Item 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information required by this Item is incorporated by reference to the financial statements set forth in Item 15 of Part IV of this report, “Exhibits and Consolidated Financial Statement Schedules.”

(a) Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (KPMG LLP, San Diego, CA, Auditor Firm ID: 185)			70
Consolidated Balance Sheets as of June 30, 2025 and 2024			72
Consolidated Statements of Income for the years ended June 30, 2025, 2024 and 2023			73
Consolidated Statements of Comprehensive Income for the years ended June 30, 2025, 2024 and 2023			74
Consolidated Statements of Stockholders’ Equity for the years ended June 30, 2025, 2024 and 2023			75
Consolidated Statements of Cash Flows for the years ended June 30, 2025, 2024 and 2023			76
Notes to Consolidated Financial Statements			77
Schedule II – Valuation and Qualifying Accounts and Reserves			103

(b) Supplementary Data

Quarterly Financial Information (unaudited)—The quarterly results for the years ended June 30, 2025 and 2024 are summarized below (in thousands, except per share amounts):

2025						First Quarter						Second Quarter						Third Quarter						Fourth Quarter						Fiscal Year
Net revenue						$	1,224,509					$	1,282,089					$	1,291,736					$	1,347,993					$	5,146,327
Gross profit						$	717,219					$	751,275					$	766,409					$	820,070					$	3,054,970
Net income						$	311,355					$	344,622					$	365,041					$	379,705					$	1,400,723
Basic earnings per share						$	2.12					$	2.35					$	2.49					$	2.59					$	9.55
Diluted earnings per share						$	2.11					$	2.34					$	2.48					$	2.58					$	9.51

2024						First Quarter						Second Quarter						Third Quarter						Fourth Quarter						Fiscal Year
Net revenue						$	1,102,321					$	1,162,801					$	1,196,980					$	1,223,195					$	4,685,297
Gross profit						$	600,060					$	646,934					$	692,781					$	715,527					$	2,655,303
Net income						$	219,422					$	208,800					$	300,492					$	292,237					$	1,020,951
Basic earnings per share						$	1.49					$	1.42					$	2.04					$	1.99					$	6.94
Diluted earnings per share						$	1.49					$	1.42					$	2.04					$	1.98					$	6.92

Note: the amounts for each quarter are computed independently and, due to the computation formula, the sum of the four quarters may not equal the year.

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PART II			Item 8
RESMED INC. AND SUBSIDIARIES

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

ResMed Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of ResMed Inc. and subsidiaries (the Company) as of June 30, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2025, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated August 7, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of goodwill triggering events

As discussed in Notes 2(i) and 5 to the consolidated financial statements, the Company’s goodwill balance was $3,047 million as of June 30, 2025. The Company performs goodwill impairment testing on an annual basis and whenever events or changes in circumstances indicate that the carrying value of a reporting unit, including goodwill, might exceed the fair value of the reporting unit. In the current year, the Company performed qualitative, or Step 0, assessments to determine whether there was a greater than 50 percent likelihood that the fair value of each reporting unit was less than its carrying value. After completing Step 0, the Company determined that goodwill was not more likely than not impaired and, therefore, no Step 1, or quantitative assessment, was necessary.

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We identified the evaluation of goodwill triggering events as a critical audit matter. The evaluation of potential triggering events, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, market capitalization and events specific to the entity and reporting units, required a higher degree of auditor judgment. These potential triggering events could have a significant effect on the Company’s Step 0 assessment and the determination of whether further quantitative analysis of goodwill impairment was required.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the evaluation of goodwill impairment. This included a control related to the Company’s assessment of potential goodwill triggering events. We evaluated the Company’s Step 0 assessment for its reporting units by:

• considering macroeconomic conditions including gross domestic product, labor market, and inflation by key regions around the world for negative indicators

• evaluating information from analyst reports in the enterprise software and sleep and breathing health industries, which were compared to industry and market considerations used by the Company

• analyzing information including changes in the costs of raw materials and labor, the financial performance of the reporting units, the Company’s market capitalization, and other entity and reporting-unit specific events.

/s/ KPMG LLP

We have served as the Company’s auditor since 1994.

San Diego, California

August 7, 2025

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PART II			Item 8

RESMED INC. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025 and 2024

(In US$ and in thousands, except share and per share data)

			June 30, 2025						June 30, 2024
Assets
Current assets:
Cash and cash equivalents			$	1,209,450					$	238,361
Accounts receivable, net of allowances of $22,424 and $21,132 at June 30, 2025 and June 30, 2024, respectively			939,492						837,275
Inventories (note 4)			927,711						822,250
Prepaid expenses and other current assets (note 4)			428,952						459,833
Total current assets			3,505,605						2,357,719
Non-current assets:
Property, plant and equipment, net (note 4)			550,790						548,025
Operating lease right-of-use assets (note 9)			167,497						151,121
Goodwill (note 5)			3,046,680						2,842,055
Other intangible assets, net (note 5)			464,861						485,904
Deferred income taxes (note 12)			253,119						203,569
Prepaid taxes and other non-current assets			185,839						284,001
Total non-current assets			4,668,786						4,514,675
Total assets			$	8,174,391					$	6,872,394
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	278,157					$	237,728
Accrued expenses (note 7)			402,253						377,678
Operating lease liabilities, current (note 9)			30,506						25,278
Deferred revenue			166,030						152,554
Income taxes payable (note 12)			132,274						107,517
Short-term debt, net (note 8)			9,900						9,900
Total current liabilities			1,019,120						910,655
Non-current liabilities:
Deferred revenue			156,803						137,343
Deferred income taxes (note 12)			77,682						79,339
Operating lease liabilities, non-current (note 9)			153,015						141,444
Other long-term liabilities			141,520						42,257
Long-term debt, net (note 8)			658,392						697,313
Long-term income taxes payable (note 12)			—						—
Total non-current liabilities			1,187,412						1,097,696
Total liabilities			2,206,532						2,008,351
Commitments and contingencies (note 15)
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued			—						—
Common stock, $0.004 par value, 350,000,000 shares authorized; 190,311,097 issued and 146,385,350 outstanding at June 30, 2025 and 189,565,112 issued and 146,901,045 outstanding at June 30, 2024			761						588
Additional paid-in capital			2,033,599						1,896,604
Retained earnings			6,081,490						4,991,647
Treasury stock, at cost, 43,925,747 shares at June 30, 2025 and 42,664,067 shares at June 30, 2024			(2,073,292)						(1,773,267)
Accumulated other comprehensive loss			(74,699)						(251,529)
Total stockholders’ equity			5,967,859						4,864,043
Total liabilities and stockholders’ equity			$	8,174,391					$	6,872,394

See accompanying notes to consolidated financial statements.

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RESMED INC. AND SUBSIDIARIES

Consolidated Statements of Income

Years Ended June 30, 2025, 2024 and 2023

(In US$ and in thousands, except share and per share data)

			June 30, 2025						June 30, 2024						June 30, 2023
Net revenue - Sleep and Breathing Health products			$	4,504,890					$	4,101,172					$	3,725,017
Net revenue - Residential Care Software			641,437						584,125						497,976
Net revenue			5,146,327						4,685,297						4,222,993
Cost of sales - Sleep and Breathing Health products			1,864,198						1,806,845						1,662,957
Cost of sales - Residential Care Software			195,043						190,186						173,978
Cost of sales (exclusive of amortization shown separately below)			2,059,241						1,997,031						1,836,935
Amortization of acquired intangible assets - Sleep and Breathing Health products			6,646						5,515						5,340
Amortization of acquired intangible assets - Residential Care Software			25,470						27,448						25,056
Amortization of acquired intangible assets			32,116						32,963						30,396
Total cost of sales			2,091,357						2,029,994						1,867,331
Gross profit			3,054,970						2,655,303						2,355,662
Selling, general, and administrative			991,019						917,136						874,003
Research and development			331,284						307,525						287,642
Amortization of acquired intangible assets			45,273						46,521						42,020
Restructuring expenses (note 17)			—						64,228						9,177
Acquisition related expenses			2,031						—						10,949
Total operating expenses			1,369,607						1,335,410						1,223,791
Income from operations			1,685,363						1,319,893						1,131,871
Other income (loss), net:
Interest income (expense), net			4,114						(45,708)						(47,379)
Gain (loss) attributable to equity method investments (note 6)			3,644						(1,848)						(7,265)
Gain (loss) on equity investments (note 6)			(10,299)						(4,045)						9,922
Gain on insurance recoveries			—						—						20,227
Other, net			(5,256)						(3,494)						(5,712)
Total other income (loss), net			(7,797)						(55,095)						(30,207)
Income before income taxes			1,677,566						1,264,798						1,101,664
Income taxes (note 12)			276,843						243,847						204,108
Net income			$	1,400,723					$	1,020,951					$	897,556
Basic earnings per share (note 11)			$	9.55					$	6.94					$	6.12
Diluted earnings per share (note 11)			$	9.51					$	6.92					$	6.09
Dividend declared per share			$	2.12					$	1.92					$	1.76
Basic shares outstanding (000's)			146,716						147,021						146,765
Diluted shares outstanding (000's)			147,340						147,550						147,455

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Comprehensive Income

Years Ended June 30, 2025, 2024 and 2023

(In US$ and in thousands)

