RESMED INC
For the period ended Mar 31, 2026. Filed May 1, 2026.
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, 2026 · Filed May 1, 2026
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 2025-12-31; filed 2026-01-30.
0000943819-26-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0000943819-26-000025
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 120 previous paragraphs and 121 current paragraphs.
64 unchanged; 50 reworded; 5 added; 4 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 23 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 (5)
Current report
Nine Months Ended March 31, 2026 Compared to the Nine Months Ended March 31, 2025
Current report
fees for diligence and related consultations. We did not incur material acquisition and portfolio review related expenses during the nine months ended March 31, 2025.
Current report
Amortization of acquired intangible assets for the three months ended March 31, 2026 totaled $11.2 million compared to $10.9 million for the three months ended March 31, 2025.
Current report
Amortization of acquired intangible assets for the nine months ended March 31, 2026 totaled $35.0 million compared to $33.3 million for the nine months ended March 31, 2025.
Current report
The measure “non-GAAP selling, general, and administrative expenses” is equal to GAAP selling, general, and administrative expenses less acquisition and portfolio review related expenses. Non-GAAP selling, general, and administrative expenses as a percentage of revenue is the ratio of non-GAAP selling, general, and administrative expenses to GAAP net revenue. These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except percentages):
Removed paragraphs (4)
Previous report
Six Months Ended December 31, 2025 Compared to the Six Months Ended December 31, 2024
Previous report
Research and development expenses increased for the three months ended December 31, 2025 to $91.0 million from $81.4 million for the three months ended December 31, 2024, an increase of $9.6 million, or 12%. Research and development expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased
Previous report
Amortization of acquired intangible assets for the three months ended December 31, 2025 totaled $11.8 million compared to $11.0 million for the three months ended December 31, 2024.
Previous report
Amortization of acquired intangible assets for the six months ended December 31, 2025 totaled $23.7 million compared to $22.5 million for the six months ended December 31, 2024.
Reworded paragraphs (50)
Previous wording
The following is an overview of our results of operations for the three and six months ended December 31, 2025. Management’s discussion and analysis of financial condition and results of operations, or the 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, 2026. Management’s discussion and analysis of financial condition and results of operations, or the 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, 2025, we invested $91.0 million on research and development activities, which represents 6.4% 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. 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, 2026, we invested $94.3 million on research and development activities, which represents 6.6% 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. 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
Net revenue for the three months ended December 31, 2025 was $1.4 billion, an increase of 11% compared to the three months ended December 31, 2024. Gross margin was 61.8% for the three months ended December 31, 2025 compared to 58.6% for the three months ended December 31, 2024. Diluted earnings per share was $2.68 for the three months ended December 31, 2025, compared to diluted earnings per share of $2.34 for the three months ended December 31, 2024.
Current wording
Net revenue for the three months ended March 31, 2026 was $1.4 billion, an increase of 11% compared to the three months ended March 31, 2025. Gross margin was 62.2% for the three months ended March 31, 2026 compared to 59.3% for the three months ended March 31, 2025. Diluted earnings per share was $2.74 for the three months ended March 31, 2026, compared to diluted earnings per share of $2.48 for the three months ended March 31, 2025.
Previous wording
At December 31, 2025, our cash and cash equivalents totaled $1.4 billion, our total assets were $8.5 billion and our stockholders’ equity was $6.3 billion.
Current wording
At March 31, 2026, our cash and cash equivalents totaled $1.7 billion, our total assets were $8.8 billion and our stockholders’ equity was $6.5 billion.
Previous wording
Net revenue for the three months ended December 31, 2025 increased to $1,422.8 million from $1,282.1 million for the three months ended December 31, 2024, an increase of $140.7 million or 11% (a 9% 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, 2026 increased to $1,431.4 million from $1,291.7 million for the three months ended March 31, 2025, an increase of $139.7 million or 11% (an 8% 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, 2025 was $1,255.9 million, an increase of 12% compared to net revenue for the three months ended December 31, 2024. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $22.5 million for the three months ended December 31, 2025. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended December 31, 2025 increased by 10% compared to the three months ended December 31, 2024. 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, 2026 was $1,260.5 million, an increase of 11% compared to net revenue for the three months ended March 31, 2025. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $35.2 million for the three months ended March 31, 2026. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the three months ended March 31, 2026 increased by 8% compared to the three months ended March 31, 2025. 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, 2025 increased to $835.0 million from $748.9 million for the three months ended December 31, 2024, an increase of $86.1 million or 11%. 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, 2026 increased to $818.7 million from $749.3 million for the three months ended March 31, 2025, an increase of $69.4 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 from our Sleep and Breathing Health business in combined Europe, Asia and other markets increased for the three months ended December 31, 2025 to $420.9 million from $376.6 million for the three months ended December 31, 2024, an increase of $44.3 million or 12% (a 6% 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.
