We remain laser-focused on continuing to address the over 2.3 billion people around the globe with sleep health and

breathing health issues and all those who need world-class software for healthcare delivered at home. We will continue to drive increased patient flow as we accelerate education and awareness outreach to physicians, providers, patients, and beyond,

ensuring a strong pipeline of people who need access to our products and solutions to improve their lives.”

Financial Results and Operating Metrics

Unaudited; $ in millions, except for per share amounts

Three Months Ended

% Change

Constant

Currency (A)

Revenue

$

$

8

%

9

%

Gross margin

%

%

2

Non-GAAP gross margin (B)

%

%

2

Selling, general, and administrative expenses

7

8

Research and development expenses

9

Income from operations

Non-GAAP income from operations (B)

Net income

Non-GAAP net income (B)

Diluted earnings per share

$

$

Non-GAAP diluted earnings per share (B)

$

$

Nine Months Ended

% Change

Constant

Currency (A)

Revenue

$

$

%

%

Gross margin

%

%

5

Non-GAAP gross margin (B)

%

%

4

Selling, general, and administrative expenses

8

8

Research and development expenses

8

9

Income from operations

Non-GAAP income from operations (B)

Net income

Non-GAAP net income (B)

Diluted earnings per share

$

$

Non-GAAP diluted earnings per share (B)

$

$

(A)

In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of

foreign currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we

translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to

U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

(B)

See the reconciliation of non-GAAP financial measures in the table at

the end of the press release.

Discussion of Third Quarter Results

All comparisons are to the prior year period unless otherwise noted

•

Revenue grew by 9 percent on a constant currency basis, driven by increased demand for our sleep devices and

masks portfolio, as well as solid growth across our Residential Care Software business.

•

Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9 percent.

•

Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 8 percent on a

constant currency basis.

•

Residential Care Software revenue increased by 10 percent on a constant currency basis, reflecting continued

organic growth in our Residential Care Software portfolio.

•

Gross margin increased by 140 basis points mainly due to manufacturing and logistics efficiencies as well as

favorable shifts in product mix, partially offset by unfavorable foreign currency movements. Non-GAAP gross margin increased by 140 basis points due to the same factors.

•

Selling, general, and administrative expenses increased by 8 percent on a constant currency basis. The

increase in SG&A expenses was mainly due to increases in employee-related costs and marketing expenses. SG&A expenses improved to 19.0 percent of revenue in the quarter, compared with 19.2 percent in the same period of the prior

year.

•

Income from operations increased by 14 percent andnon-GAAP income from operations increased by 13 percent.

•

Net income for the quarter was $365 million and diluted earnings per share was $2.48. Non-GAAP net income increased by 11 percent to $349 million, and non-GAAP diluted earnings per share increased by 11 percent to

$2.37, predominantly attributable to strong sales growth and gross margin improvement.

•

Operating cash flow for the quarter was $579 million, compared to net income in the current quarter of

$365 million and non-GAAP net income of $349 million. We received $107 million in tax refunds from the IRS during the quarter, of which $100 million had been previously recorded as a

receivable. Operating cash flows excluding the impact of these tax refunds was $471 million.

•

During the quarter, we paid $78 million in dividends to shareholders and repurchased 314,000 shares for

consideration of $75 million as part of our ongoing capital management.

Other Business and Operational Highlights

•

Announced that our home sleep apnea test, NightOwl™, is

now available across the United States. NightOwl is an FDA-cleared home sleep apnea test (HSAT) designed to offer healthcare providers a simplified, accurate, and efficient way to diagnose obstructive sleep

apnea from the comfort of an individual’s home.

•

Unveiled the findings of our fifth annual Global Sleep Survey. With insights from 30,026 respondents across 13

markets, the study underscored a widespread global sleep crisis, with people losing an average of nearly three nights of restorative sleep each week.

•

Announced a comprehensive brand evolution designed to unify our brand portfolio to serve more people and

healthcare providers worldwide and reflect our future physician and customer education.

•

Announced the publication of a landmark meta-analysis in The Lancet Respiratory Medicine, demonstrating

that CPAP therapy significantly reduces the risk of death for people with obstructive sleep apnea (OSA).

•

Awarded as one of the “Top 100 Global Innovators” from LexisNexis. This prestigious award includes a

roster of companies around the world that are driving innovation in the global economy.