			June 30, 2025						June 30, 2024						June 30, 2023
Net income			$	1,400,723					$	1,020,951					$	897,556
Other comprehensive income (loss):
Unrealized gains (losses) on designated hedging instruments			(52,573)						31,743						(35,596)
Foreign currency translation (loss) gain adjustments			229,403						(10,744)						75,815
Comprehensive income			$	1,577,553					$	1,041,950					$	937,775

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Stockholders’ Equity

Years ended June 30, 2025, 2024 and 2023

(In US$ and in thousands)

			Common Stock												Additional Paid-in Capital						Treasury Stock												Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total
			Shares						Amount									Shares						Amount
Balance, June 30, 2022			188,247						$	586					$	1,682,432					(41,836)						$	(1,623,256)					$	3,613,736					$	(312,747)					$	3,360,751
Common stock issued on exercise of options (note 10)			157						—						9,696						—						—						—						—						9,696
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 10)			277						1						(30,632)						—						—						—						—						(30,631)
Common stock issued on employee stock purchase plan (note 10)			220						1						39,445						—						—						—						—						39,446
Stock-based compensation costs (note 10)			—						—						71,142						—						—						—						—						71,142
Other comprehensive loss			—						—						—						—						—						—						40,219						40,219
Net income			—						—						—						—						—						897,556						—						897,556
Dividends declared ($1.76 per common share)			—						—						—						—						—						(258,276)						—						(258,276)
Balance, June 30, 2023			188,901						$	588					$	1,772,083					(41,836)						$	(1,623,256)					$	4,253,016					$	(272,528)					$	4,129,903
Common stock issued on exercise of options (note 10)			166						—						13,484						—						—						—						—						13,484
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 10)			175						1						(8,758)						—						—						—						—						(8,757)
Common stock issued on employee stock purchase plan (note 10)			323						1						39,609						—						—						—						—						39,610
Treasury stock purchases			—						(2)						2						(828)						(150,011)						—						—						(150,011)
Stock-based compensation costs (note 10)			—						—						80,184						—						—						—						—						80,184
Other comprehensive income			—						—						—						—						—						—						20,999						20,999
Net income			—						—						—						—						—						1,020,951						—						1,020,951
Dividends declared ($1.92 per common share)			—						—						—						—						—						(282,320)						—						(282,320)
Balance, June 30, 2024			189,565						$	588					$	1,896,604					(42,664)						$	(1,773,267)					$	4,991,647					$	(251,529)					$	4,864,043
Adjustment to common stock amount			—						170						(170)						—						—						—						—						—
Common stock issued on exercise of options (note 10)			293						1						30,882						—						—						—						—						30,883
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 10)			227						2						(18,079)						—						—						—						—						(18,077)
Common stock issued on employee stock purchase plan (note 10)			226						—						43,556						—						—						—						—						43,556
Treasury stock purchases			—						—						—						(1,262)						(300,025)																		(300,025)
Stock-based compensation costs (note 10)			—						—						91,661						—						—						—						—						91,661
Acquisition of consolidated subsidiary			—						—						(10,855)						—						—						—						—						(10,855)
Other comprehensive income			—						—						—						—						—						—						176,830						176,830
Net income			—						—						—						—						—						1,400,723						—						1,400,723
Dividends declared ($2.12 per common share)			—						—						—						—						—						(310,880)						—						(310,880)
Balance, June 30, 2025			190,311						$	761					$	2,033,599					(43,926)						$	(2,073,292)					$	6,081,490					$	(74,699)					$	5,967,859

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Cash Flows

Years ended June 30, 2025, 2024 and 2023

(In US$ and in thousands)

			June 30, 2025						June 30, 2024						June 30, 2023
Cash flows from operating activities:
Net income			$	1,400,723					$	1,020,951					$	897,556
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			198,473						176,870						165,156
Amortization of right-of-use assets			37,338						39,339						32,406
Stock-based compensation costs (note 10)			91,661						80,184						71,142
(Gain) loss attributable to equity method investments, net of dividends received (note 6)			(3,644)						1,848						10,138
(Gain) loss on equity investments (note 6)			10,299						4,045						(9,922)
Restructuring expenses (note 17)			—						33,239						9,177
Gain on insurance recoveries			—						—						(20,227)
Changes in operating assets and liabilities:
Accounts receivable			(76,684)						(134,278)						(106,511)
Inventories			(80,165)						172,203						(248,833)
Prepaid expenses, net deferred income taxes and other current assets			82,629						(115,213)						(138,125)
Accounts payable, accrued expenses and other			90,958						122,072						31,342
Net cash provided by operating activities			1,751,588						1,401,260						693,299
Cash flows from investing activities:
Purchases of property, plant and equipment			(89,865)						(99,460)						(119,672)
Patent registration costs			(10,777)						(15,396)						(14,328)
Business acquisitions, net of cash acquired			(139,248)						(133,464)						(1,012,749)
Purchases of investments (note 6)			(6,416)						(12,765)						(32,229)
Proceeds from exits of investments (note 6)			4,628						1,000						3,937
Proceeds / (payments) on maturity of foreign currency contracts			41,633						(9,699)						15,196
Net cash used in investing activities			(200,045)						(269,784)						(1,159,845)
Cash flows from financing activities:
Proceeds from issuance of common stock, net			74,439						53,094						49,142
Taxes paid related to net share settlement of equity awards			(18,077)						(8,757)						(30,631)
Purchases of treasury stock			(300,025)						(150,011)						—
Payments of business combination contingent consideration			(855)						(1,293)						(2,361)
Acquisition of consolidated subsidiary			(10,855)						—						—
Proceeds from borrowings, net of borrowing costs			—						105,000						1,070,000
Repayment of borrowings			(40,000)						(835,000)						(405,000)
Dividends paid			(310,880)						(282,320)						(258,276)
Net cash (used in) provided by financing activities			(606,253)						(1,119,287)						422,874
Effect of exchange rate changes on cash			25,799						(1,719)						(2,147)
Net increase (decrease) in cash and cash equivalents			971,089						10,470						(45,819)
Cash and cash equivalents at beginning of period			238,361						227,891						273,710
Cash and cash equivalents at end of period			$	1,209,450					$	238,361					$	227,891
Supplemental disclosure of cash flow information:
Income taxes paid, net of refunds			$	214,013					$	278,400					$	216,866
Interest paid			$	28,415					$	45,708					$	47,379
Fair value of assets acquired, excluding cash			$	43,534					$	46,033					$	359,730
Liabilities assumed			(6,279)						(7,696)						(131,765)
Goodwill on acquisition			101,323						92,191						786,990
Deferred payments			670						(143)						2,542
Fair value of contingent consideration			855						4,372						(2,387)
Cash paid for acquisitions			$	140,103					$	134,757					$	1,015,110

See accompanying notes to consolidated financial statements.

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PART II			Item 8
RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(1) Organization and Basis of Presentation

ResMed Inc. (referred to herein as "Resmed", “we”, “us”, “our” or the “Company”) is a Delaware corporation formed in March 1994 as a holding company for the Resmed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States, or U.S. Major distribution and sales sites are located in the U.S., Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a software as a service, or SaaS, business in the U.S. and Germany that includes residential care software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice.

(2) Summary of Significant Accounting Policies

**(a)**Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from management’s estimates. Certain prior period amounts have been reclassified to conform to the current period presentation.

**(b)**Revenue Recognition

In accordance with Accounting Standard Codification, or ASC, Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry, or Sleep and Breathing Health, and the supply of business management SaaS to residential care providers, or Residential Care Software. Our Sleep and Breathing Health revenue relates primarily to the sale of our products that are therapy-based equipment. Some contracts include additional performance obligations such as the provision of extended warranties and provision of data for patient monitoring. Our Residential Care Software revenue relates to the provision of software access with ongoing support and maintenance services as well as professional services such as training and consulting.

Disaggregation of revenue

See Note 13 – Segment Information for our net revenue disaggregated by segment, product and region for the years ended June 30, 2025, 2024 and 2023.

Performance obligations and contract balances

Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Breathing Health business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our Residential Care Software business, revenue associated with cloud-hosted services are recognized as they are provided. Unbilled receivables arise when revenue is recognized for goods or services transferred but the customer has not yet been invoiced, typically due to billing terms or timing differences. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Breathing Health business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our Residential Care Software business relate primarily to the provision of software access with maintenance and support over an agreed term and material rights associated with future discounts upon renewal of some Residential Care Software contracts. Generally, deferred revenue will be recognized over a period of one year to five years. Our contracts do not contain significant financing components.

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PART II			Item 8
RESMED INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following table summarizes our contract balances as of June 30, 2025 and 2024 (in thousands):

			2025						2024						Balance sheet caption
Contract assets
Accounts receivable, net			$	939,492					$	837,275					Accounts receivable, net
Unbilled receivables, current			$	51,175					$	38,183					Prepaid expenses and other current assets
Unbilled receivables, non-current			$	14,581					$	18,450					Prepaid taxes and other non-current assets
Contract liabilities
Deferred revenue, current			$	(166,030)					$	(152,554)					Deferred revenue (current liabilities)
Deferred revenue, non-current			$	(156,803)					$	(137,343)					Deferred revenue (non-current liabilities)

Transaction price determination

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. In our Sleep and Breathing Health segment, the amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g. rebates, discounts, free goods) and returns by our customers and their customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. Returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed.

We offer our Sleep and Breathing Health customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer’s expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods.

We participate in programs where we issue credits to our Sleep and Breathing Health distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method.

We also offer discounts to both our Sleep and Breathing Health as well as our Residential Care Software customers as part of normal business practice and these are deducted from revenue when the sale occurs.

When Sleep and Breathing Health or Residential Care Software contracts have multiple performance obligations, we generally use an observable price to determine the stand-alone selling price by reference to pricing and discounting practices for the specific product or service when sold separately to similar customers. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to each performance obligation. An allocation is not required for many of our Sleep and Breathing Health contracts that have a single performance obligation, which is the shipment of our therapy-based equipment.

Accounting and practical expedient elections

We have elected to account for shipping and handling activities associated with our Sleep and Breathing Health segment as a fulfillment cost within cost of sales, and record shipping and handling costs collected from customers in net revenue. We have also elected for all taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, to be excluded from revenue and presented on a net basis. We have adopted two practical expedients including the “right to invoice” practical expedient, which is relevant for some of our Residential Care Software contracts as it allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date. The second practical expedient adopted permits

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relief from considering a significant financing component when the payment for the good or service is expected to be one year or less.

**(c)**Concentration of Credit Risk and Significant Customers

Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, derivatives and trade receivables. Our cash and cash equivalents are generally held with large, diverse financial institutions to reduce the amount of exposure to any single financial institution. Our derivative contracts are transacted with various financial institutions with high credit standings and any exposure to counterparty credit-related losses in these contracts is largely mitigated with collateralization and master-netting agreements. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers, the short duration of our payment terms for the majority of our customer contracts and by the diversification of our customer base. No single customer accounted for 10% or more of our total revenues for any of the periods presented.

(d) Fair Value of Financial Instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure our financial instruments at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Other inputs that are directly or indirectly observable in the marketplace.

Level 3 - Unobservable inputs that are supported by little or no market activity.

The carrying value of cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt related to our Revolving Credit and Term Credit Agreements approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. The carrying value of long-term debt related to our Senior Notes can differ to its fair value as the principal amounts outstanding are subject to fixed interest rates as outlined in Note 8 – Debt. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. In addition, we measure investments in publicly held equity securities and privately held equity securities for which there has been an observable price change in an identical or similar security, at fair value. We do not hold or issue financial instruments for trading purposes.

**(e)**Cash and Cash Equivalents

Cash equivalents include money market funds, certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows.

Our cash and cash equivalents balance at June 30, 2025 includes $302.7 million in institutional money market accounts that require advance notice of up to 90 days for redemption, in accordance with the terms of the investment agreements. These cash balances earn interest rates above normal term deposit rates otherwise available and are held at highly rated financial institutions.

**(f)**Inventories

We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales).

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**(g)**Property, Plant and Equipment

We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two years to ten years except for buildings which are depreciated over an estimated useful life of forty years and leasehold improvements, which we amortize over the shorter of the useful life or the lease term. We charge maintenance and repairs to expense as we incur them.

Depreciation expense for property, plant, and equipment was $111.8 million, $88.9 million, and $84.7 million for the years ended June 30, 2025, 2024 and 2023, respectively.

**(h)**Intangible Assets

We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally ten years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately.

We amortize our other intangible assets on a straight-line basis over their estimated useful lives, which range from two years to fifteen years. We evaluate events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists and, at least annually, evaluate the recoverability of intangible assets.

**(i)**Goodwill

We conduct our annual review for goodwill impairment during the final quarter of the fiscal year. Our goodwill impairment review is performed at our reporting unit level, which is one level below our operating segments and involves the following steps:

Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors we consider include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method.

Step 1 – Compare the fair value for each reporting unit to its carrying value, including goodwill. Fair value is determined based on estimated discounted cash flows. A goodwill impairment charge is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary.

During the annual reviews for the years ended June 30, 2025, 2024 and 2023, we completed a Step 0 or Qualitative assessment and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts, including goodwill, and therefore goodwill was not impaired.

**(j)**Business Combinations

We allocate the purchase price to the estimated fair values of the assets acquired and liabilities assumed. This allocation process involves the use of estimates and assumptions made in connection with determining the fair value of assets acquired and liabilities assumed including cash flows expected to be derived from the use of the asset, the timing of such cash flows, the remaining useful life of assets and applicable discount rates.

If actual results vary from the estimates or assumptions used in the valuation or allocation process, we may be required to record an impairment charge or an increase in depreciation or amortization in future periods, or both.

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**(k)**Equity Investments

We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our accounting for investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method.

Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the consolidated balance sheets.

Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the consolidated statements of income.

Equity investments whereby we have significant influence but not control over the investee and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method. Under this method, we record our share of gains or losses attributable to equity method investments as a component of other income (loss), net on the consolidated statements of income.

**(l)**Research and Development

We record all research and development expenses in the period we incur them.

**(m)**Foreign Currency

The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations.

**(n)**Foreign Exchange Risk Management

We may use derivative financial instruments, specifically foreign cross-currency swaps, purchased foreign currency call options, collars and forward contracts to mitigate exposure from certain foreign currency risk. No derivatives are used for trading or speculative purposes. We do not require or are not required to pledge collateral for the derivative instruments.

Fair Value and Net Investment Hedging

On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the hedged item.

The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item

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as the hedged item, other, net, in the consolidated statement of income. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of income under a systematic and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income.

The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net.

The notional value of outstanding foreign cross-currency swaps was $1,128.3 million and $1,026.2 million at June 30, 2025 and June 30, 2024, respectively. These contracts mature at various dates prior to December 31, 2029.

Non-Designated Hedges

We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed two years. The purpose of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. All movements in the fair value of the foreign currency instruments are recorded within other, net in our consolidated statements of income.

The notional value of the outstanding non-designated hedges was $1,410.2 million and $1,340.0 million at June 30, 2025 and June 30, 2024, respectively. These contracts mature at various dates prior to June 15, 2026.

We classified the fair values of all hedging instruments as Level 2 measurements within the fair value hierarchy.

We are exposed to credit-related losses in the event of non-performance by counter parties to financial instruments. We minimize counterparty credit risk by entering into derivative transactions with major financial institutions and we do not expect material losses as a result of default by our counterparties.

**(o)**Income Taxes

We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

We recognize the impact of a tax position in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are reflected in income tax expense.

**(p)**Allowance for Credit Losses

We maintain an allowance for credit losses on customer receivables based expected losses, considering our historical write-off experience, an assessment of our customers’ financial conditions, and available information that is relevant to assessing the collectability of cash flows, which includes current conditions and forecasts about future economic conditions. Customer receivables are charged against the allowance when they are deemed uncollectible.

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We are also contingently liable, within certain limits, in the event of a customer default, to independent financing companies in connection with customer financing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure.

**(q)**Impairment of Long-Lived Assets

We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell.

During the year ended June 30, 2024, we impaired $18.6 million of developed/core product technology intangible assets, $14.5 million of customer relationship intangible assets, and $0.1 million of other intangibles associated with restructuring activities. These non-cash charges were recorded within restructuring expenses in the consolidated statements of income. Refer to Note 17 – Restructuring Expenses for the facts and circumstances leading to the impairments. We did not record any material intangible asset impairments during the years ended June 30, 2025 and 2023.

**(r)**Contingencies

We record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded.

(3) New Accounting Pronouncements

**(a)**Recently issued accounting standards not yet adopted

ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2026, with early application permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.

ASU 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No. 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses, including amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption, as well as a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU No. 2024-03 also requires disclosure of the total amount of selling expenses and, in annual periods, an entity's definition of selling expenses. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2028, and subsequent interim periods. Early adoption is permitted and the amendments may be either applied prospectively to financial statements issued for reporting periods after the effective date of the amendment or retrospectively to all prior periods presented. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures**.**

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(b) Recently adopted accounting standards

ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which expands segment disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. We adopted ASU No. 2023-07 during the fiscal year ended June 30, 2025. The amendment was applied retrospectively. See Note 13 – Segment Information for disclosure within the notes to the consolidated financial statements.

