RESMED INC 10-Q

Item 1. Financial Statements RESMED INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In US$ and in thousands, except share and per share data) December 31, 2025 June 30, 2025 Assets Current assets: Cash and cash equivalents $ 1,417,069 $ 1,209,450 Accounts receivable, net of allowances of $ 29,209 and $ 22,424 at December 31, 2025 and June 30, 2025, respectively 985,634 939,492 Inventories (note 3) 922,045 927,711 Prepaid expenses and other current assets (note 3) 494,053 428,952 Total current assets 3,818,801 3,505,605 Non-current assets: Property, plant and equipment, net (note 3) 564,254 550,790 Operating lease right-of-use assets 165,916 167,497 Goodwill (note 4) 3,044,370 3,046,680 Other intangible assets, net (note 3) 430,240 464,861 Deferred income taxes 285,907 253,119 Prepaid taxes and other non-current assets 193,882 185,839 Total non-current assets 4,684,569 4,668,786 Total assets $ 8,503,370 $ 8,174,391 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 250,406 $ 278,157 Accrued expenses 391,500 402,253 Operating lease liabilities, current 29,759 30,506 Deferred revenue 176,050 166,030 Income taxes payable 140,493 132,274 Short-term debt, net (note 7) 259,906 9,900 Total current liabilities 1,248,114 1,019,120 Non-current liabilities: Deferred revenue 159,789 156,803 Deferred income taxes 77,994 77,682 Operating lease liabilities, non-current 154,133 153,015 Other long-term liabilities 138,538 141,520 Long-term debt, net (note 7) 403,923 658,392 Total non-current liabilities 934,377 1,187,412 Total liabilities 2,182,491 2,206,532 Commitments and contingencies (note 9) Stockholders’ equity: Preferred stock, $ 0.01 par value, 2,000,000 shares authorized; none issued — — Common stock, $ 0.004 par value, 350,000,000 shares authorized; 190,814,410 issued and 145,661,749 outstanding at December 31, 2025 and 190,311,097 issued and 146,385,350 outstanding at June 30, 2025 763 761 Additional paid-in capital 2,102,992 2,033,599 Retained earnings 6,647,285 6,081,490 Treasury stock, at cost, 45,152,661 shares at December 31, 2025 and 43,925,747 shares at June 30, 2025 ( 2,400,298 ) ( 2,073,292 ) Accumulated other comprehensive loss ( 29,863 ) ( 74,699 ) Total stockholders’ equity 6,320,879 5,967,859 Total liabilities and stockholders’ equity $ 8,503,370 $ 8,174,391 See the accompanying notes to the unaudited condensed consolidated financial statements. 3 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In US$ and in thousands, except per share data) Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Net revenue - Sleep and Breathing Health products $ 1,255,938 $ 1,125,593 $ 2,425,384 $ 2,193,330 Net revenue - Residential Care Software 166,870 156,496 333,006 313,268 Net revenue 1,422,808 1,282,089 2,758,390 2,506,598 Cost of sales - Sleep and Breathing Health products 484,792 473,388 940,910 924,700 Cost of sales - Residential Care Software 51,484 49,792 102,307 98,100 Cost of sales (exclusive of amortization shown separately below) 536,276 523,180 1,043,217 1,022,800 Amortization of acquired intangible assets - Sleep and Breathing Health products 1,415 1,230 2,835 2,440 Amortization of acquired intangible assets - Residential Care Software 6,393 6,404 12,795 12,864 Amortization of acquired intangible assets 7,808 7,634 15,630 15,304 Total cost of sales 544,084 530,814 1,058,847 1,038,104 Gross profit 878,724 751,275 1,699,543 1,468,494 Selling, general, and administrative 278,396 241,613 537,590 480,592 Research and development 90,969 81,372 178,292 160,897 Amortization of acquired intangible assets 11,764 11,047 23,721 22,451 Restructuring expenses (note 11) 5,935 — 21,745 — Total operating expenses 387,064 334,032 761,348 663,940 Income from operations 491,660 417,243 938,195 804,554 Other income (loss), net: Interest (expense) income, net 7,949 ( 775 ) 16,742 ( 2,436 ) Gain (loss) attributable to equity method investments (note 5) 1,515 1,077 3,004 2,040 Gain (loss) on equity investments (note 5) 306 ( 1,439 ) ( 5,884 ) ( 2,119 ) Other, net ( 5,282 ) 2,216 ( 9,117 ) ( 219 ) Total other income (loss), net 4,488 1,079 4,745 ( 2,734 ) Income before income taxes 496,148 418,322 942,940 801,820 Income taxes 103,555 73,700 201,811 145,843 Net income $ 392,593 $ 344,622 $ 741,129 $ 655,977 Basic earnings per share (note 8) $ 2.69 $ 2.35 $ 5.08 $ 4.47 Diluted earnings per share (note 8) $ 2.68 $ 2.34 $ 5.05 $ 4.45 Dividend declared per share $ 0.60 $ 0.53 $ 1.20 $ 1.06 Basic shares outstanding (000's) 145,842 146,810 146,012 146,835 Diluted shares outstanding (000's) 146,372 147,481 146,633 147,520 See the accompanying notes to the unaudited condensed consolidated financial statements. 4 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Unaudited) (In US$ and in thousands) Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Net income $ 392,593 $ 344,622 $ 741,129 $ 655,977 Other comprehensive income, net of taxes: Unrealized gains (losses) on designated hedging instruments 308 43,675 1,912 21,873 Foreign currency translation gain (loss) adjustments 30,545 ( 210,410 ) 42,924 ( 69,234 ) Comprehensive income $ 423,446 $ 177,887 $ 785,965 $ 608,616 See the accompanying notes to the unaudited condensed consolidated financial statements. 