RESMED INC
For the period ended Mar 31, 2025. Filed Apr 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 24, 2025
RMD$235.30-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-01-31.
0000943819-25-000004
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0000943819-25-000008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 119 current paragraphs.
66 unchanged; 42 reworded; 10 added; 7 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 24 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Recent Developments
Current report
As disclosed in the risk factors of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, our business is subject to risks related to, among other factors, third-party coverage and reimbursement, as well as disruptions at the FDA and other government agencies. There is uncertainty surrounding potential changes to the healthcare regulatory environment in the United States, and it is not possible to predict how these changes may be implemented, and the ultimate effects of such changes on our business. In addition, the U.S. federal government and other governments may reduce funding for health care or other programs or make changes that affect the number of persons eligible for certain programs, and the services provided to enrollees in such programs . The levels of U.S. federal government spending are difficult to predict and are subject to significant risk. Considerable uncertainty exists regarding how future budget and program decisions will unfold, including the spending priorities of the new presidential administration and Congress, and what challenges budget reductions, if any, will present for our business and our industry generally. For example, on January 20, 2025, President Trump established by executive order the U.S. Department Of Government Efficiency Service Temporary Organization ("DOGE") to reform federal government processes and reduce expenditures, and on February 5, 2025, the Centers for Medicare & Medicaid Services, or CMS, announced that it is collaborating with DOGE to determine where there may be opportunities for more effective and efficient use of resources. Additionally, the Trump administration took several Executive Actions, including the issuance of a number of Executive Orders, that imposed significant burdens on, or otherwise materially delayed, the FDA’s ability to engage in routine oversight activities, such as implementing statutes through rulemaking, issuance of guidance, and review and approval of marketing applications. It is difficult to predict whether or how these orders will be rescinded and replaced under the current or future administrations and the consequential impact on our business.
Current report
Nine Months Ended March 31, 2025 Compared to the Nine Months Ended March 31, 2024
Current report
The increase in gross margin for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was due primarily to manufacturing and logistics efficiencies, component cost improvements and favorable product mix, partially offset by unfavorable foreign currency movements.
Current report
Gross profit increased for the nine months ended March 31, 2025 to $2,234.9 million from $1,939.8 million for the nine months ended March 31, 2024, an increase of $295.1 million or 15%. Gross margin for the nine months ended March 31, 2025 was 58.8% compared to 56.0% for the nine months ended March 31, 2024.
Current report
Research and development expenses increased for the three months ended March 31, 2025 to $83.9 million from $77.1 million for the three months ended March 31, 2024, an increase of $6.9 million, or 9%. Research and development expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased our expenses by approximately $1.7 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, research and development expenses for the three months ended March 31, 2025 increased by 11% compared
Current report
Amortization of acquired intangible assets for the three months ended March 31, 2025 totaled $10.9 million compared to $11.2 million for the three months ended March 31, 2024.
Current report
Amortization of acquired intangible assets for the nine months ended March 31, 2025 totaled $33.3 million compared to $35.3 million for the nine months ended March 31, 2024.
Current report
nine months ended March 31, 2025 was $1,021.0 million compared to $728.7 million for the nine months ended March 31, 2024, an increase of $292.3 million, or 40%.
Current report
ended March 31, 2025 compared to the nine months ended March 31, 2024. During the three and nine months ended March 31, 2025, our operating cash flows included $107.0 million of income tax refunds and associated interest and penalties.
Removed paragraphs (7)
Previous report
Six Months Ended December 31, 2024 Compared to the Six Months Ended December 31, 2023
Previous report
Gross profit increased for the six months ended December 31, 2024 to $1,468.5 million from $1,247.0 million for the six months ended December 31, 2023, an increase of $221.5 million or 18%. Gross margin for the six months ended December 31, 2024 was 58.6% compared to 55.1% for the six months ended December 31, 2023.
Previous report
Research and development expenses increased for the three months ended December 31, 2024 to $81.4 million from $73.9 million for the three months ended December 31, 2023, an increase of $7.5 million, or 10%. Research and development expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased our expenses by approximately $0.2 million, as reported in U.S. dollars. Excluding the impact of foreign currency
Previous report
Amortization of acquired intangible assets for the three months ended December 31, 2024 totaled $11.0 million compared to $11.6 million for the three months ended December 31, 2023.
