RESMED INC 10-K

ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET AND BUSINESS RISKS Foreign Currency Market Risk Our reporting currency is the U.S. dollar, although the financial statements of our non-U.S. subsidiaries are maintained in their respective local currencies. We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through our Australian and Singapore manufacturing activities and our international sales operations. Net Investment and Fair Value Hedging We enter into 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 income. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of income 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 net investment hedges 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 $3,412 million and $1,128 million at June 30, 2026 and June 30, 2025, respectively. These contracts mature at various dates prior to January 31, 2036. 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 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 $1,285 million and $1,410 million at June 30, 2026 and June 30, 2025, respectively. These contracts mature at various dates prior to June 17, 2027. -69- Table of Contents PART II Item 7A RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks Fair Values of Derivative Instruments The table below provides information (in U.S. dollars) on our significant foreign-currency-denominated financial assets by legal entity functional currency as of June 30, 2026 (in thousands): U.S. Dollar (USD) Euro (EUR) Canadian Dollar (CAD) Chinese Yuan (CNY) Korean Won (KRW) AUD Functional: Net Assets/(Liabilities) 389,425 (148,456) (74) 38,789 19,413 Foreign Currency Hedges (355,000) 131,289 — (44,182) (25,819) Net Total 34,425 (17,167) (74) (5,393) (6,406) USD Functional: Net Assets/(Liabilities) — 322,372 38,076 — — Foreign Currency Hedges — (319,661) (35,196) — — Net Total — 2,711 2,880 — — EUR Functional: Net Assets/(Liabilities) — 2,710 2,880 — — Foreign Currency Hedges 6,651 — — — — Net Total 6,651 2,710 2,880 — — SGD Functional: Net Assets/(Liabilities) 401,156 240,228 — 5,581 — Foreign Currency Hedges (425,000) (251,162) — — — Net Total (23,844) (10,934) — 5,581 — -70- Table of Contents PART II Item 7A RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks The table below provides information about our material foreign currency derivative financial instruments and presents the information in U.S. dollar equivalents. The table summarizes information on instruments and transactions that are sensitive to foreign currency exchange rates, including foreign currency call options, collars, forward contracts and cross-currency swaps held at June 30, 2026. The table presents the notional amounts and weighted average exchange rates by contractual maturity dates for our foreign currency derivative financial instruments, including the forward contracts used to hedge our foreign currency denominated assets and liabilities. These notional amounts generally are used to calculate payments to be exchanged under the contracts (in thousands, except exchange rates). Fair Value Assets / (Liabilities) Total June 30, 2026 June 30, 2025 AUD/USD Contract amount 355,000 (10,551) 2,969 Ave. contractual exchange rate AUD 1 = USD 0.7123 AUD/EUR Contract amount 131,289 2,177 (1,203) Ave. contractual exchange rate AUD 1 = EUR 0.6130 SGD/EUR Contract amount 268,287 1,701 (1,426) Ave. contractual exchange rate SGD 1 = EUR 0.6717 SGD/USD Contract amount 425,000 (4,856) 3,031 Ave. contractual exchange rate SGD 1 = USD 0.7831 AUD/CNY Contract amount 44,182 (1,099) 374 Ave. contractual exchange rate AUD 1 = CNY 4.7882 AUD/KRW Contract amount 25,819 313 — Ave. contractual exchange rate AUD 1 = KRW 1,057.5981 USD/EUR Contract amount 1,094,379 (96,601) (128,631) Ave. contractual exchange rate USD 1 = EUR 0.9610 USD/SGD Contract amount 2,317,584 (104,564) — Ave. contractual exchange rate USD 1 = SGD 1.2744 USD/CAD Contract amount 35,196 889 370 Ave. contractual exchange rate CAD 1 = USD 0.7217 Interest Rate Risk We are exposed to risk associated with changes in interest rates affecting the return on our cash and cash equivalents and debt. At June 30, 2026, we held cash and cash equivalents of $1,469 million principally comprising of bank term deposits, at-call accounts and money market accounts, which are invested at both short-term fixed interest rates and variable interest rates. At June 30, 2026, there was $160 million outstanding under the term loan facilities, which were subject to variable interest rates. A hypothetical 10% change in interest rates during the year ended June 30, 2026, would not have had a material impact on pretax income. We have no interest rate hedging agreements. On July 10, 2019, we entered into the Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250 million principal amount of our 3.24% senior notes due July 10, 2026, and $250 million principal amount of our 3.45% senior notes due July 10, 2029. The interest rate on these notes is fixed and not subject to fluctuation. -71- Table of Contents PART II Item 7A RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks Inflation Inflationary factors such as increases in the cost of our products, freight, overhead costs or wage rates may adversely affect our operating results. Sustained inflationary pressures in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating margin if we are unable to offset such higher costs through price increases. -72- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES ITEM 8 CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The information required by this Item is incorporated by reference to the financial statements set forth in Item 15 of Part IV of this report, “Exhibits and Consolidated Financial Statement Schedules.” (a) Index to Consolidated Financial Statements Report of Independent Registered Public Accounting Firm ( KPMG LLP , San Diego, CA , Auditor Firm ID: 185 ) 74 Consolidated Balance Sheets as of June 30, 2026 and 2025 76 Consolidated Statements of Income for the years ended June 30, 2026, 2025 and 2024 77 Consolidated Statements of Comprehensive Income for the years ended June 30, 2026, 2025 and 2024 78 Consolidated Statements of Stockholders’ Equity for the years ended June 30, 2026, 2025 and 2024 79 Consolidated Statements of Cash Flows for the years ended June 30, 2026, 2025 and 2024 80 Notes to Consolidated Financial Statements 82 Schedule II – Valuation and Qualifying Accounts and Reserves 112 (b) Supplementary Data Quarterly Financial Information (unaudited)—The quarterly results for the years ended June 30, 2026 and 2025 are summarized below (in thousands, except per share amounts): 2026 First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Net revenue $ 1,335,582 $ 1,422,808 $ 1,431,406 $ 1,463,647 $ 5,653,443 Gross profit $ 820,820 $ 878,724 $ 890,979 $ 861,216 $ 3,451,739 Net income $ 348,536 $ 392,593 $ 398,732 $ 383,432 $ 1,523,293 Basic earnings per share $ 2.38 $ 2.69 $ 2.74 $ 2.65 $ 10.47 Diluted earnings per share $ 2.37 $ 2.68 $ 2.74 $ 2.64 $ 10.43 2025 First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Net revenue $ 1,224,509 $ 1,282,089 $ 1,291,736 $ 1,347,993 $ 5,146,327 Gross profit $ 717,219 $ 751,275 $ 766,409 $ 820,070 $ 3,054,970 Net income $ 311,355 $ 344,622 $ 365,041 $ 379,705 $ 1,400,723 Basic earnings per share $ 2.12 $ 2.35 $ 2.49 $ 2.59 $ 9.55 Diluted earnings per share $ 2.11 $ 2.34 $ 2.48 $ 2.58 $ 9.51 Note: the amounts for each quarter are computed independently and, due to the computation formula, the sum of the four quarters may not equal the year. -73- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors ResMed Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of ResMed Inc. and subsidiaries (the Company) as of June 30, 2026 and 2025, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2026, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated August 13, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of goodwill triggering events As discussed in Notes 2(i) and 5 to the consolidated financial statements, the Company’s goodwill balance was $2,910 million as of June 30, 2026. The Company performs goodwill impairment testing on an annual basis and whenever events or changes in circumstances indicate that the carrying value of a reporting unit, including goodwill, might exceed the fair value of the reporting unit. In the current year, the Company performed qualitative, or Step 0, assessments to determine whether there was a greater than 50 percent likelihood that the fair value of each reporting unit was less than its carrying value. After completing Step 0, the Company determined that goodwill was not more likely than not impaired and, therefore, no Step 1, or quantitative assessment, was necessary. -74- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES We identified the evaluation of goodwill triggering events as a critical audit matter. The evaluation of potential triggering events, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, market capitalization and events specific to the entity and reporting units, required a higher degree of auditor judgment. These potential triggering events could have a significant effect on the Company’s Step 0 assessment and the determination of whether further quantitative analysis of goodwill impairment was required. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the evaluation of goodwill impairment. This included a control related to the Company’s assessment of potential goodwill triggering events. We evaluated the Company’s Step 0 assessment for its reporting units by: • considering macroeconomic conditions including gross domestic product, labor market, and inflation by key regions around the world for negative indicators • evaluating information from analyst reports in the enterprise software and sleep and breathing health industries, which were compared to industry and market considerations used by the Company • analyzing information including changes in the costs of raw materials and labor, the financial performance of the reporting units, the Company’s market capitalization, and other entity and reporting-unit specific events. /s/ KPMG LLP We have served as the Company’s auditor since 1994. San Diego, California August 13, 2026 -75- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Consolidated Balance Sheets June 30, 2026 and 2025 (In US$ and in thousands, except share and per share data) June 30, 2026 June 30, 2025 Assets Current assets: Cash and cash equivalents $ 1,469,234 $ 1,209,450 Accounts receivable, net of allowances of $ 25,839 and $ 22,424 at June 30, 2026 and June 30, 2025, respectively 1,036,233 939,492 Inventories (note 4) 945,805 927,711 Prepaid expenses and other current assets (note 4) 416,081 428,952 Assets held for sale (note 18) 457,386 — Total current assets 4,324,739 3,505,605 Non-current assets: Property, plant and equipment, net (note 4) 581,829 550,790 Operating lease right-of-use assets (note 9) 153,167 167,497 Goodwill (note 5) 2,909,575 3,046,680 Other intangible assets, net (note 5) 452,737 464,861 Deferred income taxes (note 12) 329,254 253,119 Prepaid taxes and other non-current assets 214,649 185,839 Total non-current assets 4,641,211 4,668,786 Total assets $ 8,965,950 $ 8,174,391 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 308,923 $ 278,157 Accrued expenses (note 7) 494,921 402,253 Operating lease liabilities, current (note 9) 29,141 30,506 Deferred revenue 162,911 166,030 Income taxes payable (note 12) 98,108 132,274 Short-term debt, net (note 8) 259,950 9,900 Liabilities held for sale (note 18) 41,156 — Total current liabilities 1,395,110 1,019,120 Non-current liabilities: Deferred revenue 170,951 156,803 Deferred income taxes (note 12) 64,640 77,682 Operating lease liabilities, non-current (note 9) 137,413 153,015 Other long-term liabilities 213,028 141,520 Long-term debt, net (note 8) 399,415 658,392 Total non-current liabilities 985,447 1,187,412 Total liabilities 2,380,557 2,206,532 Commitments and contingencies (note 15) 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; 191,037,523 issued and 144,239,563 outstanding at June 30, 2026 and 190,311,097 issued and 146,385,350 outstanding at June 30, 2025 764 761 Additional paid-in capital 2,190,614 2,033,599 Retained earnings 7,255,121 6,081,490 Treasury stock, at cost, 46,798,043 shares at June 30, 2026 and 43,925,747 shares at June 30, 2025 ( 2,778,591 ) ( 2,073,292 ) Accumulated other comprehensive loss ( 82,515 ) ( 74,699 ) Total stockholders’ equity 6,585,393 5,967,859 Total liabilities and stockholders’ equity $ 8,965,950 $ 8,174,391 See accompanying notes to consolidated financial statements. -76- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Consolidated Statements of Income Years Ended June 30, 2026, 2025 and 2024 (In US$ and in thousands, except share and per share data) June 30, 2026 June 30, 2025 June 30, 2024 Net revenue - Sleep and Breathing Health products $ 4,977,630 $ 4,504,890 $ 4,101,172 Net revenue - Residential Care Software 675,813 641,437 584,125 Net revenue 5,653,443 5,146,327 4,685,297 Cost of sales - Sleep and Breathing Health products 1,962,607 1,864,198 1,806,845 Cost of sales - Residential Care Software 207,318 195,043 190,186 Cost of sales (exclusive of amortization shown separately below) 2,169,925 2,059,241 1,997,031 Amortization of acquired intangible assets - Sleep and Breathing Health products 6,266 6,646 5,515 Amortization of acquired intangible assets - Residential Care Software 25,513 25,470 27,448 Amortization of acquired intangible assets 31,779 32,116 32,963 Total cost of sales 2,201,704 2,091,357 2,029,994 Gross profit 3,451,739 3,054,970 2,655,303 Research and development 378,285 331,284 307,525 Selling, general, and administrative 1,119,528 993,050 917,136 Amortization of acquired intangible assets 45,466 45,273 46,521 Restructuring expenses (note 17) 21,745 — 64,228 Total operating expenses 1,565,024 1,369,607 1,335,410 Income from operations 1,886,715 1,685,363 1,319,893 Other income (loss), net: Interest income (expense), net 49,914 4,114 ( 45,708 ) Gain (loss) attributable to equity method investments (note 6) 6,955 3,644 ( 1,848 ) Gain (loss) on equity investments (note 6) ( 15,014 ) ( 10,299 ) ( 4,045 ) Other, net ( 9,154 ) ( 5,256 ) ( 3,494 ) Total other income (loss), net 32,701 ( 7,797 ) ( 55,095 ) Income before income taxes 1,919,416 1,677,566 1,264,798 Income taxes (note 12) 396,123 276,843 243,847 Net income $ 1,523,293 $ 1,400,723 $ 1,020,951 Basic earnings per share (note 11) $ 10.47 $ 9.55 $ 6.94 Diluted earnings per share (note 11) $ 10.43 $ 9.51 $ 6.92 Dividend declared per share $ 2.40 $ 2.12 $ 1.92 Basic shares outstanding (000's) 145,523 146,716 147,021 Diluted shares outstanding (000's) 146,054 147,340 147,550 See accompanying notes to consolidated financial statements. -77- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Years Ended June 30, 2026, 2025 and 2024 (In US$ and in thousands) June 30, 2026 June 30, 2025 June 30, 2024 Net income $ 1,523,293 $ 1,400,723 $ 1,020,951 Other comprehensive income (loss): Unrealized gains (losses) on designated hedging instruments ( 77,977 ) ( 52,573 ) 31,743 Foreign currency translation gain (loss) adjustments 70,161 229,403 ( 10,744 ) Comprehensive income $ 1,515,477 $ 1,577,553 $ 1,041,950 See accompanying notes to consolidated financial statements. -78- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Consolidated Statements of Stockholders’ Equity Years ended June 30, 2026, 2025 and 2024 (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, 2023 188,901 $ 588 $ 1,772,083 ( 41,836 ) $ ( 1,623,256 ) $ 4,253,016 $ ( 272,528 ) $ 4,129,903 Common stock issued on exercise of options (note 10) 166 — 13,484 — — — — 13,484 Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 10) 175 1 ( 8,758 ) — — — — ( 8,757 ) Common stock issued on employee stock purchase plan (note 10) 323 1 39,609 — — — — 39,610 Treasury stock purchases — ( 2 ) 2 ( 828 ) ( 150,011 ) — — ( 150,011 ) Stock-based compensation costs (note 10) — — 80,184 — — — — 80,184 Other comprehensive income (loss) — — — — — — 20,999 20,999 Net income — — — — — 1,020,951 — 1,020,951 Dividends declared ($ 1.92 per common share) — — — — — ( 282,320 ) — ( 282,320 ) 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 amount — 170 ( 170 ) — — — — — Common stock issued on exercise of options (note 10) 293 1 30,882 — — — — 30,883 Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 10) 227 2 ( 18,079 ) — — — — ( 18,077 ) Common stock issued on employee stock purchase plan (note 10) 226 — 43,556 — — — — 43,556 Treasury stock purchases — — — ( 1,262 ) ( 300,025 ) — — ( 300,025 ) Stock-based compensation costs (note 10) — — 91,661 — — — — 91,661 Acquisition of consolidated subsidiary — — ( 10,855 ) — — — — ( 10,855 ) Other comprehensive income (loss) — — — — — — 176,830 176,830 Net income — — — — — 1,400,723 — 1,400,723 Dividends declared ($ 2.12 per common share) — — — — — ( 310,880 ) — ( 310,880 ) 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 (note 10) 197 1 26,221 — — — — 26,222 Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 10) 276 1 ( 21,834 ) — — — — ( 21,833 ) Common stock issued on employee stock purchase plan (note 10) 254 1 48,280 — — — — 48,281 Treasury stock purchases — — — ( 2,872 ) ( 705,299 ) — — ( 705,299 ) Stock-based compensation costs (note 10) — — 104,348 — — — — 104,348 Other comprehensive income (loss) — — — — — — ( 7,816 ) ( 7,816 ) Net income — — — — — 1,523,293 — 1,523,293 Dividends declared ($ 2.40 per common share) — — — — — ( 349,662 ) — ( 349,662 ) Balance, June 30, 2026 191,038 $ 764 $ 2,190,614 ( 46,798 ) $ ( 2,778,591 ) $ 7,255,121 $ ( 82,515 ) $ 6,585,393 See accompanying notes to consolidated financial statements. -79- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Years ended June 30, 2026, 2025 and 2024 (In US$ and in thousands) June 30, 2026 June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income $ 1,523,293 $ 1,400,723 $ 1,020,951 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 201,342 198,473 176,870 Amortization of right-of-use assets 42,810 37,338 39,339 Stock-based compensation costs (note 10) 104,348 91,661 80,184 (Gain) loss attributable to equity method investments, net of dividends received (note 6) ( 2,382 ) ( 3,644 ) 1,848 (Gain) loss on equity investments (note 6) 15,014 10,299 4,045 Gain on previously held equity investment (note 6) ( 4,353 ) — — Restructuring expenses (note 17) — — 33,239 Changes in operating assets and liabilities: Accounts receivable ( 96,778 ) ( 76,684 ) ( 134,278 ) Inventories ( 9,920 ) ( 80,165 ) 172,203 Prepaid expenses, net deferred income taxes and other current assets ( 140,260 ) 82,629 ( 115,213 ) Accounts payable, accrued expenses and other 172,715 90,958 122,072 Net cash provided by (used in) operating activities 1,805,829 1,751,588 1,401,260 Cash flows from investing activities: Purchases of property, plant and equipment ( 156,285 ) ( 89,865 ) ( 99,460 ) Patent registration costs ( 18,670 ) ( 10,777 ) ( 15,396 ) Purchases of intangible assets ( 2,218 ) — — Business acquisitions, net of cash acquired ( 350,724 ) ( 139,248 ) ( 133,464 ) Purchases of investments (note 6) ( 28,536 ) ( 6,416 ) ( 12,765 ) Proceeds from exits of investments (note 6) 2,752 4,628 1,000 Proceeds (payments) on maturity of foreign currency contracts 8,482 41,633 ( 9,699 ) Net cash provided by (used in) investing activities ( 545,199 ) ( 200,045 ) ( 269,784 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 74,503 74,439 53,094 Taxes paid related to net share settlement of equity awards ( 21,833 ) ( 18,077 ) ( 8,757 ) Purchases of treasury stock ( 700,037 ) ( 300,025 ) ( 150,011 ) Payments of business combination contingent consideration — ( 855 ) ( 1,293 ) Acquisition of consolidated subsidiary — ( 10,855 ) — Proceeds from borrowings, net of borrowing costs — — 105,000 Repayment of borrowings ( 10,000 ) ( 40,000 ) ( 835,000 ) Dividends paid ( 349,662 ) ( 310,880 ) ( 282,320 ) Net cash provided by (used in) financing activities ( 1,007,029 ) ( 606,253 ) ( 1,119,287 ) Effect of exchange rate changes on cash 6,183 25,799 ( 1,719 ) Net increase (decrease) in cash and cash equivalents 259,784 971,089 10,470 Cash and cash equivalents at beginning of period 1,209,450 238,361 227,891 Cash and cash equivalents at end of period $ 1,469,234 $ 1,209,450 $ 238,361 See accompanying notes to consolidated financial statements. -80- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Years ended June 30, 2026, 2025 and 2024 (In US$ and in thousands) June 30, 2026 June 30, 2025 June 30, 2024 Supplemental disclosure of cash flow information: Income taxes paid, net of refunds $ 357,167 $ 214,013 $ 278,400 Interest paid $ 27,057 $ 28,415 $ 45,708 Fair value of assets acquired, excluding cash $ 151,186 $ 43,534 $ 46,033 Liabilities assumed ( 11,841 ) ( 6,279 ) ( 7,696 ) Goodwill on acquisition 222,933 101,323 92,191 Previously held equity investment ( 7,353 ) — — Deferred payments ( 1,030 ) 670 ( 143 ) Fair value of contingent consideration ( 3,171 ) 855 4,372 Cash paid for acquisitions $ 350,724 $ 140,103 $ 134,757 See accompanying notes to consolidated financial statements. -81- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements (1) Organization and Basis of Presentation ResMed Inc. (referred to herein as "Resmed", “we”, “us”, “our” or the “Company”) is a Delaware corporation formed in March 1994 as a holding company for the Resmed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of a broad range of sleep and related breathing health disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States, or the U.S., and our 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 care software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. (2) Summary of Significant Accounting Policies (a) Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from management’s estimates. Certain prior period amounts have been reclassified to conform to the current period presentation. (b) 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 residential 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 software access with ongoing support and maintenance services as well as professional services such as training and consulting. Disaggregation of revenue See Note 13 – Segment Information for our net revenue disaggregated by segment, product and region for the years ended June 30, 2026, 2025 and 2024. 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. The timing of revenue recognition may differ from the timing of invoicing to customers. Unbilled receivables arise when revenue is recognized upon the completion of performance obligations, but in advance of customer billing schedules. Unbilled receivables primarily reflect products shipped prior to invoicing under the terms of our customer agreements and timing differences related to our SaaS billing cycles. 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 Residential Care Software -82- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 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 as of June 30, 2026 and 2025 (in thousands): 2026 2025 Balance sheet caption Contract assets Accounts receivable, net $ 1,036,233 $ 939,492 Accounts receivable, net Unbilled receivables, current $ 48,720 $ 51,175 Prepaid expenses and other current assets Unbilled receivables, non-current $ 14,053 $ 14,581 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current $ ( 162,911 ) $ ( 166,030 ) Deferred revenue (current liabilities) Deferred revenue, non-current $ ( 170,951 ) $ ( 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. 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 and 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 transfer of control for 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 -83- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements our Residential Care Software 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. (c) Concentration of Credit Risk and Significant Customers Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, derivatives and trade receivables. Our cash and cash equivalents are generally held with large, diverse financial institutions to reduce the amount of exposure to any single financial institution. Our derivative contracts are transacted with various financial institutions with high credit standings and any exposure to counterparty credit-related losses in these contracts is largely mitigated with collateralization and master-netting agreements. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers, the short duration of our payment terms for the majority of our customer contracts and by the diversification of our customer base. No single customer accounted for 10% or more of our total revenues for any of the periods presented. (d) Fair Value of Financial Instruments The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure our financial instruments at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The carrying value of cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt related to our Revolving Credit and Term Credit Agreements approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. The carrying value of long-term debt related to our Senior Notes can differ to its fair value as the principal amounts outstanding are subject to fixed interest rates as outlined in Note 8 – Debt. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. In addition, we measure investments in publicly held equity securities and privately held equity securities for which there has been an observable price change in an identical or similar security, at fair value. We do not hold or issue financial instruments for trading purposes. (e) Cash and Cash Equivalents Cash equivalents include money market funds, certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. Our cash and cash equivalents balance at June 30, 2026 includes $ 577 million in institutional money market accounts that require advance notice of up to 90 days for redemption, in accordance with the terms of the investment agreements. These cash balances earn interest rates above normal term deposit rates otherwise available and are held at highly rated financial institutions. -84- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements (f) Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). (g) Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two years to ten years except for buildings which are depreciated over an estimated useful life of forty years and leasehold improvements, which we amortize over the shorter of the useful life or the lease term. We charge maintenance and repairs to expense as we incur them. Depreciation expense for property, plant, and equipment was $ 103 million, $ 112 million, and $ 89 million for the years ended June 30, 2026, 2025 and 2024, respectively. Long-lived assets or disposal groups are classified as held for sale when management with the authority to approve a plan to sell has committed to a plan to sell the asset or disposal group, the asset or disposal group is available for immediate sale in its present condition, an active program to locate a buyer has been initiated, the sale is probable and expected to be completed within one year, the asset or disposal group is being actively marketed at a price that is reasonable in relation to its current fair value, and it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Upon classification as held for sale, the assets are measured at the lower of their carrying amount or fair value less cost to sell and are no longer depreciated or amortized. (h) Intangible Assets We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally ten years . If a patent is superseded or a product is retired, any unamortized costs are written off immediately. We amortize our other intangible assets on a straight-line basis over their estimated useful lives, which range from two years to fifteen years . We evaluate events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists and, at least annually, evaluate the recoverability of intangible assets. (i) Goodwill We conduct our annual review for goodwill impairment during the final quarter of the fiscal year. Our goodwill impairment review is performed at our reporting unit level, which is one level below our operating segments and involves the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors we consider include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 – Compare the fair value for each reporting unit to its carrying value, including goodwill. Fair value is determined based on estimated discounted cash flows. A goodwill impairment charge is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. -85- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements During the annual reviews for the years ended June 30, 2026, 2025 and 2024, we completed a Step 0 or Qualitative assessment and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts, including goodwill, and therefore goodwill was not impaired. When a portion of a reporting unit is classified as held for sale, goodwill is allocated to the disposal group based on the relative fair values of the disposal group and the portion of the reporting unit that will be retained. The goodwill allocated to the disposal group is included in the carrying amount of the disposal group for purposes of measuring any gain or loss on sale and is no longer subject to separate annual or interim impairment testing. See Note 18 – Business Combinations and Divestitures for further information. (j) Business Combinations We allocate the purchase price to the estimated fair values of the assets acquired and liabilities assumed. This allocation process involves the use of estimates and assumptions made in connection with determining the fair value of assets acquired and liabilities assumed including cash flows expected to be derived from the use of the asset, the timing of such cash flows, the remaining useful life of assets and applicable discount rates. If actual results vary from the estimates or assumptions used in the valuation or allocation process, we may be required to record an impairment charge or an increase in depreciation or amortization in future periods, or both. (k) Equity Investments We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our accounting for 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 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 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 consolidated statements of income. 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. 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 consolidated statements of income. (l) Research and Development We record all research and development expenses in the period we incur them. (m) Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant -86- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. (n) Foreign Exchange Risk Management 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 We enter into 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 consolidated statement of income. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of income 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 net investment hedges 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 $ 3,412 million and $ 1,128 million at June 30, 2026 and June 30, 2025, respectively. These contracts mature at various dates prior to January 31, 2036. 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 two 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 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 consolidated statements of income. The notional value of the outstanding non-designated hedges was $ 1,285 million and $ 1,410 million at June 30, 2026 and June 30, 2025, respectively. These contracts mature at various dates prior to June 17, 2027. 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 and we do not expect material losses as a result of default by our counterparties. -87- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements (o) Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the impact of a tax position in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are reflected in income tax expense. (p) Allowance for Credit Losses We maintain an allowance for credit losses on customer receivables based expected losses, considering our historical write-off experience, an assessment of our customers’ financial conditions, and available information that is relevant to assessing the collectability of cash flows, which includes current conditions and forecasts about future economic conditions. Customer receivables are charged against the allowance when they are deemed uncollectible. We are also contingently liable, within certain limits, in the event of a customer default, to independent financing companies in connection with customer financing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. (q) Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. During the year ended June 30, 2024, we impaired $ 19 million of developed/core product technology intangible assets and $ 15 million of customer relationship intangible assets associated with restructuring activities. These non-cash charges were recorded within restructuring expenses in the consolidated statements of income. Refer to Note 17 – Restructuring Expenses for the facts and circumstances leading to the impairments. We did not record any material intangible asset impairments during the years ended June 30, 2026 and 2025. (r) Contingencies We record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. -88- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements (3) New Accounting Pronouncements (a) 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. -89- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 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 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 amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption, as well as a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU No. 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 . (b) Recently adopted accounting standards 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. We adopted ASU No. 2023-09 during the fiscal year ended June 30, 2026. The amendment was applied prospectively. See Note 12 – Income Taxes for disclosure within the notes to the consolidated financial statements. (4) Supplemental Balance Sheet Information Components of selected captions in the consolidated balance sheets consisted of the following as of June 30, 2026 and June 30, 2025 (in thousands): Inventories 2026 2025 Raw materials $ 396,122 $ 367,284 Work in progress 2,648 2,550 Finished goods 547,035 557,877 Total inventories $ 945,805 $ 927,711 Prepaid expenses and other current assets 2026 2025 Prepaid taxes $ 154,826 $ 165,034 Prepaid inventories 27,178 48,245 Unbilled receivables, current 48,720 51,175 Other prepaid expenses and current assets 185,357 164,498 Total prepaid expenses and other current assets $ 416,081 $ 428,952 -90- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements Property, plant and equipment 2026 2025 Machinery and equipment $ 477,870 $ 441,906 Computer equipment and software 197,796 201,437 Furniture and fixtures 65,594 64,062 Vehicles and aircraft 21,016 21,209 Clinical, demonstration and rental equipment 121,718 121,125 Leasehold improvements 159,222 124,046 Land 53,569 51,682 Buildings 236,040 230,631 Property, plant and equipment, at cost $ 1,332,825 $ 1,256,098 Accumulated depreciation and amortization ( 750,996 ) ( 705,308 ) Property, plant and equipment, net $ 581,829 $ 550,790 (5) Goodwill and Other Intangible Assets, net Goodwill For each of the years ended June 30, 2026 and June 30, 2025, we have not recorded any goodwill impairments. Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2026 (in thousands): 2026 Sleep and Breathing Health Residential Care Software Total Balance at the beginning of the period $ 883,578 $ 2,163,102 $ 3,046,680 Business acquisitions 213,994 6,968 220,962 Adjustment to fair values of preliminary purchase price allocations 1,971 — 1,971 Reclassification to assets held for sale (1) — ( 327,240 ) ( 327,240 ) Foreign currency translation adjustments ( 6,568 ) ( 26,230 ) ( 32,798 ) Balance at the end of the period $ 1,092,975 $ 1,816,600 $ 2,909,575 (1) As a result of the planned sale of the MatrixCare business, we allocated a portion of the Residential Care Software segment goodwill to assets held for sale. See Note 18 – Business Combinations and Divestitures for further information. Other Intangible Assets Other intangibles, net are comprised of the following as of June 30, 2026 and June 30, 2025 (in thousands): 2026 2025 Developed/core product technology $ 351,846 $ 396,242 Accumulated amortization ( 200,355 ) ( 315,032 ) Developed/core product technology, net 151,491 81,210 Customer relationships 345,160 475,541 Accumulated amortization ( 146,589 ) ( 189,050 ) Customer relationships, net 198,571 286,491 Other intangibles 271,448 267,499 Accumulated amortization ( 168,773 ) ( 170,339 ) Other intangibles, net 102,675 97,160 Total other intangibles, net $ 452,737 $ 464,861 Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, and we amortize them over the estimated useful life of the assets, generally between two years and fifteen years . There are no expected residual values related to these intangible assets. -91- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements Amortization expense related to acquired intangible assets for both the years ended June 30, 2026 and June 30, 2025 was $ 77 million. Amortization expense related to patents, included in other intangibles, for the years ended June 30, 2026 and June 30, 2025 was $ 11 million and $ 8 million, respectively. Total estimated annual amortization expense for the years ending June 30, 2027 through June 30, 2031, is shown below (in thousands): Fiscal Years Ending June 30 2027 2028 2029 2030 2031 Estimated amortization expense $ 64,706 $ 62,313 $ 56,483 $ 51,432 $ 48,268 (6) Investments Equity investments by measurement category as of June 30, 2026 and June 30, 2025 were as follows (in thousands): Measurement category 2026 2025 Fair value $ 3,359 $ 13,080 Measurement alternative 80,579 63,642 Equity method 76,801 76,178 Total $ 160,739 $ 152,900 The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2026 (in thousands): 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 27,017 1,000 519 28,536 Observable price adjustments on non-marketable equity securities 3,116 — — 3,116 Impairment of investments ( 7,409 ) — — ( 7,409 ) Proceeds from exits of investments ( 2,752 ) — — ( 2,752 ) Acquisition of controlling interest in previously held investment ( 3,000 ) — — ( 3,000 ) Unrealized gains (losses) on marketable equity securities — ( 10,721 ) — ( 10,721 ) Gain (loss) attributable to equity method investments — — 6,955 6,955 Dividends received — — ( 4,573 ) ( 4,573 ) Foreign currency translation adjustments ( 35 ) — ( 2,278 ) ( 2,313 ) Carrying value at the end of the period $ 80,579 $ 3,359 $ 76,801 $ 160,739 -92- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2025 (in thousands): 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 5,778 — 638 6,416 Impairment of investments ( 11,742 ) — — ( 11,742 ) Realized gains (losses) on marketable and non-marketable equity securities 389 — — 389 Proceeds from exits of investments ( 4,628 ) — — ( 4,628 ) Unrealized gains (losses) on marketable equity securities — 1,054 — 1,054 Gain (loss) attributable to equity method investments — — 3,644 3,644 Foreign currency translation adjustments 106 — 6,434 6,540 Carrying value at the end of the period $ 63,642 $ 13,080 $ 76,178 $ 152,900 Net unrealized gains and losses recognized in the years ended June 30, 2026, 2025 and 2024 for equity investments in non-marketable and marketable securities still held as of those respective dates were a loss of $ 15 million, a loss of $ 11 million, and a loss of $ 4 million, respectively. (7) Accrued Expenses Accrued expenses at June 30, 2026 and June 30, 2025 consist of the following (in thousands): 2026 2025 Product warranties $ 39,710 $ 37,230 Field safety notification expenses 45,657 4,813 Consulting and professional fees 42,054 40,297 Value added taxes and other taxes due 40,566 35,584 Employee related costs 247,944 235,450 Promotional and marketing 14,804 9,391 Foreign currency hedging instruments 16,642 2,695 Accrued interest 8,654 8,642 Logistics and occupancy costs 22,610 13,982 Inventory in transit 5,541 6,063 Other 10,739 8,106 Total accrued expenses $ 494,921 $ 402,253 (8) Debt Debt at June 30, 2026 and June 30, 2025 consists of the following (in thousands): 2026 2025 Short-term debt $ 260,000 $ 10,000 Deferred borrowing costs ( 50 ) ( 100 ) Short-term debt, net $ 259,950 $ 9,900 Long-term debt $ 400,000 $ 660,000 Deferred borrowing costs ( 585 ) ( 1,608 ) Long-term debt, net $ 399,415 $ 658,392 Total debt $ 659,365 $ 668,292 -93- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 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 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $ 1,000 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 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 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 June 30, 2026, the interest rate that was being charged on the outstanding principal amounts was 4.58 %. An applicable commitment fee of 0.075 % to 0.150 % (depending on the then-applicable leverage ratio) applies on the unused portion of the revolving credit facility. As of June 30, 2026, we had $ 1,500 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 June 30, 2026 and June 30, 2025, which was $ 160 million and $ 170 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 million principal amount of our 3.24 % senior notes due July 10, 2026, and $ 250 million principal amount of our 3.45 % senior notes due July 10, 2029, 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 -94- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 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 10.0 % 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 June 30, 2026 and June 30, 2025, the Senior Notes had a carrying amount of $ 500 million, excluding deferred borrowing costs, and an estimated fair value of $ 484 million and $ 480 million, respectively. Quoted market prices in active markets for identical liabilities based inputs (Level 2) were used to estimate fair value. At June 30, 2026, we were in compliance with our debt covenants and there was $ 660 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes. On July 10, 2026, the 3.24 % senior notes with a principal balance of $ 250 million matured and were repaid in full. (9) Leases (a) Leases where Resmed is the Lessee We determine whether a contract is, or contains, a lease at inception. Right of use, or ROU, assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred and exclude any lease incentives received. We determine the lease term as the non-cancellable period of the lease and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 16 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2026, 2025 and 2024 were $ 45 million, $ 39 million and $ 41 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2026, 2025 and 2024. Future lease payments under non-cancellable operating leases as of June 30, 2026 are as follows (in thousands): Total 2027 2028 2029 2030 2031 Thereafter Minimum lease payments $ 197,078 $ 34,884 $ 25,533 $ 22,898 $ 19,895 $ 18,182 $ 75,686 Less: imputed interest ( 30,524 ) Total lease liabilities $ 166,554 As of June 30, 2026, future operating lease commitments for leases that have not yet commenced were $ 36 million. -95- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The supplemental information related to operating leases for the years ended June 30, 2026 and June 30, 2025 was as follows (in thousands): 2026 2025 Weighted-average inputs: Weighted-average remaining lease term (years) 7.9 8.3 Weighted-average discount rate 3.9 % 3.7 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 41,278 $ 35,732 Right of use assets obtained in exchange for new lease liabilities $ 26,106 $ 33,638 (b) Leases where Resmed is the Lessor We lease sleep and respiratory medical devices to customers primarily 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 $ 103 million, $ 99 million and $ 93 million for the years ended June 30, 2026, 2025 and 2024, respectively. (10) Stockholders’ Equity Common Stock. On February 21, 2014, our board of directors approved a new share repurchase program, authorizing us to acquire up to an aggregate of 20 million shares of our common stock. The program allows us to repurchase shares of our common stock from time to time for cash in the open market, or in negotiated or block transactions, as market and business conditions warrant and subject to applicable legal requirements. The 20 million shares the program authorizes us to purchase are in addition to the shares we repurchased on or before February 21, 2014 under our previous programs. There is no expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. All share repurchases since February 21, 2014 have been executed in accordance with this program. During fiscal year 2026, we repurchased approximately 2.9 million shares at a cost of $ 705 million, including commissions and other incremental transaction costs. During fiscal year 2025, we repurchased approximately 1.3 million shares at a cost of $ 300 million. As of June 30, 2026, we have repurchased a total of approximately 46.8 million shares at a cost of $ 2.8 billion. Shares that are repurchased are classified as “treasury stock pending future use” and reduce the number of shares outstanding used in calculating earnings per share. At June 30, 2026, approximately 7.9 million additional shares can be repurchased under the approved share repurchase program. Preferred Stock. In April 1997, our board of directors authorized 2 million shares of $ 0.01 par value preferred stock. No such shares were issued or outstanding at June 30, 2026. Stock Options and Restricted Stock Units. We have granted stock options, restricted stock units, or RSUs, and performance restricted stock units, or PRSUs, to personnel, including officers and directors, in accordance with the ResMed Inc. 2009 Incentive Award Plan, as amended and restated, or the 2009 Plan. Options and restricted stock units vest over one year to four years and the options have expiration dates of seven years from the date of grant. We have granted the options with an exercise price equal to the market value as determined at the date of grant. We have granted PRSUs that are subject to market conditions, with the ultimate realizable number of PRSUs dependent on both absolute and relative total stockholder return over a period of three years . The maximum amounts to be issued under the awards range from 200 % to 225 % of the original grant. We have also granted PRSUs that are subject to a performance condition based on meeting threshold levels of profitability measured by our actual adjusted earnings compared to board approved targeted levels of earnings. -96- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements At the annual meeting of our stockholders in November 2025, our stockholders approved an amendment and restatement to the 2009 Plan to increase the number of shares of common stock that may be issued or transferred pursuant to awards under the 2009 Plan by 2.4 million. The amendment and restatement authorizes the grant of incentive stock options and extends the term of the 2009 Plan indefinitely, unless otherwise amended. The maximum number of shares of our common stock authorized for issuance under the 2009 Plan is 53.5 million. The number of securities remaining available for future issuance under the 2009 Plan at June 30, 2026 is 11.9 million. The number of shares of our common stock available for issuance under the 2009 Plan will be reduced by (i) 2.8 shares for each one share of common stock delivered in settlement of any “full-value award,” which is any award other than a stock option, stock appreciation right or other award for which the holder pays a purchase price and (ii) one share for each share of common stock delivered in settlement of all other awards. The maximum number of shares, which may be subject to awards granted under the 2009 Plan to any individual during any calendar year, may not exceed 3 million shares of our common stock (except in a participant’s initial year of hiring up to 4.5 million shares of our common stock may be granted). The maximum award amount which may be granted under the 2009 Plan to a non-employee director in a calendar year, which when taken together with any other cash fees earned for services as a non-employee director during the calendar year, has a total value of $ 0.7 million, or $ 1.2 million in the case of a non-employee director who is also serving as chairman of our board of directors. In addition, the payment of dividends or dividend equivalents on unvested awards, including time-based restricted stock, deferred stock and stock payment, is prohibited under the 2009 Plan. In certain regions, shares are withheld on behalf of employees to satisfy statutory tax withholding requirements upon exercise or vesting of awards. The number of shares withheld is based upon the closing price of our common stock on the trading day of the applicable settlement date. The remaining shares are delivered to the recipient as shares of our common stock. The amount remitted to the tax authorities for the employees’ tax obligation is reflected as a financing activity on our consolidated statements of cash flows. Shares withheld by us as a result of the net settlement are not considered issued and outstanding and are added to the shares available for future issuance under the 2009 Plan. The total fair value of RSUs that vested during the years ended June 30, 2026, 2025 and 2024, was $ 58 million, $ 45 million and $ 38 million, respectively. The total fair value of PRSUs that vested during the years ended June 30, 2026, 2025 and 2024, was $ 17 million, $ 10 million, and $ 13 million, respectively. The following table summarizes the activity of RSUs and PRSUs during year ended June 30, 2026 (in thousands, except years and per share amounts): Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term in Years Restricted Stock Units Performance Restricted Stock Units Restricted Stock Units Performance Restricted Stock Units Restricted Stock Units Performance Restricted Stock Units Outstanding at beginning of period 833 342 $ 201.05 $ 213.28 1.5 1.5 Granted 405 85 238.15 247.57 Vested* ( 286 ) ( 80 ) 202.61 213.08 Forfeited ( 83 ) ( 30 ) 202.54 211.33 Outstanding at end of period 869 317 $ 217.66 $ 220.43 1.4 1.5 * Includes approximately 62 thousand RSUs and 28 thousand PRSUs netted for tax. -97- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The following table summarizes option activity during the year ended June 30, 2026 (in thousands, except years and per share amounts): Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 517 $ 175.61 2.7 Granted 36 250.52 Exercised* ( 205 ) 136.82 Forfeited ( 2 ) 224.58 Outstanding at end of period 346 $ 206.02 3.2 Options exercisable at end of period 265 $ 201.27 2.4 Options vested and expected to vest at end of period 342 $ 205.65 3.1 * Includes approximately 8 thousand shares netted for tax. The aggregate intrinsic value of options exercised during the fiscal years 2026, 2025 and 2024, was $ 25 million, $ 38 million and $ 18 million, respectively. As at June 30, 2026, the aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest were $ 6 million, $ 5 million and $ 6 million respectively. Employee Stock Purchase Plan, or the ESPP. Under the ESPP, we offer participants the right to purchase shares of our common stock at a discount during successive offering periods. Each offering period under the ESPP will be for a period of time determined by the board of directors’ compensation committee of no less than 3 months and no more than 27 months. The purchase price for our common stock under the ESPP will be the lower of 85 % of the fair market value of our common stock on the date of grant or 85 % of the fair market value of our common stock on the date of purchase. An individual participant cannot subscribe for more than $ 25,000 in common stock during any calendar year. At the annual meeting of our stockholders in November 2025, our stockholders approved an amendment and restatement to the ESPP to increase the number of shares of common stock that may be issued or transferred pursuant to awards under the ESPP by 3.0 million shares. At June 30, 2026, the number of shares remaining available for future issuance under the ESPP is 3.5 million shares. During years ended June 30, 2026, 2025 and 2024, we issued approximately 254,000 , 226,000 and 323,000 shares to our employees in two offerings and we recognized $ 11 million, $ 12 million and $ 11 million, respectively, of stock compensation expense associated with the ESPP. Stock–based Employee Compensation. We measure the compensation expense of all stock-based awards at fair value on the grant date. We estimate the fair value of stock options and purchase rights granted under the ESPP using the Black-Scholes valuation model. The fair values of RSUs and PRSUs subject to performance conditions are equal to the market value of the underlying shares as determined at the grant date less the fair value of dividends that holders are not entitled to during the vesting period. The fair value of PRSUs that are subject to market conditions is measured using a Monte-Carlo simulation valuation model. We recognize the fair value as compensation expense using the straight-line method over the service period for awards expected to vest. For the years ended June 30, 2026, 2025 and 2024, we estimated the fair value of PRSUs that are measured using a Monte-Carlo simulation valuation model, stock options granted under our stock option plans and purchase rights granted under the ESPP using the assumptions in the following tables. The risk-free interest rate is estimated using the U.S. Treasury yield curve and is based on the term of the award. The expected term of awards is estimated from the vesting period of the award, as well as historical exercise behavior, and represents the period of time the awards granted are expected to be outstanding. Expected volatility is estimated based upon the historical volatility of Resmed stock. -98- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 2026 2025 2024 Performance restricted stock units Weighted average grant date fair value $ 263.31 $ 272.47 $ 168.14 Weighted average risk-free interest rate 3.63 % 4.23 % 4.50 % Expected life in years 3 - 4 3 - 4 3 - 4 Dividend yield (1) 0.93 % - 1.29 % 0.88 % 1.29 % Expected volatility 32 % - 33 % 32 % - 34 % 31 % - 36 % Average peer volatility (2) 30 % 31 % 31 % Average peer correlation coefficient (3) 0.4316 0.5189 0.5385 Stock options: Weighted average grant date fair value $ 97.63 $ 88.54 $ 50.48 Weighted average risk-free interest rate 3.80 % 4.17 % 4.44 % Expected life in years 7.0 4.9 4.9 Dividend yield 0.96 % 0.85 % 1.29 % Expected volatility 35 % 37 % 36 % ESPP purchase rights: Weighted average grant date fair value $ 52.87 $ 59.55 $ 47.40 Weighted average risk-free interest rate 3.9 % 4.7 % 5.4 % Expected life in years 0.5 0.5 0.5 Dividend yield 0.90 % - 1.29 % 0.87 % - 0.90 % 0.75 % - 1.30 % Expected volatility 19 % - 34 % 34 % - 39 % 27 % - 40 % (1) The dividend yield used to project the value of the stock delivered to the holder is based on historical dividends and the expectation of future dividend payouts. Total stockholder return is determined assuming the reinvestment of dividends over the performance period, which is mathematically equivalent to a 0 % dividend yield. (2) The correlation coefficients are based upon the stock price data used to estimate the volatility assumptions. (3) The average peer volatility is estimated based upon the historical volatility of each peer company. The following table summarizes total stock-based compensation costs incurred and the associated tax benefit recognized during the years ended June 30, 2026, 2025 and 2024 (in thousands): 2026 2025 2024 Cost of sales $ 10,121 $ 8,945 $ 7,563 Research and development expenses 22,042 18,128 14,472 Selling, general and administrative expenses 72,185 64,588 58,149 Stock-based compensation costs 104,348 91,661 80,184 Tax benefit ( 23,127 ) ( 21,833 ) ( 15,053 ) Stock-based compensation costs, net of tax benefit $ 81,221 $ 69,828 $ 65,131 At June 30, 2026, there was $ 177 million in unrecognized compensation costs related to unvested stock-based compensation arrangements. This is expected to be recognized over a weighted average period of 2.5 years. (11) Earnings Per Share We compute basic earnings per share 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 96,152 , 154,567 and 603,859 for the years ended June 30, 2026, 2025 and 2024, respectively, as the effect would have been anti-dilutive. -99- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements Basic and diluted earnings per share for the years ended June 30, 2026, 2025 and 2024 are calculated as follows (in thousands except per share data): 2026 2025 2024 Numerator: Net income $ 1,523,293 $ 1,400,723 $ 1,020,951 Denominator: Basic weighted-average common shares outstanding 145,523 146,716 147,021 Effect of dilutive securities: Stock options and restricted stock units 531 624 529 Diluted weighted average shares 146,054 147,340 147,550 Basic earnings per share $ 10.47 $ 9.55 $ 6.94 Diluted earnings per share $ 10.43 $ 9.51 $ 6.92 (12) Income Taxes Income taxes paid (net of refunds received) for the year ended June 30, 2026 were as follows (in thousands): 2026 Federal $ 34,313 State 22,215 Foreign: Australia 226,485 Singapore 43,791 All other jurisdictions 30,363 Total $ 357,167 Income before income taxes for the years ended June 30, 2026, 2025 and 2024, was taxed under the following jurisdictions (in thousands): 2026 2025 2024 U.S. $ 597,342 $ 359,741 $ 181,107 Non-U.S. 1,322,074 1,317,825 1,083,691 Income before income taxes $ 1,919,416 $ 1,677,566 $ 1,264,798 The provision for income taxes is presented below (in thousands): 2026 2025 2024 Current: Federal $ 40,604 $ 19,744 $ 57,103 State 20,213 19,919 17,250 Non-U.S. 331,425 298,170 219,372 Current income tax expense 392,242 337,833 293,725 Deferred: Federal 43,459 ( 5,701 ) ( 22,915 ) State ( 412 ) ( 1,231 ) ( 4,632 ) Non-U.S. ( 39,166 ) ( 54,058 ) ( 22,331 ) Deferred income tax expense (benefit) 3,881 ( 60,990 ) ( 49,878 ) Provision for income taxes $ 396,123 $ 276,843 $ 243,847 -100- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended June 30, 2026, 2025 and 2024, to pretax income as a result of the following (in thousands): 2026 Amount Percent Taxes Computed at statutory U.S. Rate $ 403,077 21.00 % United States State income taxes, net of U.S. tax benefit 19,801 1.03 Research & development tax Credits ( 9,668 ) ( 0.50 ) Change in valuation allowance 11,006 0.57 Other ( 2,582 ) ( 0.13 ) Australia Effect of non-U.S. tax rates 54,889 2.86 Research & development tax credits ( 17,158 ) ( 0.89 ) Other 1,219 0.06 Singapore Effect of non-U.S. tax rates ( 148,053 ) ( 7.71 ) Global minimum tax 63,618 3.31 Other 15,672 0.82 Other Foreign Jurisdictions 4,302 0.22 Provision for income taxes $ 396,123 20.64 % 2025 2024 Taxes computed at statutory U.S. rate $ 352,289 $ 265,608 Increase (decrease) in income taxes resulting from: State income taxes, net of U.S. tax benefit 15,590 8,609 Research and development credit ( 28,859 ) ( 27,786 ) Change in valuation allowance 20,644 849 Effect of non-U.S. tax rates ( 12,225 ) ( 15,838 ) Foreign tax credits ( 3,896 ) ( 8,293 ) Stock-based compensation expense 1,735 4,875 Cessation of business ( 35,847 ) — Net refunds for prior tax years ( 29,976 ) — Other ( 2,612 ) 15,823 Provision for income taxes $ 276,843 $ 243,847 We reported net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2026 and June 30, 2025, as follows (in thousands): 2026 2025 Non-current deferred tax asset (1) $ 333,171 $ 253,119 Non-current deferred tax liability ( 64,640 ) ( 77,682 ) Net deferred tax asset $ 268,531 $ 175,437 (1) As a result of the planned sale of the MatrixCare business, we allocated a portion of the Residential Care Software segment non-current deferred tax assets to assets held for sale. See Note 18 – Business Combinations and Divestitures for further information. -101- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The components of our deferred tax assets and liabilities at June 30, 2026 and June 30, 2025, are as follows (in thousands): 2026 2025 Deferred tax assets: Employee liabilities $ 38,979 $ 37,189 Tax credit carry overs 2,997 1,577 Inventories 24,095 20,523 Provision for warranties 19,906 5,997 Provision for doubtful debts 7,727 4,942 Net operating loss carryforwards 36,445 14,408 Capital loss carryover 38,222 27,454 Stock-based compensation expense 13,081 12,752 Deferred revenue 33,412 31,289 Research and development capitalization 97,987 132,043 Lease liabilities 19,556 21,138 Hedging contracts 185,011 94,626 Property, plant and equipment 4,519 — State income taxes 4,080 2,883 Other 26,565 18,527 552,582 425,348 Less valuation allowance ( 41,118 ) ( 30,072 ) Deferred tax assets 511,464 395,276 Deferred tax liabilities: Goodwill and other intangibles ( 226,558 ) ( 196,698 ) Right of use assets ( 16,375 ) ( 18,491 ) Property, plant and equipment — ( 4,650 ) Deferred tax liabilities ( 242,933 ) ( 219,839 ) Net deferred tax asset $ 268,531 $ 175,437 As of June 30, 2026, we had $ 26 million of U.S. federal and state net operating loss carryforwards and $ 10 million of non-U.S. net operating loss carryforwards, which expire in various years beginning in 2027 or carry forward indefinitely. The valuation allowance at June 30, 2026 primarily relates to a provision for uncertainty of the utilization of net operating loss carryforwards of $ 1 million and a capital loss of $ 40 million. We believe that it is more likely than not that the benefits of deferred tax assets, net of any valuation allowance, will be realized. A substantial portion of our manufacturing operations and administrative functions in Singapore operate under certain tax holidays and incentive programs that will expire in whole or in part at various dates through June 30, 2030. The end of certain tax holidays may be extended if specific conditions are met. The net impact of these tax holidays and incentive programs increased our net income by $ 37 million ($ 0.26 per diluted share) for the year ended June 30, 2026, $ 67 million ($ 0.46 per diluted share) for the year ended June 30, 2025, and $ 50 million ($ 0.34 per diluted share) for the year ended June 30, 2024. The change in impact of these tax holidays and incentives in the year ended June 30, 2026, relates to the enactment of Pillar Two minimum tax legislation in Singapore. As a result of the Tax Cuts and Jobs Act of 2017, or the TCJA, we have treated all non-U.S. historical earnings as taxable. Therefore, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated. In the event our non-U.S. earnings had not been permanently reinvested, approximately $ 5 million in U.S. state deferred taxes would have been recognized in the consolidated financial statements. The TCJA also introduced U.S. taxation on certain global intangible low-taxed income, or GILTI. We have elected to account for tax expense attributable to GILTI tax as a period cost when incurred. In accounting for uncertainty in income taxes, we recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (that is, a likelihood greater than 50 -102- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for annual periods. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. Based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on June 30, 2026 is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate. 