5 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Equity (Unaudited) (In US$ and in thousands) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shares Amount Shares Amount Balance, June 30, 2025 190,311 $ 761 $ 2,033,599 ( 43,926 ) $ ( 2,073,292 ) $ 6,081,490 $ ( 74,699 ) $ 5,967,859 Common stock issued on exercise of options 69 1 8,204 — — — — 8,205 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 10 — ( 719 ) — — — — ( 719 ) Treasury stock purchases — — — ( 523 ) ( 150,010 ) — — ( 150,010 ) Stock-based compensation costs — — 21,160 — — — — 21,160 Other comprehensive income (loss) — — — — — — 13,983 13,983 Net income — — — — — 348,536 — 348,536 Dividends declared ($ 0.60 per common share) — — — — — ( 87,750 ) — ( 87,750 ) Balance, September 30, 2025 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 55 — 9,498 — — — — 9,498 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 257 1 ( 20,309 ) — — — — ( 20,308 ) Common stock issued on employee stock purchase plan 112 — 22,621 — — — — 22,621 Treasury stock purchases — — — ( 704 ) ( 176,996 ) — — ( 176,996 ) Stock-based compensation costs — — 28,938 — — 28,938 Other comprehensive income (loss) — — — — 30,853 30,853 Net income — — — 392,593 — 392,593 Dividends declared ($ 0.60 per common share) — — — ( 87,584 ) — ( 87,584 ) Balance, December 31, 2025 190,814 $ 763 $ 2,102,992 ( 45,153 ) $ ( 2,400,298 ) $ 6,647,285 $ ( 29,863 ) $ 6,320,879 See the accompanying notes to the unaudited condensed consolidated financial statements. 6 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Equity (Unaudited) (In US$ and in thousands) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shares Amount Shares Amount Balance, June 30, 2024 189,565 $ 588 $ 1,896,604 ( 42,664 ) $ ( 1,773,267 ) $ 4,991,647 $ ( 251,529 ) $ 4,864,043 Adjustment to common stock — 170 ( 170 ) — — — — — Common stock issued on exercise of options 92 — 8,383 — — — — 8,383 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 5 — ( 389 ) — — — — ( 389 ) Treasury stock purchases — — — ( 222 ) ( 50,005 ) — — ( 50,005 ) Stock-based compensation costs — — 20,156 — — — — 20,156 Other comprehensive income (loss) — — — — — — 119,374 119,374 Net income — — — — — 311,355 — 311,355 Dividends declared ($ 0.53 per common share) — — — — — ( 77,891 ) — ( 77,891 ) Balance, September 30, 2024 189,662 $ 758 $ 1,924,584 ( 42,886 ) $ ( 1,823,272 ) $ 5,225,111 $ ( 132,155 ) $ 5,195,026 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 See the accompanying notes to the unaudited condensed consolidated financial statements. 7 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In US$ and in thousands) Six Months Ended December 31, 2025 2024 Cash flows from operating activities: Net income $ 741,129 $ 655,977 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 97,583 91,169 Amortization of right-of-use assets 22,416 18,443 Stock-based compensation costs 50,098 42,790 (Gain) loss attributable to equity method investments (note 5) ( 3,004 ) ( 2,040 ) (Gain) loss on equity investments (note 5) 5,884 2,119 Changes in operating assets and liabilities: Accounts receivable ( 42,712 ) ( 31,436 ) Inventories 11,466 ( 77,895 ) Prepaid expenses, net deferred income taxes and other current assets ( 104,075 ) ( 43,746 ) Accounts payable, accrued expenses, income taxes payable and other 18,281 ( 21,220 ) Net cash provided by (used in) operating activities 797,066 634,161 Cash flows from investing activities: Purchases of property, plant and equipment ( 71,504 ) ( 38,484 ) Patent registration and acquisition costs ( 7,351 ) ( 4,592 ) Purchases of intangible assets ( 1,479 ) — Business acquisitions, net of cash acquired ( 522 ) ( 670 ) Purchases of investments (note 5) ( 6,404 ) ( 2,350 ) Proceeds from exits of investments (note 5) 250 4,378 Proceeds (payments) on maturity of foreign currency contracts ( 16,510 ) 7,172 Net cash provided by (used in) investing activities ( 103,520 ) ( 34,546 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 37,762 35,260 Taxes paid related to net share settlement of equity awards ( 21,027 ) ( 17,123 ) Purchases of treasury stock ( 325,024 ) ( 124,991 ) Payments of business combination contingent consideration — ( 855 ) Repayment of borrowings ( 5,000 ) ( 35,000 ) Dividends paid ( 175,334 ) ( 155,586 ) Net cash provided by (used in) financing activities ( 488,623 ) ( 298,295 ) Effect of exchange rate changes on cash 2,696 ( 17,737 ) Net increase (decrease) in cash and cash equivalents 207,619 283,583 Cash and cash equivalents at beginning of period 1,209,450 238,361 Cash and cash equivalents at end of period $ 1,417,069 $ 521,944 Supplemental disclosure of cash flow information: Income taxes paid, net of refunds $ 209,419 $ 224,351 Interest paid $ 13,466 $ 7,285 Fair value of assets acquired, excluding cash $ ( 798 ) $ — Goodwill on acquisition 1,320 — Fair value of contingent consideration — 1,525 Cash paid for acquisitions $ 522 $ 1,525 See the accompanying notes to the unaudited condensed consolidated financial statements. 8 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (1) Summary of Significant Accounting Policies Organization and Basis of Presentation 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, 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, 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 six months ended December 31, 2025 and December 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, or Form 10-K, for the year ended June 30, 2025. Revenue Recognition 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. Some contracts include additional performance obligations such as the provision of extended warranties and provision of data for patient monitoring. Our Residential Care Software revenue relates to the provision of SaaS access with ongoing support and maintenance services as well as professional services such as training and consulting. 