Previous report
Amortization of acquired intangible assets for the six months ended December 31, 2024 totaled $22.5 million compared to $24.1 million for the six months ended December 31, 2023.
Previous report
income for the six months ended December 31, 2024 was $656.0 million compared to $428.2 million for the six months ended December 31, 2023, an increase of $227.8 million, or 53%.
Previous report
operations was primarily due to increased net income partially offset by greater cash outflows on inventory purchases during the six months ended December 31, 2024 compared to the six months ended December 31, 2023.
Reworded paragraphs (42)
Previous wording
The following is an overview of our results of operations for the three and six months ended December 31, 2024. Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to help the reader understand our results of operations and financial condition. It is provided as a supplement to, and should be read in conjunction with, the condensed consolidated financial statements and notes included in this report.
Current wording
The following is an overview of our results of operations for the three and nine months ended March 31, 2025. Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to help the reader understand our results of operations and financial condition. It is provided as a supplement to, and should be read in conjunction with, the condensed consolidated financial statements and notes included in this report.
Previous wording
We are committed to ongoing investment in research and development and product enhancements. During the three months ended December 31, 2024, we invested $81.4 million on research and development activities, which represents 6.3% of net revenues, with a continued focus on the development and commercialization of new, innovative products and solutions that improve patient outcomes, create efficiencies for our customers and help physicians and providers better manage chronic disease and lower healthcare costs. For example, our newest device, AirSense 11, introduced new features such as a touch screen, algorithms for patients new to therapy, digital enhancements, and over-the-air update capabilities. Through our acquisitions of Brightree in 2016, HEALTHCAREfirst and MatrixCare in 2018, and MEDIFOX DAN in 2022, our operations include 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. These platforms comprise our Residential Care Software business and, along with our cloud-based remote monitoring and therapy management system, and a robust product pipeline, these products should continue to provide us with a strong platform for future growth.
Current wording
We are committed to ongoing investment in research and development and product enhancements. During the three months ended March 31, 2025, we invested $83.9 million on research and development activities, which represents 6.5% of net revenues, with a continued focus on the development and commercialization of new, innovative products and solutions that improve patient outcomes, create efficiencies for our customers and help physicians and providers better manage chronic disease and lower healthcare costs. For example, our newest device, AirSense 11, introduced new features such as a touch screen, algorithms for patients new to therapy, digital enhancements, and over-the-air update capabilities. Through our acquisitions of Brightree in 2016, HEALTHCAREfirst and MatrixCare in 2018, and MEDIFOX DAN in 2022, our operations include 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. These platforms comprise our Residential Care Software business and, along with our cloud-based remote monitoring and therapy management system, and a robust product pipeline, these products should continue to provide us with a strong platform for future growth.
Previous wording
We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Breathing Health”) and the supply of business management software as a service to out-of-hospital health providers (“Residential Care Software”). During the six months ended December 31, 2024, we renamed our operating segments from Sleep and Respiratory Care to Sleep and Breathing Health and from Software as a Service to Residential Care Software in alignment with our 2030 strategy. There have been no changes in the preparation and disclosure of financial information by operating segment.
Current wording
We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Breathing Health”) and the supply of business management software as a service to out-of-hospital health providers (“Residential Care Software”). During the nine months ended March 31, 2025, we renamed our operating segments from Sleep and Respiratory Care to Sleep and Breathing Health and from Software as a Service to Residential Care Software in alignment with our 2030 strategy. There have been no changes in the preparation and disclosure of financial information by operating segment.
Previous wording
Net revenue for the three months ended December 31, 2024 was $1.3 billion, an increase of 10% compared to the three months ended December 31, 2023. Gross margin was 58.6% for the three months ended December 31, 2024 compared to 55.6% for the three months ended December 31, 2023. Diluted earnings per share was $2.34 for the three months ended December 31, 2024, compared to diluted earnings per share of $1.42 for the three months ended December 31, 2023.
Current wording
Net revenue for the three months ended March 31, 2025 was $1.3 billion, an increase of 8% compared to the three months ended March 31, 2024. Gross margin was 59.3% for the three months ended March 31, 2025 compared to 57.9% for the three months ended March 31, 2024. Diluted earnings per share was $2.48 for the three months ended March 31, 2025, compared to diluted earnings per share of $2.04 for the three months ended March 31, 2024.
