RESMED INC

ResMed operates in the sleep and breathing health market, which is globally underpenetrated, and in the residential care software market, which is fragmented and underserved. The sleep market is characterized by a general lack of awareness of obstructive sleep apnea among both the medical community and the general public, with an estimated less than 20% of those with OSA having been diagnosed or treated in the U.S., and 10% or less in other markets. A study published in Lancet Respiratory Medicine in 2019 estimated that mild to severe OSA impacts more than 936 million people worldwide, including 61 million Americans, per Lancet Respiratory Medicine in 2025. Of those impacted globally, it was estimated that more than 424 million would have moderate to severe sleep apnea. The company believes the demand for sleep and breathing treatments will continue to grow due to factors including increasing awareness of OSA, CSA and COPD; improved understanding of the role of sleep apnea treatment in the management of adjacent pathologies; improved understanding of the role of bilevel therapy and non-invasive ventilation in the management of COPD; and an increase in the use of digital and product technology to improve patient outcomes and create efficiencies for customers and providers.

ResMed is a global leader in digital health and cloud-connected medical devices. The company's primary Sleep and Breathing Health competitors include Philips BV; Fisher & Paykel Healthcare Corporation Limited; DeVilbiss Healthcare; Apex Medical Corporation; BMC Medical Co. Ltd.; React Health Corporation; Jiangsu Yuyue Medical Equipment & Supply Co., Ltd; and Lowenstein Medical SE & Co. KG plus regional and new-entrant manufacturers. The company's products also compete with surgical procedures, nerve stimulation devices, and dental appliances designed to treat OSA and other sleep apnea-related respiratory conditions. The adoption of new pharmaceuticals to treat obesity, a typical comorbidity of OSA, could impact ongoing or future sales. For the Residential Care Software business, competition is also intense, rapidly evolving, and subject to changing technology, low barriers to entry, shifting customer needs, and frequent introductions of new products and services. The company believes the principal competitive factors are product features, value-added solutions, quality, reliability and price, with customer support, reputation and efficient distribution also being important factors.

ResMed generates revenue through the design, manufacture, and sale of cloud-connected medical devices, diagnostic products, mask systems, accessories, and cloud-based software and informatics solutions. The company operates in two segments: Sleep and Breathing Health and Residential Care Software. Devices accounted for approximately 51% of net revenues in fiscal year 2026, 52% in fiscal year 2025, and 52% in fiscal year 2024. Masks, diagnostic products and accessories together accounted for approximately 37% of net revenues in fiscal year 2026, 36% in fiscal year 2025, and 35% in fiscal year 2024. Residential Care Software revenue accounted for approximately 12% of net revenue in each of fiscal years 2026, 2025, and 2024. The company sells its products in more than 140 countries through a combination of wholly owned subsidiaries and independent distributors. The company's digital health ecosystem includes AirView, a cloud-based system enabling remote monitoring, and myAir, a personalized therapy management application for patients with sleep apnea. The company can leverage an installed base of more than 35 million patients using cloud-connected devices on AirView and over 12 million patients registered to the myAir platform.

The Sleep and Breathing Health segment includes devices such as CPAP, APAP, bilevel, adaptive servo-ventilation, and high flow therapy devices, as well as mask systems, diagnostic products, and accessories. Devices include the AirSense 11 platform, AirCurve 11 bilevel platform, AirMini portable CPAP, life support ventilators like the Astral 100 and 150, and ventilation products like the Lumis series. Mask systems include minimalist masks (AirFit F40, AirFit P10, AirFit N30), freedom masks (AirFit N30i, AirFit X30i, AirFit P30i, AirFit F30i, AirTouch F30i), ultra soft masks (AirTouch N30i, AirTouch F30i, AirTouch F20, AirTouch N20), and universal fit masks (AirFit F20, AirFit N20). Diagnostic products include ApneaLink Air, NightOwl, and EasyCare Tx. Connected solutions include AirView, myAir, and the Connectivity Module. In June 2026, the company acquired Noctrix Health, LLC, which has an FDA De Novo classified medical device called the Nidra Platform, a wearable neurostimulation device that treats restless legs syndrome. Through the acquisition of VirtuOx in 2025, the company operates a software-enabled independent diagnostic testing facility that provides technology solutions to facilitate in-home and remote testing services for sleep, respiratory, cardiac, and other health conditions across the U.S.

