What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-10-31 compared with 2025-04-24 · 266 added, 436 removed, 876 unchanged (44% of the section changed)

3 unchanged sentences

(In US$ and in thousands, except share and per share data)

September 30,

2025 June 30,

1 unchanged sentence

Cash and cash equivalents $ 1,383,848 $ 1,209,450

Accounts receivable, net of allowances of $ 19,825 and $ 21,132 at March 31, 2025 and June 30, 2024, respectively

Accounts receivable, net of allowances of $ 24,611 and $ 22,424 at September 30, 2025 and June 30, 2025, respectively

907,271 939,492

19 unchanged sentences

Short-term debt, net (note 7)

259,899 9,900

Total current liabilities 1,255,502 1,019,120

12 unchanged sentences

Common stock, $ 0.004 par value, 350,000,000 shares authorized;

190,125,788 issued and 146,618,775 outstanding at March 31, 2025 and 189,565,112 issued and 146,901,045 outstanding at June 30, 2024

190,390,128 issued and 145,940,669 outstanding at September 30, 2025 and 190,311,097 issued and 146,385,350 outstanding at June 30, 2025

Additional paid-in capital 2,062,244 2,033,599

Retained earnings 6,342,276 6,081,490

Treasury stock, at cost, 43,507,013 shares at March 31, 2025 and 42,664,067 shares at June 30, 2024

Treasury stock, at cost, 44,448,959 shares at September 30, 2025 and 43,925,747 shares at June 30, 2025

( 2,223,302 ) ( 2,073,292 )

8 unchanged sentences

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Net revenue - Sleep and Breathing Health products

9 unchanged sentences

Amortization of acquired intangible assets - Sleep and Breathing Health products

1,182 1,054 3,622 4,294

Amortization of acquired intangible assets - Residential Care Software

6,262 6,758 19,126 20,682

Amortization of acquired intangible assets 7,821 7,670

29 unchanged sentences

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Net income $ 348,536 $ 311,355

15 unchanged sentences

190,311 $ 761 $ 2,033,599 ( 43,926 ) $ ( 2,073,292 ) $ 6,081,490 $ ( 74,699 ) $ 5,967,859

Adjustment to common stock amount

— 170 ( 170 ) — — — — —

Common stock issued on exercise of options

9 unchanged sentences

190,390 $ 762 $ 2,062,244 ( 44,449 ) $ ( 2,223,302 ) $ 6,342,276 $ ( 60,716 ) $ 6,121,264

Common stock issued on exercise of options 63 — 6,904 — — — — 6,904

Common stock issued on vesting of restricted stock units, net of shares withheld for tax 215 2 ( 16,736 ) — — — — ( 16,734 )

Common stock issued on employee stock purchase plan 109 — 19,973 — — — — 19,973

Treasury stock purchases — — — ( 307 ) ( 74,986 ) — — ( 74,986 )

Stock-based compensation costs — — 22,634 — — — — 22,634

Other comprehensive income (loss) — — — — — — ( 166,735 ) ( 166,735 )

Net income — — — — — 344,622 — 344,622

Dividends declared ($ 0.53 per common share)

— — — — — ( 77,695 ) — ( 77,695 )

Balance, December 31, 2024

190,049 $ 760 $ 1,957,359 ( 43,193 ) $ ( 1,898,258 ) $ 5,492,038 $ ( 298,890 ) $ 5,253,009

Common stock issued on exercise of options 74 1 9,022 — — — — 9,023

Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 ( 364 ) — — — — ( 364 )

Stock-based compensation costs — — 24,120 — — — — 24,120

Treasury stock purchases ( 314 ) ( 75,026 ) — — ( 75,026 )

Other comprehensive income (loss) — — — — — 48,034 48,034

Net income — — — — — 365,041 — 365,041

Dividends declared ($ 0.53 per common share)

— — — — — ( 77,704 ) — ( 77,704 )

Balance, March 31, 2025

190,126 $ 761 $ 1,990,137 ( 43,507 ) $ ( 1,973,284 ) $ 5,779,375 $ ( 250,856 ) $ 5,546,133

See the accompanying notes to the unaudited condensed consolidated financial statements.

10 unchanged sentences

189,565 $ 588 $ 1,896,604 ( 42,664 ) $ ( 1,773,267 ) $ 4,991,647 $ ( 251,529 ) $ 4,864,043

Common stock issued on exercise of options

17 — 983 — — — — 983

Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 — ( 225 ) — — — — ( 225 )

Stock-based compensation costs — — 18,510 — — — — 18,510

Other comprehensive income (loss) — — — — — — ( 47,620 ) ( 47,620 )

Net income — — — — — 219,422 — 219,422

Dividends declared ($ 0.48 per common share)

— — — — — ( 70,597 ) — ( 70,597 )

Balance, September 30, 2023

Adjustment to common stock

— 170 ( 170 ) — — — — —

Common stock issued on exercise of options

Common stock issued on vesting of restricted stock units, net of shares withheld for tax 163 1 ( 7,798 ) — — — — ( 7,797 )

Common stock issued on employee stock purchase plan 151 1 17,966 — — — — 17,967

Treasury stock purchases

92 — 8,383 — — — — 8,383

Stock-based compensation costs — — 19,840 — — — — 19,840

Other comprehensive income (loss) — — — — — — 111,796 111,796

Net income — — — — — 208,800 — 208,800

Dividends declared ($ 0.48 per common share)

— — — — — ( 70,678 ) — ( 70,678 )

Balance, December 31, 2023

189,259 $ 588 $ 1,822,918 ( 42,172 ) $ ( 1,673,263 ) $ 4,539,963 $ ( 208,352 ) $ 4,481,854

Common stock issued on exercise of options 54 — 4,679 — — — — 4,679

Common stock issued on vesting of restricted stock units, net of shares withheld for tax 5 — ( 389 ) — — — — ( 389 )

Common stock issued on employee stock purchase plan — — 213 — — — — 213

Treasury stock purchases

5 unchanged sentences

— — — — — ( 77,891 ) — ( 77,891 )

Balance, March 31, 2024

Balance, September 30, 2024

189,662 $ 758 $ 1,924,584 ( 42,886 ) $ ( 1,823,272 ) $ 5,225,111 $ ( 132,155 ) $ 5,195,026

4 unchanged sentences

(In US$ and in thousands)

Nine Months Ended

Three Months Ended

September 30,

Cash flows from operating activities:

6 unchanged sentences

(Gain) loss on equity investments (note 5) 6,190 680

Non-cash restructuring expenses (note 11)

Changes in operating assets and liabilities:

19 unchanged sentences

Payments of business combination contingent consideration — ( 855 )

Proceeds from borrowings, net of borrowing costs — 105,000

Repayment of borrowings — ( 30,000 )

11 unchanged sentences

Fair value of assets acquired, excluding cash $ ( 798 ) $ —

Liabilities assumed — ( 5,401 )

Goodwill on acquisition 1,320 —

Deferred payments

Fair value of contingent consideration

6 unchanged sentences

Organization and Basis of Presentation

(referred to herein as "Resmed", “we”, “us”, “our” or the “Company”) is a Delaware corporation formed in March 1994 as a holding company for the Resmed Group.

ResMed Inc., or Resmed, we, us, our or the Company, is a Delaware corporation formed in March 1994 as a holding company for the Resmed Group.

Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea.

Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States.

Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden.

We also operate a software as a service (“SaaS”) business in the United States and Germany that includes residential software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice.

During the nine months ended March 31, 2025, we renamed our operating segments from Sleep and Respiratory Care to Sleep and Breathing Health and from Software as a Service to Residential Care Software in alignment with our 2030 strategy.

There have been no changes in the preparation and disclosure of financial information by operating segment.

Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States, or the U.S.

Major distribution and sales sites are located in the U.S., Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden.

We also operate a software as a service, or SaaS, business in the U.S.

and Germany that includes residential software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S.

generally accepted accounting principles (“U.S.

GAAP”) for interim financial information and with the instructions to Form 10-Q and the rules of the U.S.

Securities and Exchange Commission (“SEC”).

Accordingly, they do not include all of the information and footnotes required by U.S.

GAAP for complete financial statements.

generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and the rules of the U.S.

Securities and Exchange Commission, or the SEC.

Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods.

The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2026.

The condensed consolidated financial statements for the three and nine months ended March 31, 2025 and March 31, 2024 are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K (our “Form 10-K”) for the year ended June 30, 2024.

The condensed consolidated financial statements for the three months ended September 30, 2025 and September 30, 2024 are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, or Form 10-K, for the year ended June 30, 2025.

Revenue Recognition

In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable.

We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Breathing Health”) and the supply of business management SaaS to out-of-hospital care providers (“Residential Care Software”).

In accordance with Accounting Standard Codification, or ASC, Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable.

We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry, or Sleep and Breathing Health, and the supply of business management SaaS to out-of-hospital care providers, or Residential Care Software.

Our Sleep and Breathing Health revenue relates primarily to the sale of our products that are therapy-based equipment.

7 unchanged sentences

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

U.S., Canada and Latin America

30 unchanged sentences

The following table summarizes our contract balances (in thousands):

September 30,

2025 June 30,

2 unchanged sentences

Accounts receivable, net $ 907,271 $ 939,492 Accounts receivable, net

Unbilled revenue, current $ 51,632 $ 38,183 Prepaid expenses and other current assets

Unbilled revenue, non-current $ 14,145 $ 18,450 Prepaid taxes and other non-current assets

Unbilled receivables, current

$ 51,148 $ 51,175 Prepaid expenses and other current assets

Unbilled receivables, non-current

$ 14,305 $ 14,581 Prepaid taxes and other non-current assets

Contract liabilities

31 unchanged sentences

When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer.

