What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2026-01-30 · 154 added, 131 removed, 265 unchanged (52% of the section changed)

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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 six months ended December 31, 2025.

The following is an overview of our results of operations for the three and nine months ended March 31, 2026.

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.

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

During the three months ended December 31, 2025, we invested $91.0 million on research and development activities, which represents 6.4% 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 March 31, 2026, we invested $94.3 million on research and development activities, which represents 6.6% 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.

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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 December 31, 2025 was $1.4 billion, an increase of 11% compared to the three months ended December 31, 2024.

Gross margin was 61.8% for the three months ended December 31, 2025 compared to 58.6% for the three months ended December 31, 2024.

Diluted earnings per share was $2.68 for the three months ended December 31, 2025, compared to diluted earnings per share of $2.34 for the three months ended December 31, 2024.

At December 31, 2025, our cash and cash equivalents totaled $1.4 billion, our total assets were $8.5 billion and our stockholders’ equity was $6.3 billion.

Net revenue for the three months ended March 31, 2026 was $1.4 billion, an increase of 11% compared to the three months ended March 31, 2025.

Gross margin was 62.2% for the three months ended March 31, 2026 compared to 59.3% for the three months ended March 31, 2025.

Diluted earnings per share was $2.74 for the three months ended March 31, 2026, compared to diluted earnings per share of $2.48 for the three months ended March 31, 2025.

At March 31, 2026, our cash and cash equivalents totaled $1.7 billion, our total assets were $8.8 billion and our stockholders’ equity was $6.5 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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Results of Operations

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

Net revenue for the three months ended December 31, 2025 increased to $1,422.8 million from $1,282.1 million for the three months ended December 31, 2024, an increase of $140.7 million or 11% (a 9% increase on a constant currency basis).

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

Net revenue for the three months ended March 31, 2026 increased to $1,431.4 million from $1,291.7 million for the three months ended March 31, 2025, an increase of $139.7 million or 11% (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

December 31, % Change Constant Currency*

March 31, % 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 December 31, 2025 was $1,255.9 million, an increase of 12% compared to net revenue for the three months ended December 31, 2024.

Net revenue from our Sleep and Breathing Health business for the three months ended March 31, 2026 was $1,260.5 million, an increase of 11% compared to net revenue for the three months ended March 31, 2025.

Movements in international currencies against the U.S.

dollar positively impacted net revenue by approximately $22.5 million for the three months ended December 31, 2025.

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

dollar positively impacted net revenue by approximately $35.2 million for the three months ended March 31, 2026.

Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended March 31, 2026 increased by 8% compared to the three months ended March 31, 2025.

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 December 31, 2025 increased to $835.0 million from $748.9 million for the three months ended December 31, 2024, an increase of $86.1 million or 11%.

Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the three months ended March 31, 2026 increased to $818.7 million from $749.3 million for the three months ended March 31, 2025, an increase of $69.4 million or 9%.

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 combined Europe, Asia and other markets increased for the three months ended December 31, 2025 to $420.9 million from $376.6 million for the three months ended December 31, 2024, an increase of $44.3 million or 12% (a 6% 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 March 31, 2026 to $441.8 million from $381.3 million for the three months ended March 31, 2025, an increase of $60.6 million or 16% (a 7% 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 December 31, 2025 increased to $726.2 million from $669.3 million for the three months ended December 31, 2024, an increase of $56.9 million or 9%, including an increase of 8% in the U.S., Canada and Latin America and an increase of 9% in combined Europe, Asia and other markets (a 5% increase on a constant currency basis).

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

Net revenue from devices for the three months ended March 31, 2026 increased to $735.7 million from $676.2 million for the three months ended March 31, 2025, an increase of $59.5 million or 9%, including an increase of 6% in the U.S., Canada and Latin America and an increase of 14% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis).

Excluding the impact of foreign currency movements, device sales for the three months ended March 31, 2026 increased by 6%.

PART I – FINANCIAL INFORMATION Item 2

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

Net revenue from masks and other for the three months ended December 31, 2025 increased to $529.7 million from $456.3 million for the three months ended December 31, 2024, an increase of $73.4 million or 16%, including an increase of 16% in the U.S., Canada and Latin America and an increase of 17% in combined Europe, Asia and other markets (an 8% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales for the three months ended December 31, 2025 increased by 14%.