9 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Disaggregation of revenue The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 U.S., Canada and Latin America Devices $ 448,047 $ 414,453 $ 861,485 $ 798,983 Masks and other 386,984 334,496 748,300 657,271 Total U.S., Canada and Latin America $ 835,031 $ 748,949 $ 1,609,785 $ 1,456,254 Combined Europe, Asia and other markets Devices $ 278,167 $ 254,849 $ 545,039 $ 496,104 Masks and other 142,740 121,795 270,560 240,972 Total Combined Europe, Asia and other markets $ 420,907 $ 376,644 $ 815,599 $ 737,076 Global revenue Total Devices $ 726,214 $ 669,302 $ 1,406,524 $ 1,295,087 Total Masks and other 529,724 456,291 1,018,860 898,243 Total Sleep and Breathing Health $ 1,255,938 $ 1,125,593 $ 2,425,384 $ 2,193,330 Residential Care Software 166,870 156,496 333,006 313,268 Total $ 1,422,808 $ 1,282,089 $ 2,758,390 $ 2,506,598 Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Breathing Health business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our Residential Care Software business, revenue associated with cloud-hosted services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Breathing Health business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our Residential Care Software business relate primarily to the provision of software access with maintenance and support over an agreed term and material rights associated with future discounts upon renewal of some SaaS contracts. Generally, deferred revenue will be recognized over a period of one year to five years . Our contracts do not contain significant financing components. The following table summarizes our contract balances (in thousands): December 31, 2025 June 30, 2025 Balance sheet caption Contract assets Accounts receivable, net $ 985,634 $ 939,492 Accounts receivable, net Unbilled receivables, current $ 61,410 $ 51,175 Prepaid expenses and other current assets Unbilled receivables, non-current $ 14,404 $ 14,581 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current $ ( 176,050 ) $ ( 166,030 ) Deferred revenue (current liabilities) Deferred revenue, non-current $ ( 159,789 ) $ ( 156,803 ) Deferred revenue (non-current liabilities) Transaction price determination Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. In our Sleep and Breathing Health segment, the amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g. rebates, discounts, free goods) and returns by our customers and their customers. 10 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. Returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Breathing Health customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer’s expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods. We participate in programs where we issue credits to our Sleep and Breathing Health distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. We also offer discounts to both our Sleep and Breathing Health as well as our Residential Care Software customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Breathing Health or Residential Care Software contracts have multiple performance obligations, we generally use an observable price to determine the stand-alone selling price by reference to pricing and discounting practices for the specific product or service when sold separately to similar customers. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to each performance obligation. An allocation is not required for many of our Sleep and Breathing Health contracts that have a single performance obligation, which is the shipment of our therapy-based equipment. Accounting and practical expedient elections We have elected to account for shipping and handling activities associated with our Sleep and Breathing Health segment as a fulfillment cost within cost of sales, and record shipping and handling costs collected from customers in net revenue. We have also elected for all taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, to be excluded from revenue and presented on a net basis. We have adopted two practical expedients including the “right to invoice” practical expedient, which is relevant for some of our SaaS contracts as it allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date. The second practical expedient adopted permits relief from considering a significant financing component when the payment for the good or service is expected to be one year or less. Lease Revenue We lease Sleep and Breathing Health medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Device rental contracts are classified as operating leases, and contract terms vary by customer and include options to terminate or extend the contract. 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 $ 25.3 million and $ 51.1 million for the three and six months ended December 31, 2025, respectively, and $ 24.1 million and $ 48.6 million for the three and six months ended December 31, 2024, respectively. 11 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Cash and Cash Equivalents Our cash and cash equivalents balance at December 31, 2025 and June 30, 2025 includes $ 460.9 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 2025-11 Interim Reporting (Topic 270): Narrow-Scope Improvements In December 2025, the Financial Accounting Standards Board, or FASB, issued ASU No. 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements," to improve the navigability of the guidance in ASC Topic 270 and clarify when the guidance applies, including the form and content of interim financial statements and the interim disclosures required under GAAP, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 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 be applied prospectively to financial statements issued for reporting periods after the effective date of the amendment or retrospectively to all prior periods presented. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. ASU 2025-10 Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities In December 2025, the FASB issued ASU No. 2025-10, "Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities," to establish authoritative guidance in GAAP on the recognition, measurement, presentation, and disclosure for government grants received by business entities. This ASU defines a government grant, establishes when and how a grant related to an asset or income is recognized and measured, and includes presentation and disclosure requirements. ASU 2025-10 is effective for us beginning in the first quarter of the fiscal year ending June 30, 2030. Early adoption is permitted and the amendments may be applied using a modified prospective, modified retrospective or full retrospective transition method. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. ASU 2025-09 Derivatives and Hedging (Topic 815): Hedge Accounting Improvements In November 2025, the FASB issued ASU No. 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements," which amends existing guidance to clarify and enhance the hedge accounting guidance in ASC Topic 815 and better align hedge accounting with the economics of an entity’s risk management strategies. ASU 2025-09 is effective for us beginning in the first quarter of the fiscal year ending June 30, 2028. Early adoption is permitted and the amendments should be applied prospectively. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. 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 No. 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 12 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) 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): Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 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 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. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2028, and subsequent interim periods. Early adoption is permitted and the amendments may be either applied prospectively to financial statements issued for reporting periods after the effective date of the amendment or retrospectively to all prior periods presented. 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): 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. 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. 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. Segment net revenues and segment income from operations do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed. 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, 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. 13 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Net revenue by segment Sleep and Breathing Health $ 1,255,938 $ 1,125,593 $ 2,425,384 $ 2,193,330 Residential Care Software 166,870 156,496 333,006 313,268 Total $ 1,422,808 $ 1,282,089 $ 2,758,390 $ 2,506,598 Significant segment expenses Cost of sales Sleep and Breathing Health $ 482,252 $ 467,970 $ 935,437 $ 917,422 Residential Care Software 51,484 49,792 102,307 98,100 Total $ 533,736 $ 517,762 $ 1,037,744 $ 1,015,522 Selling, general, and administrative Sleep and Breathing Health $ 147,740 $ 118,831 $ 282,475 $ 228,243 Residential Care Software (1) 39,550 33,736 75,884 70,364 Total $ 187,290 $ 152,567 $ 358,359 $ 298,607 Research and development Sleep and Breathing Health $ 54,096 $ 50,071 $ 104,998 $ 97,969 Residential Care Software 25,789 24,085 50,750 48,301 Total $ 79,885 $ 74,156 $ 155,748 $ 146,270 Net operating profit by segment Sleep and Breathing Health $ 571,850 $ 488,721 $ 1,102,474 $ 949,696 Residential Care Software 50,047 48,882 104,065 96,503 Total $ 621,897 $ 537,603 $ 1,206,539 $ 1,046,199 Reconciling items Corporate costs $ 104,730 $ 101,679 $ 207,248 $ 203,890 Amortization of acquired intangible assets 19,572 18,681 39,351 37,755 Restructuring expenses 5,935 — 21,745 — Interest (income) expense, net ( 7,949 ) 775 ( 16,742 ) 2,436 (Gain) Loss attributable to equity method investments ( 1,515 ) ( 1,077 ) ( 3,004 ) ( 2,040 ) Loss on equity investments ( 306 ) 1,439 5,884 2,119 Other, net 5,282 ( 2,216 ) 9,117 219 Income before income taxes $ 496,148 $ 418,322 $ 942,940 $ 801,820 Depreciation and amortization by segment Sleep and Breathing Health $ 27,311 $ 25,249 $ 52,345 $ 48,268 Residential Care Software 2,733 2,240 5,350 4,608 Amortization of acquired intangible assets and corporate assets 19,841 18,950 39,888 38,293 Total $ 49,885 $ 46,439 $ 97,583 $ 91,169 (1) During the three and six months ended December 31, 2025, we recorded $ 2.7 million of operating lease right-of-use asset impairments within our Residential Care Software segment. The impairments related to a lease for office space and was recorded within selling, general, and administrative expenses. 14 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (3) Supplemental Balance Sheet Information Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands): Inventories December 31, 2025 June 30, 2025 Raw materials $ 374,729 $ 367,284 Work in progress 968 2,550 Finished goods 546,348 557,877 Total inventories $ 922,045 $ 927,711 Prepaid expenses and other current assets December 31, 2025 June 30, 2025 Prepaid taxes $ 229,541 $ 165,034 Prepaid inventories 23,162 48,245 Unbilled receivables 61,410 51,175 Other prepaid expenses and current assets 179,940 164,498 Total prepaid expenses and other current assets $ 494,053 $ 428,952 Property, Plant and Equipment December 31, 2025 June 30, 2025 Property, plant and equipment, at cost $ 1,312,216 $ 1,256,098 Accumulated depreciation and amortization ( 747,962 ) ( 705,308 ) Property, plant and equipment, net $ 564,254 $ 550,790 Other Intangible Assets December 31, 2025 June 30, 2025 Developed/core product technology $ 395,744 $ 396,242 Accumulated amortization ( 330,354 ) ( 315,032 ) Developed/core product technology, net 65,390 81,210 Customer relationships 477,076 475,541 Accumulated amortization ( 207,520 ) ( 189,050 ) Customer relationships, net 269,556 286,491 Other intangibles 274,399 267,499 Accumulated amortization ( 179,105 ) ( 170,339 ) Other intangibles, net 95,294 97,160 Total other intangibles, net $ 430,240 $ 464,861 Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, which we amortize over the estimated useful life of the assets, generally between two years to fifteen years . There are no expected residual values related to these intangible assets. (4) Goodwill A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands): Six Months Ended December 31, 2025 Sleep and Breathing Health Residential Care Software Total Balance at the beginning of the period $ 883,578 $ 2,163,102 $ 3,046,680 Adjustment to fair values of preliminary purchase price allocations 1,320 — 1,320 Foreign currency translation adjustments ( 953 ) ( 2,677 ) ( 3,630 ) Balance at the end of the period $ 883,945 $ 2,160,425 $ 3,044,370 15 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (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. Marketable equity securities are recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets. Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the condensed consolidated statements of operations. Equity investments whereby we have significant influence, but not control over the investee and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Under this method, we record our share of gains or losses attributable to equity method investments as a component of other income (loss), net on the condensed consolidated statements of operations. Equity investments by measurement category were as follows (in thousands): Measurement category December 31, 2025 June 30, 2025 Fair value $ 9,324 $ 13,080 Measurement alternative 64,781 63,642 Equity method 79,363 76,178 Total $ 153,468 $ 152,900 16 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) The following tables show a reconciliation of the changes in our equity investments (in thousands): Six Months Ended December 31, 2025 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 63,642 $ 13,080 $ 76,178 $ 152,900 Additions to investments 5,022 1,000 382 6,404 Proceeds from exits of investments ( 2,752 ) — — ( 2,752 ) Impairment of investments ( 1,128 ) — — ( 1,128 ) Unrealized gains (losses) on marketable equity securities — ( 4,756 ) — ( 4,756 ) Gain attributable to equity method investments — — 3,004 3,004 Foreign currency translation adjustments ( 3 ) — ( 201 ) ( 204 ) Carrying value at the end of the period $ 64,781 $ 9,324 $ 79,363 $ 153,468 Six Months Ended December 31, 2024 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 73,739 $ 12,026 $ 65,462 $ 151,227 Additions to investments 2,000 — 350 2,350 Realized gains on marketable and non-marketable equity securities 389 — — 389 Proceeds from exits of investments ( 4,378 ) — — ( 4,378 ) Impairment of investments ( 5,259 ) — — ( 5,259 ) Unrealized gains (losses) on marketable equity securities — 2,751 — 2,751 Gain attributable to equity method investments — — 2,040 2,040 Foreign currency translation adjustments ( 36 ) — ( 2,115 ) ( 2,151 ) Carrying value at the end of the period $ 66,455 $ 14,777 $ 65,737 $ 146,969 Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of December 31, 2025 for the three months ended December 31, 2025 were $ 0.3 million. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of December 31, 2025 for the six months ended December 31, 2025 were $ 5.9 million. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of December 31, 2024 for the three and six months ended December 31, 2024 were $ 1.4 million and $ 2.5 million, respectively. (6) Income Taxes 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. Our income tax returns are based on calculations and assumptions subject to audit by various tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. 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 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. 17 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (7) Debt Debt consisted of the following (in thousands): December 31, 2025 June 30, 2025 Short-term debt $ 260,000 $ 10,000 Deferred borrowing costs ( 94 ) ( 100 ) Short-term debt, net $ 259,906 $ 9,900 Long-term debt $ 405,000 $ 660,000 Deferred borrowing costs ( 1,077 ) ( 1,608 ) Long-term debt, net $ 403,923 $ 658,392 Total debt $ 663,829 $ 668,292 Credit Facility On June 29, 2022, we entered into a second amended and restated credit agreement, or the Revolving Credit Agreement, as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, sole book runner, swing line lender and letter of credit issuer, Westpac Banking Corporation, as syndication agent and joint lead arranger, HSBC Bank USA, National Association, as syndication agent and joint lead arranger, and Wells Fargo Bank, National Association, as documentation agent. 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 1.0 times the EBITDA (as defined in the Revolving Credit Agreement) for the trailing twelve-month measurement period. The Revolving Credit Agreement amends and restates that certain Amended and Restated Credit Agreement, dated as of April 17, 2018, among Resmed, MUFG Union Bank, N.A., Westpac Banking Corporation and the lenders party thereto. Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement and First Amendment to Unconditional Guaranty Agreement, or the Term Credit Agreement, as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger and joint book runner, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner, which amends that certain Syndicated Facility Agreement dated as of April 17, 2018. The Term Credit Agreement, among other things, provides ResMed Pty Limited a senior unsecured term credit facility of $ 200.0 million. Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed Pty Limited’s obligations under the Term Credit Agreement are guaranteed by us and certain of our direct and indirect U.S. subsidiaries. The Revolving Credit Agreement and Term Credit Agreement contain customary covenants, including, in each case, a financial covenant that requires that we maintain a maximum leverage ratio of funded debt to EBITDA (as defined in the Revolving Credit Agreement and Term Credit Agreement, as applicable). The entire principal amounts of the revolving credit facility and term credit facility, and, in each case, any accrued but unpaid interest may be declared immediately due and payable if an event of default occurs, as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable. Events of default under the Revolving Credit Agreement and the Term Credit Agreement include, in each case, failure to make payments when due, the occurrence of a default in the performance of any covenants in the respective agreements or related documents, or certain changes of control of us, or the respective guarantors of the obligations borrowed under the Revolving Credit Agreement and Term Credit Agreement. 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. Amounts borrowed under the Term Credit Agreement will also amortize on a semi-annual basis, with a $ 5.0 million principal payment required on each such semi-annual amortization date. 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 December 31, 2025, the interest rate that was being charged on the outstanding principal amounts was 4.5 %. An applicable commitment fee of 0.075 % to 0.150 % (depending on the then-applicable leverage ratio) 18 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) applies on the unused portion of the revolving credit facility. As of December 31, 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 December 31, 2025 and June 30, 2025, which was $ 165.0 million and $ 170.0 million, respectively. Senior Notes 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 collectively referred to as the Senior Notes. Our obligations under the Note Purchase Agreement and the Senior Notes are unconditionally and irrevocably guaranteed by certain of our direct and indirect U.S. subsidiaries. The net proceeds from this transaction were used to pay down borrowings on our Revolving Credit Agreement. Under the terms of the Note Purchase Agreement, we agreed to customary covenants including with respect to our corporate existence, transactions with affiliates, and mergers and other extraordinary transactions. We also agreed that, subject to limited exceptions, we will maintain a ratio of consolidated funded debt to consolidated EBITDA (as defined in the Note Purchase Agreement) of no more than 3.50 to 1.00 as of the last day of any fiscal quarter, and will not at any time permit the amount of all priority secured and unsecured debt of us and our subsidiaries to exceed 10 % of our consolidated tangible assets, determined as of the end of our most recently ended fiscal quarter. This ratio is calculated at the end of each reporting period for which the Note Purchase Agreement requires us to deliver financial statements, using the results of the 12 consecutive month period ending with such reporting period. 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 of December 31, 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 $ 485.3 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 December 31, 2025, we were in compliance with our debt covenants and there was $ 665.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes. (8) Earnings Per Share Basic earnings per share is computed by dividing the net income available to common stockholders by the weighted average number of shares of common stock outstanding. 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 87,318 and 175,118 for the three months ended December 31, 2025 and 2024, respectively, and 42,405 and 289,854 for the six months ended December 31, 2025 and 2024, respectively, as the effect would have been anti-dilutive. 19 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Basic and diluted earnings per share are calculated as follows (in thousands except per share data): Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Numerator: Net income $ 392,593 $ 344,622 $ 741,129 $ 655,977 Denominator: Basic weighted-average common shares outstanding 145,842 146,810 146,012 146,835 Effect of dilutive securities: Stock options and restricted stock units 530 671 621 685 Diluted weighted average shares 146,372 147,481 146,633 147,520 Basic earnings per share $ 2.69 $ 2.35 $ 5.08 $ 4.47 Diluted earnings per share $ 2.68 $ 2.34 $ 5.05 $ 4.45 (9) Legal Actions, Contingencies and Commitments Litigation In the normal course of business, we are subject to routine litigation incidental to our business. 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, 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). The complaint alleges that the AutoSet or AutoRamp features of Resmed’s AirSense 10 AutoSet flow generators infringe one or more claims of various NYU patents, including U.S. Patent Nos. 6,988,994; 9,108,009; 9,168,344; 9,427,539; 9,533,115; 9,867,955; and 10,384,024. According to the complaint, the NYU patents are directed to systems and methods for diagnosis and treating sleeping disorders during different sleep states. The complaint seeks monetary damages and attorneys’ fees. We answered the complaint on September 30, 2021 and filed a motion to dismiss the complaint on the basis that the patents are invalid because the subject matter of the patents is not patentable under the Supreme Court and Federal Circuit precedent. The motion to dismiss was granted in part and denied in part. 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. On December 28, 2023, the District Court entered an order continuing its stay of all proceedings against us pending any appeal by NYU of the invalidation of its patents by the PTAB. On January 31, 2024, NYU appealed the PTAB’s rulings to the Court of Appeals for the Federal Circuit. 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 November 12, 2025, the District of Delaware case was dismissed with prejudice. 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. Cleveland Medical asserts that numerous Resmed connected devices, when combined with certain Resmed data platforms and/or software, including AirView and ResScan, infringe one or more of seven Cleveland Medical patents, including U.S. Patent Nos. 10,076,269; 10,426,399; 10,925,535; 11,064,937; 10,028,698; 11,202,603; and 11,234,637. We moved to dismiss the action because Cleveland Medical sued the wrong Resmed entity, and to dismiss the indirect and willful infringement allegations by Cleveland Medical. On October 2, 2023, the court granted a portion of the motion, dismissing all Cleveland Medical claims for indirect and willful infringement, and denied the rest of the motion. On March 22, 2023, ResMed Corp. filed a petition with the PTAB seeking review of the validity of U.S. Patent No. 10,076,269. On May 6, 2024, the PTAB granted the petition and instituted an Inter Partes Review proceeding against the patent. 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. On May 2, 2025, the PTAB issued its decision finding all claims of U.S. Patent No. 10,076,269 unpatentable. On August 27, 2025, Cleveland Medical appealed the PTAB's ruling on U.S. Patent No. 10,076,269 to the United States Court of Appeals for the Federal Circuit. The appeal is pending. 20 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) On March 20, 2023, ResMed Corp. filed suit in the United States District Court for the Southern District of California, case no. 23-cv-00500-TWR-JLB, seeking a declaration that it does not infringe U.S. Patent No. 11,602,284 issued to Cleveland Medical. In November 2023, the case was transferred to the Northern District of Ohio for the convenience of the parties. Cleveland Medical answered the complaint and filed a counterclaim asserting that ResMed Corp. infringes three additional Cleveland Medical patents, including U.S. Patent Nos. 11,375,921; 11,690,512; and 11,786,680. On April 9, 2024, Cleveland Medical filed a second amended answer and counterclaims accusing ResMed Corp. of infringing U.S. Patent Nos. 11,857,333 and 11,872,029. ResMed Corp. filed a petition with the PTAB for post-grant review of the validity of U.S. Patent No. 11,602,284, which the PTAB denied on June 24, 2024. On October 17, 2024, the PTAB denied ResMed Corp.’s request for rehearing of its decision to deny the petition for post-grant review of U.S. Patent No. 11,602,284. On October 11, 2024, ResMed Corp. filed a request for ex parte reexamination of U.S. Patent No. 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. filed a request for ex parte reexamination of U.S. Patent No. 11,786,680, and on December 3, 2024, the Patent Office ordered reexamination of the patent. Between November 15, 2024, and January 10, 2025, ResMed Corp. filed petitions with the PTAB seeking Inter Partes Review of the validity of all six patents asserted by Cleveland Medical in the District Court of the Northern District of Ohio proceedings. 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. On June 10, 2025, the PTAB denied institution of Inter Partes Review directed to U.S. Patent No. 11,602,284. On June 12, 2025, the PTAB instituted an Inter Partes Review proceeding against U.S. Patent No. 11,375,921. On June 13, 2025, the PTAB instituted Inter Partes Review proceedings against U.S. Patent Nos. 11,690,512 and 11,786,680. On July 30, 2025, the PTAB instituted Inter Partes Review proceedings against U.S. Patent Nos. 11,857,333 and 11,872,029. On August 7, 2025, the PTAB stayed the ex parte reexaminations of U.S. Patent Nos. 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. Patent Nos. 8,362,960; 8,456,365; 8,593,349; 8,674,887; and 11,031,677. The complaint seeks monetary damages, a permanent injunction, and attorneys’ fees. On December 3, 2025, the Patent Office instituted Inter Partes Review proceedings against U.S. Patent No. 11,031,677 based on a petition filed by another defendant. On January 2, 2026, we filed a petition and motion to join the instituted Inter Partes Review proceeding. On January 5, 2026, we moved to dismiss the action because Fractus failed, among other bases, to allege how ResMed Inc. practices any claims of the asserted patents. On November 5, 2025, Cleveland Medical filed suit for patent infringement against Resmed in the United States District Court for the District of Delaware, case no. 1:25-cv-1351. Cleveland Medical asserts that the ApneaLink Air device, in combination with the AirView Cloud Platform and ApneaLink software, and the Phillips Respironics’ Alice NightOne device, in combination with our subsidiary VirtuOx’s software platform Sleepifi, infringe one or more of six Cleveland Medical patents, including U.S. Patent Nos. 10,426,399; 10,925,535; 11,064,937; 10,028,698; 11,202,603; and 11,234,637. The complaint is centered on VirtuOx’s use and sales of the above-listed accused products. On January 15, 2026, we moved to dismiss the action because Cleveland Medical sued the wrong Resmed entity, did not and cannot join a necessary party, and is engaging in improper claim splitting, and further moved to dismiss the indirect and willful infringement allegations by Cleveland Medical. In December 2025, Resmed learned of the unsealing of an alleged whistleblower complaint filed on February 24, 2021, in the United States District Court of the Eastern District of Pennsylvania, by Veteran Marketing LLC, on behalf of the United States, case no. 2:21-cv-00853-WB, against Respironics, Inc, Koninklijke Philips N.V., First Nation Group, LLC f/k/a Jordan Reses Supply Company LLC, or First Nation, Fisher & Paykel Healthcare, Inc., ResMed Inc., Paul Evans, Eric Pauls, and John Doe Entities 1-25, alleging an action under the False Claims Act based on an alleged conspiracy to use First Nation to overcharge the United States on sales of CPAP products to the Veterans Administration. The complaint was unsealed after the United States declined to intervene and take on the case. We have not been served with 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. 21 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Contingent Obligations Under Recourse Provisions We use independent financing institutions to offer some of our customers financing for the purchase of some of our products. Under these arrangements, if the customer qualifies under the financing institutions’ credit criteria and finances the transaction, the customers repay the financing institution on a fixed payment plan. For some of these arrangements, the customer’s receivable balance is with limited recourse whereby we are responsible for repaying the financing company should the customer default. We record a contingent provision, which is estimated based on historical default rates. This is applied to receivables sold with recourse and is recorded in accrued expenses. During the six months ended December 31, 2025 and December 31, 2024, receivables sold with limited recourse were $ 102.1 million and $ 104.8 million, respectively. As of December 31, 2025, the maximum exposure on outstanding receivables sold with recourse and the associated contingent provision were $ 27.3 million and $ 0.8 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. (10) Derivative Instruments and Hedging Activities We may use derivative financial instruments, specifically foreign cross-currency swaps, purchased foreign currency call options, collars and forward contracts to mitigate exposure from certain foreign currency risk. No derivatives are used for trading or speculative purposes. We do not require or are not required to pledge collateral for the derivative instruments. Fair Value and Net Investment Hedging On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the hedged item. The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item as the hedged item, other, net, in the condensed consolidated statement of operations. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of operations under a systematic and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or substantially liquidated. 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 $ 1,124.9 million and $ 1,128.3 million at December 31, 2025 and June 30, 2025, respectively. These contracts mature at various dates prior to December 31, 2029. Non-Designated Hedges We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed three years . The purpose of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by 22 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. 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 $ 1,794.0 million and $ 1,410.2 million at December 31, 2025 and June 30, 2025, respectively. These contracts mature at various dates prior to September 15, 2026. Fair Values of Derivative Instruments The following table presents our assets and liabilities related to derivative instruments on a gross basis within the condensed consolidated balance sheets (in thousands): December 31, 2025 June 30, 2025 Balance Sheet Caption Derivative Assets Not Designated as Hedging Instruments Foreign currency hedging instruments $ 7,517 $ 6,810 Prepaid taxes and other current assets Foreign currency hedging instruments — — Prepaid taxes and other non-current assets Total derivative assets $ 7,517 $ 6,810 Derivative Liabilities Designated as Hedging Instruments Foreign cross-currency swaps – Fair Value Hedge $ 37,448 $ 38,533 Other long-term liabilities Foreign cross-currency swaps – Net Investment Hedge 89,175 91,596 Other long-term liabilities Not Designated as Hedging Instruments Foreign currency hedging instruments 1,338 2,695 Accrued expenses Foreign currency hedging instruments — — Other long-term liabilities Total derivative liabilities $ 127,961 $ 132,824 Fair Value Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Gain (loss) recognized in other comprehensive income (loss) $ 270 $ 1,657 $ 69 $ 2,086 Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) $ 1,370 $ 1,128 $ 2,994 $ 2,202 Gain (loss) recognized on cross-currency swap in other, net $ ( 35 ) $ 22,187 $ 1,016 $ 9,942 Gain (loss) recognized on intercompany debt in other, net $ 35 $ ( 22,187 ) $ ( 1,016 ) $ ( 9,942 ) Net Investment Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ 131 $ 55,049 $ 2,421 $ 26,313 Gain (loss) recognized from the excluded components in interest (expense) income, net $ 3,490 $ 2,885 $ 7,597 $ 5,652 Non-designated Derivative Gains (Losses) We recognized the following gains (losses) in the condensed consolidated statement of operations on derivatives not designated as hedging instruments (in thousands): 23 Table of Contents PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Three Months Ended December 31, Six Months Ended December 31, 2025 2024 2025 2024 Gain (loss) recognized on foreign currency hedging instruments in other, net $ ( 4,559 ) $ ( 46,228 ) $ ( 14,529 ) $ ( 3,445 ) Gain (loss) recognized on other foreign-currency-denominated transactions in other, net ( 765 ) 46,653 5,341 1,421 Total $ ( 5,324 ) $ 425 $ ( 9,188 ) $ ( 2,024 ) We classified the fair values of all hedging instruments as Level 2 measurements within the fair value hierarchy. We are exposed to credit-related losses in the event of non-performance by counter parties to financial instruments. We minimize counterparty credit risk by entering into derivative transactions with major financial institutions. (11) Restructuring Expenses During the three and six months ended December 31, 2025, we recorded $ 5.9 million and $ 21.7 million of restructuring related charges, respectively, 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. We had $ 6.0 million remaining in our accruals at December 31, 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 and six months ended December 31, 2024. 24 Table of Contents PART I – FINANCIAL INFORMATION Item 2 RESMED INC. AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations .