ResMed Inc.
RMDBusiness Overview
ticker: RMD step: 01 generated: 2026-05-12 source: quick-research
ResMed Inc. (RMD) — Business Overview
Business Description
ResMed Inc. is a global medical device and software company specializing in cloud-connected devices for sleep apnea, COPD, and other respiratory conditions, as well as out-of-hospital software platforms for home care and residential care providers. Founded in 1989 and headquartered in San Diego, California, ResMed holds approximately 62% of the global CPAP market by device rankings and operates one of the most comprehensive sleep health ecosystems, with 28 million patients monitored through its AirView platform and over 26 million cloud-connected devices across 140 countries.
Revenue Model
ResMed generates revenue through two streams: (1) device and consumables sales — CPAP/APAP/bilevel machines plus masks and accessories (~88% of revenue); and (2) Residential Care Software SaaS subscriptions (~12% of revenue). Recurring revenue is driven by masks and accessories (replaced every 3–6 months) and software subscription contracts with home healthcare providers and hospitals. Cloud-connected devices feed data into AirView, which deepens customer lock-in and enables compliance reporting required by payers for reimbursement continuation.
Products & Services
- AirSense / AirCurve — flagship CPAP/APAP/bilevel devices with cloud connectivity and built-in sleep scoring algorithms
- Masks & Accessories — nasal pillows, full-face masks, and accessories; highest-margin consumable line
- AirView — cloud platform for providers to remotely monitor patient therapy adherence across 28M+ patients
- myAir — patient-facing app with 8.3M+ registered users for self-monitoring and engagement
- Brightree — home health and hospice workflow/billing software for ~4,400 home medical equipment providers
- MatrixCare — senior living and long-term care management software platform
- HME/Home Health — revenue cycle management and clinical documentation for home care operators
Customer Base & Go-to-Market
ResMed sells devices primarily through distributors (home medical equipment dealers, hospital supply chains) and directly to large health systems. Software products (Brightree, MatrixCare) are sold via direct SaaS contracts to home health agencies, hospices, and senior living operators. The U.S. represents ~64% of revenue; rest-of-world accounts for ~36%. No single customer represents a material concentration. Payer reimbursement requirements (Medicare/Medicaid mandating 90-day adherence compliance) create structural demand for ResMed's monitoring ecosystem.
Competitive Position
ResMed is the dominant global player in sleep therapy devices with ~62% market share, far ahead of competitor Philips (which exited the US market in 2021 due to device recalls and is now returning) and smaller players like Fisher & Paykel. The company's competitive moat rests on: 8,200+ patents limiting device replication, a 20-billion-night proprietary sleep dataset enabling superior algorithms, AirView's deep integration into provider workflows creating high switching costs, and masks/accessories consumable pull-through from a large installed device base.
Key Facts
- Founded: 1989
- Headquarters: San Diego, California
- Employees: ~10,000
- Exchange: NYSE
- Sector / Industry: Health Care / Medical Devices
- Market Cap: ~$28–32B
Financial Snapshot
ticker: RMD step: 04 generated: 2026-05-12 source: quick-research
ResMed Inc. (RMD) — Financial Snapshot
Note: ResMed's fiscal year ends June 30. FY2024 = July 2023 – June 2024.
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $3.58B | $4.22B | $4.69B | +11% |
| Gross Margin | ~54% | ~55% | ~56.7% | +90bp |
| Operating Margin | ~22% | ~23% | ~25% | +~200bp |
| Net Income | $0.78B | $0.90B | ~$1.04B | +~15% |
| EPS (diluted) | ~$5.30 | ~$6.10 | ~$7.05 | +~15% |
FY2025 revenue: $5.15B (+9.8%); FY2025 EPS estimated ~$8.00+ based on Q-by-Q beat trajectory.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | $1.4B |
| Free Cash Flow | ~$1.25B |
| FCF Margin | ~27% |
| Cash & Equivalents | ~$0.3B |
| Total Debt | ~$1.5B |
Key Ratios (approximate)
- P/E: ~25–30x | EV/EBITDA: ~22x | FCF Yield: ~4%
- Revenue Growth (FY2024): +11% | FCF Margin: ~27%
- Net Debt / EBITDA: ~1x (conservative leverage)
Growth Profile
ResMed has compounded revenue at ~14% annually over the 2022–2024 period, driven by share gains following Philips' 2021 recall-related U.S. exit (a windfall that is now normalizing) and organic demand growth in an underpenetrated sleep apnea market (only ~15–20% of diagnosed patients treated). Gross margins have expanded steadily from ~54% to ~57% as device mix improves and software revenue scales. Free cash flow conversion is strong at ~27% of revenue, enabling consistent share buybacks and debt reduction.
Forward Estimates
- FY2026 (ending June 2026) revenue consensus: ~$5.4–5.6B (+5–8% growth)
- FY2026 adjusted EPS: ~$9.00–9.50 (consensus Buy; analyst fair value target ~$256)
- Management revised FY2026 respiratory segment growth to mid-single digits (from upper mid-single digits) reflecting Philips re-entry headwinds; software remains a faster-growing segment
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $RMD.