Resmed — Income Statement, Cash Flows & Balance Sheet

Is ResMed profitable?

ResMed's profits surged in fiscal 2025, with net income rising by more than a third.

Revenue grew at a solid double-digit pace, but profits grew much faster — a sign that ResMed is becoming more efficient at turning each additional dollar of sales into earnings. Gross margin expanded noticeably, meaning the company is either selling higher-value products, controlling costs better, or both.

A large one-time restructuring charge in 2024 made that year look weaker; 2025 had none.

The prior year included a $64M charge for layoffs and write-downs of certain assets, which weighed on 2024 results. With no such charges in 2025, the year-over-year improvement in operating profit is partly — but not entirely — a clean-up effect; underlying operating performance genuinely improved as well.

Where does ResMed's revenue come from?

The core device and mask business drives nearly nine-tenths of revenue and is accelerating.

Both segments grew at the same top-line rate, but Sleep and Breathing Health — which sells CPAP devices, masks, and related accessories — contributes roughly seven times more revenue. Devices and masks each grew solidly, with the U.S., Canada, and Latin America region accounting for about 58% of total sales.

The software segment is smaller but increasingly profitable.

The Residential Care Software business — which provides cloud-based management tools for home-care providers — is growing its profitability faster than its revenue, suggesting improving operating leverage (meaning fixed costs are being spread over a larger revenue base).

Does ResMed generate cash?

ResMed is a strong cash generator, and operating cash flow hit a record in fiscal 2025.

Free cash flow (operating cash flow minus capital expenditures — a common measure of cash a business generates after maintaining its assets) grew substantially and comfortably exceeded reported net income, which is a healthy sign. Capital spending actually declined slightly, suggesting the business does not require heavy reinvestment to keep growing.

ResMed returned cash to shareholders while also paying down debt and making small acquisitions.

The company balanced returning capital to shareholders with modest bolt-on acquisitions and continued debt reduction.

How strong is ResMed's balance sheet?

Cash nearly quintupled in a single year, leaving ResMed in an unusually liquid position.

ResMed ended the year with more cash on hand than total debt outstanding — meaning it is technically in a net cash position (it could pay off all borrowings and still have money left over). This is a meaningful shift from a year ago.

Debt is modest and manageable relative to earnings.

Debt levels are low relative to the cash the business generates, and ResMed has a large undrawn $1.5B credit line available if needed. The goodwill balance — an accounting figure representing the premium paid for past acquisitions — is notable at roughly half of total assets, though auditors found no indication of impairment.