Current wording
Net revenue from our Sleep and Breathing Health business in combined Europe, Asia and other markets increased for the three months ended March 31, 2026 to $441.8 million from $381.3 million for the three months ended March 31, 2025, an increase of $60.6 million or 16% (a 7% 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, 2025 increased to $726.2 million from $669.3 million for the three months ended December 31, 2024, an increase of $56.9 million or 9%, including an increase of 8% in the U.S., Canada and Latin America and an increase of 9% in combined Europe, Asia and other markets (a 5% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the three months ended December 31, 2025 increased by 7%.
Current wording
Net revenue from devices for the three months ended March 31, 2026 increased to $735.7 million from $676.2 million for the three months ended March 31, 2025, an increase of $59.5 million or 9%, including an increase of 6% in the U.S., Canada and Latin America and an increase of 14% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the three months ended March 31, 2026 increased by 6%.
Previous wording
Net revenue from masks and other for the three months ended December 31, 2025 increased to $529.7 million from $456.3 million for the three months ended December 31, 2024, an increase of $73.4 million or 16%, including an increase of 16% in the U.S., Canada and Latin America and an increase of 17% in combined Europe, Asia and other markets (an 8% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales for the three months ended December 31, 2025 increased by 14%.
Current wording
Net revenue from masks and other for the three months ended March 31, 2026 increased to $524.8 million from $454.4 million for the three months ended March 31, 2025, an increase of $70.4 million or 15%, including an increase of 14% in the U.S., Canada and Latin America and an increase of 20% in combined Europe, Asia and other markets (a 10% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales for the three months ended March 31, 2026 increased by 12%.
Previous wording
Net revenue from our Residential Care Software business for the three months ended December 31, 2025 increased to $166.9 million from $156.5 million for the three months ended December 31, 2024, an increase of $10.4 million or 7%. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $3.0 million for the three months ended December 31, 2025. Excluding the impact of currency movements, net revenue from our Residential Care Software business for the three months ended December 31, 2025 increased by 5% compared to the three months ended December 31, 2024. The increase was predominantly due to strong growth in the MEDIFOX DAN and Home and Hospice business verticals, partially offset by weaker performance in our Senior Living and Long-Term Care business vertical.
Current wording
Net revenue from our Residential Care Software business for the three months ended March 31, 2026 increased to $170.9 million from $161.2 million for the three months ended March 31, 2025, an increase of $9.7 million or 6%. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $4.1 million for the three months ended March 31, 2026. Excluding the impact of foreign currency movements, net revenue from our Residential Care Software business for the three months ended March 31, 2026 increased by 4% compared to the three months ended March 31, 2025. The increase was predominantly due to growth in the MEDIFOX DAN, Home and Hospice, and Home Medical Equipment, or HME, business verticals, partially offset by weaker performance in our Senior Living and Long-Term Care business vertical.
Previous wording
Net revenue for the six months ended December 31, 2025 increased to $2,758.4 million from $2,506.6 million for the six months ended December 31, 2024, an increase of $251.8 million or 10% (an 8% 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, 2026 increased to $4,189.8 million from $3,798.3 million for the nine months ended March 31, 2025, an increase of $391.5 million or 10% (an 8% 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, 2025 was $2,425.4 million, an increase of 11% compared to net revenue for the six months ended December 31, 2024. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $36.0 million for the six months ended December 31, 2025. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the six months ended December 31, 2025 increased by 9% compared to the six months ended December 31, 2024. 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 nine months ended March 31, 2026 was $3,685.9 million, an increase of 11% compared to net revenue for the nine months ended March 31, 2025. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $71.2 million for the nine months ended March 31, 2026. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the nine months ended March 31, 2026 increased by 9% compared to the nine months ended March 31, 2025. 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, 2025 increased to $1,609.8 million from $1,456.3 million for the six months ended December 31, 2024, an increase of $153.5 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, 2026 increased to $2,428.5 million from $2,205.6 million for the nine months ended March 31, 2025, an increase of $222.9 million or 10%. 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 six months ended December 31, 2025 to $815.6 million from $737.1 million for the six months ended December 31, 2024, an increase of $78.5 million or 11% (a 6% 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, 2026 to $1,257.4 million from $1,118.3 million for the nine months ended March 31, 2025, an increase of $139.1 million or 12% (a 6% increase on a constant currency basis). The constant currency increase in 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, 2025 increased to $1,406.5 million from $1,295.1 million for the six months ended December 31, 2024, an increase of $111.4 million or 9%, including an increase of 8% in the U.S., Canada and Latin America and an increase of 10% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the six months ended December 31, 2025 increased by 7%.
