Summary:
ResMed reported 10% revenue growth for the quarter ending Dec 31, 2024, reaching $1.3 billion, driven by strong demand for sleep devices, masks, and residential care software. CEO Mick Farrell highlighted “once-in-a-generation” opportunities presented by the rise of sleep-tracking wearables and GLP-1 therapies, which he believes will increase patient awareness and drive greater adoption of sleep and breathing health solutions. The company also saw gross margin improvements and double-digit EPS growth, reinforcing its strong market position.
Key Takeaways:
- ResMed Reports 10% Revenue Growth – Quarterly revenue rose to $1.3 billion, supported by increased demand for sleep health products, masks, and digital health solutions.
- Wearables and GLP-1s Seen as Growth Drivers – CEO Mick Farrell described the rise of consumer sleep-tracking wearables and GLP-1 therapies as opportunities to boost patient flow and expand sleep and breathing care.
- Global Expansion and Market Strength – Revenue grew 12% in the US, Canada, and Latin America and 8% in Europe, Asia, and other markets, reflecting continued growth across ResMed’s sleep and residential care software segments.
ResMed Inc announced results for its quarter that ended Dec 31, 2024, reporting revenue growth of 10% percent over last year, driven by increased demand for sleep devices and masks portfolio, as well as solid growth across the Residential Care Software business.
Second quarter 2025 highlights, compared to the prior year period:
- Revenue increased by 10% to $1.3 billion; up 10% on a constant currency basis
- Gross margin improved 300 bps to 58.6%; non-GAAP gross margin improved 230 bps to 59.2%
- Income from operations increased 52%; non-GAAP income from operations up 19%
- Operating cash flow of $309 million
- Diluted earnings per share of $2.34; non-GAAP diluted earnings per share of $2.43
“Our second quarter fiscal year 2025 top-line growth, margin expansion, and double-digit EPS growth were the result of increased demand for our sleep health and breathing health products and digital health solutions that people love, as well as our laser-focus on operational excellence,” says ResMed’s chairman and CEO Mick Farrell, in a release.
He continues, “Our ecosystem is unmatched, and ResMed is well-positioned to capitalize on the once-in-a-generation opportunities we have with the recent introduction and adoption of consumer wearables that track sleep health, as well as use of GLP-1 therapies. We believe these developments will drive increased patient flow as we continue to educate people on the benefits of healthy sleep and breathing, with care delivered right in their own home.”
Revenue in the US, Canada, and Latin America, excluding Residential Care Software, grew by 12%, while revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 8% on a constant currency basis. Residential Care Software revenue increased by 8% on a constant currency basis, reflecting continued organic growth in the Residential Care Software portfolio, according to a release from ResMed.
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