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 ATO 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. Tax years 2018 to 2025 remain subject to examination by the major tax jurisdictions in which we are subject to tax. (13) Segment Information We have 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 – Summary of Significant Accounting Policies. Segment net sales and segment net operating profit 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, field safety notification expenses, acquisition and portfolio review related expenses, net interest expense (income), gains and losses attributable to equity method investments, gains and losses on equity investments, including gains associated with the fair value of previously held equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our CODM evaluate the operating segments using discrete asset information. -103- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The table below presents a reconciliation of net revenues, significant expenses, net operating profit and depreciation and amortization by reportable segments for the years ended June 30, 2026, 2025 and 2024 (in thousands): 2026 2025 2024 Net revenue by segment Sleep and Breathing Health $ 4,977,630 $ 4,504,890 $ 4,101,172 Residential Care Software 675,813 641,437 584,125 Total $ 5,653,443 $ 5,146,327 $ 4,685,297 Significant segment expenses Cost of sales Sleep and Breathing Health $ 1,953,178 $ 1,852,574 $ 1,782,023 Residential Care Software 207,318 195,043 190,186 Total $ 2,160,496 $ 2,047,617 $ 1,972,209 Research and development Sleep and Breathing Health $ 228,152 $ 196,340 $ 186,461 Residential Care Software 103,539 97,959 95,490 Total $ 331,691 $ 294,299 $ 281,951 Selling, general, and administrative Sleep and Breathing Health $ 591,802 $ 491,591 $ 451,334 Residential Care Software (1) 147,225 143,435 143,999 Total $ 739,027 $ 635,026 $ 595,333 Net operating profit by segment Sleep and Breathing Health $ 2,204,498 $ 1,964,385 $ 1,681,354 Residential Care Software 217,731 205,000 154,450 Total $ 2,422,229 $ 2,169,385 $ 1,835,804 Reconciling items Corporate costs $ 383,153 $ 406,114 $ 357,937 Amortization of acquired intangible assets 77,245 77,389 79,484 Restructuring expenses 21,745 — 64,228 Masks with magnets field safety notification expenses (2) — ( 1,512 ) 6,351 Astral field safety notification expenses (3) 41,885 — 7,911 Acquisition and portfolio review related expenses 11,486 2,031 — Interest (income) expense, net ( 49,914 ) ( 4,114 ) 45,708 (Gain) loss attributable to equity method investments ( 6,955 ) ( 3,644 ) 1,848 (Gain) loss on equity investments 15,014 10,299 4,045 Other, net 9,154 5,256 3,494 Income before income taxes $ 1,919,416 $ 1,677,566 $ 1,264,798 Depreciation and amortization by segment Sleep and Breathing Health $ 112,224 $ 110,543 $ 86,070 Residential Care Software 10,794 9,467 10,241 Amortization of acquired intangible assets and corporate assets 78,324 78,463 80,559 Total $ 201,342 $ 198,473 $ 176,870 -104- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements (1) During the fiscal years ended June 30, 2026 and June 30, 2024, we recorded $ 3 million and $ 4 million of operating lease right-of-use asset impairments within our Residential Care Software segment, respectively. The impairments related to leases for office space and were recorded within selling, general and administrative expenses. (2) The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets. (3) The Astral field safety notification expenses relate to estimated costs associated with the replacement a certain component in some of our Astral devices. The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2026, 2025 and 2024 (in thousands): 2026 2025 2024 Americas (A) Devices $ 1,767,741 $ 1,654,413 $ 1,522,758 Masks and other 1,513,283 1,343,101 1,199,798 Total Americas (A) $ 3,281,024 $ 2,997,514 $ 2,722,556 Rest of World (A) Devices $ 1,124,487 $ 1,010,760 $ 921,253 Masks and other 572,119 496,616 457,363 Total Rest of World (A) $ 1,696,606 $ 1,507,376 $ 1,378,616 Global revenue Devices $ 2,892,228 $ 2,665,173 $ 2,444,011 Masks and other 2,085,402 1,839,717 1,657,161 Total Sleep and Breathing Health $ 4,977,630 $ 4,504,890 $ 4,101,172 Residential Care Software 675,813 641,437 584,125 Total $ 5,653,443 $ 5,146,327 $ 4,685,297 (A) Historically we have presented our geographical split of revenue as “U.S., Canada, and Latin America” and “Combined Europe, Asia, and other markets”. Effective this quarter, this presentation has been renamed to Americas (formerly U.S., Canada, and Latin America) and Rest of World (formerly Combined Europe, Asia, and other markets). The methodology for attributing revenue to these geographies remains unchanged. Revenue from prior periods is consistent and comparable to previous reporting. Revenue information by geographic area for the years ended June 30, 2026, 2025 and 2024 is summarized below (in thousands): 2026 2025 2024 United States $ 3,562,024 $ 3,285,581 $ 2,980,053 Rest of the World 2,091,419 1,860,746 1,705,244 Total $ 5,653,443 $ 5,146,327 $ 4,685,297 Long-lived assets of geographic areas are those assets used in our operations in each geographical area, and excludes goodwill, other intangible assets, and deferred tax assets. Long-lived assets by geographic area as of June 30, 2026 and 2025 is summarized below (in thousands): 2026 2025 United States $ 246,602 $ 240,326 Australia 121,377 135,327 Singapore 57,695 25,409 Rest of the World 309,322 317,225 Total $ 734,996 $ 718,287 -105- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements (14) Employee Retirement Plans We contribute to a number of employee retirement plans for the benefit of our employees. Details of the main plans are as follows: Australia We contribute to defined contribution plans for each employee resident in Australia at the rate of approximately 12.0 % of salaries. Employees may contribute additional funds to the plans. All Australian employees, after serving a qualifying period, are entitled to benefits on retirement, disability or death. Our total contributions to the plans for the years ended June 30, 2026, 2025 and 2024, were $ 18 million, $ 16 million and $ 15 million, respectively. United States We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 4.0 % of the employee’s eligible compensation, subject to the annual IRS limit. Our total contributions to the plan were $ 14 million, $ 13 million and $ 14 million in fiscal 2026, 2025 and 2024, respectively. Singapore We sponsor a defined contribution plan available to all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 17.0 % of the employee’s salary. Our total contributions to the plan were $ 5 million, $ 4 million and $ 4 million in fiscal 2026, 2025 and 2024, respectively. (15) 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 outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole. 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 Patent Trial and Appeal Board, or PTAB, of the Patent and Trademark Office seeking review of the validity of U.S. Patent No. 10,076,269. 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 IPR 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. 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. Cleveland Medical answered the complaint and filed a counterclaim asserting that ResMed Corp. infringes three additional patents, U.S. Patent Nos. 11,375,921; 11,690,512; and 11,786,680. On April 9, 2024, Cleveland Medical asserted infringement of two additional patents, U.S. Patent Nos. 11,857,333 and 11,872,029. 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 that 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. On March 7, 2025, the District Court granted ResMed Corp.'s motion to stay the case pending the conclusion of all Patent Office proceedings. On June 10, 2025, the PTAB denied institution of Inter Partes Review directed to U.S. Patent No. 11,602,284. In May and June 2026, the PTAB issued decisions finding the challenged claims of U.S. Patent Nos. -106- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements 11,375,921, 11,690,512, 11,786,680 and 11,872,029 patentable, while finding the challenged claim of U.S. Patent No. 11,857,333 unpatentable. Both parties are seeking review of the decisions adverse to them. On November 5, 2025, Cleveland Medical filed suit for patent infringement against Resmed Inc. 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 filed a motion to dismiss the new Delaware action. On April 24, 2026 Resmed Inc. filed a request for ex parte reexamination of U.S. Patent No. 11,064,937, and on June 3, 2026, the Patent Office ordered reexamination of the patent. On June 18, 2026, we moved to stay the new Delaware case pending resolution of the motion to dismiss. Both motions remain pending before the court. 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 January 2, 2026, we filed a petition with the PTAB seeking IPR of U.S. Patent No. 11,031,677. In January 2026, we also filed a partial motion to dismiss in the litigation, which remains pending before the court. On June 2, 2026, the PTAB instituted the IPR proceeding for U.S. Patent No. 11,031,677. On June 15, 2026, Resmed Corp. filed a petition with the PTAB seeking Inter Partes Review of U.S. Patent No. 8,362,960. 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. On April 20, 2026, the plaintiff voluntarily dismissed the complaint, without prejudice, against Resmed; on May 15, 2026, the government consented to the dismissal. 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. Contingent Obligations Under Recourse Provisions We use independent financing institutions to offer some of our customers financing for the payment of outstanding accounts receivable. Under these arrangements, if the customer qualifies under the financing institutions’ credit criteria and finances the transaction, the financing institution pays us for the outstanding accounts receivable less a fee, and the customers repay the financing institution on a fixed payment plan. The customer’s receivable balance is with limited recourse whereby we are responsible for repaying the financing company should the customer default under a loss pool arrangement. We record a contingent provision, which is estimated based on historical default rates. This is applied to receivables sold with limited recourse and is recorded in accrued expenses. There are no arrangements with full recourse. As of June 30, 2026, the maximum loss pool exposure on outstanding receivables sold with limited recourse and contingent provision were $ 34 million and $ 1 million, respectively. As of June 30, 2025, the maximum loss pool exposure on outstanding receivables sold with limited recourse and contingent provision were $ 34 million and $ 1 million, respectively. Commitments In the normal course of business, we enter into agreements to purchase goods or services that are not cancelable without penalty, primarily related to supply arrangements. Obligations under our purchase agreements at June 30, 2026 were as follows (in thousands): -107- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements Total Fiscal Years Ending June 30 2027 2028 2029 2030 2031 Thereafter Minimum purchase obligations $ 1,172,524 $ 992,418 $ 58,754 $ 49,446 $ 50,611 $ 21,295 $ — (16) Derivative Instruments and Hedging Activities Fair Values of Derivative Instruments The following table presents our assets and liabilities related to derivative instruments on a gross basis within the