Current wording
Net revenue from devices for the nine months ended March 31, 2026 increased to $2,142.3 million from $1,971.3 million for the nine months ended March 31, 2025, an increase of $171.0 million or 9%, including an increase of 7% in the U.S., Canada and Latin America and an increase of 11% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the nine months ended March 31, 2026 increased by 7%.
Previous wording
Net revenue from masks and other for the six months ended December 31, 2025 increased to $1,018.9 million from $898.2 million for the six months ended December 31, 2024, an increase of $120.6 million or 13%, including an increase of 14% in the U.S., Canada and Latin America and an increase of 12% in combined Europe, Asia and other markets (a 6% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales increased by 12%, compared to the six months ended December 31, 2024.
Current wording
Net revenue from masks and other for the nine months ended March 31, 2026 increased to $1,543.6 million from $1,352.6 million for the nine months ended March 31, 2025, an increase of $191.0 million or 14%, including an increase of 14% in the U.S., Canada and Latin America and an increase of 15% 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 increased by 12%, compared to the nine months ended March 31, 2025.
Previous wording
Net revenue from our Residential Care Software business for the six months ended December 31, 2025 increased to $333.0 million from $313.3 million for the six months ended December 31, 2024, an increase of $19.7 million or 6%. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $5.0 million for the six months ended December 31, 2025. Excluding the impact of currency movements, net revenue from our Residential Care Software business for the six months ended December 31, 2025 increased by 5% compared to the six months ended December 31, 2024. The increase was predominantly due to continued growth in the MEDIFOX DAN vertical within our Residential Care Software business, partially offset by weaker performance in our Senior Living and Long-Term Care business vertical.
Current wording
Net revenue from our Residential Care Software business for the nine months ended March 31, 2026 increased to $503.9 million from $474.4 million for the nine months ended March 31, 2025, an increase of $29.5 million or 6%. Movements in international currencies against the U.S. dollar positively impacted net revenue by approximately $9.1 million for the nine months ended March 31, 2026. Excluding the impact of foreign currency movements, net revenue from our Residential Care Software business for the nine months ended March 31, 2026 increased by 4% compared to the nine months ended March 31, 2025. The increase was predominantly due to continued growth in the MEDIFOX DAN vertical within our Residential Care Software business, Home and Hospice, and HME, business verticals, partially offset by weaker performance in our Senior Living and Long-Term Care business vertical.
Previous wording
Gross profit increased for the three months ended December 31, 2025 to $878.7 million from $751.3 million for the three months ended December 31, 2024, an increase of $127.4 million or 17%. Gross margin, which is gross profit as a percentage of net revenue, for the three months ended December 31, 2025 was 61.8% compared to 58.6% for the three months ended December 31, 2024.
Current wording
Gross profit increased for the three months ended March 31, 2026 to $891.0 million from $766.4 million for the three months ended March 31, 2025, an increase of $124.6 million or 16%. Gross margin, which is gross profit as a percentage of net revenue, for the three months ended March 31, 2026 was 62.2% compared to 59.3% for the three months ended March 31, 2025.
Previous wording
The increase in gross margin for the six months ended December 31, 2025 compared to the six months ended December 31, 2024 was due primarily to manufacturing and logistics efficiencies and component cost improvements.
Current wording
The increase in gross margin for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due primarily to manufacturing and logistics efficiencies and component cost improvements, as well as a small positive impact from product mix and foreign currency movements.
Previous wording
Gross profit increased for the six months ended December 31, 2025 to $1,699.5 million from $1,468.5 million for the six months ended December 31, 2024, an increase of $231.0 million or 16%. Gross margin for the six months ended December 31, 2025 was 61.6% compared to 58.6% for the six months ended December 31, 2024.
Current wording
Gross profit increased for the nine months ended March 31, 2026 to $2,590.5 million from $2,234.9 million for the nine months ended March 31, 2025, an increase of $355.6 million or 16%. Gross margin for the nine months ended March 31, 2026 was 61.8% compared to 58.8% for the nine months ended March 31, 2025.