Previous wording
At December 31, 2024, our cash and cash equivalents totaled $521.9 million, our total assets were $7.1 billion and our stockholders’ equity was $5.3 billion.
Current wording
At March 31, 2025, our cash and cash equivalents totaled $932.7 million, our total assets were $7.6 billion and our stockholders’ equity was $5.5 billion.
Previous wording
Net revenue for the three months ended December 31, 2024 increased to $1,282.1 million from $1,162.8 million for the three months ended December 31, 2023, an increase of $119.3 million or 10% (a 10% increase on a constant currency basis). The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
Current wording
Net revenue for the three months ended March 31, 2025 increased to $1,291.7 million from $1,197.0 million for the three months ended March 31, 2024, an increase of $94.8 million or 8% (a 9% increase on a constant currency basis). The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
Previous wording
Net revenue from our Sleep and Breathing Health business for the three months ended December 31, 2024 was $1,125.6 million, an increase of 11% compared to net revenue for the three months ended December 31, 2023. Movements in international currencies against the U.S. dollar negatively impacted net revenue by approximately $2.1 million for the three months ended December 31, 2024. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended December 31, 2024 increased by 11% compared to the three months ended December 31, 2023. The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.
Current wording
Net revenue from our Sleep and Breathing Health business for the three months ended March 31, 2025 was $1,130.6 million, an increase of 8% compared to net revenue for the three months ended March 31, 2024. Movements in international currencies against the U.S. dollar negatively impacted net revenue by approximately $12.9 million for the three months ended March 31, 2025. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended March 31, 2025 increased by 9% compared to the three months ended March 31, 2024. The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.
Previous wording
Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the three months ended December 31, 2024 increased to $748.9 million from $669.3 million for the three months ended December 31, 2023, an increase of $79.6 million or 12%. The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.
Current wording
Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the three months ended March 31, 2025 increased to $749.3 million from $687.5 million for the three months ended March 31, 2024, an increase of $61.8 million or 9%. The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.
Previous wording
Net revenue in combined Europe, Asia and other markets increased for the three months ended December 31, 2024 to $376.6 million from $348.5 million for the three months ended December 31, 2023, an increase of $28.1 million or 8% (an
Current wording
Net revenue in combined Europe, Asia and other markets increased for the three months ended March 31, 2025 to $381.3 million from $361.6 million for the three months ended March 31, 2024, an increase of $19.7 million or 5% (an 8% increase on a constant currency basis). The constant currency increase in device and mask sales in combined Europe, Asia and other was primarily attributable to increased demand and unit sales.
Previous wording
Net revenue from devices for the three months ended December 31, 2024 increased to $669.3 million from $606.0 million for the three months ended December 31, 2023, an increase of $63.3 million or 10%, including an increase of 12% in the U.S., Canada and Latin America and an increase of 9% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the three months ended December 31, 2024 increased by 11%.
Current wording
Net revenue from devices for the three months ended March 31, 2025 increased to $676.2 million from $638.2 million for the three months ended March 31, 2024, an increase of $38.0 million or 6%, including an increase of 6% in the U.S., Canada and Latin America and an increase of 6% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the three months ended March 31, 2025 increased by 7%.
Previous wording
Net revenue from masks and other for the three months ended December 31, 2024 increased to $456.3 million from $411.9 million for the three months ended December 31, 2023, an increase of $44.4 million or 11%, including an increase of 12% in the U.S., Canada and Latin America and an increase of 7% in combined Europe, Asia and other markets (a 7% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales for the three months ended December 31, 2024 increased by 11%.
Current wording
Net revenue from masks and other for the three months ended March 31, 2025 increased to $454.4 million from $410.8 million for the three months ended March 31, 2024, an increase of $43.5 million or 11%, including an increase of 13% in the U.S., Canada and Latin America and an increase of 4% in combined Europe, Asia and other markets (a 7% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales for the three months ended March 31, 2025 increased by 12%.
Previous wording
Net revenue from our Residential Care Software business for the three months ended December 31, 2024 increased to $156.5 million from $144.9 million for the three months ended December 31, 2023, an increase of $11.6 million or 8% (an 8% increase on a constant currency basis). The increase was predominantly due to continued growth in the Home Medical Equipment ("HME") and MEDIFOX DAN verticals within our Residential Care Software business.