(4) Supplemental Balance Sheet Information

Components of selected captions in the consolidated balance sheets consisted of the following as of June 30, 2025 and June 30, 2024 (in thousands):

Inventories			2025						2024
Raw materials			$	367,284					$	355,570
Work in progress			2,550						2,713
Finished goods			557,877						463,967
Total inventories			$	927,711					$	822,250

Prepaid expenses and other current assets			2025						2024
Prepaid taxes			$	165,034					$	107,623
Prepaid inventories			48,245						172,198
Unbilled receivables, current			51,175						38,183
Other prepaid expenses and current assets			164,498						141,829
Total prepaid expenses and other current assets			$	428,952					$	459,833

Property, plant and equipment			2025						2024
Machinery and equipment			$	441,906					$	479,941
Computer equipment and software			201,437						200,128
Furniture and fixtures			64,062						61,969
Vehicles and aircraft			21,209						20,450
Clinical, demonstration and rental equipment			121,125						127,358
Leasehold improvements			124,046						102,104
Land			51,682						51,977
Buildings			230,631						231,065
Property, plant and equipment, at cost			$	1,256,098					$	1,274,992
Accumulated depreciation and amortization			(705,308)						(726,967)
Property, plant and equipment, net			$	550,790					$	548,025

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(5) Goodwill and Other Intangible Assets, net

Goodwill

For each of the years ended June 30, 2025 and June 30, 2024, we have not recorded any goodwill impairments. Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2025 (in thousands):

			2025
			Sleep and Breathing Health						Residential Care Software						Total
Balance at the beginning of the period			$	757,529					$	2,084,526					$	2,842,055
Business acquisitions			101,323						—						101,323
Adjustment to fair values of preliminary purchase price allocations			(185)						—						(185)
Foreign currency translation adjustments			24,911						78,576						103,487
Balance at the end of the period			$	883,578					$	2,163,102					$	3,046,680

Other Intangible Assets

Other intangibles, net are comprised of the following as of June 30, 2025 and June 30, 2024 (in thousands):

			2025						2024
Developed/core product technology			$	396,242					$	384,679
Accumulated amortization			(315,032)						(280,970)
Developed/core product technology, net			81,210						103,709
Customer relationships			475,541						432,470
Accumulated amortization			(189,050)						(150,486)
Customer relationships, net			286,491						281,984
Other intangibles			267,499						252,210
Accumulated amortization			(170,339)						(151,999)
Other intangibles, net			97,160						100,211
Total other intangibles, net			$	464,861					$	485,904

Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, and we amortize them over the estimated useful life of the assets, generally between two years and fifteen years. There are no expected residual values related to these intangible assets.

Amortization expense related to identified intangible assets for the years ended June 30, 2025 and June 30, 2024 was $77.4 million and $79.5 million, respectively. Amortization expense related to patents, included in other intangibles, for the years ended June 30, 2025 and June 30, 2024 was $8.2 million and $7.6 million, respectively. Total estimated annual amortization expense for the years ending June 30, 2026 through June 30, 2030, is shown below (in thousands):

			Fiscal Years Ending June 30
			2026						2027						2028						2029						2030
Estimated amortization expense			$	84,859					$	65,853					$	57,248					$	50,983					$	45,795

(6) Investments

Equity investments by measurement category as of June 30, 2025 and June 30, 2024 were as follows (in thousands):

Measurement category			2025						2024
Fair value			$	13,080					$	12,026
Measurement alternative			63,642						73,739
Equity method			76,178						65,462
Total			$	152,900					$	151,227

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The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2025 (in thousands):

			Non-marketable securities						Marketable securities						Equity method investments						Total
Balance at the beginning of the period			$	73,739					$	12,026					$	65,462					$	151,227
Additions to investments			5,778						—						638						6,416
Impairment of investments			(11,742)						—						—						(11,742)
Realized gains on marketable and non-marketable equity securities			389						—						—						389
Proceeds from exits of investments			(4,628)						—						—						(4,628)
Unrealized gains on marketable equity securities			—						1,054						—						1,054
Gain attributable to equity method investments			—						—						3,644						3,644
Foreign currency translation adjustments			106						—						6,434						6,540
Carrying value at the end of the period			$	63,642					$	13,080					$	76,178					$	152,900

The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2024 (in thousands):

			Non-marketable securities						Marketable securities						Equity method investments						Total
Balance at the beginning of the period			$	68,748					$	12,423					$	65,366					$	146,537
Additions to investments			8,640						1,000						3,125						12,765
Observable price adjustments on non-marketable equity securities			2,315						—						—						2,315
Impairment of investments			(4,963)						—						—						(4,963)
Proceeds from exits of investments			(1,000)						—						—						(1,000)
Unrealized losses on marketable equity securities			—						(1,397)						—						(1,397)
Loss attributable to equity method investments			—						—						(1,848)						(1,848)
Foreign currency translation adjustments			(1)						—						(1,181)						(1,182)
Carrying value at the end of the period			$	73,739					$	12,026					$	65,462					$	151,227

Net unrealized gains and losses recognized in the years ended June 30, 2025, 2024 and 2023 for equity investments in non-marketable and marketable securities still held as of those respective dates were a loss of $10.7 million, a loss of $4.0 million, and a gain of $6.0 million, respectively.

(7) Accrued Expenses

Accrued expenses at June 30, 2025 and June 30, 2024 consist of the following (in thousands):

			2025						2024
Product warranties			$	37,230					$	35,134
Consulting and professional fees			40,297						27,143
Value added taxes and other taxes due			35,584						27,016
Employee related costs			235,450						223,862
Promotional and marketing			9,391						6,023
Foreign currency hedging instruments			2,695						4,654
Accrued interest			8,642						9,206
Logistics and occupancy costs			13,982						17,996
Inventory in transit			6,063						8,045
Other			12,919						18,599
Total accrued expenses			$	402,253					$	377,678

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(8) Debt

Debt at June 30, 2025 and June 30, 2024 consists of the following (in thousands):

			2025						2024
Short-term debt			$	10,000					$	10,000
Deferred borrowing costs			(100)						(100)
Short-term debt, net			$	9,900					$	9,900
Long-term debt			$	660,000					$	700,000
Deferred borrowing costs			(1,608)						(2,687)
Long-term debt, net			$	658,392					$	697,313
Total debt			$	668,292					$	707,213

Credit Facility

On June 29, 2022, we entered into a second amended and restated credit agreement, or the Revolving Credit Agreement, as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, sole book runner, swing line lender and letter of credit issuer, Westpac Banking Corporation, as syndication agent and joint lead arranger, HSBC Bank USA, National Association, as syndication agent and joint lead arranger, and Wells Fargo Bank, National Association, as documentation agent. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000.0 million or 1.0 times the EBITDA (as defined in the Revolving Credit Agreement) for the trailing twelve-month measurement period. The Revolving Credit Agreement amends and restates that certain Amended and Restated Credit Agreement, dated as of April 17, 2018, among Resmed, MUFG Union Bank, N.A., Westpac Banking Corporation and the lenders party thereto.

Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement and First Amendment to Unconditional Guaranty Agreement, or the Term Credit Agreement, as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger and joint book runner, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner, which amends that certain Syndicated Facility Agreement dated as of April 17, 2018. The Term Credit Agreement, among other things, provides ResMed Pty Limited a senior unsecured term credit facility of $200.0 million.

Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed Pty Limited’s obligations under the Term Credit Agreement are guaranteed by us and certain of our direct and indirect U.S. subsidiaries. The Revolving Credit Agreement and Term Credit Agreement contain customary covenants, including, in each case, a financial covenant that requires that we maintain a maximum leverage ratio of funded debt to EBITDA (as defined in the Revolving Credit Agreement and Term Credit Agreement, as applicable). The entire principal amounts of the revolving credit facility and term credit facility, and, in each case, any accrued but unpaid interest may be declared immediately due and payable if an event of default occurs, as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable. Events of default under the Revolving Credit Agreement and the Term Credit Agreement include, in each case, failure to make payments when due, the occurrence of a default in the performance of any covenants in the respective agreements or related documents, or certain changes of control of us, or the respective guarantors of the obligations borrowed under the Revolving Credit Agreement and Term Credit Agreement.

The Revolving Credit Agreement and Term Credit Agreement each terminate on June 29, 2027, when all unpaid principal and interest under the loans must be repaid. Amounts borrowed under the Term Credit Agreement will also amortize on a semi-annual basis, with a $5.0 million principal payment required on each such semi-annual amortization date. The outstanding principal amounts will bear interest at a rate equal to the Adjusted Term SOFR (as defined in the Revolving Credit Agreement) plus 0.75% to 1.50% (depending on the then-applicable leverage ratio) or the Base Rate (as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable) plus 0.0% to 0.50% (depending on the then-applicable leverage ratio). At June 30, 2025, the interest rate that was being charged on the outstanding principal amounts was 5.15%. An applicable commitment fee of 0.075% to 0.150% (depending on the then-applicable leverage

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ratio) applies on the unused portion of the revolving credit facility. As of June 30, 2025, we had $1,500.0 million available for draw down under the revolving credit facility.

We are required to disclose the fair value of financial instruments for which it is practicable to estimate the value, even though these instruments are not recognized at fair value in the consolidated balance sheets. As the Revolving Credit and Term Credit Agreements’ interest rate is calculated as Adjusted Term SOFR plus the spreads described above, its carrying amount is equivalent to its fair value as at June 30, 2025 and June 30, 2024, which was $170.0 million and $210.0 million, respectively.

Senior Notes

On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250.0 million principal amount of our 3.24% senior notes due July 10, 2026, and $250.0 million principal amount of our 3.45% senior notes due July 10, 2029, collectively referred to as the Senior Notes. Our obligations under the Note Purchase Agreement and the Senior Notes are unconditionally and irrevocably guaranteed by certain of our direct and indirect U.S. subsidiaries. The net proceeds from this transaction were used to pay down borrowings on our Revolving Credit Agreement.

Under the terms of the Note Purchase Agreement, we agreed to customary covenants including with respect to our corporate existence, transactions with affiliates, and mergers and other extraordinary transactions. We also agreed that, subject to limited exceptions, we will maintain a ratio of consolidated funded debt to consolidated EBITDA (as defined in the Note Purchase Agreement) of no more than 3.50 to 1.00 as of the last day of any fiscal quarter, and will not at any time permit the amount of all priority secured and unsecured debt of us and our subsidiaries to exceed 10.0% of our consolidated tangible assets, determined as of the end of our most recently ended fiscal quarter. This ratio is calculated at the end of each reporting period for which the Note Purchase Agreement requires us to deliver financial statements, using the results of the 12 consecutive month period ending with such reporting period.