Net revenue from masks and other for the three months ended March 31, 2026 increased to $524.8 million from $454.4 million for the three months ended March 31, 2025, an increase of $70.4 million or 15%, including an increase of 14% in the U.S., Canada and Latin America and an increase of 20% in combined Europe, Asia and other markets (a 10% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales for the three months ended March 31, 2026 increased by 12%.

Residential Care Software

Net revenue from our Residential Care Software business for the three months ended December 31, 2025 increased to $166.9 million from $156.5 million for the three months ended December 31, 2024, an increase of $10.4 million or 7%.

Net revenue from our Residential Care Software business for the three months ended March 31, 2026 increased to $170.9 million from $161.2 million for the three months ended March 31, 2025, an increase of $9.7 million or 6%.

Movements in international currencies against the U.S.

dollar positively impacted net revenue by approximately $3.0 million for the three months ended December 31, 2025.

Excluding the impact of currency movements, net revenue from our Residential Care Software business for the three months ended December 31, 2025 increased by 5% compared to the three months ended December 31, 2024.

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

Six Months Ended December 31, 2025 Compared to the Six Months Ended December 31, 2024

Net revenue for the six months ended December 31, 2025 increased to $2,758.4 million from $2,506.6 million for the six months ended December 31, 2024, an increase of $251.8 million or 10% (an 8% increase on a constant currency basis).

dollar positively impacted net revenue by approximately $4.1 million for the three months ended March 31, 2026.

Excluding the impact of foreign currency movements, net revenue from our Residential Care Software business for the three months ended March 31, 2026 increased by 4% compared to the three months ended March 31, 2025.

The increase was predominantly due to growth in the MEDIFOX DAN, Home and Hospice, and Home Medical Equipment, or HME, business verticals, partially offset by weaker performance in our Senior Living and Long-Term Care business vertical.

Nine Months Ended March 31, 2026 Compared to the Nine Months Ended March 31, 2025

Net revenue for the nine months ended March 31, 2026 increased to $4,189.8 million from $3,798.3 million for the nine months ended March 31, 2025, an increase of $391.5 million or 10% (an 8% increase on a constant currency basis).

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

Six Months Ended

December 31, % Change Constant Currency*

Nine Months Ended

March 31, % 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 six months ended December 31, 2025 was $2,425.4 million, an increase of 11% compared to net revenue for the six months ended December 31, 2024.

Net revenue from our Sleep and Breathing Health business for the nine months ended March 31, 2026 was $3,685.9 million, an increase of 11% compared to net revenue for the nine months ended March 31, 2025.

Movements in international currencies against the U.S.

dollar positively impacted net revenue by approximately $36.0 million for the six months ended December 31, 2025.

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

dollar positively impacted net revenue by approximately $71.2 million for the nine months ended March 31, 2026.

Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the nine months ended March 31, 2026 increased by 9% compared to the nine months ended March 31, 2025.

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

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

Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the six months ended December 31, 2025 increased to $1,609.8 million from $1,456.3 million for the six months ended December 31, 2024, an increase of $153.5 million or 11%.

Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the nine months ended March 31, 2026 increased to $2,428.5 million from $2,205.6 million for the nine months ended March 31, 2025, an increase of $222.9 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 six months ended December 31, 2025 to $815.6 million from $737.1 million for the six months ended December 31, 2024, an increase of $78.5 million or 11% (a 6% increase on a constant currency basis).

Net revenue in combined Europe, Asia and other markets increased for the nine months ended March 31, 2026 to $1,257.4 million from $1,118.3 million for the nine months ended March 31, 2025, an increase of $139.1 million or 12% (a 6% 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 six months ended December 31, 2025 increased to $1,406.5 million from $1,295.1 million for the six months ended December 31, 2024, an increase of $111.4 million or 9%, including an increase of 8% in the U.S., Canada and Latin America and an increase of 10% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis).

