ResMed (RMD) 46th Annual William Blair Growth Stock Conference summary

Market Opportunity and Industry Trends

• Operates in a vast, under-penetrated global market for sleep and breathing health, with over 2.3 billion potential patients worldwide and over 1 billion affected by sleep apnea and related conditions.

• Only 5% of the U.S. market is penetrated, with even lower rates in Europe and Asia-Pacific, highlighting significant growth potential.

• Key megatrends such as digital health, wearables, and GLP-1 medications are increasing awareness and demand for sleep solutions.

• GLP-1 drugs and major awareness campaigns are expected to drive more patients into diagnosis and therapy funnels over the next 1–5 years.

• Strong industry advocacy and leadership roles support market positioning.

Innovation, Product Launches, and Acquisitions

• Launched new AirCurve ST and ST-A devices for COPD and overlap syndrome, and AirCurve 11 ST & ST-A for noninvasive ventilation, aligning with recent CMS reimbursement changes.

• Introduced fabric-based masks, including AirTouch, enhancing comfort and compliance with strong early adoption.

• Acquired Noctrix for non-invasive, drug-free Restless Legs Syndrome therapy, expanding into new sleep disorder markets.

• Strategic acquisitions like VirtuOx, NightOwl, Somnoware, and Snap Diagnostics strengthen the diagnostic and resupply value chain.

• AirConnect Dx launched in the UK, offering a fully digital, managed diagnostic pathway for sleep apnea, reducing diagnostic timelines by up to 97%.

Financial Performance and Capital Allocation

• Achieved $5.5B in revenue for LTM 3Q26, with a 12% CAGR since LTM 3Q21.

• Maintains GAAP and non-GAAP operating margins above 34% and 36%, with free cash flow reaching $1.75B, up 19% CAGR.

• Net cash position of ~$996M as of Q3 FY26, with $1.5B unused borrowing capacity.

• Increased share buybacks to over $200 million per quarter, with $500M repurchased YTD FY26 and plans to further raise this in FY2027.

• Continues to pay and grow dividends, with a 13% increase to $2.40/share for FY26.