We are required to disclose the fair value of financial instruments for which it is practicable to estimate the value, even though these instruments are not recognized at fair value in the consolidated balance sheets. As of June 30, 2025 and June 30, 2024, the Senior Notes had a carrying amount of $500.0 million, excluding deferred borrowing costs, and an estimated fair value of $479.5 million and $463.0 million, respectively. Quoted market prices in active markets for identical liabilities based inputs (Level 2) were used to estimate fair value.

At June 30, 2025, we were in compliance with our debt covenants and there was $670.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes.

(9) Leases

**(a)**Leases where Resmed is the Lessee

We determine whether a contract is, or contains, a lease at inception. Right of use, or ROU, assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred and exclude any lease incentives received.

We determine the lease term as the non-cancellable period of the lease and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 17 years, some of which include options to extend or terminate the leases.

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Operating lease costs for the years ended June 30, 2025, 2024 and 2023 were $39.0 million, $40.8 million and $33.6 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2025, 2024 and 2023.

Future lease payments under non-cancellable operating leases as of June 30, 2025 are as follows (in thousands):

			Total						2026						2027						2028						2029						2030						Thereafter
Minimum lease payments			$	216,318					$	36,501					$	30,216					$	24,367					$	22,566					$	19,056					$	83,612
Less: imputed interest			(32,797)
Total lease liabilities			$	183,521

As of June 30, 2025, future operating lease commitments for leases that have not yet commenced were not material.

The supplemental information related to operating leases for the years ended June 30, 2025 and June 30, 2024 was as follows (in thousands):

			2025						2024
Weighted-average inputs:
Weighted-average remaining lease term (years)			8.3						8.7
Weighted-average discount rate			3.7		%				3.5		%
Cash flow information:
Operating cash flows paid for amounts included in the measurement of lease liabilities			$	35,732					$	30,573
Right of use assets obtained in exchange for new lease liabilities:			$	33,638					$	54,588

**(b)**Leases where Resmed is the Lessor

We lease sleep and respiratory medical devices to customers primarily to comply with local health insurer requirements in certain foreign geographies. Device rental contracts are classified as operating leases, and contract terms vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $98.8 million, $92.9 million and $88.6 million for the years ended June 30, 2025, 2024 and 2023, respectively.

(10) Stockholders’ Equity

Common Stock. On February 21, 2014, our board of directors approved a new share repurchase program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock. The program allows us to repurchase shares of our common stock from time to time for cash in the open market, or in negotiated or block transactions, as market and business conditions warrant and subject to applicable legal requirements. The 20.0 million shares the program authorizes us to purchase are in addition to the shares we repurchased on or before February 21, 2014 under our previous programs. There is no expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. All share repurchases since February 21, 2014 have been executed in accordance with this program.

During fiscal year 2025, we repurchased approximately 1,262,000 shares at a cost of $300.0 million. During fiscal year 2024, we repurchased 828,000 shares at a cost of $150.0 million. As of June 30, 2025, we have repurchased a total of 43.9 million shares at a cost of $2.1 billion. Shares that are repurchased are classified as “treasury stock pending future use” and reduce the number of shares outstanding used in calculating earnings per share. At June 30, 2025, 10.8 million additional shares can be repurchased under the approved share repurchase program.

Preferred Stock. In April 1997, our board of directors authorized 2.0 million shares of 0.01 par value preferred stock. No such shares were issued or outstanding at June 30, 2025.

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Stock Options and Restricted Stock Units. We have granted stock options, restricted stock units, or RSUs, and performance restricted stock units, or PRSUs, to personnel, including officers and directors, in accordance with the ResMed Inc. 2009 Incentive Award Plan, as amended and restated, or the 2009 Plan. Options and restricted stock units vest over one year to four years and the options have expiration dates of seven years from the date of grant. We have granted the options with an exercise price equal to the market value as determined at the date of grant. We have granted PRSUs that are subject to market conditions, with the ultimate realizable number of PRSUs dependent on both absolute and relative total stockholder return over a period of three years. The maximum amounts to be issued under the awards range from 200% to 225% of the original grant. We have also granted PRSUs that are subject to a performance condition based on meeting threshold levels of profitability measured by our actual adjusted earnings compared to board approved targeted levels of earnings.

At the annual meeting of our stockholders in November 2017, our stockholders approved an amendment and restatement to the 2009 Plan to increase the number of shares of common stock that may be issued or transferred pursuant to awards under the 2009 Plan by 7.4 million. The amendment and restatement imposes a maximum award amount which may be granted under the 2009 Plan to a non-employee director in a calendar year, which when taken together with any other cash fees earned for services as a non-employee director during the calendar year, has a total value of $0.7 million, or $1.2 million in the case of a non-employee director who is also serving as chairman of our board of directors. The amendment and restatement also increased the maximum amount payable pursuant to cash-denominated performance awards granted in any calendar year from $3.0 million to $5.0 million. In addition, the amendment and restatement extended the existing prohibition on the payment of dividends or dividend equivalents on unvested awards to apply to all awards, including time-based restricted stock, deferred stock and stock payment. The term of the 2009 Plan was extended by four years so that the plan expires on September 11, 2027, unless otherwise amended or extended.

The maximum number of shares of our common stock authorized for issuance under the 2009 Plan is 51.1 million. The number of securities remaining available for future issuance under the 2009 Plan at June 30, 2025 is 11.9 million. The number of shares of our common stock available for issuance under the 2009 Plan will be reduced by (i) 2.8 shares for each one share of common stock delivered in settlement of any “full-value award,” which is any award other than a stock option, stock appreciation right or other award for which the holder pays a purchase price and (ii) one share for each share of common stock delivered in settlement of all other awards. The maximum number of shares, which may be subject to awards granted under the 2009 Plan to any individual during any calendar year, may not exceed 3 million shares of our common stock (except in a participant’s initial year of hiring up to 4.5 million shares of our common stock may be granted).

In certain regions, shares are withheld on behalf of employees to satisfy statutory tax withholding requirements upon exercise or vesting of awards. The number of shares withheld is based upon the closing price of our common stock on the trading day of the applicable settlement date. The remaining shares are delivered to the recipient as shares of our common stock. The amount remitted to the tax authorities for the employees’ tax obligation is reflected as a financing activity on our consolidated statements of cash flows. Shares withheld by us as a result of the net settlement are not considered issued and outstanding and are added to the shares available for future issuance under the 2009 Plan.

The total fair value of RSUs that vested during the years ended June 30, 2025, 2024 and 2023, was $45.3 million, $38.0 million and $28.7 million, respectively.

The total fair value of PRSUs that vested during the years ended June 30, 2025, 2024 and 2023, was $10.3 million, $13.0 million, and $38.1 million, respectively.

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The following table summarizes the activity of RSUs and PRSUs during year ended June 30, 2025 (in thousands, except years and per share amounts):

																		Weighted Average Grant-Date Fair Value												Weighted Average Remaining Contractual Term in Years
						Restricted Stock Units						Performance Restricted Stock Units						Restricted Stock Units						Performance Restricted Stock Units						Restricted Stock Units						Performance Restricted Stock Units
Outstanding at beginning of period						791						348						$	175.09					$	204.02					1.6						1.7
Granted						371						79						240.69						241.73
Vested*						(247)						(53)						183.95						193.24
Forfeited						(82)						(32)						181.27						187.33
Outstanding at end of period						833						342						$	201.05					$	213.28					1.5						1.5

*Includes 53 thousand RSUs and 20 thousand PRSUs netted for tax.

The following table summarizes option activity during the year ended June 30, 2025 (in thousands, except years and per share amounts):

			Options						Weighted Average Exercise Price						Weighted Average Remaining Contractual Term in Years
Outstanding at beginning of period			786						$	146.90					2.8
Granted			35						249.56
Exercised			(293)						105.35
Forfeited			(11)						222.57
Outstanding at end of period			517						$	175.61					2.7
Options exercisable at end of period			415						$	169.87					2.0
Options vested and expected to vest at end of period			512						$	175.35					2.7

The aggregate intrinsic value of options exercised during the fiscal years 2025, 2024 and 2023, was $37.7 million, $17.9 million and $25.4 million, respectively. As at June 30, 2025, the aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest were $42.8 million, $36.8 million and $42.5 million respectively.

Employee Stock Purchase Plan, or the ESPP. Under the ESPP, we offer participants the right to purchase shares of our common stock at a discount during successive offering periods. Each offering period under the ESPP will be for a period of time determined by the board of directors’ compensation committee of no less than 3 months and no more than 27 months. The purchase price for our common stock under the ESPP will be the lower of 85% of the fair market value of our common stock on the date of grant or 85% of the fair market value of our common stock on the date of purchase. An individual participant cannot subscribe for more than $25,000 in common stock during any calendar year. At June 30, 2025, the number of shares remaining available for future issuance under the ESPP is 0.8 million shares.

During years ended June 30, 2025, 2024 and 2023, we issued 226,000, 323,000 and 220,000 shares to our employees in two offerings and we recognized $11.8 million, $11.4 million and $11.5 million, respectively, of stock compensation expense associated with the ESPP.

Stock–based Employee compensation. We measure the compensation expense of all stock-based awards at fair value on the grant date. We estimate the fair value of stock options and purchase rights granted under the ESPP using the Black-Scholes valuation model. The fair values of RSUs and PRSUs subject to performance conditions are equal to the market value of the underlying shares as determined at the grant date less the fair value of dividends that holders are not entitled to during the vesting period. The fair value of PRSUs that are subject to market conditions is measured using a Monte-Carlo simulation valuation model. We recognize the fair value as compensation expense using the straight-line method over the service period for awards expected to vest.

For the years ended June 30, 2025, 2024 and 2023, we estimated the fair value of PRSUs that are measured using a Monte-Carlo simulation valuation model, stock options granted under our stock option plans and purchase rights granted under the

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ESPP using the assumptions in the following tables. The risk-free interest rate is estimated using the U.S. Treasury yield curve and is based on the term of the award. The expected term of awards is estimated from the vesting period of the award, as well as historical exercise behavior, and represents the period of time the awards granted are expected to be outstanding. Expected volatility is estimated based upon the historical volatility of Resmed stock.

			2025						2024						2023
Performance restricted stock units
Weighted average grant date fair value			$272.47						$168.14						$208.40
Weighted average risk-free interest rate			4.23%						4.50%						3.75%
Expected life in years			3 - 4						3 - 4						4
Dividend yield(1)			0.88%						1.29%						0.78% - 0.84%
Expected volatility			32% - 34%						31% - 36%						32%
Average peer volatility(2)			31%						31%						—
Average peer correlation coefficient(3)			0.5189						0.5385						—
Stock options:
Weighted average grant date fair value			$88.54						$50.48						$74.95
Weighted average risk-free interest rate			4.17%						4.44%						3.85%
Expected life in years			4.9						4.9						4.9
Dividend yield			0.85%						1.29%						0.78%
Expected volatility			37%						36%						34%
ESPP purchase rights:
Weighted average grant date fair value			$59.55						$47.40						$52.38
Weighted average risk-free interest rate			4.7%						5.4%						3.6%
Expected life in years			0.5						0.5						0.5
Dividend yield			0.87% - 0.90%						0.75% - 1.30%						0.75% - 0.84%
Expected volatility			34% - 39%						27% - 40%						27% - 34%

(1) The dividend yield used to project the value of the stock delivered to the holder is based on historical dividends and the expectation of future dividend payouts. Total stockholder return is determined assuming the reinvestment of dividends over the performance period, which is mathematically equivalent to a 0% dividend yield.

(2) The correlation coefficients are based upon the stock price data used to estimate the volatility assumptions.

(3) The average peer volatility is estimated based upon the historical volatility of each peer company.

The following table summarizes total stock-based compensation costs incurred and the associated tax benefit recognized during the years ended June 30, 2025, 2024 and 2023 (in thousands):

			2025						2024						2023
Cost of sales			$	8,945					$	7,563					$	6,465
Selling, general and administrative expenses			64,588						58,149						53,049
Research and development expenses			18,128						14,472						11,628
Stock-based compensation costs			91,661						80,184						71,142
Tax benefit			(21,833)						(15,053)						(24,860)
Stock-based compensation costs, net of tax benefit			$	69,828					$	65,131					$	46,282

At June 30, 2025, there was $163.8 million in unrecognized compensation costs related to unvested stock-based compensation arrangements. This is expected to be recognized over a weighted average period of 2.5 years.

(11) Earnings Per Share

We compute basic earnings per share by dividing the net income available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding and the number of dilutive

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common stock equivalents such as stock options and restricted stock units. The weighted average number of outstanding stock options and restricted stock units not included in the computation of diluted earnings per share were 154,567, 603,859 and 272,104 for the years ended June 30, 2025, 2024 and 2023, respectively, as the effect would have been anti-dilutive.

Basic and diluted earnings per share for the years ended June 30, 2025, 2024 and 2023 are calculated as follows (in thousands except per share data):

			2025						2024						2023
Numerator:
Net income			$	1,400,723					$	1,020,951					$	897,556
Denominator:
Basic weighted-average common shares outstanding			146,716						147,021						146,765
Effect of dilutive securities:
Stock options and restricted stock units			624						529						690
Diluted weighted average shares			147,340						147,550						147,455
Basic earnings per share			$	9.55					$	6.94					$	6.12
Diluted earnings per share			$	9.51					$	6.92					$	6.09

(12) Income Taxes

Income before income taxes for the years ended June 30, 2025, 2024 and 2023, was taxed under the following jurisdictions (in thousands):

			2025						2024						2023
U.S.			$	359,741					$	181,107					$	128,589
Non-U.S.			1,317,825						1,083,691						973,075
Income before income taxes			$	1,677,566					$	1,264,798					$	1,101,664

The provision for income taxes is presented below (in thousands):

						2025						2024						2023
Current:			Federal			$	19,744					$	57,103					$	36,631
			State			19,919						17,250						14,142
			Non-U.S.			298,170						219,372						198,767
						337,833						293,725						249,540
Deferred:			Federal			(5,701)						(22,915)						(21,721)
			State			(1,231)						(4,632)						(2,389)
			Non-U.S.			(54,058)						(22,331)						(21,322)
						(60,990)						(49,878)						(45,432)
Provision for income taxes						$	276,843					$	243,847					$	204,108

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The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended June 30, 2025, 2024 and 2023, to pretax income as a result of the following (in thousands):

			2025						2024						2023
Taxes computed at statutory U.S. rate			$	352,289					$	265,608					$	231,349
Increase (decrease) in income taxes resulting from:
State income taxes, net of U.S. tax benefit			15,590						8,609						9,448
Research and development credit			(28,859)						(27,786)						(21,481)
Change in valuation allowance			20,644						849						(5,007)
Effect of non-U.S. tax rates			(12,225)						(15,838)						(3,982)
Foreign tax credits			(3,896)						(8,293)						(3,988)
Stock-based compensation expense			1,735						4,875						(6,282)
Cessation of business			(35,847)						—						—
Net refunds for prior tax years			(29,976)						—						—
Other			(2,612)						15,823						4,051
Provision for income taxes			$	276,843					$	243,847					$	204,108

We reported net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2025 and June 30, 2024, as follows (in thousands):

			2025						2024
Non-current deferred tax asset			$	253,119					$	203,569
Non-current deferred tax liability			(77,682)						(79,339)
Net deferred tax asset			$	175,437					$	124,230

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The components of our deferred tax assets and liabilities at June 30, 2025 and June 30, 2024, are as follows (in thousands):

			2025						2024
Deferred tax assets:
Employee liabilities			$	37,189					$	35,336
Tax credit carry overs			1,577						9,271
Inventories			20,523						15,602
Provision for warranties			5,997						6,112
Provision for doubtful debts			4,942						5,340
Net operating loss carryforwards			14,408						23,455
Capital loss carryover			27,454						5,587
Stock-based compensation expense			12,752						11,538
Deferred revenue			31,289						28,030
Research and development capitalization			132,043						125,411
Lease liabilities			21,138						25,602
Hedging contracts			94,626						56,324
State income taxes			2,883						3,566
Other			18,527						5,538
			425,348						356,712
Less valuation allowance			(30,072)						(9,384)
Deferred tax assets			395,276						347,328
Deferred tax liabilities:
Goodwill and other intangibles			(196,698)						(192,398)
Right of use assets			(18,491)						(22,843)
Property, plant and equipment			(4,650)						(7,857)
Deferred tax liabilities			(219,839)						(223,098)
Net deferred tax asset			$	175,437					$	124,230

As of June 30, 2025, we had $6.0 million of U.S. federal and state net operating loss carryforwards and $8.4 million of non-U.S. net operating loss carryforwards, which expire in various years beginning in 2026 or carry forward indefinitely.

The valuation allowance at June 30, 2025 relates to a provision for uncertainty of the utilization of net operating loss carryforwards of $0.6 million, capital loss of $28.8 million and other items of $0.6 million. We believe that it is more likely than not that the benefits of deferred tax assets, net of any valuation allowance, will be realized.

A substantial portion of our manufacturing operations and administrative functions in Singapore operate under certain tax holidays and tax incentive programs that will expire in whole or in part at various dates through June 30, 2030. The end of certain tax holidays may be extended if specific conditions are met. The net impact of these tax holidays and tax incentive programs increased our net income by $67.4 million ($0.46 per diluted share) for the year ended June 30, 2025, $49.6 million ($0.34 per diluted share) for the year ended June 30, 2024, and $40.5 million ($0.27 per diluted share) for the year ended June 30, 2023.

As a result of the Tax Cuts and Jobs Act of 2017, or the TCJA, we have treated all non-U.S. historical earnings as taxable. Therefore, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated. The total amount of these undistributed earnings at June 30, 2025 amounted to approximately $4.7 billion. In the event our non-U.S. earnings had not been permanently reinvested, approximately $5.9 million in U.S. state deferred taxes would have been recognized in the consolidated financial statements.

The TCJA also introduced U.S. taxation on certain global intangible low-taxed income, or GILTI. We have elected to account for tax expense attributable to GILTI tax as a period cost when incurred.