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

Net revenue from masks and other for the six months ended December 31, 2025 increased to $1,018.9 million from $898.2 million for the six months ended December 31, 2024, an increase of $120.6 million or 13%, including an increase of 14% in the U.S., Canada and Latin America and an increase of 12% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales increased by 12%, compared to the six months ended December 31, 2024.

Net revenue from devices for the nine months ended March 31, 2026 increased to $2,142.3 million from $1,971.3 million for the nine months ended March 31, 2025, an increase of $171.0 million or 9%, including an increase of 7% in the U.S., Canada and Latin America and an increase of 11% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis).

Excluding the impact of foreign currency movements, device sales for the nine months ended March 31, 2026 increased by 7%.

Net revenue from masks and other for the nine months ended March 31, 2026 increased to $1,543.6 million from $1,352.6 million for the nine months ended March 31, 2025, an increase of $191.0 million or 14%, including an increase of 14% in the U.S., Canada and Latin America and an increase of 15% 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 increased by 12%, compared to the nine months ended March 31, 2025.

Residential Care Software

Net revenue from our Residential Care Software business for the six months ended December 31, 2025 increased to $333.0 million from $313.3 million for the six months ended December 31, 2024, an increase of $19.7 million or 6%.

Net revenue from our Residential Care Software business for the nine months ended March 31, 2026 increased to $503.9 million from $474.4 million for the nine months ended March 31, 2025, an increase of $29.5 million or 6%.

Movements in international currencies against the U.S.

dollar positively impacted net revenue by approximately $5.0 million for the six months ended December 31, 2025.

Excluding the impact of currency movements, net revenue from our Residential Care Software business for the six months ended December 31, 2025 increased by 5% compared to the six months ended December 31, 2024.

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

dollar positively impacted net revenue by approximately $9.1 million for the nine months ended March 31, 2026.

Excluding the impact of foreign currency movements, net revenue from our Residential Care Software business for the nine months ended March 31, 2026 increased by 4% compared to the nine months ended March 31, 2025.

The increase was predominantly due to continued growth in the MEDIFOX DAN vertical within our Residential Care Software business, Home and Hospice, and HME, business verticals, 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 December 31, 2025 to $878.7 million from $751.3 million for the three months ended December 31, 2024, an increase of $127.4 million or 17%.

Gross margin, which is gross profit as a percentage of net revenue, for the three months ended December 31, 2025 was 61.8% compared to 58.6% for the three months ended December 31, 2024.

The increase in gross margin for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was due primarily to manufacturing and logistics efficiencies and component cost improvements.

Gross profit increased for the six months ended December 31, 2025 to $1,699.5 million from $1,468.5 million for the six months ended December 31, 2024, an increase of $231.0 million or 16%.

Gross margin for the six months ended December 31, 2025 was 61.6% compared to 58.6% for the six months ended December 31, 2024.

The increase in gross margin for the six months ended December 31, 2025 compared to the six months ended December 31, 2024 was due primarily to manufacturing and logistics efficiencies and component cost improvements.

Gross profit increased for the three months ended March 31, 2026 to $891.0 million from $766.4 million for the three months ended March 31, 2025, an increase of $124.6 million or 16%.

Gross margin, which is gross profit as a percentage of net revenue, for the three months ended March 31, 2026 was 62.2% compared to 59.3% for the three months ended March 31, 2025.

The increase in gross margin for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due primarily to manufacturing and logistics efficiencies and component cost improvements, as well as a small positive impact from product mix and foreign currency movements.

Gross profit increased for the nine months ended March 31, 2026 to $2,590.5 million from $2,234.9 million for the nine months ended March 31, 2025, an increase of $355.6 million or 16%.

Gross margin for the nine months ended March 31, 2026 was 61.8% compared to 58.8% for the nine months ended March 31, 2025.

The increase in gross margin for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025 was due primarily to manufacturing and logistics efficiencies and component cost improvements.

PART I – FINANCIAL INFORMATION Item 2

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Three Months Ended

December 31, Change % Change Constant Currency

March 31, Change % Change Constant Currency

Selling, general, and administrative $ 285,655 $ 245,302 $ 40,353 16 % 11 %

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Amortization of acquired intangible assets $ 11,247 $ 10,895 $ 352 3 % (2) %

Six Months Ended

December 31, Change % Change Constant Currency

Nine Months Ended

March 31, Change % Change Constant Currency

Selling, general, and administrative $ 823,245 $ 725,894 $ 97,351 13 % 10 %

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Selling, General, and Administrative Expenses

Selling, general, and administrative expenses increased for the three months ended December 31, 2025 to $278.4 million from $241.6 million for the three months ended December 31, 2024, an increase of $36.8 million or 15%.

Selling, general, and administrative expenses increased for the three months ended March 31, 2026 to $285.7 million from $245.3 million for the three months ended March 31, 2025, an increase of $40.4 million or 16%.

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 $13.0 million, as reported in U.S.

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended December 31, 2025 increased by 12% compared to the three months ended December 31, 2024.

As a percentage of net revenue, selling, general, and administrative expenses were 19.6% for the three months ended December 31, 2025, compared to 18.8% for the three months ended December 31, 2024.

The constant currency increase in selling, general, and administrative expenses during the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments.

Selling, general, and administrative expenses increased for the six months ended December 31, 2025 to $537.6 million from $480.6 million for the six months ended December 31, 2024, an increase of $57.0 million or 12%.

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended March 31, 2026 increased by 11% compared to the three months ended March 31, 2025.

As a percentage of net revenue, selling, general, and administrative expenses were 20.0% for the three months ended March 31, 2026, compared to 19.0% for the three months ended March 31, 2025.

The constant currency increase in selling, general, and administrative expenses during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments.

Additionally, during the three months ended March 31, 2026, we recorded $5.9 million of acquisition and portfolio review related charges associated with the evaluation of strategic transactions, including legal and professional fees for diligence and related consultations.

We did not incur material acquisition and portfolio review related expenses during the three months ended March 31, 2025.

Selling, general, and administrative expenses increased for the nine months ended March 31, 2026 to $823.2 million from $725.9 million for the nine months ended March 31, 2025, an increase of $97.4 million or 13%.

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 $23.9 million, as reported in U.S.

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the six months ended December 31, 2025 increased by 10% compared to the six months ended December 31, 2024.

As a percentage of net revenue, selling, general, and administrative expenses were 19.5% for the six months ended December 31, 2025, compared to 19.2% for the six months ended December 31, 2024.

The constant currency increase in selling, general, and administrative expenses during the six months ended December 31, 2025 compared to the six months ended December 31, 2024 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments.

Research and Development Expenses

Research and development expenses increased for the three months ended December 31, 2025 to $91.0 million from $81.4 million for the three months ended December 31, 2024, an increase of $9.6 million, or 12%.

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

dollar, which increased

Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the nine months ended March 31, 2026 increased by 10% compared to the nine months ended March 31, 2025.

As a percentage of net revenue, selling, general, and administrative expenses were 19.6% for the nine months ended March 31, 2026, compared to 19.1% for the nine months ended March 31, 2025.

The constant currency increase in selling, general, and administrative expenses during the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments.

Additionally, during the nine months ended March 31, 2026, we recorded $5.9 million of acquisition and portfolio review related charges associated with the evaluation of strategic transactions, including legal and professional

PART I – FINANCIAL INFORMATION Item 2

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

our expenses by approximately $1.1 million for the three months ended December 31, 2025, as reported in U.S.

dollars Excluding the impact of foreign currency movements, research and development expenses increased by 10% compared to the three months ended December 31, 2024.

As a percentage of net revenue, research and development expenses were 6.4% for the three months ended December 31, 2025 and 6.3% for the three months ended December 31, 2024.

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

Research and development expenses increased for the six months ended December 31, 2025 to $178.3 million from $160.9 million for the six months ended December 31, 2024, an increase of $17.4 million, or 11%.

fees for diligence and related consultations.

We did not incur material acquisition and portfolio review related expenses during the nine months ended March 31, 2025.

Research and Development Expenses

Research and development expenses increased for the three months ended March 31, 2026 to $94.3 million from $83.9 million for the three months ended March 31, 2025, an increase of $10.3 million or 12%.

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

dollar, which increased our expenses by approximately $1.1 million for the six months ended December 31, 2025, as reported in U.S.

Excluding the impact of foreign currency movements, research and development expenses increased by 10% compared to the six months ended December 31, 2024.

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

dollar, which increased our expenses by approximately $3.7 million for the three months ended March 31, 2026, as reported in U.S.

dollars Excluding the impact of foreign currency movements, research and development expenses increased by 8% compared to the three months ended March 31, 2025.

As a percentage of net revenue, research and development expenses were 6.6% for the three months ended March 31, 2026 and 6.5% for the three months ended March 31, 2025.

The increase in research and development expenses during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to increases in employee-related costs.

Research and development expenses increased for the nine months ended March 31, 2026 to $272.6 million from $244.8 million for the nine months ended March 31, 2025, an increase of $27.7 million or 11%.

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

dollar, which increased our expenses by approximately $4.8 million for the nine months ended March 31, 2026, 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, 2025.

As a percentage of net revenue, research and development expenses were 6.5% for the nine months ended March 31, 2026, compared to 6.4% for the nine months ended March 31, 2025.

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

Amortization of Acquired Intangible Assets

Amortization of acquired intangible assets for the three months ended December 31, 2025 totaled $11.8 million compared to $11.0 million for the three months ended December 31, 2024.

Amortization of acquired intangible assets for the six months ended December 31, 2025 totaled $23.7 million compared to $22.5 million for the six months ended December 31, 2024.

The increase in amortization of acquired intangible assets for the three and six months ended December 31, 2025 compared to the three and six months ended December 31, 2024 is due to amortization of intangibles from the VirtuOx acquisition during the three months ended June 30, 2025.

Amortization of acquired intangible assets for the three months ended March 31, 2026 totaled $11.2 million compared to $10.9 million for the three months ended March 31, 2025.

Amortization of acquired intangible assets for the nine months ended March 31, 2026 totaled $35.0 million compared to $33.3 million for the nine months ended March 31, 2025.

The increase in amortization of acquired intangible assets for the three and nine months ended March 31, 2026 compared to the three and nine months ended March 31, 2025 is due to amortization of intangibles from the VirtuOx acquisition during the three months ended June 30, 2025, partially offset by certain acquired intangible assets reaching the end of their useful lives and becoming fully amortized.

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.

We did not record any restructuring expenses during the three and six months ended December 31, 2024.

We did not record any restructuring expenses during the three months ended March 31, 2026.

During the nine months ended March 31, 2026, we recorded $21.7 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 and nine months ended March 31, 2025.

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

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

Total Other Income (Loss), Net

8 unchanged sentences

Total other income (loss), net $ 2,502 $ (8,575) $ 11,077

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

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

Six Months Ended

Nine Months Ended

2026 2025 Change

6 unchanged sentences

Total other income (loss), net $ 7,249 $ (11,310) $ 18,559

Total other income (loss), net for the three months ended December 31, 2025 was income of $4.5 million compared to income of $1.1 million for the three months ended December 31, 2024.

We recorded interest income, net of $7.9 million for the three months ended December 31, 2025 compared to interest expense, net of $0.8 million for the three months ended December 31, 2024 due to lower debt levels following repayments on our revolving credit facility.

Additionally, we recorded a gain associated with our equity investments of $0.3 million for the three months ended December 31, 2025 compared to a loss of $1.4 million for the three months ended December 31, 2024.

Total other income (loss), net for the six months ended December 31, 2025 was income of $4.7 million compared to a loss of $2.7 million for the six months ended December 31, 2024.

We recorded interest income, net of $16.7 million for the six months ended December 31, 2025 compared to interest expense, net of $2.4 million for the six months ended December 31, 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 $5.9 million for the six months ended December 31, 2025 compared to a loss of $2.1 million for the six months ended December 31, 2024.

Our effective income tax rate for the three and six months ended December 31, 2025 was 20.9% and 21.4%, respectively, as compared to 17.6% and 18.2% for the three and six months ended December 31, 2024, respectively.

Our effective rate of 20.9% for the three months ended December 31, 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 and six months ended December 31, 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.

Total other income (loss), net for the three months ended March 31, 2026 was income of $2.5 million compared to a loss of $8.6 million for the three months ended March 31, 2025.

Interest income, net increased to $12.3 million for the three months ended March 31, 2026 compared to $0.8 million for the three months ended March 31, 2025 due to lower debt levels following repayments on our revolving credit facility and gains recognized on cross-currency swaps associated with our fair value and net investment hedges.

The increase in interest income, net was partially offset by a loss associated with our equity investments of $10.1 million for the three months ended March 31, 2026 compared to a loss of $5.6 million for the three months ended March 31, 2025.

Total other income (loss), net for the nine months ended March 31, 2026 was income of $7.2 million compared to a loss of $11.3 million for the nine months ended March 31, 2025.

We recorded interest income, net of $29.0 million for the nine months ended March 31, 2026 compared to interest expense, net of $1.6 million for the nine months ended March 31, 2025 due to lower debt levels following repayments on our revolving credit facility and gains recognized on cross-currency swaps associated with our fair value and net investment hedges.

Interest income, net, was partially offset by a loss associated with our equity investments of $16.0 million for the nine months ended March 31, 2026 compared to a loss of $7.8 million for the nine months ended March 31, 2025.

Our effective income tax rate for the three and nine months ended March 31, 2026 was 20.6% and 21.1%, respectively, as compared to 12.6% and 16.3% for the three and nine months ended March 31, 2025, respectively.

Our effective rate of 20.6% for the three months ended March 31, 2026 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 and nine months ended March 31, 2026 was primarily due to the impact of global minimum taxes implemented in accordance with Pillar Two and interest and penalties refunded from the IRS in the prior year period.

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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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.

Pillar Two legislation in effect as of December 31, 2025 has been incorporated into our condensed consolidated financial statements.

Effective in our fiscal year beginning July 1, 2024, various jurisdictions in which we operate began implementing the global minimum

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

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

tax prescribed under Pillar Two.

Pillar Two legislation in effect as of March 31, 2026 has been incorporated into our condensed consolidated financial statements.

On January 5, 2026, the OECD issued administrative guidance regarding the Side-by-Side, or SbS, Safe Harbor under the Pillar Two global minimum tax framework, which is expected to exempt U.S.

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Net Income and Earnings per Share

As a result of the factors above, our net income for the three months ended December 31, 2025 was $392.6 million compared to $344.6 million for the three months ended December 31, 2024, an increase of $48.0 million, or 14%.

Our diluted earnings per share for the three months ended December 31, 2025 was $2.68 per diluted share compared to $2.34 for the three months ended December 31, 2024, an increase of $0.34, or 15%.

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

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

As a result of the factors above, our net income for the six months ended December 31, 2025 was $741.1 million compared to $656.0 million for the six months ended December 31, 2024, an increase of $85.2 million, or 13%.

Our diluted earnings per share for the six months ended December 31, 2025 was $5.05 per diluted share compared to $4.45 for the six months ended December 31, 2024, an increase of $0.60, or 13%.

As a result of the factors above, our net income for the three months ended March 31, 2026 was $398.7 million compared to $365.0 million for the three months ended March 31, 2025, an increase of $33.7 million or 9%.

Our diluted earnings per share for the three months ended March 31, 2026 was $2.74 per diluted share compared to $2.48 for the three months ended March 31, 2025, an increase of $0.26 or 10%.

As a result of the factors above, our net income for the nine months ended March 31, 2026 was $1,139.9 million compared to $1,021.0 million for the nine months ended March 31, 2025, an increase of $118.8 million or 12%.

Our diluted earnings per share for the nine months ended March 31, 2026 was $7.79 per diluted share compared to $6.93 for the nine months ended March 31, 2025, an increase of $0.86 or 12%.

Summary of Non-GAAP Financial Measures

In addition to financial information prepared in accordance with GAAP, our management uses certain non-GAAP financial measures, such as non-GAAP revenue, non-GAAP cost of sales, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP net income, and non-GAAP diluted earnings per share, in evaluating the performance of our business.

In addition to financial information prepared in accordance with GAAP, our management uses certain non-GAAP financial measures, such as non-GAAP revenue, non-GAAP cost of sales, non-GAAP selling, general, and administrative expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP net income, and non-GAAP diluted earnings per share, in evaluating the performance of our business.

We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide investors better insight when evaluating our performance from core operations and can provide more consistent financial reporting across periods.

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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.

PART I – FINANCIAL INFORMATION Item 2

AND SUBSIDIARIES

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

These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except percentages):

Three Months Ended

December 31, Six Months Ended

March 31, Nine Months Ended

2026 2025 2026 2025

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Non-GAAP gross margin 62.8 % 59.9 % 62.4 % 59.4 %

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

The measure “non-GAAP selling, general, and administrative expenses” is equal to GAAP selling, general, and administrative expenses less acquisition and portfolio review related expenses.

Non-GAAP selling, general, and administrative expenses as a percentage of revenue is the ratio of non-GAAP selling, general, and administrative expenses to GAAP net revenue.

These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except percentages):

Three Months Ended

March 31, Nine Months Ended

2026 2025 2026 2025

GAAP net revenue $ 1,431,406 $ 1,291,736 $ 4,189,796 $ 3,798,334

GAAP selling, general, and administrative expenses $ 285,655 $ 245,302 $ 823,245 $ 725,894

Acquisition and portfolio review related expenses

(5,858) — (5,858) —

Non-GAAP selling, general, and administrative expenses $ 279,797 $ 245,302 $ 817,387 $ 725,894

As a percentage of GAAP net revenue:

GAAP selling, general, and administrative expenses 20.0 % 19.0 % 19.6 % 19.1 %

Non-GAAP selling, general, and administrative expenses 19.5 % 19.0 % 19.5 % 19.1 %

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

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

Three Months Ended

December 31, Six Months Ended

March 31, Nine Months Ended

2026 2025 2026 2025

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Restructuring expenses — — 21,745 —

Acquisition and portfolio review related expenses 5,858 — 5,858 —

Non-GAAP income from operations $ 524,765 $ 444,607 $ 1,524,053 $ 1,286,916

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

PART I – FINANCIAL INFORMATION Item 2

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

ratio of non-GAAP net income to diluted shares outstanding.

The measure “non-GAAP net income” is equal to GAAP net income once adjusted for amortization of acquired intangibles, restructuring expenses, acquisition and portfolio review related 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.

These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except for per share amounts):

Three Months Ended

December 31, Six Months Ended

March 31, Nine Months Ended

2026 2025 2026 2025

3 unchanged sentences

Restructuring expenses — — 21,745 —

Acquisition and portfolio review related expenses 5,858 — 5,858 —

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

Income tax effect on non-GAAP adjustments (6,519) (4,871) (22,394) (14,904)

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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 December 31, 2025 and June 30, 2025, we had cash and cash equivalents of $1,417.1 million and $1,209.5 million, respectively.

As of March 31, 2026 and June 30, 2025, we had cash and cash equivalents of $1,660.5 million and $1,209.5 million, respectively.

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

at December 31, 2025 and June 30, 2025 were $794.5 million and $555.0 million, respectively.

Our remaining cash and cash equivalent balances at December 31, 2025 and June 30, 2025, were $622.6 million and $654.5 million, respectively.

at March 31, 2026 and June 30, 2025 were $944.0 million and $555.0 million, respectively.

Our remaining cash and cash equivalent balances at March 31, 2026 and June 30, 2025, were $716.5 million and $654.5 million, respectively.

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

As of December 31, 2025, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $2,917.1 million in cash and available liquidity under the revolving credit facility.

As of March 31, 2026, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $3,160.5 million in cash and available liquidity under the revolving credit facility.

As a result of the U.S.

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We believe that our current sources of liquidity will be sufficient to fund our operations, including expected capital expenditures, for the next 12 months and beyond.

Revolving Credit Agreement, Term Credit Agreement and Senior Notes

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

PART I – FINANCIAL INFORMATION Item 2

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

Syndicated Facility Agreement, or the Term Credit Agreement.

Revolving Credit Agreement, Term Credit Agreement and Senior Notes

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.

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

As of March 31, 2026, 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 December 31, 2025, there was a total of $665.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes and we were in compliance with our debt covenants.

On March 31, 2026, there was a total of $665.0 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):

Six Months Ended

Nine Months Ended

Net cash provided by (used in) operating activities

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Operating Activities

Cash provided by operating activities was $797.1 million for the six months ended December 31, 2025, compared to cash provided of $634.2 million for the six months ended December 31, 2024.

The $162.9 million increase in cash flow from operations was primarily due to increased net income and improvements in working capital during the six months ended December 31, 2025 compared to the six months ended December 31, 2024.

Cash provided by operating activities was $1,351.2 million for the nine months ended March 31, 2026, compared to cash provided of $1,212.8 million for the nine months ended March 31, 2025.

The $138.4 million increase in cash flow from operations was primarily due to increased net income during the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025.

Investing Activities

Cash used in investing activities was $103.5 million for the six months ended December 31, 2025, compared to cash used of $34.5 million for the six months ended December 31, 2024.

The $69.0 million increase in cash flow used in investing activities was primarily due to increased purchases of property, plant and equipment during the six months ended December 31, 2025 in addition to net payments from maturity of foreign currency contracts during the six months ended December 31, 2025 compared to net proceeds from maturity of foreign currency contracts during the six months ended December 31, 2024.

Cash used in investing activities was $161.5 million for the nine months ended March 31, 2026, compared to cash used of $66.3 million for the nine months ended March 31, 2025.

The $95.2 million increase in cash flow used in investing activities was primarily due to increased purchases of property, plant and equipment and minority investments, in addition to cash used to acquire businesses during the nine months ended March 31, 2026, partially offset by increased proceeds upon the maturity of foreign currency contracts during the nine months ended March 31, 2026.

Financing Activities

Cash used in financing activities was $488.6 million for the six months ended December 31, 2025, compared to cash used of $298.3 million for the six months ended December 31, 2024.

We repurchased $325.0 million of treasury stock during the six months ended December 31, 2025 compared to repurchases of $125.0 million during the six months ended December 31, 2024.

Cash outflows for treasury stock repurchases were partially offset by repayments of $5.0 million under our Revolving Credit Agreement for the six months ended December 31, 2025, compared to repayments of $35.0 million for the six months ended December 31, 2024.

During the three months ended December 31, 2025, we paid cash dividends of $0.60 per common share totaling $87.6 million.

On January 29, 2026, our board of directors declared a cash dividend of $0.60 per common share, to be paid on March 19, 2026, to shareholders of record as of the close of business on February 12, 2026.

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

Cash used in financing activities was $743.9 million for the nine months ended March 31, 2026, compared to cash used of $442.4 million for the nine months ended March 31, 2025.

The $301.5 million increase in cash flow used in financing activities was primarily due to $500.0 million of treasury stock repurchases during the nine months ended March 31, 2026 compared to repurchases of $200.0 million during the nine months ended March 31, 2025.

PART I – FINANCIAL INFORMATION Item 2

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

During the three months ended March 31, 2026, we paid cash dividends of $0.60 per common share totaling $87.2 million.

On April 30, 2026, our board of directors declared a cash dividend of $0.60 per common share, to be paid on June 18, 2026, to shareholders of record as of the close of business on May 14, 2026.

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 December 31, 2025, we have repurchased a total of 10.4 million shares under this repurchase program for an aggregate of $1.2 billion.

During the six months ended December 31, 2025, we repurchased 1,226,914 shares at a cost of $325.0 million.

Since approval of the share repurchase program in 2014 through March 31, 2026, we have repurchased a total of 11.1 million shares under this repurchase program for an aggregate of $1.4 billion.

During the nine months ended March 31, 2026, we repurchased 1,900,332 shares at a cost of $500.0 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 December 31, 2025, 9.6 million additional shares remain available for us to repurchase under the approved share repurchase program.

At March 31, 2026, 8.9 million additional shares remain available for us to repurchase under the approved share repurchase program.

Critical Accounting Principles and Estimates

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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, 2025.

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

Payments Due by December 31,

Details of our purchase obligations as of March 31, 2026 were as follows (in thousands):

Payments Due by March 31,

Total 2027 2028 2029 2030 2031 Thereafter

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Off-Balance Sheet Arrangements

As of December 31, 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.

As of March 31, 2026, 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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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 2. Management’s Discussion and Analysis