Capital return in FY2025 included $300.02M in share repurchases and $310.88M in dividends paid—a combined cash return of approximately $611M—and management has signaled a stepped‑up buyback cadence for FY2026. That mix indicates a dual focus on returning excess cash while preserving balance‑sheet flexibility for M&A or platform investment (Monexa AI.

Leverage metrics are conservative: total debt stood at $882.32M against shareholders’ equity of $5.97B, and a current‑ratio TTM of 3.34x, supporting operational resilience and optionality for strategic moves (Monexa AI.

Income statement — trailing years#

Year	Revenue	Net Income	Gross Profit Ratio	Net Income Ratio
2022	$3.58B	$779.44M	56.57%	21.78%
2023	$4.22B	$897.56M	55.78%	21.25%
2024	$4.69B	$1.02B	56.67%	21.79%
2025	$5.15B	$1.40B	59.36%	27.22%

(Data: Monexa AI — ResMed FY financials: revenue, profit margins and net income.)

Balance sheet & cash flow snapshot#

Year	Cash & Equivalents	Total Assets	Total Debt	Net Debt	Free Cash Flow	Dividends Paid	Share Repurchases
2022	$273.71M	$5.10B	$917.55M	$643.84M	$195.11M	$245.34M	$0
2023	$227.89M	$6.75B	$1.58B	$1.35B	$559.30M	$258.28M	$0
2024	$238.36M	$6.87B	$873.93M	$635.57M	$1.29B	$282.32M	$150.01M
2025	$1.21B	$8.17B	$882.32M	-$327.13M	$1.66B	$310.88M	$300.02M

(Data: Monexa AI — balance sheet and cash‑flow line items.)

Why did ResMed’s FY2025 margins expand? — featured answer#

Margin expansion was driven by improved product mix toward higher‑margin devices and software, supply‑chain and manufacturing efficiencies, and favorable FX translation effects; Monexa AI shows FY2025 gross margin at 59.36% and net margin at 27.22%, with R&D at ~6.44% of revenue supporting platform investments (Monexa AI.

That concise explanation reflects three measurable drivers: (1) mix and scale in devices, (2) rising contribution from software/recurring services after the VirtuOx integration, and (3) operating‑expense discipline highlighted in management commentary and analyst notes (ResMed JPMorgan presentation, Monexa AI.

Digital health, VirtuOx and market tailwinds#

ResMed is explicit about shifting the revenue mix: the combination of device sales and growing recurring software/services (AirView/myAir plus VirtuOx virtual care) creates higher‑margin revenue that helps explain expanding operating margins and improving ROIC (TTM 19.58%) and ROE (TTM 25.51%) (Monexa AI.

VirtuOx adds telehealth diagnostic workflows and at‑home testing capabilities that accelerate diagnosis‑to‑therapy conversion and create cross‑sell opportunities into ResMed’s installed base. Early integration trends were cited by management as incremental to software and services growth in Q4 and are consistent with the company’s stated 2030 strategy to make connected care a material revenue layer (HealthMedNews, Monexa AI.

Macro tailwinds remain supportive: independent market research projects multi‑year expansion in sleep‑apnea devices and home respiratory monitoring (mid‑single to high‑single digit CAGRs in many forecasts), driven by aging populations, obesity trends and telehealth adoption that favor home‑based devices and remote monitoring platforms (ResearchAndMarkets, Precedence Research.

What this means for investors — key takeaways and execution assessment#

ResMed’s FY2025 results translate into three practical investor implications: stronger cash conversion enables both durable capital returns and M&A optionality; margin expansion appears backed by measurable drivers (mix, software and efficiencies); and the company’s balance‑sheet flexibility reduces execution risk for strategic investments.

Cash & returns: Free cash flow of $1.66B and combined FY2025 buybacks/dividends of ~$611M signal a disciplined allocation stance (Monexa AI.
Profitability: Net margin moved to 27.22% and ROIC to 19.58%, demonstrating high capital efficiency for a medical‑device + software business (Monexa AI.
Strategy fit: VirtuOx and AirView/myAir integration turn device economics into recurring revenue opportunities—R&D at ~6.44% of revenue supports that roadmap (Monexa AI.

Management execution shows alignment between stated priorities (software, diagnostics, home health) and capital allocation (elevated buybacks plus targeted tuck‑ins). Historical precedent at ResMed — repeating margin expansion over successive years while scaling software — lends credibility to the strategic path, though investors should monitor integration KPIs (software ARR, churn, and cross‑sell rates) reported in future updates.

Conclusion#

FY2025 was a transitional year in which RMD combined double‑digit revenue growth with meaningful margin expansion and strong free‑cash‑flow conversion, enabling substantial shareholder returns and funding for digital‑health investments. The data support a narrative of measured strategic pivoting: from mostly hardware economics toward a hybrid device + recurring‑services model that, if execution continues to match guidance, should sustain profitability and create optionality for future growth.

For detailed line‑item figures and historical context, refer to Monexa AI’s ResMed compilation and the linked market reports below.