Previous wording
The increase in gross margin for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was due primarily to manufacturing and logistics efficiencies and component cost improvements.
Current wording
The increase in gross margin for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025 was due primarily to manufacturing and logistics efficiencies and component cost improvements.
Previous wording
Selling, general, and administrative expenses increased for the three months ended December 31, 2025 to $278.4 million from $241.6 million for the three months ended December 31, 2024, an increase of $36.8 million or 15%. 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 $7.5 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, 2025 increased by 12% compared to the three months ended December 31, 2024. As a percentage of net revenue, selling, general, and administrative expenses were 19.6% for the three months ended December 31, 2025, compared to 18.8% for the three months ended December 31, 2024.
Current wording
Selling, general, and administrative expenses increased for the three months ended March 31, 2026 to $285.7 million from $245.3 million for the three months ended March 31, 2025, an increase of $40.4 million or 16%. 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 $13.0 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended March 31, 2026 increased by 11% compared to the three months ended March 31, 2025. As a percentage of net revenue, selling, general, and administrative expenses were 20.0% for the three months ended March 31, 2026, compared to 19.0% for the three months ended March 31, 2025.
Previous wording
The constant currency increase in selling, general, and administrative expenses during the six months ended December 31, 2025 compared to the six months ended December 31, 2024 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments.
Current wording
The constant currency increase in selling, general, and administrative expenses during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments. Additionally, during the three months ended March 31, 2026, we recorded $5.9 million of acquisition and portfolio review related charges associated with the evaluation of strategic transactions, including legal and professional fees for diligence and related consultations. We did not incur material acquisition and portfolio review related expenses during the three months ended March 31, 2025.
Previous wording
Selling, general, and administrative expenses increased for the six months ended December 31, 2025 to $537.6 million from $480.6 million for the six months ended December 31, 2024, an increase of $57.0 million or 12%. 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 $11.0 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, 2025 increased by 10% compared to the six months ended December 31, 2024. As a percentage of net revenue, selling, general, and administrative expenses were 19.5% for the six months ended December 31, 2025, compared to 19.2% for the six months ended December 31, 2024.
Current wording
Selling, general, and administrative expenses increased for the nine months ended March 31, 2026 to $823.2 million from $725.9 million for the nine months ended March 31, 2025, an increase of $97.4 million or 13%. 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 $23.9 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, 2026 increased by 10% compared to the nine months ended March 31, 2025. As a percentage of net revenue, selling, general, and administrative expenses were 19.6% for the nine months ended March 31, 2026, compared to 19.1% for the nine months ended March 31, 2025.
Previous wording
The constant currency increase in selling, general, and administrative expenses during the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments.
Current wording
The constant currency increase in selling, general, and administrative expenses during the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025 was primarily due to employee-related costs, additional expenses associated with our VirtuOx acquisition during the three months ended June 30, 2025 and marketing and technology investments. Additionally, during the nine months ended March 31, 2026, we recorded $5.9 million of acquisition and portfolio review related charges associated with the evaluation of strategic transactions, including legal and professional
Previous wording
our expenses by approximately $1.1 million for the three months ended December 31, 2025, as reported in U.S. dollars Excluding the impact of foreign currency movements, research and development expenses increased by 10% compared to the three months ended December 31, 2024. As a percentage of net revenue, research and development expenses were 6.4% for the three months ended December 31, 2025 and 6.3% for the three months ended December 31, 2024.
Current wording
Research and development expenses increased for the three months ended March 31, 2026 to $94.3 million from $83.9 million for the three months ended March 31, 2025, an increase of $10.3 million or 12%. Research and development expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased our expenses by approximately $3.7 million for the three months ended March 31, 2026, as reported in U.S. dollars Excluding the impact of foreign currency movements, research and development expenses increased by 8% compared to the three months ended March 31, 2025. As a percentage of net revenue, research and development expenses were 6.6% for the three months ended March 31, 2026 and 6.5% for the three months ended March 31, 2025.
Previous wording
Research and development expenses increased for the six months ended December 31, 2025 to $178.3 million from $160.9 million for the six months ended December 31, 2024, an increase of $17.4 million, or 11%. Research and development expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased our expenses by approximately $1.1 million for the six months ended December 31, 2025, as reported in U.S. dollars. Excluding the impact of foreign currency movements, research and development expenses increased by 10% compared to the six months ended December 31, 2024. As a percentage of net revenue, research and development expenses were 6.5% for the six months ended December 31, 2025, compared to 6.4% for the six months ended December 31, 2024.