Operating lease revenue was $ 24.2 million and $ 72.8 million for the three and nine months ended March 31, 2025 and $ 24.1 million and $ 69.8 million for the three and nine months ended March 31, 2024.

Recently Issued Accounting Standards Not Yet Adopted

2023-07 Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No.

2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures," which expands segment disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets.

While the ASU implements further segment disclosure requirements, it does not change how an entity identifies its operating or reportable segments and it will have no impact on

Operating lease revenue was $ 25.8 million for the three months ended September 30, 2025 and $ 24.5 million for the three months ended September 30, 2024.

PART I – FINANCIAL INFORMATION Item 1

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements

our consolidated financial condition, results of operations or cash flows.

This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and subsequent interim periods.

Early adoption is permitted and the amendments must be applied retrospectively to all prior periods presented.

ASU 2023-09 Income Taxes (Topic 740):

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No.

2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures," which updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid.

This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2026, with early application permitted.

Cash and Cash Equivalents

Our cash and cash equivalents balance at September 30, 2025 and June 30, 2025 includes $ 406.7 million and $ 302.7 million, respectively, in institutional money market accounts held at highly rated institutions that require advance notice of up to 90 days for redemption, in accordance with the terms of the investment agreements.

Recently Issued Accounting Standards Not Yet Adopted

ASU 2025-06 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU No.

2025-06, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software," which modernizes the recognition and disclosure framework for internal-use software costs, removing all references to software development project stages and introducing a more judgment-based approach.

ASU 2025-06 is effective for us beginning in the first quarter of the fiscal year ending June 30, 2029.

Early adoption is permitted and the amendments may either be applied prospectively to financial statements issued for reporting periods after the effective date of the amendment, retrospectively to all prior periods presented, or using a modified transition approach.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.

ASU 2025-05 Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses for Accounts Receivable and Contract Assets," providing all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606.

ASU 2025-05 is effective for us beginning in the first quarter of the fiscal year ending June 30, 2027.

Early adoption is permitted and entities should apply the practical expedient, if elected, prospectively to financial statements issued for reporting periods after the effective date.

We are currently evaluating the impact of electing the practical expedient and the impact it may have on our consolidated financial statements and disclosures.

ASU 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

2 unchanged sentences

2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses," which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses, including amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption, as well as a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

Disaggregation of Income Statement Expenses," which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption, as well as a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

ASU 2024-03 also requires disclosure of the total amount of selling expenses and, in annual periods, an entity's definition of selling expenses.

2 unchanged sentences

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.

ASU 2023-09 Income Taxes (Topic 740):

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No.

2023-09, "Income Taxes (Topic 740):

This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2026, with early application permitted.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.

(2) Segment Information

We have quantitatively and qualitatively determined that we operate in two operating segments, which are the Sleep and Breathing Health segment and the Residential Care Software segment.

We evaluate the performance of our segments based on net revenues and income from operations.

PART I – FINANCIAL INFORMATION Item 1

AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

The identification of operating segments is based on our internal organizational structure and the information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker (CODM).

Our CODM evaluates segment performance and makes resource allocation decisions based on net revenue and net operating profit.

Impacts to segment net operating profit are referenced by our CODM when deciding to enter new markets, launch new products, reinvest profits, acquire or otherwise invest in other companies, and for monitoring actual results against forecasts.

The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the fiscal year ended June 30, 2025.

1 unchanged sentence

Certain items are maintained at the corporate level and are not allocated to the segments.

The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, net interest expense (income), gains and losses attributable to equity method investments, gains and losses on equity investments, and other, net.

The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, restructuring expenses, net interest expense (income), gains and losses attributable to equity method investments, gains and losses on equity investments, and other, net.

We neither discretely allocate assets to our operating segments, nor does our Chief Operating Decision Maker evaluate the operating segments using discrete asset information.

Effective in the third quarter of fiscal year 2024, we updated the method of attribution of certain costs that are principally managed at the segment level as part of our evaluation of segment operating performance.

As a result, certain costs relating to quality and regulatory assurance, commercial legal, operations, sales and marketing, customer service, information technology, and other administrative costs, which were previously included in Corporate costs within our reconciliation of segment operating profit to income before income taxes, are now reported in segment operating results.

The financial information presented herein reflects the impact of the preceding reporting change for all periods presented.

PART I – FINANCIAL INFORMATION Item 1

3 unchanged sentences

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Net revenue by segment

2 unchanged sentences

Total $ 1,335,582 $ 1,224,509

Depreciation and amortization by segment

Significant segment expenses

Cost of sales

Sleep and Breathing Health $ 453,185 $ 449,451

Residential Care Software 50,823 48,308

Amortization of acquired intangible assets and corporate assets 18,606 19,284 56,899 61,042

Total $ 504,008 $ 497,759

Selling, general, and administrative

Sleep and Breathing Health $ 134,734 $ 109,413

Residential Care Software

36,333 36,627

Total $ 171,067 $ 146,040

Research and development

Sleep and Breathing Health $ 50,903 $ 47,898

Residential Care Software 24,962 24,216

Total $ 75,865 $ 72,114

Net operating profit by segment

8 unchanged sentences

Restructuring expenses 15,810 —

Masks with magnets field safety notification expenses (2)

Astral field safety notification expenses (3)

Interest expense (income), net ( 793 ) 11,026 1,643 39,787

Interest (income) expense, net

( 8,793 ) 1,661

(Gain) Loss attributable to equity method investments

1 unchanged sentence

Loss on equity investments

5,647 ( 13,919 ) 7,765 ( 11,429 )

Other, net 3,836 2,437

Income before income taxes $ 446,793 $ 383,497

(1) During the three and nine months ended March 31, 2024, we recorded $ 2.0 million of operating lease right-of-use asset impairments within our Residential Care Software segment.

The impairments related to leases for office space and were recorded within net operating profit.

(2) The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets.

(3) The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.

Depreciation and amortization by segment

Sleep and Breathing Health $ 25,034 $ 23,019

Residential Care Software 2,617 2,368

Amortization of acquired intangible assets and corporate assets 20,047 19,343

Total $ 47,698 $ 44,730

PART I – FINANCIAL INFORMATION Item 1

AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(3) Supplemental Balance Sheet Information

Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands):

Inventories March 31,

Inventories September 30,

2025 June 30,

3 unchanged sentences

Total inventories $ 945,806 $ 927,711

PART I – FINANCIAL INFORMATION Item 1

AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

Prepaid expenses and other current assets March 31,

Prepaid expenses and other current assets September 30,

2025 June 30,

Prepaid taxes $ 151,292 $ 165,034

Income taxes receivable 31,691 —

Prepaid inventories 25,705 48,245

Unbilled receivables 51,148 51,175

Other prepaid expenses and current assets 160,666 164,498

Total prepaid expenses and other current assets $ 388,811 $ 428,952

Property, Plant and Equipment March 31,

Property, Plant and Equipment September 30,

2025 June 30,

2 unchanged sentences

Property, plant and equipment, net $ 563,629 $ 550,790

Other Intangible Assets March 31,

Other Intangible Assets September 30,

2025 June 30,

11 unchanged sentences

There are no expected residual values related to these intangible assets.

We did not record any intangible asset impairments during the three and nine months ended March 31, 2025.

During the nine months ended March 31, 2024, we impaired $ 18.6 million of developed/core product technology intangible assets, $ 14.5 million of customer relationship intangible assets, and $ 0.1 million of other intangibles associated with restructuring activities.

These non-cash charges were recorded within restructuring expenses in the condensed consolidated statements of operations.

Refer to Note 11, Restructuring Expenses, for the facts and circumstances leading to the impairments.

A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands):

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Sleep and Breathing Health

5 unchanged sentences

Balance at the end of the period $ 883,792 $ 2,160,331 $ 3,044,123

(5) Investments

We have equity investments in privately and publicly held companies that are unconsolidated entities.

The following discusses our investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method.

PART I – FINANCIAL INFORMATION Item 1

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements

(5) Investments

We have equity investments in privately and publicly held companies that are unconsolidated entities.

The following discusses our investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method.

Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets.

7 unchanged sentences

Equity investments by measurement category were as follows (in thousands):

Measurement category March 31,

Measurement category September 30,

2025 June 30,

7 unchanged sentences

The following tables show a reconciliation of the changes in our equity investments (in thousands):

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Non-marketable securities Marketable securities Equity method investments Total

1 unchanged sentence

Additions to investments 2,017 — 156 2,173

Proceeds from exits of investments ( 4,378 ) — — ( 4,378 )

Realized gains (losses) on non-marketable equity securities 389 — — 389

Impairment of investments ( 1,128 ) — — ( 1,128 )

4 unchanged sentences

Carrying value at the end of the period $ 64,527 $ 8,018 $ 77,599 $ 150,144

Nine Months Ended March 31, 2024

Three Months Ended September 30, 2024

Non-marketable securities Marketable securities Equity method investments Total

2 unchanged sentences

1,000 — 350 1,350

Observable price adjustments on non-marketable equity securities

2,315 — — 2,315

Realized gains on marketable and non-marketable equity securities 389 — — 389

Proceeds from exits of investments

( 4,128 ) — — ( 4,128 )

Impairment of investments

( 5,259 ) — — ( 5,259 )

Unrealized gains (losses) on marketable equity securities

— 4,190 — 4,190

Loss attributable to equity method investments — — ( 2,716 ) ( 2,716 )

Gain attributable to equity method investments

Foreign currency translation adjustments

1 unchanged sentence

Carrying value at the end of the period $ 65,784 $ 16,216 $ 69,287 $ 151,287

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of March 31, 2025 for the three and nine months ended March 31, 2025 were $ 5.6 million and $ 8.2 million, respectively.

Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of March 31, 2024 for the three and nine months ended March 31, 2024 were $ 13.9 million and $ 11.4 million, respectively.

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of September 30, 2025 for the three months ended September 30, 2025 were $ 6.2 million.

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of September 30, 2024 for the three months ended September 30, 2024 were $ 1.1 million.

(6) Income Taxes

In accordance with ASC Topic 740, "Income Taxes" ("ASC 740"), each interim reporting period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate.

In accordance with ASC Topic 740, "Income Taxes", or ASC 740, each interim reporting period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate.

An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period.

3 unchanged sentences

We are currently under audit by the Australian Taxation Office for the 2018 tax year.

If any ongoing tax audits are resolved in a manner not consistent with management’s expectations, the result could be a material adjustment to our provision for income taxes in a future period.

If any ongoing tax audits are resolved in a manner not consistent with management’s expectations, the result could be a material adjustment to our past or future taxable income, tax payable or deferred tax assets, and may require us to pay penalties and interest that could materially adversely affect our financial results.

PART I – FINANCIAL INFORMATION Item 1

2 unchanged sentences

Debt consisted of the following (in thousands):

September 30,

2025 June 30,

21 unchanged sentences

The outstanding principal amounts will bear interest at a rate equal to the Adjusted Term SOFR (as defined in the Revolving Credit Agreement) plus 0.75 % to 1.50 % (depending on the then-applicable leverage ratio) or the Base Rate (as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable) plus 0.0 % to 0.50 % (depending on the then-applicable leverage ratio).

At March 31, 2025, the interest rate that was being charged on the outstanding principal amounts was 5.1 %.

At September 30, 2025, the interest rate that was being charged on the outstanding principal amounts was 4.9 %.

An applicable commitment fee of 0.075 % to 0.150 % (depending on the then-applicable leverage ratio)

3 unchanged sentences

applies on the unused portion of the revolving credit facility.

As of March 31, 2025, we had $ 1,500.0 million available for draw down under the revolving credit facility.

As of September 30, 2025, we had $ 1,500.0 million available for draw down under the revolving credit facility.

We are required to disclose the fair value of financial instruments for which it is practicable to estimate the value, even though these instruments are not recognized at fair value in the consolidated balance sheets.

As the Revolving Credit and Term Credit Agreements’ interest rate is calculated as Adjusted Term SOFR plus the spreads described above, its carrying amount is equivalent to its fair value as at March 31, 2025 and June 30, 2024, which was $ 175.0 million and $ 210.0 million, respectively.

As the Revolving Credit and Term Credit Agreements’ interest rate is calculated as Adjusted Term SOFR plus the spreads described above, its carrying amount is equivalent to its fair value as at September 30, 2025 and June 30, 2025, which was $ 170.0 million for both periods.

On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $ 250.0 million principal amount of our 3.24 % senior notes due July 10, 2026, and $ 250.0 million principal amount of our 3.45 % senior notes due July 10, 2029 (collectively referred to as the “Senior Notes”).

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As of March 31, 2025 and June 30, 2024, the Senior Notes had a carrying amount of $ 500.0 million, excluding deferred borrowing costs, and an estimated fair value of $ 481.5 million and $ 463.0 million, respectively.

As of September 30, 2025 and June 30, 2025, the Senior Notes had a carrying amount of $ 500.0 million, excluding deferred borrowing costs, and an estimated fair value of $ 485.7 million and $ 479.5 million, respectively.

Quoted market prices in active markets for similar liabilities based inputs (Level 2) were used to estimate fair value.

At March 31, 2025, we were in compliance with our debt covenants and there was $ 675.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes.

At September 30, 2025, we were in compliance with our debt covenants and there was $ 670.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes.

(8) Earnings Per Share

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For purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding and the number of dilutive common stock equivalents such as stock options and restricted stock units.

The weighted average number of outstanding stock options and restricted stock units not included in the computation of diluted earnings per share were 141,360 and 578,065 for the three months ended March 31, 2025 and 2024, respectively, and 163,746 and 618,664 for the nine months ended March 31, 2025 and 2024, respectively, as the effect would have been anti-dilutive.

The weighted average number of outstanding stock options and restricted stock units not included in the computation of diluted earnings per share were 33,990 and 159,055 for the three months ended September 30, 2025 and 2024, respectively, as the effect would have been anti-dilutive.

PART I – FINANCIAL INFORMATION Item 1

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Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Net income $ 348,536 $ 311,355

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While the results of this litigation cannot be predicted with certainty, we believe that their final outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole.

On June 2, 2021, New York University ("NYU") filed a complaint for patent infringement in the United States District Court, District of Delaware against Resmed, case no.

On June 2, 2021, New York University, or NYU, filed a complaint for patent infringement in the United States District Court, District of Delaware against Resmed, case no.

1:21-cv-00813 (JPM).

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The motion to dismiss was granted in part and denied in part.

In December 2022, the Patent Trial and Appeal Board (“PTAB”) of the Patent and Trademark Office granted our request to review the validity of the claims in the patents asserted by NYU against us, determining that there is a reasonable likelihood that we will prevail.

In December 2022, the Patent Trial and Appeal Board, or PTAB, of the Patent and Trademark Office granted our request to review the validity of the claims in the patents asserted by NYU against us, determining that there is a reasonable likelihood that we will prevail.

In December 2023, the PTAB issued written decisions invalidating each of the challenged claims in each of the NYU patents asserted against us.

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On January 31, 2024, NYU appealed the PTAB’s rulings to the Court of Appeals for the Federal Circuit.

The appeals are not expected to be resolved before June 2025.

On January 27, 2021, the International Trade Commission ("ITC") instituted In Re Certain UMTS and LTE Cellular Communications Modules and Products Containing the Same, Investigation No.

337-TA-1240, by complainants Philips RS North America, LLC and Koninklijke Philips N.V.

(collectively “Philips”) against Quectel Wireless Solutions Co., Ltd;

Thales DIS AIS USA, LLC, Thales DIS AIS Deutschland GmbH;

Telit Wireless Solutions, Inc., Telit Communications PLC, CalAmp.

Corp., Xirgo Technologies, LLC, and Laird Connectivity, Inc.

(collectively “respondents”).

In the ITC investigation, Philips sought an order excluding communications modules, and products that contain them, from importation into the United States based on alleged infringement of 3G and 4G standard essential patents held by Philips.

On October 6-14, 2021, the administrative law judge held a hearing on the merits.

The administrative law judge issued an initial determination on April 1, 2022, finding no violation of any of the Philips' patents asserted in the ITC.

Philips sought review by the full ITC, however, the ITC affirmed the administrative law judge’s determination that there was no violation of asserted Philips' patents and thereafter terminated the ITC proceedings.

Philips did not appeal the ITC’s decision.

On December 17, 2020, Philips filed companion cases for patent infringement against the same defendants in the United States District Court for the District of Delaware, case nos.

1:20-cv-01707, 01708, 01709, 01710, 01711, and 01713 (CFC) seeking damages, an injunction, and a declaration from the court on the amount of a fair reasonable and non-discriminatory license rate for the standard essential patents it asserted against the communications module defendants.

The district court cases were stayed pending the resolution of the ITC proceedings but recommenced following the ITC termination.

PART I – FINANCIAL INFORMATION Item 1

AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

were not a party to the ITC investigation, nor were we a party to the district court cases, but we sell products that incorporate communications modules at issue in the district court case.

The first trial in the cases by Philips against the communications module defendants was originally set for August 12, 2024.

On August 5, 2024, the court issued an order vacating the trial date.

On August 19, 2024, Philips and the Thales parties filed a joint stipulation dismissing all claims and counterclaims against one another in the District of Delaware case.

On June 16, 2022, Cleveland Medical Devices Inc.

("Cleveland Medical") filed suit for patent infringement against Resmed in the United States District Court for the District of Delaware, case no.

On August 8, 2025, the Court of Appeals for the Federal Circuit affirmed the PTAB decisions invalidating each of the challenged claims in each of the NYU patents asserted against us.

On June 16, 2022, Cleveland Medical Devices Inc., or Cleveland Medical, filed suit for patent infringement against Resmed in the United States District Court for the District of Delaware, case no.

1:22-cv-00794.

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On June 21, 2024, the District Court of Delaware granted Resmed's motion to stay the case until the PTAB issues its final written decision in the Inter Partes Review proceeding.

The PTAB decision is expected by May 6, 2025.

On May 2, 2025, the PTAB issued its decision finding all claims of U.S.

10,076,269 unpatentable.

On August 27, 2025, Cleveland Medical appealed the PTAB's ruling on U.S.

10,076,269 to the United States Court of Appeals for the Federal Circuit.

The appeal is pending.

PART I – FINANCIAL INFORMATION Item 1

AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

On March 20, 2023, ResMed Corp.

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filed a request for ex parte reexamination of U.S.

11,375,921, and on November 15, 2024, the United States Patent and Trademark Office (the "Patent Office") ordered reexamination of the patent.

11,375,921, and on November 15, 2024, the United States Patent and Trademark Office, or the Patent Office, ordered reexamination of the patent.

On October 17, 2024, ResMed Corp.

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On March 7, 2025, the District Court of the Northern District of Ohio granted ResMed Corp.'s motion to stay the case pending the conclusion of all Patent Office proceedings related to the asserted patents.

It is expected that the PTAB will determine whether to examine the validity of the patents by the summer of 2025.

On June 10, 2025, the PTAB denied institution of Inter Partes Review directed to U.S.

On June 12, 2025, the PTAB instituted an Inter Partes Review proceeding against U.S.

On June 13, 2025, the PTAB instituted Inter Partes Review proceedings against U.S.