Dividend program

The Resmed board of directors today declared a quarterly cash dividend of $0.53 per share. The dividend will have a record date of May 8, 2025, payable on

June 12, 2025. The dividend will be paid in U.S. currency to holders of Resmed’s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests (“CDIs”) trading on the Australian Securities Exchange

will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be

May 7, 2025, for common stockholders and for CDI holders. Resmed has received a waiver from the ASX’s settlement operating rules, which will allow Resmed to defer processing conversions between its common stock and CDI registers from

Webcast details

Resmed will discuss its third quarter fiscal year 2025 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be

accessed on Resmed’s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the “Q3 2025 Earnings Webcast” to register and listen to the live webcast. A replay of

the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the

About Resmed

At Resmed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier,

higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Ourcomprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their

choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit Resmed.com and follow

@Resmed.

Safe harbor statement

Statements

contained in this release that are not historical facts are “forward-looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements – including statements regarding

Resmed’s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments,

litigation, tax outlook, and the expected impact of macroeconomic conditions of our business – are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking

statements. Additional risks and uncertainties are discussed in Resmed’s periodic reports on file with the U.S. Securities & Exchange Commission. Resmed does not undertake to update its forward-looking statements.

– More –

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited; $ in thousands, except for per share amounts)

Three Months Ended

Nine Months Ended

Net revenue

$

$

$

$

Cost of sales

Amortization of acquired

intangibles (1)

Masks with magnets field safety notification expenses (1)

—

—

—

Astral field safety notification expenses(1)

—

—

—

Total cost of sales

$

$

$

$

Gross profit

$

$

$

$

Selling, general, and administrative

Research and development

Amortization of acquired

intangibles (1)

Restructuring

expenses (1)

—

—

—

Total operating expenses

$

$

$

$

Income from operations

$

$

$

$

Other income (expenses), net:

Interest (expense) income, net

$

$

)

$

)

$

)

Gain (loss) attributable to equity method investments

)

Gain (loss) on equity investments

)

)

Other, net

)

)

)

)

Total other income (expenses), net

)

)

)

Income before income taxes

$

$

$

$

Income taxes

Net income

$

$

$

$

Basic earnings per share

$

$

$

$

Diluted earnings per share

$

$

$

$

Non-GAAP diluted earnings per share (1)

$

$

$

$

Basic shares outstanding

Diluted shares outstanding

(1)

See the reconciliation of non-GAAP financial measures in the

table at the end of the press release.

– More –

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)

Assets

Current assets:

Cash and cash equivalents

$

$

Accounts receivable, net

Inventories

Prepayments and other current assets

Total current assets

$

$

Non-current assets:

Property, plant, and equipment, net

$

$

Operatinglease right-of-use assets

Goodwill and other intangibles, net

Deferred income taxes andother non-current assets

Total non-current assets

$

$

Total assets

$

$

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

$

Accrued expenses

Operating lease liabilities, current

Deferred revenue

Income taxes payable

Short-term debt

Total current liabilities

$

$

Non-current liabilities:

Deferred revenue

$

$

Deferred income taxes

Operating lease liabilities, non-current

Other long-term liabilities

Long-term debt

Total non-current liabilities

$

$

Total liabilities

$

$

Stockholders’ equity

Common stock

$

$

Additional paid-in capital

Retained earnings

Treasury stock

)

)

Accumulated other comprehensive income

)

)

Total stockholders’ equity

$

$

Total liabilities and stockholders’ equity

$

$

– More –

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)

Three Months Ended

Nine Months Ended

Cash flows from operating activities:

Net income

$

$

$

$

Adjustment to reconcile net income to cash provided by operating activities:

Depreciation and amortization

Amortizationof right-of-use assets

Stock-based compensation costs

(Gain) loss attributable to equity method investments, net of dividends received

)

)

)

(Gain) loss on equity investments

)

)

Non-cash restructuring expenses

—

—

—

Changes in operating assets and liabilities:

Accounts receivable, net

)

)

)

)

Inventories, net

)

Prepaid expenses, net deferred income taxes and other current assets

)

)

Accounts payable, accrued expenses, income taxes payable and other

Net cash provided by (used in) operating activities

$

$

$

$

Cash flows from investing activities:

Purchases of property, plant, and equipment

)

)

)

)

Patent registration and acquisition costs

)

)

)

)

Business acquisitions, net of cash acquired

—

)

)

)

Purchases of investments

)

)

)

)

Proceeds from exits of investments

—

—

Proceeds (payments) on maturity of foreign currency contracts

)

)

)

Net cash provided by (used in) investing activities

$

)

$

)

$

)

$

)

Cash flows from financing activities:

Proceeds from issuance of common stock, net

Purchases of treasury stock

)