Current wording
Research and development expenses increased for the nine months ended March 31, 2026 to $272.6 million from $244.8 million for the nine months ended March 31, 2025, an increase of $27.7 million or 11%. Research and development expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased our expenses by approximately $4.8 million for the nine months ended March 31, 2026, 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, 2025. As a percentage of net revenue, research and development expenses were 6.5% for the nine months ended March 31, 2026, compared to 6.4% for the nine months ended March 31, 2025.
Previous wording
The increase in amortization of acquired intangible assets for the three and six months ended December 31, 2025 compared to the three and six months ended December 31, 2024 is due to amortization of intangibles from the VirtuOx acquisition during the three months ended June 30, 2025.
Current wording
The increase in amortization of acquired intangible assets for the three and nine months ended March 31, 2026 compared to the three and nine months ended March 31, 2025 is due to amortization of intangibles from the VirtuOx acquisition during the three months ended June 30, 2025, partially offset by certain acquired intangible assets reaching the end of their useful lives and becoming fully amortized.
Previous wording
During the three and six months ended December 31, 2025, we recorded $5.9 million and $21.7 million of restructuring related charges, respectively, for employee severance and one-time termination benefits associated with workforce planning activities.
Current wording
During the nine months ended March 31, 2026, we recorded $21.7 million of restructuring related charges for employee severance and one-time termination benefits associated with workforce planning activities.
Previous wording
We did not record any restructuring expenses during the three and six months ended December 31, 2024.
Current wording
We did not record any restructuring expenses during the three and nine months ended March 31, 2025.
Previous wording
Total other income (loss), net for the three months ended December 31, 2025 was income of $4.5 million compared to income of $1.1 million for the three months ended December 31, 2024. We recorded interest income, net of $7.9 million for the three months ended December 31, 2025 compared to interest expense, net of $0.8 million for the three months ended December 31, 2024 due to lower debt levels following repayments on our revolving credit facility. Additionally, we recorded a gain associated with our equity investments of $0.3 million for the three months ended December 31, 2025 compared to a loss of $1.4 million for the three months ended December 31, 2024.
Current wording
Total other income (loss), net for the three months ended March 31, 2026 was income of $2.5 million compared to a loss of $8.6 million for the three months ended March 31, 2025. Interest income, net increased to $12.3 million for the three months ended March 31, 2026 compared to $0.8 million for the three months ended March 31, 2025 due to lower debt levels following repayments on our revolving credit facility and gains recognized on cross-currency swaps associated with our fair value and net investment hedges. The increase in interest income, net was partially offset by a loss associated with our equity investments of $10.1 million for the three months ended March 31, 2026 compared to a loss of $5.6 million for the three months ended March 31, 2025.
Previous wording
Total other income (loss), net for the six months ended December 31, 2025 was income of $4.7 million compared to a loss of $2.7 million for the six months ended December 31, 2024. We recorded interest income, net of $16.7 million for the six months ended December 31, 2025 compared to interest expense, net of $2.4 million for the six months ended December 31, 2024 due to lower debt levels following repayments on our revolving credit facility. Interest income, net, was partially offset by a loss associated with our equity investments of $5.9 million for the six months ended December 31, 2025 compared to a loss of $2.1 million for the six months ended December 31, 2024.
Current wording
Total other income (loss), net for the nine months ended March 31, 2026 was income of $7.2 million compared to a loss of $11.3 million for the nine months ended March 31, 2025. We recorded interest income, net of $29.0 million for the nine months ended March 31, 2026 compared to interest expense, net of $1.6 million for the nine months ended March 31, 2025 due to lower debt levels following repayments on our revolving credit facility and gains recognized on cross-currency swaps associated with our fair value and net investment hedges. Interest income, net, was partially offset by a loss associated with our equity investments of $16.0 million for the nine months ended March 31, 2026 compared to a loss of $7.8 million for the nine months ended March 31, 2025.
