RESMED INC

Previous wording

This report contains or may contain certain forward-looking statements and information that are based on the beliefs of our management as well as estimates and assumptions made by, and information currently available to, our management. All statements other than statements regarding historical facts are forward-looking statements. The words “believe,” “expect,” “intend,” “anticipate,” “will continue,” “will,” “estimate,” “plan,” “future” and other similar expressions, and negative statements of such expressions, generally identify forward-looking statements, including, in particular, statements regarding expectations of future revenue or earnings, expenses, new product development, new product launches, new markets for our products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions on our business. These forward-looking statements are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements reflect the views of our management at the time the statements are made and are subject to a number of risks, uncertainties, estimates and assumptions, including, without limitation, and in addition to those identified in the text surrounding such statements, those identified in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and elsewhere in this report. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other data from reports, research surveys, studies, and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data, and similar sources.

Current wording

This report contains or may contain certain forward-looking statements and information that are based on the beliefs of our management as well as estimates and assumptions made by, and information currently available to, our management. All statements other than statements regarding historical facts are forward-looking statements. The words “believe,” “expect,” “intend,” “anticipate,” “will continue,” “will,” “estimate,” “plan,” “future” and other similar expressions, and negative statements of such expressions, generally identify forward-looking statements, including, in particular, statements regarding expectations of future revenue or earnings, expenses, results of operations, new product development, new product launches, new markets for our products, the integration of acquisitions and success of strategic initiatives, including divestitures, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions on our business. These forward-looking statements are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements reflect the views of our management at the time the statements are made and are subject to a number of risks, uncertainties, estimates and assumptions, including, without limitation, and in addition to those identified in the text surrounding such statements, those identified in our Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and elsewhere in this report. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other data from reports, research surveys, studies, and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data, and similar sources.

Previous wording

In addition, important factors to consider in evaluating such forward-looking statements include changes or developments in healthcare reform, social, macroeconomic, market, legal or regulatory circumstances, including the impact of public health crises; changes in our business or growth strategy or an inability to execute our strategy due to changes in our industry or the economy generally, the emergence of new or growing competitors, disruptions and delays in the supply chain, the actions or omissions of third parties, including suppliers, customers, competitors and governmental authorities, geopolitical and economic conditions in foreign jurisdictions impacting our business, including new or increased tariffs, and various other factors. If any one or more of these risks or uncertainties materialize, or underlying estimates or assumptions prove incorrect, actual results may vary significantly from those expressed in our forward-looking statements, and there can be no assurance that the forward-looking statements contained in this report will in fact occur.

Current wording

In addition, important factors to consider in evaluating such forward-looking statements include changes or developments in healthcare reform, social, macroeconomic, market, legal or regulatory circumstances, including the impact of public health crises; changes in our business or growth strategy or an inability to execute our strategy due to changes in our industry or the economy generally, the emergence of new or growing competitors, disruptions and delays in the supply chain, the actions or omissions of third parties, including suppliers, customers, competitors and governmental authorities, geopolitical and economic conditions in foreign jurisdictions impacting our business, including the direct or indirect effect of new or increased tariffs, the indirect costs associated with global trade disruption and various other factors. If any one or more of these risks or uncertainties materialize, or underlying estimates or assumptions prove incorrect, actual results may vary significantly from those expressed in our forward-looking statements, and there can be no assurance that the forward-looking statements contained in this report will in fact occur.

Previous 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.

Current wording

The following is an overview of our results of operations for the three months ended September 30, 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

Since the development of continuous positive airway pressure therapy, we have expanded our business by developing or acquiring a number of products and solutions for a broader range of respiratory disorders including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes and customer and provider business processes. Our growth has been fueled by geographic expansion, our research and product development efforts, acquisitions and an increasing awareness of SDB and respiratory conditions like chronic obstructive pulmonary disease as significant health concerns.

Current wording

Since the development of continuous positive airway pressure therapy, we have expanded our business by developing or acquiring a number of innovative products and solutions for a broad range of sleep and related breathing health disorders including technologies to be applied in medical and consumer products, life support and ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, and dental devices. In addition, we are a leading provider of cloud-based health applications, software and devices designed to provide connected care, enabling clinicians to manage more patients efficiently and effectively, as well as enabling and encouraging patients’ long-term adherence to and satisfaction with their therapy. Our growth has been fueled by geographic expansion, our research and product development efforts, acquisitions and an increasing awareness of sleep and related breathing health conditions, like chronic obstructive pulmonary disease, as significant health concerns.

Previous 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.

Current wording

We are committed to ongoing investment in research and development and product enhancements. During the three months ended September 30, 2026, we invested $103 million on research and development activities, which represents 7.3% 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. 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, together with our cloud-based remote monitoring and therapy management system and robust product pipeline, should continue to provide a strong foundation 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, or Sleep and Breathing Health, and the supply of business management software as a service to out-of-hospital health providers, or Residential Care Software.

Current wording

We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry, or Sleep and Breathing Health, and the supply of business management software as a service to residential healthcare providers, or Residential Care Software.

Previous 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.

Current wording

Net revenue for the three months ended September 30, 2026 was $1.4 billion, an increase of 6% compared to the three months ended September 30, 2025. Gross margin was 61.5% for the three months ended September 30, 2026 compared to 61.2% for the three months ended September 30, 2025. Diluted earnings per share was $2.92 for the three months ended September 30, 2026, compared to diluted earnings per share of $2.37 for the three months ended September 30, 2025.

Previous 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.

Current wording

At September 30, 2026, our cash and cash equivalents totaled $1.0 billion, our total assets were $8.2 billion and our stockholders’ equity was $5.9 billion.

Previous 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):

Current wording

Net revenue for the three months ended September 30, 2026 increased to $1,415 million from $1,336 million for the three months ended September 30, 2025, an increase of $79 million or 6% (a 6% increase on a constant currency basis and a 7% increase on a core 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 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.

Current wording

Net revenue from our Sleep and Breathing Health business for the three months ended September 30, 2026 was $1,260 million, an increase of 8% compared to net revenue for the three months ended September 30, 2025. Movements in international currencies against the U.S. dollar had a negligible impact on net revenue for the three months ended September 30, 2026. Excluding the impact of currency movements, total Sleep and Breathing Health net revenue for the

Previous 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.

Current wording

Net revenue from our Sleep and Breathing Health business in Rest of World increased for the three months ended September 30, 2026 to $426 million from $395 million for the three months ended September 30, 2025, an increase of $32 million or 8% (an 8% increase on a constant currency basis). The constant currency increase in device and mask sales in Rest of World was primarily attributable to increased demand and unit sales across our sleep health portfolio including the impact of device fleet renewals in France, partially offset by lower unit sales of our life support devices primarily reflecting the planned discontinuation of our Astral device.

Previous 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%.

Current wording

Net revenue from devices for the three months ended September 30, 2026 increased to $720 million from $680 million for the three months ended September 30, 2025, an increase of $40 million or 6%, including an increase of 6% in the Americas and an increase of 6% in Rest of World (a 6% increase on a constant currency basis). Excluding the impact of foreign currency movements, device sales for the three months ended September 30, 2026 increased by 6%.

Previous 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%.

Current wording

Net revenue from masks and other for the three months ended September 30, 2026 increased to $540 million from $489 million for the three months ended September 30, 2025, an increase of $50 million or 10%, including an increase of 10% in the Americas and an increase of 12% in Rest of World (an 11% increase on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales for the three months ended September 30, 2026 increased by 10%.

Previous 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.

Current wording

Gross profit increased for the three months ended September 30, 2026 to $871 million from $818 million for the three months ended September 30, 2025, an increase of $53 million or 6%. Gross margin, which is gross profit as a percentage of net revenue, for the three months ended September 30, 2026 was 61.5% compared to 61.2% for the three months ended September 30, 2025.

Previous 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.

Current wording

The increase in gross margin for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was due primarily to manufacturing and logistics efficiencies, component cost improvements, and lower amortization of acquired intangible assets following the sale of our MatrixCare business, partially offset by higher restructuring and business transformation costs. These costs were $8 million during the three months ended September 30, 2026, primarily associated with professional fees related to supply chain processes and systems transformation initiatives, compared to $3 million during the three months ended September 30, 2025 associated with workforce planning activities. We continue to experience inflationary pressure on our manufacturing inputs, particularly electronic components, and expect these pressures to continue through the remainder of fiscal year 2027. Additionally, we are strategically expanding parts of our supply chain, which may result in fluctuations in our gross margin as we activate new sites or expand existing sites.

Previous 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.