)

)

)

Taxes paid related to net share settlement of equity awards

)

)

)

)

Payments of business combination contingent consideration

—

—

)

)

Proceeds from borrowings, net of borrowing costs

—

—

—

Repayment of borrowings

—

)

)

)

Dividends paid

)

)

)

)

Net cash provided by (used in) financing activities

$

)

$

)

$

)

$

)

Effect of exchange rate changes on cash

$

$

)

$

)

$

)

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

$

$

$

$

– More –

RESMED INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited; $ in thousands, except for per share amounts)

The measures “non-GAAP gross profit”and “non-GAAP gross margin” exclude amortization expense from acquired intangibles and are reconciled below:

Three Months Ended

Nine Months Ended

Revenue

$

$

$

$

GAAP cost of sales

$

$

$

$

Less: Amortization of acquired intangibles (A)

)

)

)

)

Less: Masks with magnets field safety notification expenses (A)

—

—

—

)

Less: Astral field safety notification expenses (A)

—

—

—

)

Non-GAAP cost of sales

$

$

$

$

GAAP gross profit

$

$

$

$

GAAP gross margin

%

%

%

%

Non-GAAP gross profit

$

$

$

$

Non-GAAP gross margin

%

%

%

%

The measure “non-GAAP income from operations” is reconciled with

GAAP income from operations below:

Three Months Ended

Nine Months Ended

GAAP income from operations

$

$

$

$

Amortization of acquired intangibles—cost of sales (A)

Amortization of acquired intangibles—operating expenses (A)

Restructuring (A)

—

—

—

Masks with magnets field safety notification expenses (A)

—

—

—

Astral field safety notification expenses(A)

—

—

—

Acquisition-related

expenses (A)

—

—

—

Non-GAAP income from operations

$

$

$

$

– More –

RESMED INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited; $ in thousands, except for per share amounts)

The measures “non-GAAP net income”and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:

Three Months Ended

Nine Months Ended

GAAP net income

$

$

$

$

Amortization of acquired intangibles—cost of sales (A)

Amortization of acquired intangibles—operating expenses (A)

Restructuring

expenses (A)

—

—

—

Masks with magnets field safety notification expenses (A)

—

—

—

Astral field safety notification expenses(A)

—

—

—

Acquisition-related

expenses (A)

—

—

—

Income tax effect of interest and penalties on income tax refunds (A)

)

—

)

—

Income tax effect on non-GAAP adjustments (A)

)

)

)

)

Non-GAAP net income (A)

$

$

$

$

GAAP diluted shares outstanding

GAAP diluted earnings per share

$

$

$

$

Non-GAAP diluted earnings per share (A)

$

$

$

$

(A)

Resmed adjusts for the impact of the amortization of acquired intangibles, interest and penalties on income tax

refunds, restructuring expenses, field safety notification expenses, acquisition related expenses and associated tax effects from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a

more meaningful evaluation of current operating performance.

Resmed believesthat non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. Resmeduses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. Resmed believes this information

provides investors better insight when evaluating Resmed’s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement,

and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent

limitations because they do not include all the expenses that must be included under GAAP.

– More –

RESMED INC. AND SUBSIDIARIES

Revenue by Product and Region

(Unaudited; $ in

millions, except for per share amounts)

Three Months Ended

(A)

(A)

% Change

Constant

Currency (B)

U.S., Canada, and Latin America

Devices

$

$

6

%

Masks and other

Total U.S., Canada and Latin America

$

$

9

Combined Europe, Asia, and other markets

Devices

$

$

6

%

9

%

Masks and other

4

7

Total Combined Europe, Asia and other markets

$

$

5

8

Global revenue

Total Devices

$

$

6

%

7

%

Total Masks and other

Total Sleep and Breathing Health

$

$

8

9

Residential Care Software

9

Total

$

$

8

9

Nine Months Ended

(A)

(A)

%

Change

Constant

Currency (B)

U.S., Canada, and Latin America

Devices

$

$

9

%

Masks and other

Total U.S., Canada and Latin America

$

$

Combined Europe, Asia, and other markets

Devices

$

$

8

%

9

%

Masks and other

8

9

Total Combined Europe, Asia and other markets

$

$

8

9

Global revenue

Total Devices

$

$

9

%

9

%

Total Masks and other

Total Sleep and Breathing Health

$

$

Residential Care Software

Total

$

$

(A)

Totals and subtotals may not add due to rounding.

(B)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of

foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we

translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to

U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

– End –