11,690,512 and 11,786,680.

On July 30, 2025, the PTAB instituted Inter Partes Review proceedings against U.S.

11,857,333 and 11,872,029.

On August 7, 2025, the PTAB stayed the ex parte reexaminations of U.S.

11,375,921 and 11,786,680 pending resolution of the instituted Inter Partes Reviews against those patents.

The PTAB’s final written decisions in the instituted Inter Partes Review proceedings are expected by July 2026.

On October 9, 2025, Fractus, S.A., or Fractus, filed suit for patent infringement against ResMed Corp.

and ResMed Inc.

in the United States District Court for the Southern District of California, case no.

3:25-cv-02680.

Fractus asserts that Resmed’s AirSense 10, AirSense 11, AirCurve 10 and AirCurve 11, as well as the Resmed Connectivity Module used on its Astral and Stellar Ventilators, infringe one or more of five Fractus patents relating to antenna technology, including U.S.

and 11,031,677.

The complaint seeks monetary damages, a permanent injunction, and attorneys’ fees.

Resmed has not yet filed its legal response to the complaint.

Based on currently available information, we are unable to make a reasonable estimate of loss or range of losses, if any, arising from matters that remain open.

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This is applied to receivables sold with recourse and is recorded in accrued expenses.

During the nine months ended March 31, 2025 and March 31, 2024, receivables sold with limited recourse were $ 155.9 million and $ 148.3 million, respectively.

As of March 31, 2025, the maximum exposure on outstanding receivables sold with recourse and the associated contingent provision were $ 35.5 million and $ 0.7 million, respectively.

During the three months ended September 30, 2025 and September 30, 2024, receivables sold with limited recourse were $ 46.1 million and $ 51.5 million, respectively.

As of September 30, 2025, the maximum exposure on outstanding receivables sold with recourse and the associated contingent provision were $ 25.5 million and $ 0.7 million, respectively.

As of June 30, 2025, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $ 34.1 million and $ 0.7 million, respectively.

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We do not require or are not required to pledge collateral for the derivative instruments.

PART I – FINANCIAL INFORMATION Item 1

AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

Fair Value and Net Investment Hedging

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The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net.

The notional value of outstanding foreign cross-currency swaps was $ 1,034.8 million and $ 1,026.2 million at March 31, 2025 and June 30, 2024, respectively.

The notional value of outstanding foreign cross-currency swaps was $ 1,124.7 million and $ 1,128.3 million at September 30, 2025 and June 30, 2025, respectively.

These contracts mature at various dates prior to December 31, 2029.

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All movements in the fair value of the foreign currency instruments are recorded within other, net in our condensed consolidated statements of income.

The notional value of the outstanding non-designated hedges was $ 1,463.4 million and $ 1,340.0 million at March 31, 2025 and June 30, 2024, respectively.

These contracts mature at various dates prior to March 16, 2026.

The notional value of the outstanding non-designated hedges was $ 1,852.8 million and $ 1,410.2 million at September 30, 2025 and June 30, 2025, respectively.

These contracts mature at various dates prior to June 15, 2026.

Fair Values of Derivative Instruments

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Notes to the Condensed Consolidated Financial Statements

September 30,

2025 June 30,

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Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Gain (loss) recognized in other comprehensive income (loss) $ ( 201 ) $ 429

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Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ 2,290 $ ( 28,736 )

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Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

Gain (loss) recognized on foreign currency hedging instruments in other, net $ ( 9,970 ) $ 42,783

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(11) Restructuring Expenses

We did not record any restructuring expenses during the three and nine months ended March 31, 2025.

During the nine months ended March 31, 2024, we recorded $ 64.2 million of restructuring related charges associated with an evaluation of our existing operations to increase operational efficiency, decrease costs and increase profitability.

During the three months ended September 30, 2025, we recorded $ 15.8 million of restructuring related charges for employee severance and one-time termination benefits associated with workforce planning activities.

Although the costs associated with the restructuring plan have not been allocated to our business segments' results in Note 2 - Segment Information, the restructuring plan impacted both our Sleep and Breathing Health and Residential Care Software segments.

Restructuring charges for the nine months ended March 31, 2024 are comprised of $ 28.6 million of employee severance and other one-time termination benefits, $ 33.2 million of intangible asset impairments associated with the wind down of certain business activities, and $ 2.4 million of other miscellaneous asset impairments.

These costs are separately presented as restructuring expenses within our condensed consolidated statement of operations.

We had $ 11.7 million remaining in our accruals at September 30, 2025.

We do not expect any remaining expense under existing one-time termination benefit arrangements to be material.

We did not record any restructuring expenses during the three months ended September 30, 2024.

PART I – FINANCIAL INFORMATION Item 2

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In addition, important factors to consider in evaluating such forward-looking statements include changes or developments in healthcare reform, social, macroeconomic, market, legal or regulatory circumstances, including the impact of public health crises;

changes in our business or growth strategy or an inability to execute our strategy due to changes in our industry or the economy generally, the emergence of new or growing competitors, disruptions and delays in the supply chain, the actions or omissions of third parties, including suppliers, customers, competitors and governmental authorities, geopolitical and economic conditions in foreign jurisdictions impacting our business, and various other factors.

If any one or more of these risks or uncertainties materialize, or underlying estimates or assumptions prove incorrect, actual results may vary significantly from those expressed in our forward-looking statements, and there can be no assurance that the forward-looking statements contained in this report will in fact occur.

Before deciding to purchase, hold or sell our common stock, you should carefully consider the risks described in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, in addition to the other cautionary statements and risks described elsewhere in this report and in our other filings with the Securities and Exchange Commission (“SEC”), including our subsequent reports on Forms 10-Q and 8-K.

Before deciding to purchase, hold or sell our common stock, you should carefully consider the risks described in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, in addition to the other cautionary statements and risks described elsewhere in this report and in our other filings with the Securities and Exchange Commission, or the SEC, including our subsequent reports on Forms 10-Q and 8-K.

These risks and uncertainties are not the only ones we face.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is an overview of our results of operations for the three and nine months ended March 31, 2025.

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to help the reader understand our results of operations and financial condition.

The following is an overview of our results of operations for the three months ended September 30, 2025.

Management’s discussion and analysis of financial condition and results of operations, or the MD&A, is intended to help the reader understand our results of operations and financial condition.

It is provided as a supplement to, and should be read in conjunction with, the condensed consolidated financial statements and notes included in this report.

We are a global leader in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (“SDB”), chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases.

We are a global leader in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing, or SDB, chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases.

SDB includes obstructive sleep apnea and other respiratory disorders that occur during sleep.

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Our growth has been fueled by geographic expansion, our research and product development efforts, acquisitions and an increasing awareness of SDB and respiratory conditions like chronic obstructive pulmonary disease as significant health concerns.

During fiscal year 2024, we announced a new operating model to accelerate long-term growth.

The new operating model introduces dedicated leadership in Product, Revenue, and Marketing to the global executive team.

This change aims to increase the velocity of product development and sharpen our customer and brand focus.

Ultimately, the goal is to accelerate profitable growth, while driving greater value and improved care throughout the outside hospital care continuum and the patient journey.

We are committed to ongoing investment in research and development and product enhancements.

During the three months ended March 31, 2025, we invested $83.9 million on research and development activities, which represents 6.5% of net revenues, with a continued focus on the development and commercialization of new, innovative products and solutions that improve patient outcomes, create efficiencies for our customers and help physicians and providers better manage chronic disease and lower healthcare costs.

During the three months ended September 30, 2025, we invested $87.3 million on research and development activities, which represents 6.5% of net revenues, with a continued focus on the development and commercialization of new, innovative products and solutions that improve patient outcomes, create efficiencies for our customers and help physicians and providers better manage chronic disease and lower healthcare costs.

For example, our newest device, AirSense 11, introduced new features such as a touch screen, algorithms for patients new to therapy, digital enhancements, and over-the-air update capabilities.

Through our acquisitions of Brightree in 2016, HEALTHCAREfirst and MatrixCare in 2018, and MEDIFOX DAN in 2022, our operations include residential care software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice.

Our operations include residential care software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice.

These platforms comprise our Residential Care Software business and, along with our cloud-based remote monitoring and therapy management system, and a robust product pipeline, these products should continue to provide us with a strong platform for future growth.

We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Breathing Health”) and the supply of business management software as a service to out-of-hospital health providers (“Residential Care Software”).

There have been no changes in the preparation and disclosure of financial information by operating segment.

Net revenue for the three months ended March 31, 2025 was $1.3 billion, an increase of 8% compared to the three months ended March 31, 2024.

Gross margin was 59.3% for the three months ended March 31, 2025 compared to 57.9% for the three months ended March 31, 2024.

Diluted earnings per share was $2.48 for the three months ended March 31, 2025, compared to diluted earnings per share of $2.04 for the three months ended March 31, 2024.

At March 31, 2025, our cash and cash equivalents totaled $932.7 million, our total assets were $7.6 billion and our stockholders’ equity was $5.5 billion.

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

Management’s Discussion and Analysis of Financial Condition and Results of Operations

We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry, or Sleep and Breathing Health, and the supply of business management software as a service to out-of-hospital health providers, or Residential Care Software.

Net revenue for the three months ended September 30, 2025 was $1.3 billion, an increase of 9% compared to the three months ended September 30, 2024.

Gross margin was 61.5% for the three months ended September 30, 2025 compared to 58.6% for the three months ended September 30, 2024.

Diluted earnings per share was $2.37 for the three months ended September 30, 2025, compared to diluted earnings per share of $2.11 for the three months ended September 30, 2024.

At September 30, 2025, our cash and cash equivalents totaled $1.4 billion, our total assets were $8.3 billion and our stockholders’ equity was $6.1 billion.

