ResMed Inc (RSMDF) Q4 2024 Earnings Report

ResMed delivered a robust fourth quarter of fiscal 2024, reporting revenue of $1.223 billion, up 9% year over year and 2.2% quarter over quarter. The company achieved a solid gross margin of 57.6% and an operating margin of 31.2%, supported by a diversified earnings mix across two core segments: Sleep and Respiratory Care and Software as a Service (SaaS). Net income reached $292.2 million with basic and diluted EPS of $1.99 and $1.98, respectively, reflecting disciplined cost control and favorable mix. Free cash flow stood at $413.8 million, underpinning a strong balance sheet with meaningful liquidity and a prudent capital allocation strategy that included debt repayment and selective share repurchases. Management commentary underscores ongoing emphasis on expanding software-enabled solutions (Brightree, MatrixCare, HEALTHCAREfirst, and related platforms) and expanding international reach, which should support sustainable margin resilience and cash generation as adoption of home-based and remote monitoring solutions accelerates in sleep therapy and respiratory care.

Looking ahead, ResMed is positioned to benefit from continued growth in the sleep apnea market, ongoing expansion of its SaaS ecosystem, and a disciplined approach to cost management. However, investors should monitor industry reimbursement dynamics, currency headwinds, and competitive pressures in a rapidly evolving medical device landscape. Overall, the QQ4 results reinforce a durable financial profile characterized by high gross margins, strong cash conversion, and a scalable software-enabled services footprint that can support medium-term growth and deleveraging opportunities.