Current wording
Net revenue from our Residential Care Software business for the three months ended March 31, 2025 increased to $161.2 million from $148.0 million for the three months ended March 31, 2024, an increase of $13.2 million or 9% (a 10% increase on a constant currency basis). The increase was predominantly due to continued growth in the Home Medical Equipment ("HME") and MEDIFOX DAN verticals within our Residential Care Software business.
Previous wording
Net revenue for the six months ended December 31, 2024 increased to $2,506.6 million from $2,265.1 million for the six months ended December 31, 2023, an increase of $241.5 million or 11% (an 11% increase on a constant currency basis). The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
Current wording
Net revenue for the nine months ended March 31, 2025 increased to $3,798.3 million from $3,462.1 million for the nine months ended March 31, 2024, an increase of $336.2 million or 10% (a 10% increase on a constant currency basis). The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
Previous wording
Net revenue from our Sleep and Breathing Health business for the six months ended December 31, 2024 was $2,193.3 million, an increase of 11% compared to net revenue for the six months ended December 31, 2023. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $1.8 million for the six months ended December 31, 2024. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the six months ended December 31, 2024 increased by 11% compared to the six months ended December 31,
Current wording
Net revenue from our Sleep and Breathing Health business for the nine months ended March 31, 2025 was $3,323.9 million, an increase of 10% compared to net revenue for the nine months ended March 31, 2024. Movements in international currencies against the U.S. dollar negatively impacted net revenue by approximately $11.1 million for the nine months ended March 31, 2025. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the nine months ended March 31, 2025 increased by 10% compared to the nine months ended March 31, 2024. The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.
Previous wording
Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the six months ended December 31, 2024 increased to $1,456.3 million from $1,307.7 million for the six months ended December 31, 2023, an increase of $148.6 million or 11%. The increase in net revenue associated with our devices and masks was primarily attributable toincreased demand and unit sales.
Current wording
Net revenue from our Sleep and Breathing Health business in the U.S., Canada and Latin America for the nine months ended March 31, 2025 increased to $2,205.6 million from $1,995.2 million for the nine months ended March 31, 2024, an increase of $210.4 million or 11%. The increase in net revenue associated with our devices and masks was primarily attributable toincreased demand and unit sales.
Previous wording
Net revenue in combined Europe, Asia and other markets increased for the six months ended December 31, 2024 to $737.1 million from $673.2 million for the six months ended December 31, 2023, an increase of $63.9 million or 9% (a 9% increase on a constant currency basis). The constant currency increasein device and mask sales in combined Europe, Asia and other markets was primarily attributable to increased demand and unit sales.
Current wording
Net revenue in combined Europe, Asia and other markets increased for the nine months ended March 31, 2025 to $1,118.3 million from $1,034.8 million for the nine months ended March 31, 2024, an increase of $83.6 million or 8% (a 9% increase on a constant currency basis). The constant currency increasein device and mask sales in combined Europe, Asia and other markets was primarily attributable to increased demand and unit sales.
Previous wording
Net revenue from devices for the six months ended December 31, 2024 increased to $1,295.1 million from $1,170.7 million for the six months ended December 31, 2023, an increase of $124.4 million or 11%, including an increase of 11% in the U.S., Canada and Latin America and an increase of 9% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the six months ended December 31, 2024 increased by 10%.
Current wording
Net revenue from devices for the nine months ended March 31, 2025 increased to $1,971.3 million from $1,808.9 million for the nine months ended March 31, 2024, an increase of $162.4 million or 9%, including an increase of 9% in the U.S., Canada and Latin America and an increase of 8% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the nine months ended March 31, 2025 increased by 9%.
Previous wording
Net revenue from masks and other for the six months ended December 31, 2024 increased to $898.2 million from $810.2 million for the six months ended December 31, 2023, an increase of $88.1 million or 11%, including an increase of 11% in the U.S., Canada and Latin America and an increase of 10% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales increased by 11%, compared to the six months ended December 31, 2023.
Current wording
Net revenue from masks and other for the nine months ended March 31, 2025 increased to $1,352.6 million from $1,221.0 million for the nine months ended March 31, 2024, an increase of $131.6 million or 11%, including an increase of 12% in the U.S., Canada and Latin America and an increase of 8% in combined Europe, Asia and other markets (a 9% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales increased by 11%, compared to the nine months ended March 31, 2024.