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.

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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 accounting principles generally accepted in the United States (“GAAP”).

Recent Developments

As disclosed in the risk factors of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, our business is subject to risks related to, among other factors, third-party coverage and reimbursement, as well as disruptions at the FDA and other government agencies.

There is uncertainty surrounding potential changes to the healthcare regulatory environment in the United States, and it is not possible to predict how these changes may be implemented, and the ultimate effects of such changes on our business.

In addition, the U.S.

federal government and other governments may reduce funding for health care or other programs or make changes that affect the number of persons eligible for certain programs, and the services provided to enrollees in such programs .

The levels of U.S.

federal government spending are difficult to predict and are subject to significant risk.

Considerable uncertainty exists regarding how future budget and program decisions will unfold, including the spending priorities of the new presidential administration and Congress, and what challenges budget reductions, if any, will present for our business and our industry generally.

For example, on January 20, 2025, President Trump established by executive order the U.S.

Department Of Government Efficiency Service Temporary Organization ("DOGE") to reform federal government processes and reduce expenditures, and on February 5, 2025, the Centers for Medicare & Medicaid Services, or CMS, announced that it is collaborating with DOGE to determine where there may be opportunities for more effective and efficient use of resources.

Additionally, the Trump administration took several Executive Actions, including the issuance of a number of Executive Orders, that imposed significant burdens on, or otherwise materially delayed, the FDA’s ability to engage in routine oversight activities, such as implementing statutes through rulemaking, issuance of guidance, and review and approval of marketing applications.

It is difficult to predict whether or how these orders will be rescinded and replaced under the current or future administrations and the consequential impact on our business.

PART I – FINANCIAL INFORMATION Item 2

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Results of Operations

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Net revenue for the three months ended March 31, 2025 increased to $1,291.7 million from $1,197.0 million for the three months ended March 31, 2024, an increase of $94.8 million or 8% (a 9% increase on a constant currency basis).

Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

Net revenue for the three months ended September 30, 2025 increased to $1,335.6 million from $1,224.5 million for the three months ended September 30, 2024, an increase of $111.1 million or 9% (an 8% increase on a constant currency basis).

The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):

Three Months Ended

March 31, % Change Constant Currency*

September 30, % Change Constant Currency*

U.S., Canada and Latin America

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Sleep and Breathing Health

Net revenue from our Sleep and Breathing Health business for the three months ended March 31, 2025 was $1,130.6 million, an increase of 8% compared to net revenue for the three months ended March 31, 2024.

Net revenue from our Sleep and Breathing Health business for the three months ended September 30, 2025 was $1,169.4 million, an increase of 10% compared to net revenue for the three months ended September 30, 2024.

Movements in international currencies against the U.S.

dollar negatively impacted net revenue by approximately $12.9 million for the three months ended March 31, 2025.

Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended March 31, 2025 increased by 9% compared to the three months ended March 31, 2024.

dollar positively impacted net revenue by approximately $15.6 million for the three months ended September 30, 2025.

Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended September 30, 2025 increased by 8% compared to the three months ended September 30, 2024.

The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.

Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the three months ended March 31, 2025 increased to $749.3 million from $687.5 million for the three months ended March 31, 2024, an increase of $61.8 million or 9%.

Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the three months ended September 30, 2025 increased to $774.8 million from $707.3 million for the three months ended September 30, 2024, an increase of $67.4 million or 10%.

The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.

Net revenue in combined Europe, Asia and other markets increased for the three months ended March 31, 2025 to $381.3 million from $361.6 million for the three months ended March 31, 2024, an increase of $19.7 million or 5% (an 8% increase on a constant currency basis).

Net revenue from our Sleep and Breathing Health business in combined Europe, Asia and other markets increased for the three months ended September 30, 2025 to $394.7 million from $360.4 million for the three months ended September 30, 2024, an increase of $34.3 million or 10% (a 6% increase on a constant currency basis).

The constant currency increase in device and mask sales in combined Europe, Asia and other was primarily attributable to increased demand and unit sales.

Net revenue from devices for the three months ended March 31, 2025 increased to $676.2 million from $638.2 million for the three months ended March 31, 2024, an increase of $38.0 million or 6%, including an increase of 6% in the U.S., Canada and Latin America and an increase of 6% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis).

Excluding the impact of foreign currency movements, device sales for the three months ended March 31, 2025 increased by 7%.

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Net revenue from masks and other for the three months ended March 31, 2025 increased to $454.4 million from $410.8 million for the three months ended March 31, 2024, an increase of $43.5 million or 11%, including an increase of 13% in the U.S., Canada and Latin America and an increase of 4% in combined Europe, Asia and other markets (a 7% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales for the three months ended March 31, 2025 increased by 12%.

Residential Care Software

Net revenue from our Residential Care Software business for the three months ended March 31, 2025 increased to $161.2 million from $148.0 million for the three months ended March 31, 2024, an increase of $13.2 million or 9% (a 10% increase on a constant currency basis).

The increase was predominantly due to continued growth in the Home Medical Equipment ("HME") and MEDIFOX DAN verticals within our Residential Care Software business.

Nine Months Ended March 31, 2025 Compared to the Nine Months Ended March 31, 2024

Net revenue for the nine months ended March 31, 2025 increased to $3,798.3 million from $3,462.1 million for the nine months ended March 31, 2024, an increase of $336.2 million or 10% (a 10% increase on a constant currency basis).

The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):

Nine Months Ended

March 31, % Change Constant Currency*

U.S., Canada and Latin America

Devices $ 1,221,643 $ 1,116,513 9 %

Masks and other 983,929 878,647 12

Total U.S., Canada and Latin America

$ 2,205,572 $ 1,995,160 11

Combined Europe, Asia and other markets

Devices $ 749,646 $ 692,411 8 % 9 %

Masks and other 368,687 342,344 8 9

Total Combined Europe, Asia and other markets

$ 1,118,333 $ 1,034,755 8 9

Global revenue

Total Devices $ 1,971,289 $ 1,808,924 9 % 9 %

Total Masks and other 1,352,616 1,220,991 11 11

Total Sleep and Breathing Health

$ 3,323,905 $ 3,029,915 10 10

Residential Care Software

474,429 432,187 10 10

Total $ 3,798,334 $ 3,462,102 10 10

* Constant currency numbers exclude the impact of movements in international currencies.

Sleep and Breathing Health

Net revenue from our Sleep and Breathing Health business for the nine months ended March 31, 2025 was $3,323.9 million, an increase of 10% compared to net revenue for the nine months ended March 31, 2024.

Movements in international currencies against the U.S.

dollar negatively impacted net revenue by approximately $11.1 million for the nine months ended March 31, 2025.

Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the nine months ended March 31, 2025 increased by 10% compared to the nine months ended March 31, 2024.

The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.

Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the nine months ended March 31, 2025 increased to $2,205.6 million from $1,995.2 million for the nine months ended March 31, 2024, an increase of $210.4 million or 11%.

The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales .

Net revenue from devices for the three months ended September 30, 2025 increased to $680.3 million from $625.8 million for the three months ended September 30, 2024, an increase of $54.5 million or 9%, including an increase of 8% in the U.S., Canada and Latin America and an increase of 11% in combined Europe, Asia and other markets (a 7% increase on a constant currency basis).

Excluding the impact of foreign currency movements, device sales for the three months ended September 30, 2025 increased by 7%.

PART I – FINANCIAL INFORMATION Item 2

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

Net revenue in combined Europe, Asia and other markets increased for the nine months ended March 31, 2025 to $1,118.3 million from $1,034.8 million for the nine months ended March 31, 2024, an increase of $83.6 million or 8% (a 9% increase on a constant currency basis).

The constant currency increase in device and mask sales in combined Europe, Asia and other markets was primarily attributable to increased demand and unit sales.

Net revenue from devices for the nine months ended March 31, 2025 increased to $1,971.3 million from $1,808.9 million for the nine months ended March 31, 2024, an increase of $162.4 million or 9%, including an increase of 9% in the U.S., Canada and Latin America and an increase of 8% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis).

Excluding the impact of foreign currency movements, device sales for the nine months ended March 31, 2025 increased by 9%.

Net revenue from masks and other for the nine months ended March 31, 2025 increased to $1,352.6 million from $1,221.0 million for the nine months ended March 31, 2024, an increase of $131.6 million or 11%, including an increase of 12% in the U.S., Canada and Latin America and an increase of 8% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales increased by 11%, compared to the nine months ended March 31, 2024.

Net revenue from masks and other for the three months ended September 30, 2025 increased to $489.1 million from $442.0 million for the three months ended September 30, 2024, an increase of $47.2 million or 11%, including an increase of 12% in the U.S., Canada and Latin America and an increase of 7% in combined Europe, Asia and other markets (a 4% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales for the three months ended September 30, 2025 increased by 10%.

Residential Care Software

Net revenue from our Residential Care Software business for the nine months ended March 31, 2025 increased to $474.4 million from $432.2 million for the nine months ended March 31, 2024, an increase of $42.2 million or 10% (a 10% increase on a constant currency basis).

The increase was predominantly due to continued growth in the HME and MEDIFOX DAN verticals within our Residential Care Software business.

Net revenue from our Residential Care Software business for the three months ended September 30, 2025 increased to $166.1 million from $156.8 million for the three months ended September 30, 2024, an increase of $9.4 million or 6% (a 5% increase on a constant currency basis).

The increase was predominantly due to strong growth in the MEDIFOX DAN business vertical, partially offset by weaker performance in our Senior Living and Long-Term Care business vertical.

