ResMed reported a robust start to QQ1 2025 with USD 1.2245 billion in revenue, marking a 27.15% year-over-year rise and a modest 0.11% quarter-over-quarter gain. The gross margin stood at 58.57%, and the operating margin reached 31.63%, underscoring the company’s ability to sustain high profitability amid a challenging macro backdrop. Net income was USD 311.36 million and diluted EPS USD 2.11, supported by EBITDA of USD 442.71 million and a healthy cash-flow profile. Free cash flow totaled USD 305.93 million, while operating cash flow was USD 325.54 million, signaling strong cash-generation fundamentals. Cash at period-end was USD 426.36 million, with net debt of USD 423.88 million and a debt-to-capitalization footprint of ~14%. Capital allocation remained constructive, evidenced by a USD 77.89 million dividend and USD 50.01 million in share repurchases during the period, complemented by a solid balance sheet (total assets USD 7.22 billion; total stockholders’ equity USD 5.20 billion). These dynamics support a credible growth runway driven by core Sleep and Respiratory Care products and the expanding Software-as-a-Service (SaaS) ecosystem (AirView, myAir, Brightree, MatrixCare, HEALTHCAREfirst) that enhances patient outcomes management and recurring revenue streams. Management commentary (where available in the transcript) has historically reinforced focus on product innovation, value-based care integration, and expanding home-health footprints; however, the QQ1 2025 transcript data provided does not include verbatim management quotes for citation.
Key takeaway: ResMed’s QQ1 2025 results demonstrate sustained demand for both hardware and software platforms, strong profitability, and disciplined capital allocation. The combination of high gross margins and strong FCF supports ongoing investments in R&D and strategic acquisitions or partnerships to further scale the SaaS footprint, while the balance sheet remains capable of supporting dividends, buybacks, and potential deleveraging or strategic investments. Investors should monitor macro tailwinds in sleep-disordered breathing therapy, adoption of remote-monitoring platforms, competitive dynamics, and any currency or supply-chain risks that could influence near-term execution.