Previous wording
Net revenue from our Residential Care Software business for the six months ended December 31, 2024 increased to $313.3 million from $284.2 million for the six months ended December 31, 2023, an increase of $29.0 million or 10% (a 10% increase on a constant currency basis). The increase was predominantly due to continued growth in the HME and MEDIFOX DAN verticals within our Residential Care Software business.
Current wording
Net revenue from our Residential Care Software business for the nine months ended March 31, 2025 increased to $474.4 million from $432.2 million for the nine months ended March 31, 2024, an increase of $42.2 million or 10% (a 10% increase on a constant currency basis). The increase was predominantly due to continued growth in the HME and MEDIFOX DAN verticals within our Residential Care Software business.
Previous wording
Gross profit increased for the three months ended December 31, 2024 to $751.3 million from $646.9 million for the three months ended December 31, 2023, an increase of $104.3 million or 16%. Gross margin, which is gross profit as a percentage of net revenue, for the three months ended December 31, 2024 was 58.6% compared to 55.6% for the three months ended December 31, 2023.
Current wording
Gross profit increased for the three months ended March 31, 2025 to $766.4 million from $692.8 million for the three months ended March 31, 2024, an increase of $73.6 million or 11%. Gross margin, which is gross profit as a percentage of net revenue, for the three months ended March 31, 2025 was 59.3% compared to 57.9% for the three months ended March 31, 2024.
Previous wording
The increase in gross margin for the six months ended December 31, 2024 compared to the six months ended December 31, 2023 was due primarily to $14.3 million of non-recurring expenses associated with the field safety notifications for masks with magnets and Astral devices recognized during the six months ended December 31, 2023 and manufacturing efficiencies and component cost improvements as well as a reduction in the amortization of acquired intangible assets during the six months ended December 31, 2024. 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
Current wording
The increase in gross margin for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 was due primarily to $14.3 million of non-recurring expenses associated with the field safety notifications for masks with magnets and Astral devices recognized during the nine months ended March 31, 2024 and manufacturing and logistics efficiencies, component cost improvements as well as a reduction in the amortization of acquired intangible assets during the nine months ended March 31, 2025. 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. The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.
Previous wording
Selling, general, and administrative expenses increased for the three months ended December 31, 2024 to $241.6 million from $222.2 million for the three months ended December 31, 2023, an increase of $19.5 million or 9%. Selling, general, and administrative expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased our expenses by approximately $1.0 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended December 31, 2024 increased by 9% compared to the three months ended December 31, 2023. As a percentage of net revenue, selling, general, and administrative expenses were 18.8% for the three months ended December 31, 2024, compared to 19.1% for the three months ended December 31, 2023.
Current wording
Selling, general, and administrative expenses increased for the three months ended March 31, 2025 to $245.3 million from $229.9 million for the three months ended March 31, 2024, an increase of $15.4 million or 7%. Selling, general, and administrative expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased our expenses by approximately $4.1 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended March 31, 2025 increased by 8% compared to the three months ended March 31, 2024. As a percentage of net revenue, selling, general, and administrative expenses were 19.0% for the three months ended March 31, 2025, compared to 19.2% for the three months ended March 31, 2024.
Previous wording
The constant currency increase in selling, general, and administrative expenses during the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was primarily due to increases in employee-related costs.
Current wording
The constant currency increase in selling, general, and administrative expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to increases in employee-related costs and marketing expenses.
Previous wording
Selling, general, and administrative expenses increased for the six months ended December 31, 2024 to $480.6 million from $445.0 million for the six months ended December 31, 2023, an increase of $35.6 million or 8%. Selling, general, and administrative expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased our expenses by approximately $0.4 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the six months ended December 31, 2024 increased by 8% compared to the six months ended December 31, 2023. As a percentage of net revenue, selling, general, and administrative expenses were 19.2% for the six months ended December 31, 2024, compared to 19.6% for the six months ended December 31, 2023.