Gross Profit and Gross Margin

Gross profit increased for the three months ended March 31, 2025 to $766.4 million from $692.8 million for the three months ended March 31, 2024, an increase of $73.6 million or 11%.

Gross margin, which is gross profit as a percentage of net revenue, for the three months ended March 31, 2025 was 59.3% compared to 57.9% for the three months ended March 31, 2024.

The increase in gross margin for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was due primarily to manufacturing and logistics efficiencies, component cost improvements and favorable product mix, partially offset by unfavorable foreign currency movements.

Gross profit increased for the nine months ended March 31, 2025 to $2,234.9 million from $1,939.8 million for the nine months ended March 31, 2024, an increase of $295.1 million or 15%.

Gross margin for the nine months ended March 31, 2025 was 58.8% compared to 56.0% for the nine months ended March 31, 2024.

The increase in gross margin for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 was due primarily to $14.3 million of non-recurring expenses associated with the field safety notifications for masks with magnets and Astral devices recognized during the nine months ended March 31, 2024 and manufacturing and logistics efficiencies, component cost improvements as well as a reduction in the amortization of acquired intangible assets during the nine months ended March 31, 2025.

The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets.

The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Gross profit increased for the three months ended September 30, 2025 to $820.8 million from $717.2 million for the three months ended September 30, 2024, an increase of $103.6 million or 14%.

Gross margin, which is gross profit as a percentage of net revenue, for the three months ended September 30, 2025 was 61.5% compared to 58.6% for the three months ended September 30, 2024.

The increase in gross margin for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due primarily to manufacturing and logistics efficiencies and component cost improvements.

Operating Expenses

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Three Months Ended

March 31, Change % Change Constant Currency

Selling, general, and administrative $ 245,302 $ 229,919 $ 15,383 7 % 8 %

as a % of net revenue 19.0 % 19.2 %

Research and development $ 83,944 $ 77,074 $ 6,870 9 % 11 %

as a % of net revenue 6.5 % 6.4 %

Amortization of acquired intangible assets $ 10,895 $ 11,204 $ (309) (3) % (1) %

Nine Months Ended

March 31, Change % Change Constant Currency

September 30, Change % Change Constant Currency

Selling, general, and administrative $ 259,194 $ 238,979 $ 20,215 8 % 7 %

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Selling, General, and Administrative Expenses

Selling, general, and administrative expenses increased for the three months ended March 31, 2025 to $245.3 million from $229.9 million for the three months ended March 31, 2024, an increase of $15.4 million or 7%.

Selling, general, and administrative expenses were favorably impacted by the movement of international currencies against the U.S.

dollar, which decreased our expenses by approximately $4.1 million, as reported in U.S.

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended March 31, 2025 increased by 8% compared to the three months ended March 31, 2024.

As a percentage of net revenue, selling, general, and administrative expenses were 19.0% for the three months ended March 31, 2025, compared to 19.2% for the three months ended March 31, 2024.

The constant currency increase in selling, general, and administrative expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to increases in employee-related costs and marketing expenses.

Selling, general, and administrative expenses increased for the nine months ended March 31, 2025 to $725.9 million from $674.9 million for the nine months ended March 31, 2024, an increase of $50.9 million or 8%.

Selling, general, and administrative expenses were favorably impacted by the movement of international currencies against the U.S.

dollar, which decreased our expenses by approximately $3.7 million, as reported in U.S.

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the nine months ended March 31, 2025 increased by 8% compared to the nine months ended March 31, 2024.

As a percentage of net revenue, selling, general, and administrative expenses were 19.1% for the nine months ended March 31, 2025, compared to 19.5% for the nine months ended March 31, 2024.

The constant currency increase in selling, general, and administrative expenses during the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 was primarily due to increases in employee-related costs.

Selling, general, and administrative expenses increased for the three months ended September 30, 2025 to $259.2 million from $239.0 million for the three months ended September 30, 2024, an increase of $20.2 million or 8%.

Selling, general, and administrative expenses were unfavorably impacted by the movement of international currencies against the U.S.

dollar, which increased our expenses by approximately $3.5 million, as reported in U.S.

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended September 30, 2025 increased by 7% compared to the three months ended September 30, 2024.

As a percentage of net revenue, selling, general, and administrative expenses were 19.4% for the three months ended September 30, 2025, compared to 19.5% for the three months ended September 30, 2024.

The constant currency increase in selling, general, and administrative expenses during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and employee-related costs, in addition to marketing and technology investments.

Research and Development Expenses

Research and development expenses increased for the three months ended March 31, 2025 to $83.9 million from $77.1 million for the three months ended March 31, 2024, an increase of $6.9 million, or 9%.

Research and development expenses were favorably impacted by the movement of international currencies against the U.S.

dollar, which decreased our expenses by approximately $1.7 million, as reported in U.S.

Excluding the impact of foreign currency movements, research and development expenses for the three months ended March 31, 2025 increased by 11% compared

Research and development expenses increased for the three months ended September 30, 2025 to $87.3 million from $79.5 million for the three months ended September 30, 2024, an increase of $7.8 million, or 10%.

Research and development expenses were minimally impacted by the movement of international currencies against the U.S.

As a percentage of net revenue, research and development expenses were 6.5% for the three months ended September 30, 2025 and 2024.

PART I – FINANCIAL INFORMATION Item 2

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

to the three months ended March 31, 2024.

As a percentage of net revenue, research and development expenses were 6.5% for the three months ended March 31, 2025 compared to 6.4% for the three months ended March 31, 2024.

The constant currency increase in research and development expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to increases in employee-related costs.

Research and development expenses increased for the nine months ended March 31, 2025 to $244.8 million from $226.7 million for the nine months ended March 31, 2024, an increase of $18.2 million, or 8%.

Research and development expenses were favorably impacted by the movement of international currencies against the U.S.

dollar, which decreased our expenses by approximately $1.3 million for the nine months ended March 31, 2025, as reported in U.S.

Excluding the impact of foreign currency movements, research and development expenses increased by 9% compared to the nine months ended March 31, 2024.

As a percentage of net revenue, research and development expenses were 6.4% for the nine months ended March 31, 2025, compared to 6.5% for the nine months ended March 31, 2024.

The increase in research and development expenses in constant currency terms was primarily due to increases in employee-related costs.

The increase in research and development expenses during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to increases in employee-related costs.

Amortization of Acquired Intangible Assets

Amortization of acquired intangible assets for the three months ended March 31, 2025 totaled $10.9 million compared to $11.2 million for the three months ended March 31, 2024.

Amortization of acquired intangible assets for the nine months ended March 31, 2025 totaled $33.3 million compared to $35.3 million for the nine months ended March 31, 2024.

The decrease in amortization of acquired intangible assets for the three and nine months ended March 31, 2025 compared to the three and nine months ended March 31, 2024 is due to certain acquired intangible assets reaching the end of their useful lives and becoming fully amortized.

Amortization of acquired intangible assets for the three months ended September 30, 2025 totaled $12.0 million compared to $11.4 million for the three months ended September 30, 2024.

Restructuring Expenses

We did not record any restructuring expenses during the three and nine months ended March 31, 2025.

During the nine months ended March 31, 2024, we recorded $64.2 million of restructuring related charges associated with an evaluation of our existing operations to increase operational efficiency, decrease costs and increase profitability.

Restructuring charges for the nine months ended March 31, 2024 were comprised of $28.6 million of employee severance and other one-time termination benefits, $33.2 million of intangible asset impairments associated with the wind down of certain business activities, and $2.4 million of other miscellaneous asset impairments.

During the three months ended September 30, 2025, we recorded $15.8 million of restructuring related charges for employee severance and one-time termination benefits associated with workforce planning activities.

We did not record any restructuring expenses during the three months ended September 30, 2024.

Total Other Income (Loss), Net

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Three Months Ended

2025 2024 Change

Interest (expense) income, net $ 793 $ (11,026) $ 11,819

Gain (loss) attributable to equity method investments 335 440 (105)

Gain (loss) on equity investments (5,647) 13,919 (19,566)

Other, net (4,056) (2,496) (1,560)

Total other income (loss), net $ (8,575) $ 837 $ (9,412)

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Nine Months Ended

September 30,

2025 2024 Change

Interest (expense) income, net $ (1,643) $ (39,787) $ 38,144

Gain (loss) attributable to equity method investments

Interest income (expense), net

$ 8,793 $ (1,661) $ 10,454

Gain (loss) attributable to equity method investments 1,489 963 526

Gain (loss) on equity investments (6,190) (680) (5,510)

(7,765) 11,429 (19,194)

Other, net (3,836) (2,437) (1,399)

Total other income (loss), net $ 256 $ (3,815) $ 4,071

Total other income (loss), net for the three months ended March 31, 2025 was a loss of $8.6 million compared to income of $0.8 million for the three months ended March 31, 2024.

We recorded a loss associated with our equity investments of $5.6 million for the three months ended March 31, 2025 compared to a gain of $13.9 million for the three months ended March 31, 2024.

Losses attributable to equity investments were partially offset by interest income, net of $0.8 million for the three months ended March 31, 2025 compared to interest expense, net of $11.0 million for the three months ended March 31, 2024 due to lower debt levels following repayments on our revolving credit facility.

Total other income (loss), net for the nine months ended March 31, 2025 was a loss of $11.3 million compared to a loss of $31.6 million for the nine months ended March 31, 2024.

Interest expense, net, decreased to $1.6 million for the nine months ended March 31, 2025 compared to $39.8 million for the nine months ended March 31, 2024 due to lower debt levels following repayments on our revolving credit facility.

In addition, we recorded a gain associated with our equity method investments of $2.4 million for the nine months ended March 31, 2025 compared to a loss of $2.7 million for the nine months ended March 31, 2024.

