Resmed Inc.

Revenue Growth and Financial Performance: ResMed reported Q3 FY2025 revenue of $1.29 billion, an 8% headline increase year-over-year and a 9% increase in constant currency terms. This growth was driven by sales across their product and resupply portfolio, with device sales up 7% and masks and other sales increasing by 12% globally compared to the prior year.

Gross Margin Expansion: The gross margin improved by 140 basis points to 59.9%, primarily due to efficiencies in manufacturing and logistics, favorable product mix, and improved component costs. This expansion signals a strong operational performance, but the company anticipates gross margin in Q4 FY2025 to remain consistent with Q3 levels.

Operational Outlook and Challenges: The company is witnessing increased operating expenses, with SG&A rising by 7% and R&D expenditures up by 9% year-over-year. While this is largely attributed to investments in growth and demand generation, continued inflationary pressures and challenges related to global supply chains remain relevant risks.