In accounting for uncertainty in income taxes, we recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (that is, a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position”

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refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for annual periods. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. Based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on June 30, 2025 is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate.

Our income tax returns are based on calculations and assumptions subject to audit by various tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We are currently under audit by the ATO for the 2018 tax year. If any ongoing tax audits are resolved in a manner not consistent with management’s expectations, the result could be a material adjustment to our past or future taxable income, tax payable or deferred tax assets, and may require us to pay penalties and interest that could materially adversely affect our financial results.

Tax years 2018 to 2024 remain subject to examination by the major tax jurisdictions in which we are subject to tax.

(13) Segment Information

We have two operating segments, which are the Sleep and Breathing Health segment and the Residential Care Software segment. During fiscal year 2025, we renamed our operating segments from Sleep and Respiratory Care to Sleep and Breathing Health and from Software as a Service to Residential Care Software in alignment with our 2030 strategy. There have been no changes in the preparation and disclosure of financial information by operating segment. The identification of operating segments is based on our internal organizational structure and the information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker (CODM). Our CODM evaluates segment performance and makes resource allocation decisions based on net revenue and net operating profit. Impacts to segment net operating profit are referenced by our CODM when deciding to enter new markets, launch new products, reinvest profits, acquire or otherwise invest in other companies, and for monitoring actual results against forecasts. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Segment net sales and segment net operating profit do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed.

Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, net interest expense (income), gains and losses attributable to equity method investments, gains and losses on equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our CODM evaluate the operating segments using discrete asset information.

Additionally, effective in the third quarter of fiscal year 2024, we updated the method of attribution of certain costs that are principally managed at the segment level as part of our evaluation of segment operating performance. As a result, certain costs relating to quality and regulatory assurance, commercial legal, operations, sales and marketing, customer service, information technology, and other administrative costs, which were previously included in Corporate costs within our reconciliation of segment operating profit to income before income taxes, are now reported in segment operating results. The financial information presented herein reflects the impact of the preceding reporting change for all periods presented.

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The table below presents a reconciliation of net revenues, significant expenses, net operating profit and depreciation and amortization by reportable segments for the years ended June 30, 2025, 2024 and 2023 (in thousands):

			2025						2024						2023
Net revenue by segment
Sleep and Breathing Health			$	4,504,890					$	4,101,172					$	3,725,017
Residential Care Software			641,437						584,125						497,976
Total			$	5,146,327					$	4,685,297					$	4,222,993
Significant segment expenses
Cost of Sales
Sleep and Breathing Health			$	1,852,574					$	1,782,023					$	1,659,037
Residential Care Software			195,043						190,186						174,718
Total			$	2,047,617					$	1,972,209					$	1,833,755
Selling, general, and administrative
Sleep and Breathing Health			$	491,591					$	451,334					$	443,467
Residential Care Software(1)			143,435						143,999						120,483
Total			$	635,026					$	595,333					$	563,950
Research and development
Sleep and Breathing Health			$	196,340					$	186,461					$	175,393
Residential Care Software			97,959						95,490						87,120
Total			$	294,299					$	281,951					$	262,513
Net operating profit by segment
Sleep and Breathing Health			$	1,964,385					$	1,681,354					$	1,447,120
Residential Care Software			205,000						154,450						115,655
Total			$	2,169,385					$	1,835,804					$	1,562,775
Reconciling items
Corporate costs			$	406,114					$	357,937					$	338,362
Amortization of acquired intangible assets			77,389						79,484						72,416
Restructuring expenses			—						64,228						9,177
Masks with magnets field safety notification expenses (2)			(1,512)						6,351						—
Astral field safety notification expenses (3)			—						7,911						—
Acquisition related expenses			2,031						—						10,949
Interest (income) expense, net			(4,114)						45,708						47,379
(Gain) loss attributable to equity method investments			(3,644)						1,848						7,265
(Gain) loss on equity investments			10,299						4,045						(9,922)
Gain on insurance recoveries			—						—						(20,227)
Other, net			5,256						3,494						5,712
Income before income taxes			$	1,677,566					$	1,264,798					$	1,101,664
Depreciation and amortization by segment
Sleep and Breathing Health			$	110,543					$	86,070					$	82,544
Residential Care Software			9,467						10,241						9,119
Amortization of acquired intangible assets and corporate assets			78,463						80,559						73,493
Total			$	198,473					$	176,870					$	165,156

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(1) During the fiscal year ended June 30, 2024, we recorded $4.1 million of operating lease right-of-use asset impairments within our Residential Care Software segment. The impairments related to leases for office space and were recorded within selling, general and administrative expenses.

(2) The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets.

(3) The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.

The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2025, 2024 and 2023 (in thousands):

			2025						2024						2023
U.S., Canada and Latin America
Devices			$	1,654,413					$	1,522,758					$	1,444,361
Masks and other			1,343,101						1,199,798						1,039,026
Total U.S., Canada and Latin America			$	2,997,514					$	2,722,556					$	2,483,387
Combined Europe, Asia and other markets
Devices			$	1,010,760					$	921,253					$	826,341
Masks and other			496,616						457,363						415,289
Total Combined Europe, Asia and other markets			$	1,507,376					$	1,378,616					$	1,241,630
Global revenue
Devices			$	2,665,173					$	2,444,011					$	2,270,702
Masks and other			1,839,717						1,657,161						1,454,315
Total Sleep and Breathing Health			$	4,504,890					$	4,101,172					$	3,725,017
Residential Care Software			641,437						584,125						497,976
Total			$	5,146,327					$	4,685,297					$	4,222,993

Revenue information by geographic area for the years ended June 30, 2025, 2024 and 2023 is summarized below (in thousands):

			2025						2024						2023
United States			$	3,285,581					$	2,980,053					$	2,719,923
Rest of the World			1,860,746						1,705,244						1,503,070
Total			$	5,146,327					$	4,685,297					$	4,222,993

Long-lived assets of geographic areas are those assets used in our operations in each geographical area, and excludes goodwill, other intangible assets, and deferred tax assets. Long-lived assets by geographic area as of June 30, 2025 and 2024 is summarized below (in thousands):

			2025						2024
Australia			$	170,836					$	197,017
United States			180,770						160,606
Singapore			98,509						89,679
Rest of the World			100,675						100,723
Total			$	550,790					$	548,025

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(14) Employee Retirement Plans

We contribute to a number of employee retirement plans for the benefit of our employees. Details of the main plans are as follows:

Australia We contribute to defined contribution plans for each employee resident in Australia at the rate of approximately 11.5% of salaries. Employees may contribute additional funds to the plans. All Australian employees, after serving a qualifying period, are entitled to benefits on retirement, disability or death. Our total contributions to the plans for the years ended June 30, 2025, 2024 and 2023, were $15.9 million, $14.9 million and $13.0 million, respectively.

United States We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 4.0% of the employee’s eligible compensation, subject to the annual IRS limit. Our total contributions to the plan were $12.7 million, $13.8 million and $12.7 million in fiscal 2025, 2024 and 2023, respectively.

Singapore We sponsor a defined contribution plan available to all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 17.0% of the employee’s salary. Our total contributions to the plan were $4.4 million, $3.9 million and $3.6 million in fiscal 2025, 2024 and 2023, respectively.

(15) Legal Actions, Contingencies and Commitments

Litigation

In the normal course of business, we are subject to routine litigation incidental to our business. While the results of this litigation cannot be predicted with certainty, we believe that their final outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole.

On June 2, 2021, New York University, or NYU, filed a complaint for patent infringement in the United States District Court, District of Delaware against Resmed, case no. 1:21-cv-00813 (JPM). The complaint alleges that the AutoSet or AutoRamp features of Resmed’s AirSense 10 AutoSet flow generators infringe one or more claims of various NYU patents, including U.S. Patent Nos. 6,988,994; 9,108,009; 9,168,344; 9,427,539; 9,533,115; 9,867,955; and 10,384,024. According to the complaint, the NYU patents are directed to systems and methods for diagnosis and treating sleeping disorders during different sleep states. The complaint seeks monetary damages and attorneys’ fees. We answered the complaint on September 30, 2021 and filed a motion to dismiss the complaint on the basis that the patents are invalid because the subject matter of the patents is not patentable under the Supreme Court and Federal Circuit precedent. The motion to dismiss was granted in part and denied in part. In December 2022, the Patent Trial and Appeal Board, or PTAB, of the Patent and Trademark Office granted our request to review the validity of the claims in the patents asserted by NYU against us, determining that there is a reasonable likelihood that we will prevail. In December 2023, the PTAB issued written decisions invalidating each of the challenged claims in each of the NYU patents asserted against us. On December 28, 2023, the District Court entered an order continuing its stay of all proceedings against us pending any appeal by NYU of the invalidation of its patents by the PTAB. On January 31, 2024, NYU appealed the PTAB’s rulings to the Court of Appeals for the Federal Circuit. Briefing has been completed and oral argument before the Court of Appeals for the Federal Circuit has been scheduled in August 2025.

On June 16, 2022, Cleveland Medical Devices Inc., or Cleveland Medical, filed suit for patent infringement against Resmed in the United States District Court for the District of Delaware, case no. 1:22-cv-00794. Cleveland Medical asserts that numerous Resmed connected devices, when combined with certain Resmed data platforms and/or software, including AirView and ResScan, infringe one or more of seven Cleveland Medical patents, including U.S. Patent Nos. 10,076,269; 10,426,399; 10,925,535; 11,064,937; 10,028,698; 11,202,603; and 11,234,637. We moved to dismiss the action because Cleveland Medical sued the wrong Resmed entity, and to dismiss the indirect and willful infringement allegations by Cleveland Medical. On October 2, 2023, the court granted a portion of the motion, dismissing all Cleveland Medical claims for indirect and willful infringement, and denied the rest of the motion. On March 22, 2023, ResMed Corp. filed a petition with the PTAB seeking review of the validity of U.S. Patent No. 10,076,269. On May 6, 2024, the PTAB granted the petition and instituted an Inter Partes Review proceeding against the patent. On June 21, 2024, the District Court of Delaware granted Resmed's motion to stay the case until the PTAB issues its final written decision in the Inter Partes

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Review proceeding. On May 2, 2025, the PTAB issued its decision finding all claims of U.S. Patent No. 10,076,269 unpatentable.

On March 20, 2023, ResMed Corp. filed suit in the United States District Court for the Southern District of California, case no. 23-cv-00500-TWR-JLB, seeking a declaration that it does not infringe U.S. Patent No. 11,602,284 issued to Cleveland Medical. In November 2023, the case was transferred to the Northern District of Ohio for the convenience of the parties. Cleveland Medical answered the complaint and filed a counterclaim asserting that ResMed Corp. infringes three additional Cleveland Medical patents, including U.S. Patent Nos. 11,375,921; 11,690,512; and 11,786,680. On April 9, 2024, Cleveland Medical filed a second amended answer and counterclaims accusing ResMed Corp. of infringing U.S. Patent Nos. 11,857,333 and 11,872,029. ResMed Corp. filed a petition with the PTAB for post-grant review of the validity of U.S. Patent No. 11,602,284, which the PTAB denied on June 24, 2024. On October 17, 2024, the PTAB denied ResMed Corp.’s request for rehearing of its decision to deny the petition for post-grant review of U.S. Patent No. 11,602,284.

On October 11, 2024, ResMed Corp. filed a request for ex parte reexamination of U.S. Patent No. 11,375,921, and on November 15, 2024, the United States Patent and Trademark Office, or the Patent Office, ordered reexamination of the patent. On October 17, 2024, ResMed Corp. filed a request for ex parte reexamination of U.S. Patent No. 11,786,680, and on December 3, 2024, the Patent Office ordered reexamination of the patent. Between November 15, 2024, and January 10, 2025, ResMed Corp. filed petitions with the PTAB seeking Inter Partes Review of the validity of all six patents asserted by Cleveland Medical in the District Court of the Northern District of Ohio proceedings. On March 7, 2025, the District Court of the Northern District of Ohio granted ResMed Corp.'s motion to stay the case pending the conclusion of all Patent Office proceedings related to the asserted patents. On June 10, 2025, the PTAB denied institution of Inter Partes Review directed to U.S. Patent No. 11,602,284. On June 12, 2025, the PTAB instituted an Inter Partes Review proceeding against U.S. Patent No. 11,375,921. On June 13, 2025, the PTAB instituted Inter Partes Review proceedings against U.S. Patent Nos. 11,690,512 and 11,786,680. On July 30, 2025, the PTAB instituted Inter Partes Review proceedings against U.S. Patent Nos. 11,857,333 and 11,872,029. The PTAB’s final written decisions in the instituted Inter Partes Review proceedings are expected by July 2026.

Based on currently available information, we are unable to make a reasonable estimate of loss or range of losses, if any, arising from matters that remain open.

Contingent Obligations Under Recourse Provisions

We use independent financing institutions to offer some of our customers financing for the purchase of some of our products. Under these arrangements, if the customer qualifies under the financing institutions’ credit criteria and finances the transaction, the customers repay the financing institution on a fixed payment plan. For some of these arrangements, the customer’s receivable balance is with limited recourse whereby we are responsible for repaying the financing company should the customer default. We record a contingent provision, which is estimated based on historical default rates. This is applied to receivables sold with recourse and is recorded in accrued expenses.

During the year ended June 30, 2025 and 2024, receivables sold with limited recourse were $212.5 million and $206.7 million, respectively. As of June 30, 2025, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $34.1 million and $0.7 million, respectively. As of June 30, 2024, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $35.8 million and $0.8 million, respectively.

Commitments

In the normal course of business, we enter into agreements to purchase goods or services that are not cancelable without penalty, primarily related to supply arrangements. Obligations under our purchase agreements at June 30, 2025 were as follows (in thousands):

			Total						Fiscal Years Ending June 30
						2026						2027						2028						2029						2030						Thereafter
Minimum purchase obligations			$	963,763					$	927,365					$	26,090					$	4,430					$	2,339					$	2,154					$	1,385

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(16) Derivative Instruments and Hedging Activities

Fair Values of Derivative Instruments

The following table presents our assets and liabilities related to derivative instruments on a gross basis within the consolidated balance sheets (in thousands):

			June 30, 2025						June 30, 2024						Balance Sheet Caption
Derivative Assets
Not Designated as Hedging Instruments
Foreign currency hedging instruments			$	6,810					$	2,343					Prepaid taxes and other non-current assets
Foreign currency hedging instruments			—						89						Prepaid taxes and other non-current assets
Total derivative assets			$	6,810					$	2,432
Derivative Liabilities
Designated as Hedging Instruments
Foreign cross-currency swaps – Fair Value Hedge			$	38,533					$	10,472					Other long-term liabilities
Foreign cross-currency swaps – Net Investment Hedge			91,596						21,270						Other long-term liabilities
Not Designated as Hedging Instruments
Foreign currency hedging instruments			2,695						4,654						Accrued expenses
Foreign currency hedging instruments			—						142						Other long-term liabilities
Total derivative liabilities			$	132,824					$	36,538

Fair Value Hedge Gains (Losses)

We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in thousands):

									Twelve Months Ended June 30,
															2025						2024						2023
Gain (loss) recognized in other comprehensive income (loss)															$	1,762					$	3,329					$	(5,414)
Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing)															$	4,699					$	4,010					$	3,754
Gain (loss) recognized on cross-currency swap in other, net															$	(29,822)					$	5,942					$	(14,329)
Gain (loss) recognized on intercompany debt in other, net															$	29,822					$	(5,942)					$	14,329

Net Investment Hedge Gains (Losses)

We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands):

									Twelve Months Ended June 30,
															2025						2024						2023
Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss)															$	(70,326)					$	19,532					$	(40,803)
Gain (loss) recognized from the excluded components in interest (expense) income, net															$	12,024					$	10,337					$	9,482

Non-designated Derivative Gains (Losses)

We recognized the following gains (losses) in the consolidated statement of income on derivatives not designated as hedging instruments (in thousands):

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									Twelve Months Ended June 30,
															2025						2024						2023
Gain (loss) recognized on foreign currency hedging instruments in other, net															$	47,241					$	(4,168)					$	8,576
Gain (loss) recognized on other foreign-currency-denominated transactions in other, net															(54,330)						19						(12,780)
Total															$	(7,089)					$	(4,149)					$	(4,204)

(17) Restructuring Expenses

Restructuring expenses consist of costs incurred in connection with the realignment of business strategies and operations as well as cost rationalization efforts. These costs are separately presented as restructuring expenses within our consolidated statement of income for all periods presented. Although the costs associated with restructuring plans have not been allocated to our business segments' results in Note 13 – Segment Information, the restructuring plans impacted both our Sleep and Breathing Health and Residential Care Software segments.

We did not incur material restructuring expenses during the year ended June 30, 2025.

During the year ended June 30, 2024, we recorded $64.2 million of restructuring related charges associated with an evaluation of our existing operations to increase operational efficiency, decrease costs and increase profitability. Restructuring charges for the year ended June 30, 2024 are comprised of $28.6 million of employee severance and other one-time termination benefits, $33.2 million of intangible asset impairments associated with the wind down of certain business activities, and $2.4 million of other miscellaneous asset impairments. As of June 30, 2024, there were no restructuring expenses remaining in our accruals.

During the year ended June 30, 2023, we incurred restructuring expenses of $9.2 million associated with the reorganization and rationalization of our operations. We recorded the full amount of $9.2 million during the year ended June 30, 2023. The restructuring expenses consisted primarily of severance to employees. As of June 30, 2023, we had $7.8 million in restructuring expenses remaining in our accruals which were paid during the year ended June 30, 2024.

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SCHEDULE II

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VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

June 30, 2025, 2024 and 2023

(in thousands)

			Balance at Beginning of Period						Charged to costs and expenses						Other (deductions)						Balance at End of Period
Year ended June 30, 2025
Applied against asset account
Allowance for trade accounts receivable			$	21,132					$	9,053					$	(7,761)					$	22,424
Year ended June 30, 2024
Applied against asset account
Allowance for trade accounts receivable			$	23,603					$	9,802					$	(12,273)					$	21,132
Year ended June 30, 2023
Applied against asset account
Allowance for trade accounts receivable			$	23,259					$	5,770					$	(5,426)					$	23,603

See accompanying report of independent registered public accounting firm.

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RESMED INC. AND SUBSIDIARIES