Current wording
Selling, general, and administrative expenses increased for the nine months ended March 31, 2025 to $725.9 million from $674.9 million for the nine months ended March 31, 2024, an increase of $50.9 million or 8%. Selling, general, and administrative expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased our expenses by approximately $3.7 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the nine months ended March 31, 2025 increased by 8% compared to the nine months ended March 31, 2024. As a percentage of net revenue, selling, general, and administrative expenses were 19.1% for the nine months ended March 31, 2025, compared to 19.5% for the nine months ended March 31, 2024.
Previous wording
The constant currency increase in selling, general, and administrative expenses during the six months ended December 31, 2024 compared to the six months ended December 31, 2023 was primarily due to increases in employee-related costs.
Current wording
The constant currency increase in selling, general, and administrative expenses during the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 was primarily due to increases in employee-related costs.
Previous wording
movements, research and development expenses for the three months ended December 31, 2024 increased by 10% compared to the three months ended December 31, 2023. As a percentage of net revenue, research and development expenses were 6.3% for the three months ended December 31, 2024 compared to 6.4% for the three months ended December 31, 2023.
Current wording
to the three months ended March 31, 2024. As a percentage of net revenue, research and development expenses were 6.5% for the three months ended March 31, 2025 compared to 6.4% for the three months ended March 31, 2024.
Previous wording
Research and development expenses increased for the six months ended December 31, 2024 to $160.9 million from $149.6 million for the six months ended December 31, 2023, an increase of $11.3 million, or 8%. Research and development expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased our expenses by approximately $0.4 million for the six months ended December 31, 2024, as reported in U.S. dollars. Excluding the impact of foreign currency movements, research and development expenses increased by 7% compared to the six months ended December 31, 2023. As a percentage of net revenue, research and development expenses were 6.4% for the six months ended December 31, 2024, compared to 6.6% for the six months ended December 31, 2023.
Current wording
Research and development expenses increased for the nine months ended March 31, 2025 to $244.8 million from $226.7 million for the nine months ended March 31, 2024, an increase of $18.2 million, or 8%. Research and development expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased our expenses by approximately $1.3 million for the nine months ended March 31, 2025, as reported in U.S. dollars. Excluding the impact of foreign currency movements, research and development expenses increased by 9% compared to the nine months ended March 31, 2024. As a percentage of net revenue, research and development expenses were 6.4% for the nine months ended March 31, 2025, compared to 6.5% for the nine months ended March 31, 2024.
Previous wording
The decrease in amortization of acquired intangible assets for the three and six months ended December 31, 2024 compared to the three and six months ended December 31, 2023 is due to certain acquired intangible assets reaching the end of their useful lives and becoming fully amortized.
Current wording
The decrease in amortization of acquired intangible assets for the three and nine months ended March 31, 2025 compared to the three and nine months ended March 31, 2024 is due to certain acquired intangible assets reaching the end of their useful lives and becoming fully amortized.
Previous wording
We did not record any restructuring expenses during the three and six months ended December 31, 2024. During the three and six months ended December 31, 2023, we recorded $64.2 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 three and six months ended December 31, 2023 were comprised of $28.6 million of employee severance and other one-time termination benefits, $33.2 million of intangible asset impairments associated with the wind down of certain business activities, and $2.4 million of other miscellaneous asset impairments.
Current wording
We did not record any restructuring expenses during the three and nine months ended March 31, 2025. During the nine months ended March 31, 2024, we recorded $64.2 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 nine months ended March 31, 2024 were comprised of $28.6 million of employee severance and other one-time termination benefits, $33.2 million of intangible asset impairments associated with the wind down of certain business activities, and $2.4 million of other miscellaneous asset impairments.
Previous wording
Total other income (loss), net for the three months ended December 31, 2024 was income of $1.1 million compared to a loss of $15.6 million for the three months ended December 31, 2023. Interest expense, net, decreased to $0.8 million for the three months ended December 31, 2024 compared to $13.8 million for the three months ended December 31, 2023 due to lower debt levels following repayments on our revolving credit facility. In addition to decreases in interest expense, net, we recorded foreign exchange net gains for the three months ended December 31, 2024 of $0.4 million compared to foreign exchange net losses of $0.8 million for the three months ended December 31, 2023.
