ResMed Inc delivering a solid QQ2 2025 performance with notable topline growth, margin expansion and robust free cash flow generation. Reported revenue of USD 1.282 billion, up approximately 10.3% YoY and 4.7% QoQ, supported by strength across the Sleep and Respiratory Care and Software as a Service (SaaS) segments. Gross profit reached USD 751.3 million with a gross margin of 58.6%, while operating income of USD 417.2 million produced an operating margin of 32.5%. Net income stood at USD 344.6 million, translating to a net margin of 26.9% and an EPS of USD 2.43 (basic) / USD 2.34 (diluted). The results reflect ongoing execution on product mix, pricing discipline, and the accelerating contribution from software-enabled solutions alongside core device sales.
The company generated robust cash flow, with net cash provided by operating activities of USD 308.6 million and free cash flow of USD 289.7 million. Liquidity remains solid with USD 521.9 million in cash and cash equivalents and a balanced capital structure (net debt USD 317.8 million; total debt USD 839.7 million). The balance sheet shows a strong current position (current ratio 3.33) and meaningful investment in goodwill and intangibles, consistent with a strategy to extend software-enabled care platforms and international reach.
Management commentary in QQ2 2025 underscored focus on scale and sustainability of the software ecosystem (Brightree, MatrixCare, HEALTHCAREfirst, MatrixCare, etc.) as a key driver of long-term value. While no explicit forward guidance is provided in the data, the quarterly trajectory indicates potential for continued margin resilience and free cash flow expansion if demand for sleep diagnostics, home-based care, and cloud-enabled services remains supportive. Investors should monitor currency headwinds, competitive dynamics in medtech, ongoing capital allocation (dividends vs. buybacks), and the pace of software adoption across geographies.