consolidated balance sheets (in thousands): June 30, 2026 June 30, 2025 Balance Sheet Caption Derivative Assets Not Designated as Hedging Instruments Foreign currency hedging instruments $ 5,217 $ 6,810 Prepaid taxes and other current assets Foreign currency hedging instruments — — Prepaid taxes and other non-current assets Total derivative assets $ 5,217 $ 6,810 Derivative Liabilities Designated as Hedging Instruments Foreign cross-currency swaps – Fair Value Hedge $ 28,536 $ 38,533 Other long-term liabilities Foreign cross-currency swaps – Net Investment Hedge 172,629 91,596 Other long-term liabilities Not Designated as Hedging Instruments Foreign currency hedging instruments 16,642 2,695 Accrued expenses Foreign currency hedging instruments — — Other long-term liabilities Total derivative liabilities $ 217,807 $ 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): Twelve Months Ended June 30, 2026 2025 2024 Gain (loss) recognized in other comprehensive income (loss) $ 80 $ 1,762 $ 3,329 Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) $ 5,203 $ 4,699 $ 4,010 Gain (loss) recognized on cross-currency swap in other, net $ 9,917 $ ( 29,822 ) $ 5,942 Gain (loss) recognized on intercompany debt in other, net $ ( 9,917 ) $ 29,822 $ ( 5,942 ) -108- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements Net Investment Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands): Twelve Months Ended June 30, 2026 2025 2024 Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ ( 81,033 ) $ ( 70,326 ) $ 19,532 Gain (loss) recognized from the excluded components in interest (expense) income, net $ 28,845 $ 12,024 $ 10,337 Non-designated Derivative Gains (Losses) We recognized the following gains (losses) in the consolidated statement of income on derivatives not designated as hedging instruments (in thousands): Twelve Months Ended June 30, 2026 2025 2024 Gain (loss) recognized on foreign currency hedging instruments in other, net $ ( 8,032 ) $ 47,241 $ ( 4,168 ) Gain (loss) recognized on other foreign-currency-denominated transactions in other, net ( 5,778 ) ( 54,330 ) 19 Total $ ( 13,810 ) $ ( 7,089 ) $ ( 4,149 ) (17) Restructuring Expenses Restructuring expenses consist of costs incurred in connection with the realignment of business strategies and operations as well as cost rationalization efforts. These costs are separately presented as restructuring expenses within our consolidated statement of income for all periods presented. Although the costs associated with restructuring plans have not been allocated to our business segments' results in Note 13 – Segment Information, the restructuring plans impacted both our Sleep and Breathing Health and Residential Care Software segments. During the year ended June 30, 2026, we recorded $ 22 million of restructuring related charges for employee severance and one-time termination benefits associated with workforce planning activities. These costs are separately presented as restructuring expenses within our condensed consolidated statement of operations. We had $ 1 million remaining in our accruals at June 30, 2026. We do not expect any remaining expense under existing one-time termination benefit arrangements to be material. We did not incur material restructuring expenses during the year ended June 30, 2025. During the year ended June 30, 2024, we recorded $ 64 million of restructuring related charges associated with an evaluation of our existing operations to increase operational efficiency, decrease costs and increase profitability. Restructuring charges for the year ended June 30, 2024 were comprised of $ 29 million of employee severance and other one-time termination benefits, $ 33 million of intangible asset impairments associated with the wind down of certain business activities, and $ 2 million of other miscellaneous asset impairments. As of June 30, 2024, there were no restructuring expenses remaining in our accruals. (18) Business Combinations and Divestitures Noctrix Health, LLC business combination On June 1, 2026, we completed our acquisition of 100 % of the shares in Noctrix Health, LLC, or Noctrix, a medical device company developing clinically validated wearable therapeutics, for $ 335 million. Prior to this transaction, we held a 3 % equity interest in Noctrix which was accounted for as an equity investment. On the acquisition date, we remeasured our previously held equity interest at a fair value of $ 7 million, which resulted in a gain of $ 4 million during the year ended June 30, 2026. The gain was recorded in other income, expense (net) on the consolidated statements of income. -109- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements The acquisition has been accounted for as a business combination using purchase accounting and included in our consolidated financial statements from June 1, 2026. The total purchase price was allocated to Noctrix's tangible and identifiable intangible assets and liabilities based upon estimated fair values as of the June 1, 2026 closing date. The assessment of fair value is preliminary and is based on information that was available at the time our consolidated financial statements were prepared. Measurement period adjustments may arise upon the availability of further information regarding events or circumstances that existed at the acquisition date and will be recorded in the period in which they are determined, as if they had been completed at the acquisition date. The finalization of our purchase accounting assessment could result in changes in the valuation of assets acquired and liabilities assumed, though we do not expect these changes will materially modify the preliminary purchase price. The final determination of the fair value of certain assets and liabilities will be completed within the measurement period as required by ASC Topic 805. The total purchase price of $ 335 million consists of the amounts presented below, which represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed (in thousands): Preliminary Intangible assets - useful life Cash $ 2,595 Accounts receivable 15,568 Property, plant and equipment 127 Inventory 1,184 Other assets 2,148 Accounts payable and accrued expenses ( 5,097 ) Identifiable intangible assets: Developed technology 106,800 15 years Customer relationships 6,300 5 years Trade names 4,900 7 years Deferred tax liabilities ( 1,282 ) Goodwill 202,024 Purchase price $ 335,267 The goodwill recognized as part of the acquisition is reflected in our Sleep and Breathing Health segment and is not deductible for tax purposes. It mainly represents the synergies that are unique to our combined businesses. Pro forma results of operations have not been presented because the effects of this acquisition were not material to our consolidated statements of income. We incurred acquisition related costs associated with the Noctrix acquisition of $ 3 million during the year ended June 30, 2026. Acquisition related costs are expensed as incurred and recorded within selling, general, and administrative expenses on our consolidated statements of income. We did not incur acquisition related costs associated with the transaction during the years ended June 30, 2025, or 2024. MatrixCare business divestiture On June 30, 2026, we entered into a definitive agreement to sell our MatrixCare business for $ 490 million in an all-cash transaction, subject to certain closing adjustments. The transaction includes MatrixCare and related software offerings historically sold under the MatrixCare brand, including Healthcare First, Citus Health, and home health and hospice solutions, collectively defined as the "MatrixCare business”, within our Residential Care Software Segment. The transaction is expected to close in the first quarter of fiscal year 2027. As of June 30, 2026, we determined that the MatrixCare business meets the criteria for classification as held for sale. The accompanying Consolidated Balance Sheet reflects the MatrixCare business assets and liabilities held for sale as of June 30, 2026. The sale of the MatrixCare business does not represent a strategic shift that has a major effect on our operations or financial results and is therefore not presented as a discontinued operation. -110- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements We allocated approximately $ 327 million of the total Residential Care Software segment goodwill to the MatrixCare business, for a total carrying value of $ 416 million. The estimated fair value was determined to be $ 457 million based on the expected sale price of the business and estimated closing adjustments, less costs to sell. Accordingly, no loss on held for sale net assets has been recognized for the twelve months ended June 30, 2026. The following table presents the carrying amounts of the major classes of assets and liabilities held for sale that were included in the Consolidated Balance Sheet as of June 30, 2026 (in thousands): June 30, 2026 Assets held for sale Accounts receivable, net of allowances $ 14,558 Prepaid expenses and other current assets 9,896 Property, plant, and equipment, net 11,834 Operating lease right-of-use assets 6,892 Goodwill 327,240 Other intangible assets, net 73,209 Deferred income taxes 3,917 Prepaid taxes and other non-current assets 9,840 Total assets held for sale $ 457,386 Liabilities held for sale Accounts payable $ 1,179 Accrued expenses 15,013 Operating lease liabilities 10,228 Deferred revenue 14,586 Other long-term liabilities 150 Total liabilities held for sale $ 41,156 We incurred portfolio review related costs associated with the MatrixCare divestiture of $ 7 million during the year ended June 30, 2026. Acquisition related costs are expensed as incurred and recorded within selling, general, and administrative expenses on our consolidated statements of income. We did not incur portfolio review related costs associated with the transaction during the years ended June 30, 2025, or 2024. -111- Table of Contents PART II Item 8 SCHEDULE II RESMED INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES June 30, 2026, 2025 and 2024 (in thousands) Balance at Beginning of Period Charged to costs and expenses Other (deductions) Balance at End of Period Year ended June 30, 2026 Applied against asset account Allowance for trade accounts receivable $ 22,424 $ 12,792 $ ( 9,377 ) $ 25,839 Year ended June 30, 2025 Applied against asset account Allowance for trade accounts receivable $ 21,132 $ 9,053 $ ( 7,761 ) $ 22,424 Year ended June 30, 2024 Applied against asset account Allowance for trade accounts receivable $ 23,603 $ 9,802 $ ( 12,273 ) $ 21,132 See accompanying report of independent registered public accounting firm. -112- Table of Contents PART II Items 9 – 9C RESMED INC. AND SUBSIDIARIES ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.