ResMed Inc (RSMDF) Q1 2025 Earnings Report

ResMed Inc delivered a compelling QQ1 2025 performance, highlighted by a revenue rise of 27.15% year over year to $1.2245 billion and a solid margin profile. Gross profit reached $717.2 million with a gross margin of 58.57%, while operating income of $387.3 million produced an operating margin of 31.63%. Net income was $311.4 million, translating to EPS of $2.12 (diluted $2.11), underscoring meaningful operating leverage and favorable product mix. The company generated strong cash flow, with operating cash flow of $325.5 million and free cash flow of $305.9 million, supporting a net debt position of approximately $423.9 million on a cash balance of $426.4 million. In the balance sheet, total assets stood at about $7.22 billion, total liabilities at $2.03 billion, and total stockholders’ equity at $5.20 billion, reflecting a solid liquidity position and manageable leverage (debt to capitalization ~14.1%, interest coverage ~70x).

Segment composition remains supportive of long-duration growth: sustained demand for Sleep & Respiratory Care devices coupled with expanding Software as a Service (SaaS) platforms (Brightree, MatrixCare, HEALTHCAREfirst) that monetize care workflows and remote patient management. The qq1 results imply continued operating leverage as the company scales its high-margin SaaS offerings alongside hardware sales. Management commentary, though not disclosed in this transcript dataset, has historically emphasized ongoing R&D investment, international expansion, and cloud-based care coordination as key growth engines. Investors should monitor currency dynamics, reimbursement environments, and competitive intensity as the company scales its recurring-revenue mix.

Overall investment stance: ResMed demonstrates a resilient, margin-rich growth profile with abundant free cash flow and a prudent balance sheet. The QQ1 2025 metrics support a constructive longer-term view, driven by the combination of hardware demand in home-based therapy and expanding software-enabled care solutions.