How ResMed’s $5.15B Revenue and VirtuOx Deal Signal Digital Health’s Future
ResMed Inc. reported a robust 10% increase in revenue to $5.15 billion for fiscal 2025, driven by strong demand in sleep and breathing health devices and residential care software. The company also expanded its diagnostic capabilities with the acquisition of VirtuOx, positioning itself for further growth in home-based health solutions.
- 10% revenue growth to $5.15 billion in fiscal 2025
- Net income surged 37% to $1.4 billion
- Acquisition of VirtuOx enhances in-home diagnostic testing
- Focus on AI integration and digital health innovation
- Strong liquidity with $1.2 billion cash and $1.5 billion credit facility
ResMed’s Financial Performance
ResMed Inc., a global leader in digital health and cloud-connected medical devices, has reported a solid financial performance for the fiscal year ended June 30, 2025. The company posted a 10% increase in net revenue, reaching $5.15 billion, fueled by heightened demand for its sleep and breathing health devices and residential care software solutions. Net income rose sharply by 37% to $1.4 billion, reflecting operational efficiencies and strong market execution.
Strategic Expansion via VirtuOx Acquisition
In May 2025, ResMed expanded its footprint in the sleep and breathing health market through the acquisition of VirtuOx, a software-enabled independent diagnostic testing facility specializing in in-home and remote testing services across the United States. This move broadens ResMed’s capabilities to offer end-to-end solutions, integrating diagnostics with patient monitoring and therapy management, and is expected to enhance collaboration with healthcare providers and home medical equipment suppliers.
Innovation and Market Positioning
ResMed continues to invest heavily in research and development, allocating $331 million in fiscal 2025 to advance its product portfolio. The company is focused on integrating artificial intelligence and machine learning into its devices, such as the AirSense 11 platform, to improve therapy performance and patient adherence. Its digital health ecosystem, including cloud-based platforms like AirView and patient engagement tools like myAir, supports connected care models that empower clinicians and patients alike.
Operational and Regulatory Landscape
The company operates in over 140 countries with manufacturing facilities strategically located in Australia, Singapore, Malaysia, France, China, and the U.S. ResMed faces ongoing challenges including supply chain disruptions, tariff uncertainties, and evolving healthcare reimbursement policies. The firm also navigates complex regulatory environments, including FDA clearances and European Medical Device Regulations, while managing patent litigation risks and compliance with healthcare fraud and data privacy laws.
Financial Health and Shareholder Returns
ResMed maintains a strong liquidity position with $1.2 billion in cash and cash equivalents and $1.5 billion available under its revolving credit facility. The company repurchased 1.26 million shares for $300 million during the fiscal year and paid dividends totaling $2.12 per share. Its disciplined capital management supports ongoing investments in innovation and strategic acquisitions.
Bottom Line?
With a strengthened diagnostic portfolio and continued innovation in digital health, ResMed is poised to navigate competitive and regulatory challenges while driving long-term growth.
Questions in the middle?
- How will the VirtuOx acquisition impact ResMed’s revenue mix and profitability in the coming years?
- What are the potential effects of emerging pharmaceutical treatments for sleep apnea on ResMed’s device sales?
- How might evolving healthcare reimbursement policies and tariff changes influence ResMed’s global supply chain and margins?