Decreases in interest expense, net, and gains attributable to equity method investments were partially offset by a loss associated with our equity investments of $7.8 million for the nine months ended March 31, 2025 compared to a gain of 11.4 million for the nine months ended March 31, 2024.

Our effective income tax rate for the three and nine months ended March 31, 2025 was 12.6% and 16.3%, respectively, as compared to 20.0% and 19.7% for the three and nine months ended March 31, 2024, respectively.

Our effective rate of 12.6% for the three months ended March 31, 2025 differs from the statutory rate of 21.0% primarily due to interest and penalties refunded from the IRS due to amended returns, foreign operations, and research credits.

The decrease in our effective tax rate for the three and nine months ended March 31, 2025 was primarily due to interest and penalties refunded from the IRS due to amended returns, overall windfall tax benefits related to the vesting or settlement of employee share-based awards and a shift in our global mix of earnings.

As of March 31, 2025, we had an income tax receivable of $31.7 million, which was recognized in prepaid expenses and other current assets.

It is expected to be received by March 31, 2026.

Total other income (loss), net for the three months ended September 30, 2025 was income of $0.3 million compared to a loss of $3.8 million for the three months ended September 30, 2024.

We recorded interest income, net of $8.8 million for the three months ended September 30, 2025 compared to interest expense, net of $1.7 million for the three months ended September 30, 2024 due to lower debt levels following repayments on our revolving credit facility.

Interest income, net was partially offset by a loss associated with our equity investments of $6.2 million for the three months ended September 30, 2025 compared to a loss of $0.7 million for the three months ended September 30, 2024.

Our effective income tax rate for the three months ended September 30, 2025 was 22.0%, as compared to 18.8% for the three months ended September 30, 2024.

Our effective rate of 22.0% for the three months ended September 30, 2025 differs from the statutory rate of 21.0% primarily due to foreign operations and research credits.

The increase in our effective tax rate for the three months ended September 30, 2025 was primarily due to the impact of global minimum taxes implemented in accordance with Pillar Two and a shift in our global mix of earnings.

Our Singapore operations operate under certain tax holidays and tax incentive programs that will expire in whole or in part at various dates through June 30, 2030.

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federal tax, if repatriated.

The Organization of Economic Co-operation and Development (OECD) and the G20 Inclusive Framework on Base Erosion and Profit Shifting (the Inclusive Framework) has put forth two proposals—Pillar One and Pillar Two—that (i) revise the existing profit allocation and nexus rules and (ii) ensure a minimal level of taxation, respectively.

The Organization of Economic Co-operation and Development, or the OECD, and the G20 Inclusive Framework on Base Erosion and Profit Shifting, or the Inclusive Framework, has put forth two proposals—Pillar One and Pillar Two—that (i) revise the existing profit allocation and nexus rules and (ii) ensure a minimal level of taxation, respectively.

Effective in our fiscal year beginning July 1, 2024, various jurisdictions in which we operate began implementing the global minimum tax prescribed under Pillar Two.

These changes in legislation are not expected to have a material impact on our income tax expense and cash flows for the fiscal year ending June 30, 2025.

We are continuing to evaluate the potential impacts of the Inclusive Framework for the current fiscal year and future periods.

Net Income and Earnings per Share

As a result of the factors above, our net income for the three months ended March 31, 2025 was $365.0 million compared to $300.5 million for the three months ended March 31, 2024, an increase of $64.5 million, or 21%.

Our net income for the

Pillar Two legislation in effect as of September 30, 2025 has been incorporated into our condensed consolidated financial statements.

On June 28, 2025, the G7 issued a joint statement in which its members agreed that Pillar Two will operate alongside the U.S.

system of tax and proposed that U.S.-parented multinational groups would not be subject to the income inclusion rules and undertaxed profits rules of Pillar Two.

The remaining OECD countries are likely to consider changes to existing and

PART I – FINANCIAL INFORMATION Item 2

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

nine months ended March 31, 2025 was $1,021.0 million compared to $728.7 million for the nine months ended March 31, 2024, an increase of $292.3 million, or 40%.

Our diluted earnings per share for the three months ended March 31, 2025 was $2.48 per diluted share compared to $2.04 for the three months ended March 31, 2024, an increase of $0.44, or 22%.

Our diluted earnings per share for the nine months ended March 31, 2025 was $6.93 compared to $4.94 for the nine months ended March 31, 2024, an increase of $1.99, or 40%.

proposed tax laws to align with the recommendations and guidelines proposed by G7.

We are continuing to evaluate the potential impacts of the Inclusive Framework for future periods.

Net Income and Earnings per Share

As a result of the factors above, our net income for the three months ended September 30, 2025 was $348.5 million compared to $311.4 million for the three months ended September 30, 2024, an increase of $37.2 million, or 12%.

Our diluted earnings per share for the three months ended September 30, 2025 was $2.37 per diluted share compared to $2.11 for the three months ended September 30, 2024, an increase of $0.26, or 12%.

Summary of Non-GAAP Financial Measures

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Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies.

The measure “non-GAAP cost of sales” is equal to GAAP cost of sales less amortization of acquired intangible assets relating to cost of sales and field safety notification expenses.

The measure “non-GAAP cost of sales” is equal to GAAP cost of sales less amortization of acquired intangible assets relating to cost of sales.

The measure “non-GAAP gross profit” is the difference between GAAP net revenue and non-GAAP cost of sales, and “non-GAAP gross margin” is the ratio of non-GAAP gross profit to GAAP net revenue.

1 unchanged sentence

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

GAAP Net revenue $ 1,335,582 $ 1,224,509

2 unchanged sentences

(7,821) (7,670)

Masks with magnets field safety notification expenses

— — — (6,351)

Astral field safety notification expenses

— — — (7,911)

Non-GAAP cost of sales $ 506,941 $ 499,620

6 unchanged sentences

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The measure “non-GAAP income from operations” is equal to GAAP income from operations once adjusted for amortization of acquired intangibles, restructuring expenses, field safety notification expenses, and acquisition-related expenses.

The measure “non-GAAP income from operations” is equal to GAAP income from operations once adjusted for amortization of acquired intangibles and restructuring expenses.

Non-GAAP income from operations is reconciled with GAAP income from operations below (in thousands):

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

GAAP income from operations $ 446,537 $ 387,312

2 unchanged sentences

Restructuring expenses 15,810 —

Masks with magnets field safety notification expenses — — — 6,351

Astral field safety notification expenses — — — 7,911

Acquisition-related expenses — — — 483

Non-GAAP income from operations $ 482,124 $ 406,386

The measure “non-GAAP net income” is equal to GAAP net income once adjusted for amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, interest and penalties on tax refunds and associated tax effects.

The measure “non-GAAP net income” is equal to GAAP net income once adjusted for amortization of acquired intangibles, restructuring expenses and associated tax effects.

The measure “non-GAAP diluted earnings per share” is the ratio of non-GAAP net income to diluted shares outstanding.

1 unchanged sentence

Three Months Ended

March 31, Nine Months Ended

2025 2024 2025 2024

September 30,

GAAP net income $ 348,536 $ 311,355

2 unchanged sentences

Restructuring expenses 15,810 —

Masks with magnets field safety notification expenses — — — 6,351

Astral field safety notification expenses — — — 7,911

Acquisition related expenses — — — 483

Income tax effect of interest and penalties on income tax refunds (29,976) — (29,976) —

Income tax effect on non-GAAP adjustments (9,248) (5,071)

10 unchanged sentences

If we are required to access the debt market, we believe that we will be able to secure reasonable borrowing rates.

As part of our liquidity strategy, we will continue to monitor our current level of earnings and cash flow generation as well as our ability to access the market considering those earning levels.

As of September 30, 2025 and June 30, 2025, we had cash and cash equivalents of $1,383.8 million and $1,209.5 million, respectively.

Our cash and cash equivalents held within the U.S.

at September 30, 2025 and June 30, 2025 were $696.7 million and $555.0 million, respectively.

Our remaining cash and cash equivalent balances at September 30, 2025 and June 30, 2025, were $687.1 million and $654.5 million, respectively.

Our cash and cash equivalent balances are held at highly rated financial institutions .

PART I – FINANCIAL INFORMATION Item 2

1 unchanged sentence

Management’s Discussion and Analysis of Financial Condition and Results of Operations

our liquidity strategy, we will continue to monitor our current level of earnings and cash flow generation as well as our ability to access the market considering those earning levels.

As of March 31, 2025 and June 30, 2024, we had cash and cash equivalents of $932.7 million and $238.4 million, respectively.

Our cash and cash equivalents held within the United States at March 31, 2025 and June 30, 2024 were $409.3 million and $51.2 million, respectively.

Our remaining cash and cash equivalent balances at March 31, 2025 and June 30, 2024, were $523.4 million and $187.2 million, respectively.

Our cash and cash equivalent balances are held at highly rated financial institutions .

As of March 31, 2025, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $2,432.7 million in cash and available liquidity under the revolving credit facility.

As of September 30, 2025, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $2,883.8 million in cash and available liquidity under the revolving credit facility.

As a result of the U.S.

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Revolving Credit Agreement, Term Credit Agreement and Senior Notes

On June 29, 2022, we entered into a second amended and restated credit agreement (as amended from time to time, the “Revolving Credit Agreement”).

On June 29, 2022, we entered into a second amended and restated credit agreement, or as amended from time to time, the Revolving Credit Agreement.

The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000.0 million or 1.00 times the EBITDA for the trailing twelve-month measurement period.

Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement (the “Term Credit Agreement”).

Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement, or the Term Credit Agreement.

The Term Credit Agreement, among other things, provides ResMed Pty Limited a senior unsecured term credit facility of $200.0 million.