The Residential Care Software segment provides cloud-based solutions to healthcare providers operating in the residential care market, including HME and home infusion providers, home health and hospice providers, skilled nursing facilities, private duty nursing organizations, senior living facilities, and life plan communities. Products include Brightree solutions for residential care organizations, HEALTHCAREfirst solutions for home health and hospice agencies, MatrixCare solutions for skilled nursing and senior living providers, and MEDIFOX DAN solutions for residential care providers in Germany. These platforms include capabilities for billing and business management, electronic medical records, revenue cycle management, operational analytics, patient engagement, and workforce management. The company's Residential Care Software solutions support residential care providers serving more than 180 million individual patient accounts.

In June 2026, ResMed acquired Noctrix Health, LLC, a company with an FDA De Novo classified medical device that treats restless legs syndrome, for an undisclosed amount. Noctrix will operate as a wholly owned subsidiary of ResMed. Through the acquisition of VirtuOx in 2025, the company operates a software-enabled independent diagnostic testing facility. On June 30, 2026, the company entered into a definitive agreement to sell its MatrixCare business for $490 million ¹ 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, and home health and hospice solutions. The transaction is expected to close in the first quarter of fiscal year 2027. The company employs approximately 11,370 ² people. The company owns or has licensed rights to approximately 10,000 ³ pending, allowed or granted patents and designs globally, of which approximately 429 ⁴ U.S. patents and designs and approximately 768 ⁵ foreign patents and designs are due to expire in the next five years.

In fiscal year 2026, total revenues were $5,224.3 million ⁶, compared to $4,688.7 million ⁷ in fiscal year 2025 and $4,228.5 million ⁸ in fiscal year 2024. Net income was $1,155.7 million ⁹ in fiscal year 2026, compared to $1,064.7 million ¹⁰ in fiscal year 2025 and $889.7 million ¹¹ in fiscal year 2024. Diluted earnings per share was $7.89 ¹² in fiscal year 2026, compared to $7.22 ¹³ in fiscal year 2025 and $6.04 ¹⁴ in fiscal year 2024. Gross margin was 58.3% ¹⁵ in fiscal year 2026, compared to 58.0% ¹⁶ in fiscal year 2025 and 57.6% ¹⁷ in fiscal year 2024. Operating income was $1,410.5 million ¹⁸ in fiscal year 2026, compared to $1,283.0 million ¹⁹ in fiscal year 2025 and $1,073.8 million ²⁰ in fiscal year 2024.

A key growth vector is the expansion into broader sleep and breathing health adjacencies. The company is positioned to serve large, unmet needs in insomnia, COPD and other respiratory and sleep-related conditions. Research supported by ResMed has demonstrated that the addition of non-invasive ventilation to patients with severe COPD who are receiving oxygen therapy provides meaningful clinical benefits. The company is committed to ongoing innovation of breathing health products, providing advanced and expanded integrations of therapy-based software solutions including AirView. In June 2026, the company expanded its clinical sleep health portfolio through the acquisition of Noctrix, a medical device company developing clinically validated wearable therapeutics for chronic neurological disorders, including restless legs syndrome. The company also aims to capitalize on the enhanced spotlight on sleep apnea due to pharmaceuticals and consumer technology.

Another growth vector is the investment in an integrated, intelligent digital-health ecosystem delivered at home. Digital enablement is central to the company's strategy. The secure cloud-based digital health applications, along with devices, are designed to provide connected care to improve patient outcomes and efficiencies for customers, allowing fewer professionals to manage more patients and empowering patients to track their own health outcomes. The company can leverage an installed base of more than 35 million ²¹ patients using cloud-connected devices on AirView and over 12 million ²² patients registered to the myAir platform to enable personalized, efficient and data-driven care. The company's own efforts to drive increased therapy adoption, as well as increased adoption through use of wearables with sleep monitoring functionality, will allow the company to further build upon its data advantage. The company also aims to align solutions to enable smarter, connected care, with Residential Care Software solutions driving revenue synergies, contributing to demand generation and providing cohesion and interoperability for the AI-driven digital platform.