Previous wording
Our effective income tax rate for the three and six months ended December 31, 2025 was 20.9% and 21.4%, respectively, as compared to 17.6% and 18.2% for the three and six months ended December 31, 2024, respectively. Our effective rate of 20.9% for the three months ended December 31, 2025 differs from the statutory rate of 21.0% primarily due to foreign operations and research credits. The increase in our effective tax rate for the three and six months ended December 31, 2025 was primarily due to the impact of global minimum taxes implemented in accordance with Pillar Two 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, 2026 was 20.6% and 21.1%, respectively, as compared to 12.6% and 16.3% for the three and nine months ended March 31, 2025, respectively. Our effective rate of 20.6% for the three months ended March 31, 2026 differs from the statutory rate of 21.0% primarily due to foreign operations and research credits. The increase in our effective tax rate for the three and nine months ended March 31, 2026 was primarily due to the impact of global minimum taxes implemented in accordance with Pillar Two and interest and penalties refunded from the IRS in the prior year period.
Previous wording
The Organization of Economic Co-operation and Development, or the OECD, and the G20 Inclusive Framework on Base Erosion and Profit Shifting, or the Inclusive Framework, has put forth two proposals—Pillar One and Pillar Two—that (i) revise the existing profit allocation and nexus rules and (ii) ensure a minimal level of taxation, respectively. Effective in our fiscal year beginning July 1, 2024, various jurisdictions in which we operate began implementing the global minimum tax prescribed under Pillar Two. Pillar Two legislation in effect as of December 31, 2025 has been incorporated into our condensed consolidated financial statements.
Current wording
The Organization of Economic Co-operation and Development, or the OECD, and the G20 Inclusive Framework on Base Erosion and Profit Shifting, or the Inclusive Framework, has put forth two proposals—Pillar One and Pillar Two—that (i) revise the existing profit allocation and nexus rules and (ii) ensure a minimal level of taxation, respectively. Effective in our fiscal year beginning July 1, 2024, various jurisdictions in which we operate began implementing the global minimum
Previous wording
As a result of the factors above, our net income for the three months ended December 31, 2025 was $392.6 million compared to $344.6 million for the three months ended December 31, 2024, an increase of $48.0 million, or 14%.
Current wording
As a result of the factors above, our net income for the three months ended March 31, 2026 was $398.7 million compared to $365.0 million for the three months ended March 31, 2025, an increase of $33.7 million or 9%.
Previous wording
Our diluted earnings per share for the three months ended December 31, 2025 was $2.68 per diluted share compared to $2.34 for the three months ended December 31, 2024, an increase of $0.34, or 15%.
Current wording
Our diluted earnings per share for the three months ended March 31, 2026 was $2.74 per diluted share compared to $2.48 for the three months ended March 31, 2025, an increase of $0.26 or 10%.
Previous wording
As a result of the factors above, our net income for the six months ended December 31, 2025 was $741.1 million compared to $656.0 million for the six months ended December 31, 2024, an increase of $85.2 million, or 13%.
Current wording
As a result of the factors above, our net income for the nine months ended March 31, 2026 was $1,139.9 million compared to $1,021.0 million for the nine months ended March 31, 2025, an increase of $118.8 million or 12%.
Previous wording
Our diluted earnings per share for the six months ended December 31, 2025 was $5.05 per diluted share compared to $4.45 for the six months ended December 31, 2024, an increase of $0.60, or 13%.
Current wording
Our diluted earnings per share for the nine months ended March 31, 2026 was $7.79 per diluted share compared to $6.93 for the nine months ended March 31, 2025, an increase of $0.86 or 12%.
Previous wording
In addition to financial information prepared in accordance with GAAP, our management uses certain non-GAAP financial measures, such as non-GAAP revenue, non-GAAP cost of sales, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP net income, and non-GAAP diluted earnings per share, in evaluating the performance of our business. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide investors better insight when evaluating our performance from core operations and can provide more consistent financial reporting across periods. For these reasons, we use non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies.
Current wording
In addition to financial information prepared in accordance with GAAP, our management uses certain non-GAAP financial measures, such as non-GAAP revenue, non-GAAP cost of sales, non-GAAP selling, general, and administrative expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP net income, and non-GAAP diluted earnings per share, in evaluating the performance of our business. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide investors better insight when evaluating our performance from core operations and can provide more consistent financial reporting across periods. For these reasons, we use non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
We did not record any restructuring expenses during the three months ended March 31, 2026.
Current report — wording carried from elsewhere
tax prescribed under Pillar Two. Pillar Two legislation in effect as of March 31, 2026 has been incorporated into our condensed consolidated financial statements.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Syndicated Facility Agreement, or the Term Credit Agreement. The Term Credit Agreement, among other things, provides ResMed Pty Limited a senior unsecured term credit facility of $200.0 million. 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. As of December 31, 2025, we had $1,500.0 million available for draw down under the revolving credit facility.