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• Revenue: $1.29 billion, an 8% increase year-over-year, 9% in constant currency terms.

• Gross Margin: Increased by 140 basis points to 59.9%.

• Net Income: Increased by 11% for the quarter.

• Diluted Earnings Per Share (EPS): $2.37, an 11% increase; $2.41 excluding investment portfolio write-downs, a 13% increase.

• Operating Cash Flow: $579 million, including a $107 million tax refund; $472 million excluding the tax refund.

• Cash Balance: $933 million at the end of the quarter.

• Net Cash Position: $258 million.

• Dividend: Declared a quarterly dividend of $0.53 per share.

• Share Buyback: Purchased approximately 314,000 shares for $75 million; plans to increase buyback to $100 million per quarter starting Q4 FY25.

• SG&A Expenses: Increased by 7% on a headline basis, 8% in constant currency; 19% of revenue.

• R&D Expenses: Increased by 9% on a headline basis, 11% in constant currency; 6.5% of revenue.

• Free Cash Flow: Strong generation reported.

• Warning! GuruFocus has detected 1 Warning Sign with VKTX.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ResMed Inc (NYSE:RMD) reported strong financial performance with an 8% increase in group revenue, reaching $1.29 billion for Q3 fiscal year 2025.

• The company achieved gross margin expansion, increasing by 140 basis points to 59.9%, driven by manufacturing and logistics efficiencies.

• ResMed Inc (NYSE:RMD) maintained a disciplined approach to investments, allocating 6% to 7% of revenues into research and development, which is a key growth driver.

• The company is expanding its manufacturing footprint in the US with a new facility in Calabasas, California, which will double its current manufacturing capacity.

• ResMed Inc (NYSE:RMD) continues to innovate with the launch of new products like NightOwl and VPAP Tx, enhancing its digital health ecosystem and expanding its market reach.

Negative Points

• ResMed Inc (NYSE:RMD) faces challenges with sleep lab backlogs, which are at all-time highs, potentially impacting the speed of patient diagnosis and treatment.

• The company is navigating a complex global trade environment, particularly concerning tariffs, although it has secured exemptions for its products.

• There is uncertainty in the market due to geopolitical challenges and potential impacts from US tariffs, which could affect financial results.

• ResMed Inc (NYSE:RMD) is investing heavily in demand generation and brand development, which requires careful management to ensure a positive return on investment.

• The company faces competition in the market, particularly from other diagnostic and treatment providers, which could impact its market share and growth.