The filing does not contain explicit margin trajectory or cost structure evolution targets.

The company operates a globally distributed manufacturing network designed to optimize quality, control costs, reduce time to market for new product introduction, and generate supply chain resilience. Manufacturing operations consist of specialist component production as well as technical assembly and comprehensive testing and quality control of devices, masks, and accessories. The company generally manufactures to internal sales forecasts and fills orders as received. The company strives for continuous improvement in manufacturing processes to deliver year-on-year improvement in quality, availability and value. The company's main manufacturing facilities for Resmed-branded products are located in Tuas, Singapore; Sydney, Australia; Chatsworth, California; Calabasas, California (beginning in fiscal year 2027); Johor Bahru, Malaysia; and Atlanta, Georgia. The principal factory for Curative-branded products is in Suzhou, China. Narval-branded products are manufactured in Lyon, France. The company will continue to expand and balance production volume across its network to meet scale, cost, resilience, and environmental performance objectives.

The filing does not contain specific R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy with exact figures for the upcoming period.

A structural headwind is the potential impact of new pharmaceuticals to treat obesity, a typical comorbidity of OSA. Injectable glucagon-like peptide-1 weight loss drugs may lower the occurrence of obesity, eventually reducing the severity of OSA, if significant weight loss is maintained. Injectable weight loss drugs have been approved for treatment of OSA in patients with obesity and moderate to severe OSA and are being marketed by physicians and to consumers. Oral versions of these drugs are also under development and may be approved for the treatment of OSA. The development of new or innovative drugs, procedures, devices, or alternative therapies by others could result in the company's products becoming obsolete or noncompetitive.

Another constraint is the impact of changes to global trade policy, including the imposition, modification, or expansion of tariffs and other trade measures, which may drive new inflation risks in the supply chain. On April 5, 2025, U.S. Customs and Border Protection issued a Notice of Implementation confirming that current tariff relief for products like the company's continues. The current impact of global tariffs is dynamic, however, new or increased tariffs, reciprocal tariffs, or other disruptions to global trade could have a material impact on the company's business and financial results through interruption of supply chains, increases in costs or reduction in the availability of key inputs as suppliers deal with an uncertain global trade environment, increases in transportation costs, or disruption of global shipping. The company's supply chain may also be impacted by periodic transport disruptions and supply constraints on certain raw materials and electronic components, including semiconductor chips and magnets.

The company faces material risk from changes in government reimbursement programs, particularly the U.S. Medicare DMEPOS Competitive Bidding Program, which has resulted in reduced Medicare payment for CPAP and respiratory assist devices. The One Big Beautiful Bill Act, signed into law on July 4, 2025, cuts federal Medicaid funding by $930 billion ²³ over ten years, which could reduce enrollment and reimbursement. The company also faces risk from the potential adoption of new pharmaceuticals to treat obesity, such as GLP-1 weight loss drugs, which have been approved for treatment of OSA in patients with obesity and moderate to severe OSA and could lower the occurrence of obesity and reduce the severity of OSA. Additionally, the company's supply chain is subject to disruptions and constraints on certain raw materials and electronic components, including semiconductor chips and magnets, and changes to global trade policy including new or increased tariffs could materially impact business and financial results through interruption of supply chains and increases in costs. The company also faces risk from the VA's proposed rule to amend the schedule of VA ratings for sleep apnea, which could remove the automatic 50% disability rating for veterans with a documented need for a CPAP machine, potentially reducing the number of veterans pursuing treatment.

Management's message emphasizes the company's position as a global leader in digital health and cloud-connected medical devices, with a strategy focused on growing and differentiating the core sleep apnea portfolio, accelerating market growth through awareness, capitalizing on broader sleep and breathing health adjacencies, investing in an integrated intelligent digital-health ecosystem delivered at home, and aligning solutions to enable smarter connected care. Key strategic priorities include driving higher rates of screening, diagnosis, and therapy adoption through simpler care pathways, expanding educational activities to increase awareness of sleep apnea and COPD, and leveraging the installed base of more than 35 million ²⁴ patients using cloud-connected devices on AirView and over 12 million ²⁵ patients registered to the myAir platform. The company also emphasizes its commitment to ongoing innovation and the acquisition of Noctrix to expand into adjacent areas of unmet need.