Current wording
Total other income (loss), net for the three months ended March 31, 2025 was a loss of $8.6 million compared to income of $0.8 million for the three months ended March 31, 2024. We recorded a loss associated with our equity investments of $5.6 million for the three months ended March 31, 2025 compared to a gain of $13.9 million for the three months ended March 31, 2024. Losses attributable to equity investments were partially offset by interest income, net of $0.8 million for the three months ended March 31, 2025 compared to interest expense, net of $11.0 million for the three months ended March 31, 2024 due to lower debt levels following repayments on our revolving credit facility.
Previous wording
Total other income (loss), net for the six months ended December 31, 2024 was a loss of $2.7 million compared to a loss of $32.4 million for the six months ended December 31, 2023. Interest expense, net, decreased to $2.4 million for the six months ended December 31, 2024 compared to $28.8 million for the six months ended December 31, 2023 due to lower debt levels following repayments on our revolving credit facility. In addition, we recorded a gain associated with our equity method investments of $2.0 million for the six months ended December 31, 2024 compared to a loss of $3.2 million for the six months ended December 31, 2023. Decreases in interest expense, net, and gains attributable to equity method investments were partially offset by foreign exchange net losses for the six months ended December 31, 2024 of $2.0 million compared to foreign exchange net gains of $1.8 million for the six months ended December 31, 2023, which are presented in other, net.
Current wording
Total other income (loss), net for the nine months ended March 31, 2025 was a loss of $11.3 million compared to a loss of $31.6 million for the nine months ended March 31, 2024. Interest expense, net, decreased to $1.6 million for the nine months ended March 31, 2025 compared to $39.8 million for the nine months ended March 31, 2024 due to lower debt levels following repayments on our revolving credit facility. In addition, we recorded a gain associated with our equity method investments of $2.4 million for the nine months ended March 31, 2025 compared to a loss of $2.7 million for the nine months ended March 31, 2024. Decreases in interest expense, net, and gains attributable to equity method investments were partially offset by a loss associated with our equity investments of $7.8 million for the nine months ended March 31, 2025 compared to a gain of 11.4 million for the nine months ended March 31, 2024.
Previous wording
Our effective income tax rate for the three and six months ended December 31, 2024 was 17.6% and 18.2%, respectively, as compared to 19.5% for both the three and six months ended December 31, 2023. Our effective rate of 17.6% for the three months ended December 31, 2024 differs from the statutory rate of 21.0% primarily due to foreign operations and research credits. The decrease in our effective tax rate for the three and six months ended December 31, 2024 was primarily due to windfall tax benefits related to the vesting or settlement of employee share-based awards and a shift in our global mix of earnings.
Current wording
Our effective income tax rate for the three and nine months ended March 31, 2025 was 12.6% and 16.3%, respectively, as compared to 20.0% and 19.7% for the three and nine months ended March 31, 2024, respectively. Our effective rate of 12.6% for the three months ended March 31, 2025 differs from the statutory rate of 21.0% primarily due to interest and penalties refunded from the IRS due to amended returns, foreign operations, and research credits. The decrease in our effective tax rate for the three and nine months ended March 31, 2025 was primarily due to interest and penalties refunded from the IRS due to amended returns, overall windfall tax benefits related to the vesting or settlement of employee share-based awards and a shift in our global mix of earnings.
Previous wording
As of December 31, 2024, we had an income tax receivable of $99.8 million, which was recognized in prepaid expenses and other current assets and is expected to be received during the three months ended March 31, 2024.
Current wording
As of March 31, 2025, we had an income tax receivable of $31.7 million, which was recognized in prepaid expenses and other current assets. It is expected to be received by March 31, 2026.
Previous wording
As a result of the factors above, our net income for the three months ended December 31, 2024 was $344.6 million compared to $208.8 million for the three months ended December 31, 2023, an increase of $135.8 million, or 65%. Our net
Current wording
As a result of the factors above, our net income for the three months ended March 31, 2025 was $365.0 million compared to $300.5 million for the three months ended March 31, 2024, an increase of $64.5 million, or 21%. Our net income for the
Previous wording
Our diluted earnings per share for the three months ended December 31, 2024 was $2.34 per diluted share compared to $1.42 for the three months ended December 31, 2023, an increase of $0.92, or 65%. Our diluted earnings per share for the six months ended December 31, 2024 was $4.45 compared to $2.90 for the six months ended December 31, 2023, an increase of $1.55, or 53%.
