ResMed’s (ASX:RMD) Robust Growth Driven by Demand for Sleep Apnoea Solutions

3 min read | April 24, 2025 06:44 PM AEST | By Team Kalkine Media

ResMed’s (ASX:RMD) Robust Growth Driven by Demand for Sleep Apnoea Solutions — Image source: Shutterstock

Strong Financial Performance

During the quarter, ResMed’s revenue rose 8% year-over-year to US$1.3 billion, with a 9% increase on a constant currency basis. This growth was underpinned by strong demand for its devices and software that support patients with sleep-disordered breathing. Operating income climbed 14% to US$426.3 million, up from US$374.6 million in the same period last year.

Earnings per share recorded double-digit growth, reflecting the company’s ongoing operational efficiency and broadening market appeal.

Expansion in Digital Healthcare

ResMed’s software-as-a-service segment, focused on supporting care outside of hospital settings, delivered a 10% revenue increase on a constant currency basis. This highlights the sustained momentum in its digital transformation strategy for residential healthcare delivery, catering to a growing population of patients seeking in-home care solutions.

Cash Flow and Operational Highlights

The company reported a solid operating cash flow of US$579 million, inclusive of US$107 million in US government tax refunds. Excluding this one-off tax impact, adjusted operating cash flow was still a healthy US$471 million, reflecting strong cash generation from core operations.

Innovation in Sleep Apnoea Diagnostics

ResMed is pushing boundaries in sleep diagnostics with the national availability of its NightOwl home sleep test in the US. This new offering simplifies the process of diagnosing obstructive sleep apnoea (OSA) from the convenience of a patient’s home, making the process more accessible and user-friendly.

The innovation aligns with the company’s mission to expand awareness and education around sleep health. OSA affects over a billion people globally, yet most cases remain undiagnosed. This home testing initiative is expected to improve early detection and treatment.

Evidence-Based Outcomes

In a major scientific endorsement, The Lancet Respiratory Medicine recently published the largest meta-analysis on CPAP therapy to date. Supported by ResMed, the study analyzed data from over one million patients and confirmed that CPAP significantly reduces mortality risk for those with OSA. This reinforces the clinical importance of timely diagnosis and treatment using devices like those developed by ResMed.

With a focus on innovation and patient-centric solutions, ResMed continues to enhance quality of life for millions worldwide, while demonstrating strong financial and operational resilience.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.