Current wording

Research and development expenses increased for the three months ended September 30, 2026 to $103 million from $89 million for the three months ended September 30, 2025, an increase of $13 million or 15%. Research and development expenses were unfavorably impacted by the movement of international currencies against the U.S. dollar, which increased our expenses by approximately $2 million for the three months ended September 30, 2026, as reported in U.S. dollars. Excluding the impact of foreign currency movements, research and development expenses increased by 13% compared to the three months ended September 30, 2025. As a percentage of net revenue, research and development expenses were 7.3% for the three months ended September 30, 2026 and 6.7% for the three months ended September 30, 2025.

Previous 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.

Current wording

Selling, general, and administrative expenses increased for the three months ended September 30, 2026 to $315 million from $282 million for the three months ended September 30, 2025, an increase of $33 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 $2 million, as reported in U.S. dollars. Excluding the impact of foreign currency movements, selling, general, and administrative expenses for the three months ended September 30, 2026 increased by 11% compared to the three months ended September 30, 2025. As a percentage of net revenue, selling, general, and administrative expenses were 22.2% for the three months ended September 30, 2026, compared to 21.1% for the three months ended September 30, 2025.

Previous 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.

Current wording

Total other income (loss), net for the three months ended September 30, 2026 was income of $86 million compared to income of $0.3 million for the three months ended September 30, 2025. The increase was primarily due to a $62 million gain recognized upon the divestment of the MatrixCare business on September 1, 2026. In addition, interest income increased to $21 million for the three months ended September 30, 2026 compared to $16 million for the three months ended September 30, 2025 due to gains recognized on cross-currency swaps associated with our fair value and net investment hedges. Interest expense decreased to $5 million for the three months ended September 30, 2026 compared to $7 million for the three months ended September 30, 2025 due to lower debt levels following repayments on our term credit facility and senior notes. We also recognized a gain associated with our equity investments of $6 million for the three months ended September 30, 2026 compared to a loss of $6 million for the three months ended September 30, 2025.

Previous 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.

Current wording

Our effective income tax rate for the three months ended September 30, 2026 was 22.4% as compared to 22.0% for the three months ended September 30, 2025. Our effective rate of 22.4% for the three months ended September 30, 2026 differs from the statutory rate of 21.0% primarily due to foreign operations, research credits and discrete tax adjustments. The increase in our effective tax rate for the three months ended September 30, 2026 was primarily due to the impact of global minimum taxes implemented in accordance with Pillar Two and discrete tax adjustments.

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

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 tax prescribed under Pillar Two. Pillar Two legislation in effect as of September 30, 2026 has been incorporated into our condensed consolidated financial statements.

Previous 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%.

Current wording

As a result of the factors above, our net income for the three months ended September 30, 2026 was $418 million compared to $349 million for the three months ended September 30, 2025, an increase of $70 million or 20%.

Previous 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%.

Current wording

Our diluted earnings per share for the three months ended September 30, 2026 was $2.92 per diluted share compared to $2.37 for the three months ended September 30, 2025, an increase of $0.55 or 23%.

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 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.

Current wording

In addition to financial information prepared in accordance with GAAP, our management uses certain non-GAAP financial measures, such as non-GAAP core constant currency basis, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, 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.

Previous wording

These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except percentages):

Current wording

Non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in thousands, except percentages and per share amounts):

Previous wording

Our principal sources of liquidity are our existing cash and cash equivalents, cash generated from operations and access to our revolving credit facility. Our primary uses of cash have been for research and development activities, selling and marketing activities, capital expenditures, strategic acquisitions and investments, dividend payments, share repurchases and repayment of debt obligations. We expect that cash provided by operating activities may fluctuate in future periods as a result of several factors, including fluctuations in our operating results, which include impacts from supply chain disruptions, working capital requirements and capital deployment decisions.

Current wording

Our principal sources of liquidity are our existing cash and cash equivalents, cash generated from operations and access to our revolving credit facility. Our primary uses of cash have been for research and development activities, selling and marketing activities, capital expenditures, strategic acquisitions and investments, share repurchases, dividend payments and repayment of debt obligations. We expect that cash provided by operating activities may fluctuate in future periods as a result of several factors, including fluctuations in our operating results, which include supply chain disruptions, working capital requirements and capital deployment decisions.

Previous wording

Our future capital requirements will depend on many factors including our growth rate in net revenue, third-party reimbursement of our products for our customers, the timing and extent of spending to support research development efforts, the expansion of selling, general and administrative activities, the timing of introductions of new products, and the expenditures associated with possible future acquisitions, investments or other business combination transactions. As we assess inorganic growth strategies, we may need to supplement our internally generated cash flow with outside sources. If we are required to access the debt market, we believe that we will be able to secure reasonable borrowing rates. As part of our liquidity strategy, we will continue to monitor our current level of earnings and cash flow generation as well as our ability to access the market considering those earning levels.

Current wording

Our future capital requirements will depend on many factors including our growth rate in net revenue, third-party reimbursement of our products for our customers, the timing and extent of spending to support research development efforts, the expansion of selling, general and administrative activities, the timing of introductions of new products, the expenditures associated with possible future acquisitions and divestitures, investments or other business combination transactions. As we assess inorganic growth strategies, we may need to supplement our internally generated cash flow with outside sources. If we are required to access the debt market, we believe that we will be able to secure reasonable borrowing rates. As part of our liquidity strategy, we will continue to monitor our current level of earnings and cash flow generation as well as our ability to access the market considering those earning levels.

Previous wording

As of March 31, 2026 and June 30, 2025, we had cash and cash equivalents of $1,660.5 million and $1,209.5 million, respectively. Our cash and cash equivalents held within the U.S. at March 31, 2026 and June 30, 2025 were $944.0 million and $555.0 million, respectively. Our remaining cash and cash equivalent balances at March 31, 2026 and June 30, 2025, were $716.5 million and $654.5 million, respectively. Our cash and cash equivalent balances are held at highly rated financial institutions.

Current wording

As of September 30, 2026 and June 30, 2026, we had cash and cash equivalents of $1.0 billion and $1.5 billion, respectively. Our cash and cash equivalents held within the U.S. at September 30, 2026 and June 30, 2026 were $278 million and $732 million, respectively. Our remaining cash and cash equivalent balances at September 30, 2026 and June 30, 2026, were $733 million and $737 million, respectively. Our cash and cash equivalent balances are held at highly rated financial institutions.

Previous wording

As a result of the U.S. Tax Cuts and Jobs Act of 2017, we treated all non-U.S. historical earnings as taxable, which resulted in additional tax expense of $126.9 million which was payable over the proceeding eight years. Therefore, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated.

Current wording

As a result of the U.S. Tax Cuts and Jobs Act of 2017, we treated all non-U.S. historical earnings as taxable, which resulted in additional tax expense of $92 million. The related tax liability, which was payable in installments over eight years, has been fully repaid. Accordingly, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated.

Previous wording

As of March 31, 2026, we had $1,500.0 million available for draw down under the revolving credit facility and a combined total of $3,160.5 million in cash and available liquidity under the revolving credit facility.

Current wording

As of September 30, 2026, we had $1,500 million available for draw down under the revolving credit facility and a combined total of $2,511 million in cash and available liquidity under the revolving credit facility.

Previous wording

On June 29, 2022, we entered into a second amended and restated credit agreement, or as amended from time to time, the Revolving Credit Agreement. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000.0 million or 1.00 times the EBITDA for the trailing twelve-month measurement period. Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the 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 March 31, 2026, we had $1,500.0 million available for draw down under the revolving credit facility.

Current wording

On June 29, 2022, we entered into a second amended and restated credit agreement, or as amended from time to time, the Revolving Credit Agreement. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000 million or 1.00 times the EBITDA for the trailing twelve-month measurement period. Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the 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 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 September 30, 2026, we had $1,500 million available for draw down under the revolving credit facility.

Previous wording

On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250.0 million principal amount of our 3.24% senior notes due July 10, 2026, and $250.0 million principal amount of our 3.45% senior notes due July 10, 2029, or Senior Notes.

Current wording

On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $500 million aggregate principal amount of senior notes, consisting of $250 million principal amount of our 3.24% senior notes and $250 million principal amount of our 3.45% senior notes, or collectively referred to as the Senior Notes. The 3.24% senior notes were repaid in full on July 10, 2026. The 3.45% senior notes are due July 10, 2029.

Previous wording

On March 31, 2026, there was a total of $665.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes and we were in compliance with our debt covenants. We expect to satisfy all of our liquidity and long-term debt requirements through a combination of cash on hand, cash generated from operations and debt facilities.

Current wording

On September 30, 2026, there was a total of $410 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes and we were in compliance with our debt covenants. We expect to satisfy all of our liquidity and remaining long-term debt requirements through a combination of cash on hand, cash generated from operations and debt facilities.

Previous wording

Cash provided by operating activities was $1,351.2 million for the nine months ended March 31, 2026, compared to cash provided of $1,212.8 million for the nine months ended March 31, 2025. The $138.4 million increase in cash flow from operations was primarily due to increased net income during the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025.

Current wording

Cash provided by operating activities was $422 million for the three months ended September 30, 2026, compared to cash provided of $457 million for the three months ended September 30, 2025. The $35 million decrease was primarily due to higher working capital requirements, including higher inventory levels partially related to the expansion of our supply chain, during the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

Cash used in investing activities was $161.5 million for the nine months ended March 31, 2026, compared to cash used of $66.3 million for the nine months ended March 31, 2025. The $95.2 million increase in cash flow used in investing activities was primarily due to increased purchases of property, plant and equipment and minority investments, in addition to cash used to acquire businesses during the nine months ended March 31, 2026, partially offset by increased proceeds upon the maturity of foreign currency contracts during the nine months ended March 31, 2026.

Current wording

Cash provided by investing activities was $392 million for the three months ended September 30, 2026, compared to cash used of $53 million for the three months ended September 30, 2025. The $445 million increase was primarily due to proceeds from the divestment of the MatrixCare business and proceeds from the maturity of foreign currency contracts, partially offset by increased purchases of property, plant and equipment and cash used to acquire businesses during the three months ended September 30, 2026.

Previous wording

Cash used in financing activities was $743.9 million for the nine months ended March 31, 2026, compared to cash used of $442.4 million for the nine months ended March 31, 2025. The $301.5 million increase in cash flow used in financing activities was primarily due to $500.0 million of treasury stock repurchases during the nine months ended March 31, 2026 compared to repurchases of $200.0 million during the nine months ended March 31, 2025.

Current wording

Cash used in financing activities was $1,278 million for the three months ended September 30, 2026, compared to cash used of $230 million for the three months ended September 30, 2025. The $1,048 million increase was primarily due to $936 million of treasury stock repurchases during the three months ended September 30, 2026 compared to repurchases of $150 million during the three months ended September 30, 2025. In addition, we repaid $250 million of our Senior Notes during three months ended September 30, 2026, compared to no repayments of debt during the three months ended September 30, 2025.

Previous wording

During the three months ended March 31, 2026, we paid cash dividends of $0.60 per common share totaling $87.2 million. On April 30, 2026, our board of directors declared a cash dividend of $0.60 per common share, to be paid on June 18, 2026, to shareholders of record as of the close of business on May 14, 2026. Future dividends are subject to approval by our board of directors.

Current wording

During the three months ended September 30, 2026, we paid cash dividends of $0.66 per common share totaling $95 million. On October 29, 2026, our board of directors declared a cash dividend of $0.66 per common share, to be paid on December 17, 2026, to shareholders of record as of the close of business on November 12, 2026. Future dividends are subject to approval by our board of directors.

Previous wording

On February 21, 2014, our board of directors approved our current share repurchase program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock. Since approval of the share repurchase program in 2014 through March 31, 2026, we have repurchased a total of 11.1 million shares under this repurchase program for an aggregate of $1.4 billion. During the nine months ended March 31, 2026, we repurchased 1,900,332 shares at a cost of $500.0 million. Shares that are repurchased are classified as treasury stock pending future use and reduce the number of shares of common stock outstanding used in calculating earnings (loss) per share. The share repurchase program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. At March 31, 2026, 8.9 million additional shares remain available for us to repurchase under the approved share repurchase program.

Current wording

On February 21, 2014, our board of directors approved our current share repurchase program, authorizing us to acquire up to an aggregate of 20 million shares of our common stock. Since approval of the share repurchase program in 2014 through September 30, 2026, we have repurchased a total of 15.7 million shares under this repurchase program for an aggregate of $2.4 billion. During the three months ended September 30, 2026, we repurchased 3.6 million shares at a cost of $855 million, including commissions and other incremental transaction costs. Shares that are repurchased are classified as treasury stock and reduce the number of shares of common stock outstanding used in calculating earnings (loss) per share. The share repurchase program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. At September 30, 2026, 4.3 million additional shares remain available for us to repurchase under the approved share repurchase program.

Previous wording

Other than for purchase obligations, there have been no material changes outside the ordinary course of business in our outstanding contractual obligations from those disclosed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

Current wording

Other than the repayment of our Senior Notes disclosed above, there have been no material changes outside the ordinary course of business in our outstanding contractual obligations from those disclosed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2026.