Current wording
Our diluted earnings per share for the three months ended March 31, 2025 was $2.48 per diluted share compared to $2.04 for the three months ended March 31, 2024, an increase of $0.44, or 22%. Our diluted earnings per share for the nine months ended March 31, 2025 was $6.93 compared to $4.94 for the nine months ended March 31, 2024, an increase of $1.99, or 40%.
Previous wording
The measure “non-GAAP net income” is equal to GAAP net income once adjusted for amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, and associated tax effects. The measure “non-GAAP diluted earnings per share” is the ratio of non-GAAP net income to diluted shares outstanding. These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except for per share amounts):
Current wording
The measure “non-GAAP net income” is equal to GAAP net income once adjusted for amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, interest and penalties on tax refunds and associated tax effects. The measure “non-GAAP diluted earnings per share” is the ratio of non-GAAP net income to diluted shares outstanding. These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except for per share amounts):
Previous wording
As of December 31, 2024 and June 30, 2024, we had cash and cash equivalents of $521.9 million and $238.4 million, respectively. Our cash and cash equivalents held within the United States at December 31, 2024 and June 30, 2024 were $205.9 million and $51.2 million, respectively. Our remaining cash and cash equivalent balances at December 31, 2024 and June 30, 2024, were $316.0 million and $187.2 million, respectively. Our cash and cash equivalent balances are held at highly rated financial institutions.
Current wording
As of March 31, 2025 and June 30, 2024, we had cash and cash equivalents of $932.7 million and $238.4 million, respectively. Our cash and cash equivalents held within the United States at March 31, 2025 and June 30, 2024 were $409.3 million and $51.2 million, respectively. Our remaining cash and cash equivalent balances at March 31, 2025 and June 30, 2024, were $523.4 million and $187.2 million, respectively. Our cash and cash equivalent balances are held at highly rated financial institutions.
Previous wording
As of December 31, 2024, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $2,021.9 million in cash and available liquidity under the revolving credit facility.
Current wording
As of March 31, 2025, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $2,432.7 million in cash and available liquidity under the revolving credit facility.
Previous wording
Cash provided by operating activities was $634.2 million for the six months ended December 31, 2024, compared to cash provided of $559.1 million for the six months ended December 31, 2023. The $75.0 million increase in cash flow from
Current wording
Cash provided by operating activities was $1,212.8 million for the nine months ended March 31, 2025, compared to cash provided of $961.1 million for the nine months ended March 31, 2024. The $251.7 million increase in cash flow from operations was primarily due to increased net income, partially offset by higher working capital during the nine months
Previous wording
Cash used in investing activities was $34.5 million for the six months ended December 31, 2024, compared to cash used of $190.1 million for the six months ended December 31, 2023. The $155.6 million decrease in cash flow used in investing activities was primarily due to cash used to acquire Somnoware during thesix months ended December 31, 2023 in addition to lower purchases of property, plant and equipment and greater proceeds from maturity of foreign currency contracts during the six months ended December 31, 2024 compared tothesix months ended December 31, 2023.
Current wording
Cash used in investing activities was $66.3 million for the nine months ended March 31, 2025, compared to cash used of $223.3 million for the nine months ended March 31, 2024. The $156.9 million decrease in cash flow used in investing activities was primarily due to cash used to acquire Somnoware during thenine months ended March 31, 2024 in addition to net proceeds from maturity of foreign currency contracts during the nine months ended March 31, 2025 compared to net payments from maturity of foreign currency contracts duringthe nine months ended March 31, 2024.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
*Constant currency numbers exclude the impact of movements in international currencies.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
8% increase on a constant currency basis). The constant currency increase in device and mask sales in combined Europe, Asia and other was primarily attributable to increased demand and unit sales.
Previous report — wording carried elsewhere
The increase in net revenue associated with our devices and masks was primarily attributable to increased demand and unit sales.
Previous report — wording carried elsewhere
The increase in gross margin for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was due primarily to $6.4 million of non-recurring expenses associated with the field safety notifications for masks with magnets recognized during the three months ended December 31, 2023 and manufacturing efficiencies and component cost improvements as well as a reduction in amortization of acquired intangibles relating to cost of goods sold as assets have become fully amortized. 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.
Previous report — wording carried elsewhere
incorporate magnets. The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.