ResMed Reports 10% Revenue Growth to $1.282 Billion in Q2 FY 2025

ResMed Inc. reported a strong financial performance for the second quarter of fiscal year 2025, with net revenue reaching $1.282 billion, a 10% increase from $1.163 billion in the same period last year. The company's net income also saw significant growth, rising to $344.6 million, or $2.34 per diluted share, compared to $208.8 million, or $1.42 per diluted share, in the prior year. For the six months ended December 31, 2024, total revenue was $2.507 billion, up 11% from $2.265 billion in the previous year, while net income increased to $656 million from $428.2 million.

The company's Sleep and Breathing Health segment, which includes devices and masks, generated $1.126 billion in revenue for the quarter, marking an 11% increase year-over-year. This growth was attributed to increased demand and unit sales, particularly in the U.S., Canada, and Latin America, where revenue rose by 12%. The Residential Care Software segment also contributed positively, with revenue increasing by 8% to $156.5 million, driven by growth in the Home Medical Equipment and MEDIFOX DAN verticals.

ResMed's operational metrics indicate a solid customer base, with cash and cash equivalents totaling $521.9 million as of December 31, 2024. The company reported total assets of $7.141 billion and stockholders' equity of $5.253 billion. The company has also been active in share repurchases, buying back $125 million worth of stock during the six months ended December 31, 2024, as part of its ongoing strategy to return value to shareholders.

Strategically, ResMed has focused on enhancing its product offerings and expanding its market presence. The company has invested $81.4 million in research and development during the quarter, representing 6.3% of net revenues, to support the development of innovative products like the AirSense 11 device. Additionally, ResMed has restructured its operating segments to align with its 2030 strategy, renaming its segments to better reflect its focus on sleep and breathing health and residential care software.

Looking ahead, ResMed remains optimistic about its growth trajectory, driven by ongoing investments in product development and market expansion. The company anticipates continued demand for its products and services, particularly as healthcare systems increasingly shift towards home-based care solutions. ResMed's management has expressed confidence in its ability to navigate market challenges and capitalize on emerging opportunities in the healthcare sector.