ResMed reported a solid QQ3 2025 quarter, with revenue of USD 1.2917 billion, representing a 7.92% year-over-year increase and a 0.75% quarter-over-quarter uptick. The company posted a gross margin of 59.33% and an operating margin just under 33%, delivering operating income of USD 426.3 million and net income of USD 365.0 million (EPS USD 2.49). Free cash flow was USD 554.9 million, with operating cash flow of USD 578.7 million and capital expenditures of USD 23.8 million. The balance sheet remains healthy, highlighted by a cash position of USD 932.7 million and a net debt position of USD -93.9 million, underscoring strong liquidity and deleveraging capacity. The company’s cash generation supports ongoing investment in R&D and software-enabled growth initiatives, while delivering meaningful returns to shareholders through dividends and buybacks.
Strategically, ResMed continues to monetize its software platforms (AirView, myAir, Brightree, MatrixCare, HEALTHCAREfirst) alongside its hardware portfolio. This dual engine supports recurring revenue, higher-margin software contributions, and a favorable mix that can drive incremental margin expansion over time. While the results reflect resilience in the core Sleep and Respiratory Care and connected care segments, execution in software monetization and international expansion remains a key equity driver.
Near-term outlook remains constructive, aided by solid cash flow generation, a disciplined approach to cost control, and a favorable balance sheet. The absence of explicit quarterly forward guidance in the provided data means investors should monitor management commentary for any updates on expected hardware/SaaS mix shifts, payer dynamics, and macro headwinds. Overall, the QQ3 print reinforces a constructive long-term investment thesis anchored in software-enabled growth and robust cash generation.