ResMed (RMD) Q1 Earnings call transcript Oct 24, 2025

In the first quarter of Fiscal Year 2025, ResMed reported another strong quarter of growth across all business segments. The company's financial performance was driven by solid revenue growth, improved gross margins, and strategic investments in SG&A and R&D.

Revenue Growth and Market Leadership

ResMed's revenue grew by 11%, reflecting strong demand for sleep health and breathing health medical devices, masks, and accessories, as well as residential care software offerings. The company achieved double-digit revenue growth across all product and geographic categories, with masks and accessories growth augmented by new patient activations and ongoing ReSupply.

The global device sales were driven by strong market performance from both the AirSense 10 and the AirSense 11 platforms, with regulatory approvals expanding country by country for the AirSense 11 platform. ResMed is committed to increasing the availability of the AirSense 11 platform worldwide and maintaining market leadership with its two AirSense platforms.

Strategic Initiatives and Innovation

ResMed's strategic initiatives include expanding into consumer wearables and the latest generation of pharmaceutical medicines called GLP-1s, which are expected to have significant impacts on the company's business as tailwinds. The company's real-world data analysis shows that people prescribed GLP-1 and PAP therapy have a higher likelihood of commencing PAP therapy and higher adherence rates, highlighting the potential of these medicines in driving growth.

ResMed's commitment to innovation is also evident in its latest mask innovation, the AirTouch N30i, which is set to launch into select markets next week. The AirTouch N30i is ResMed's first mask with a fabric, wrapped frame and a fabric-based patient interface, offering optimal comfort and adaptability. This technology is expected to set a new standard for CPAP, APAP, and bilevel patient interface therapy, helping more people love their therapy and achieve longer, high-quality sleep.

ReSupply Programs and Digital Health Ecosystem

ReSupply programs remain a critical element of ResMed's strategy to drive adherence and improve patient outcomes. The company's digital health ecosystem empowers ReSupply through three market-leading platforms: myAir for patients, AirView for physicians and providers, and Brightree for home medical equipment providers. Published research shows that patients enrolled in ReSupply programs have higher therapy adherence rates, indicating the positive impact on patient outcomes and overall healthcare system costs.

Strategic Vision and Growth Opportunities

ResMed's long-term vision, ResMed 2030, is centered on growing and differentiating its core sleep health and breathing health business, expanding into near and adjacent areas, and leveraging its leadership in digital health to drive better outcomes for patients, physicians, providers, and payers. The company's focus on innovation and digital health solutions, such as its patient management system, AirView, and consumer engagement application, MyAir, is expected to drive sustainable growth and improve patient care.

Conclusion

ResMed's strong financial performance and strategic initiatives demonstrate the company's commitment to improving health outcomes for millions of people worldwide. With a focus on innovation, digital health solutions, and expanding into adjacent areas, ResMed is well-positioned to capitalize on the growing demand for sleep health and breathing health solutions, positioning itself as a leader in the global market.