The Revolving Credit Agreement and Term Credit Agreement each terminate on June 29, 2027, when all unpaid principal and interest under the loans must be repaid.

As of March 31, 2025, we had $1,500.0 million available for draw down under the revolving credit facility.

On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250.0 million principal amount of our 3.24% senior notes due July 10, 2026, and $250.0 million principal amount of our 3.45% senior notes due July 10, 2029 (“Senior Notes”).

On March 31, 2025, there was a total of $675.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes and we were in compliance with our debt covenants.

As of September 30, 2025, we had $1,500.0 million available for draw down under the revolving credit facility.

On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250.0 million principal amount of our 3.24% senior notes due July 10, 2026, and $250.0 million principal amount of our 3.45% senior notes due July 10, 2029, or Senior Notes.

On September 30, 2025, there was a total of $670.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes and we were in compliance with our debt covenants.

We expect to satisfy all of our liquidity and long-term debt requirements through a combination of cash on hand, cash generated from operations and debt facilities.

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The following table summarizes our cash flow activity (in thousands):

Nine Months Ended

Three Months Ended

September 30,

Net cash provided by (used in) operating activities

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Operating Activities

Cash provided by operating activities was $1,212.8 million for the nine months ended March 31, 2025, compared to cash provided of $961.1 million for the nine months ended March 31, 2024.

The $251.7 million increase in cash flow from operations was primarily due to increased net income, partially offset by higher working capital during the nine months

Cash provided by operating activities was $457.3 million for the three months ended September 30, 2025, compared to cash provided of $325.5 million for the three months ended September 30, 2024.

The $131.8 million increase in cash flow from operations was primarily due to increased net income and improvements in working capital during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Investing Activities

Cash used in investing activities was $52.6 million for the three months ended September 30, 2025, compared to cash provided of $2.1 million for the three months ended September 30, 2024.

The $54.7 million increase in cash flow used in investing activities was primarily due to increased purchases of property, plant and equipment during the three months ended September 30, 2025 in addition to net payments from maturity of foreign currency contracts during the three months

PART I – FINANCIAL INFORMATION Item 2

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

ended March 31, 2025 compared to the nine months ended March 31, 2024.

During the three and nine months ended March 31, 2025, our operating cash flows included $107.0 million of income tax refunds and associated interest and penalties.

Investing Activities

Cash used in investing activities was $66.3 million for the nine months ended March 31, 2025, compared to cash used of $223.3 million for the nine months ended March 31, 2024.

The $156.9 million decrease in cash flow used in investing activities was primarily due to cash used to acquire Somnow are during the nine months ended March 31, 2024 in addition to net proceeds from maturity of foreign currency contracts during the nine months ended March 31, 2025 compared to net payments from maturity of foreign currency contracts during the nine months ended March 31, 2024.

ended September 30, 2025 compared to net proceeds from maturity of foreign currency contracts during the three months ended September 30, 2024.

Financing Activities

Cash used in financing activities was $442.4 million for the nine months ended March 31, 2025, compared to cash used of $726.0 million for the nine months ended March 31, 2024.

We repurchased $200.0 million of treasury stock during the nine months ended March 31, 2025 compared to repurchases of $100.0 million during the nine months ended March 31, 2024.

Cash outflows for treasury stock repurchases were offset by lower net repayments under our Revolving Credit Agreement of $35.0 million for the nine months ended March 31, 2025 compared to net repayments of $430.0 million for the nine months ended March 31, 2024.

During the three months ended March 31, 2025, we paid cash dividends of $0.53 per common share totaling $77.7 million.

On April 23, 2025, our board of directors declared a cash dividend of $0.53 per common share, to be paid on June 12, 2025, to shareholders of record as of the close of business on May 8, 2025.

Cash used in financing activities was $230.3 million for the three months ended September 30, 2025, compared to cash used of $150.8 million for the three months ended September 30, 2024.

We repurchased $150.0 million of treasury stock during the three months ended September 30, 2025 compared to repurchases of $50.0 million during the three months ended September 30, 2024.

Cash outflows for treasury stock repurchases were partially offset by no net repayments under our Revolving Credit Agreement for the three months ended September 30, 2025, compared to net repayments of $30.0 million for the three months ended September 30, 2024.

During the three months ended September 30, 2025, we paid cash dividends of $0.60 per common share totaling $87.8 million.

On October 30, 2025, our board of directors declared a cash dividend of $0.60 per common share, to be paid on December 18, 2025, to shareholders of record as of the close of business on November 13, 2025.

Future dividends are subject to approval by our board of directors.

On February 21, 2014, our board of directors approved our current share repurchase program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock.

Since approval of the share repurchase program in 2014 through March 31, 2025, we have repurchased a total of 8.8 million shares under this repurchase program for an aggregate of $762.7 million.

During the nine months ended March 31, 2025, we repurchased 842,946 shares at a cost of $200.0 million.

Since approval of the share repurchase program in 2014 through September 30, 2025, we have repurchased a total of 9.7 million shares under this repurchase program for an aggregate of $1.0 billion.

During the three months ended September 30, 2025, we repurchased 523,212 shares at a cost of $150.0 million.

Shares that are repurchased are classified as treasury stock pending future use and reduce the number of shares of common stock outstanding used in calculating earnings (loss) per share.

The share repurchase program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors.

At March 31, 2025, 11.2 million additional shares remain available for us to repurchase under the approved share repurchase program.

At September 30, 2025, 10.3 million additional shares remain available for us to repurchase under the approved share repurchase program.

Critical Accounting Principles and Estimates

The preparation of financial statements in conformity with U.S.

GAAP requires us to make estimates and judgments that affect our reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities.

The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect our reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities.

On an ongoing basis we evaluate our estimates, including those related to allowance for doubtful accounts, inventory reserves, warranty obligations, goodwill, potentially impaired assets, intangible assets, income taxes and contingencies.

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See note 1 to the unaudited condensed consolidated financial statements for a description of recently issued accounting pronouncements, including the expected dates of adoption and estimated effects on our results of operations, financial position and cash flows.

Contractual Obligations and Commitments

There have been no material changes outside the ordinary course of business in our outstanding contractual obligations from those disclosed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

PART I – FINANCIAL INFORMATION Item 2

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

Contractual Obligations and Commitments

Other than for purchase obligations, there have been no material changes outside the ordinary course of business in our outstanding contractual obligations from those disclosed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

Details of our purchase obligations as of March 31, 2025 were as follows (in thousands):

Payments Due by March 31,

Total 2026 2027 2028 2029 2030 Thereafter

Purchase obligations $ 941,181 $ 888,563 $ 42,391 $ 4,422 $ 2,318 $ 2,103 $ 1,384

Off-Balance Sheet Arrangements

As of March 31, 2025, we are not involved in any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated by the SEC.

As of September 30, 2025, we are not involved in any significant off-balance sheet arrangements, as described in Instruction 8 to Item 303(b) of Regulation S-K promulgated by the SEC.

PART I – FINANCIAL INFORMATION Item 3

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The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net.

The notional value of outstanding foreign cross-currency swaps was $1,034.8 million and $1,026.2 million at March 31, 2025 and June 30, 2024, respectively.

The notional value of outstanding foreign cross-currency swaps was $1,124.7 million and $1,128.3 million at September 30, 2025 and June 30, 2025, respectively.

These contracts mature at various dates prior to December 31, 2029.

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All movements in the fair value of the foreign currency instruments are recorded within other, net in our condensed consolidated statements of operations.

The notional value of the outstanding non-designated hedges was $1,463.4 million and $1,340.0 million at March 31, 2025 and June 30, 2024, respectively.

These contracts mature at various dates prior to March 16, 2026.

The notional value of the outstanding non-designated hedges was $1,852.8 million and $1,410.2 million at September 30, 2025 and June 30, 2025, respectively.

These contracts mature at various dates prior to June 15, 2026.

PART I – FINANCIAL INFORMATION Item 3

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The table below provides information (in U.S.

dollars) on our foreign currency denominated operating assets and liabilities and after considering our foreign currency hedging activities as of March 31, 2025 (in thousands):

dollars) on our foreign currency denominated operating assets and liabilities and after considering our foreign currency hedging activities as of September 30, 2025 (in thousands):

(EUR) Canadian

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dollar equivalents.

The table summarizes information on instruments and transactions that are sensitive to foreign currency exchange rates, including foreign currency call options, collars, forward contracts and cross-currency swaps held at March 31, 2025.

The table presents the notional amounts and weighted average exchange rates by contractual maturity dates for our foreign currency derivative financial instruments, including the forward contracts used to hedge our foreign currency denominated assets and liabilities.

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Fair Value Assets / (Liabilities)

Total March 31,

Total September 30,

2025 June 30,

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We are exposed to risk associated with changes in interest rates affecting the return on our cash and cash equivalents and debt.

At March 31, 2025, we held cash and cash equivalents of $932.7 million, principally comprised of bank term deposits and at-call accounts, and are invested at both short-term fixed interest rates and variable interest rates.

At March 31, 2025, there was $175.0 million outstanding under the Revolving Credit Agreement and Term Credit Agreement, which are subject to variable interest rates.

A hypothetical 10% change in interest rates during the three months ended March 31, 2025, would not have had a material impact on pretax income.

At September 30, 2025, we held cash and cash equivalents of $1,383.8 million, principally comprised of bank term deposits and at-call accounts, and are invested at both short-term fixed interest rates and variable interest rates.

At September 30, 2025, there was $170.0 million outstanding under the Revolving Credit Agreement and Term Credit Agreement, which are subject to variable interest rates.

A hypothetical 10% change in interest rates during the three months ended September 30, 2025, would not have had a material impact on pretax income.

We have no interest rate hedging agreements.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements