ResMed Inc. (RMD): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine behind the $5.1 billion in revenue for ResMed Inc. (RMD) in fiscal year 2025, and honestly, it's far more sophisticated than just selling sleep apnea machines. After years analyzing these models, I can tell you their strength lies in the connected ecosystem, where device sales (52% of Q3 revenue) feed a massive recurring revenue stream from masks and software subscriptions, all while maintaining a strong non-GAAP gross margin near 60.0%. This isn't just a medical device play; it's a digital health powerhouse built on over 20 million connected devices. Dive below to see the full nine blocks of their business model canvas, which clearly maps out this powerful strategy.

ResMed Inc. (RMD) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel ResMed Inc.'s out-of-hospital healthcare ecosystem as of late 2025. These alliances are critical for device distribution, software expansion, and market credibility.

The Software as a Service (SaaS) segment relies heavily on partnerships within the Durable Medical Equipment (DME) and Home Medical Equipment (HME) space, where ResMed provides software solutions to these providers. ResMed markets its products in more than 140 countries through a network of distributors and direct sales staff.

The strategic move to acquire MEDIFOX DAN significantly bolstered the SaaS business, extending its U.S. position into Germany. Here are the key figures from that strategic partnership-building acquisition:

ResMed's full-year revenue for fiscal year 2025 reached $5.1 billion, reflecting momentum across its device and digital health ecosystem. The company reports having 20.5 M+ cloud-connectable devices on the market, with approximately 7.5 M CPAP users signed up for the myAir platform.

Brand visibility and credibility are enhanced through major marketing partnerships, such as the one announced for the 2025 rugby tour.

• Official Sleep Partner of the Qatar Airways British & Irish Lions Tour to Australia in 2025.
• The tour involved the Lions squad and an estimated 40,000 fans.

Technology collaborations focus on integrating ResMed's data and hardware expertise with consumer platforms. This is evident in the ongoing work with Apple products.

• Announced collaboration with Apple Vision Pro team for the Kontor Head Strap during the Q2 fiscal year 2025 earnings call (January 30).
• The myAir app features Sleep Staging insights through data available via Apple Health and Health Connect.
• A prior consumer product, the S+ Sleep Monitor, integrated with Apple HealthKit in 2014.

Relationships with clinicians and sleep labs are foundational for patient diagnosis and device prescription. ResMed consults with physicians at major medical centers globally to track trends. The effectiveness of the connected care platform, which supports these clinicians, is reflected in adherence data.

The company actively supports clinical trials in many countries, including the U.S., Canada, Germany, France, the U.K., and Australia, performing statistical analyses on millions of de-identified, clinical data points collected through cloud-connected devices. That's how ResMed Inc. keeps its product development grounded in real-world patient outcomes.

ResMed Inc. (RMD) - Canvas Business Model: Key Activities

Research and development (R&D) for new devices and software is a core activity for ResMed Inc. The company's annual research and development expenses for fiscal year 2025 were reported as $331.3 million, which represented 6.4% of the fiscal year 2025 net revenues of $5,146.3 million. For the twelve months ending September 30, 2025, R&D expenses reached $0.339B. ResMed Inc. has a commitment to innovation, evidenced by its investment strategy; over the last three years, 37% of deployed capital went toward R&D.

Global manufacturing and supply chain management is crucial given the company's global reach. ResMed Inc. operates in over 140 countries and, as of June 2025, maintained eight production sites across the US, Australia, China, Singapore, Malaysia, and France. To enhance resilience, ResMed Inc. opened a $30 million facility in Calabasas, California, earlier in 2025, effectively doubling its U.S. manufacturing and distribution footprint. The supply chain strategy focuses on proximity to customers, aiming to reach 90% of U.S. customers within two business days of delivery. Up to 60% of the company's global demand originates from the U.S..

Developing and maintaining cloud-connected digital health platforms forms a significant part of ResMed Inc.'s value proposition. The Residential Care Software (RCS) segment generated $641.4 million in net revenue for fiscal year 2025, a 10% increase year-over-year. This segment accounted for 12% of total revenue in the fourth quarter of fiscal year 2025. The AirView software ecosystem supports 28 million patients, connected via 26 million cloud-connected devices, accumulating 20 billion nights of sleep data.

Driving mask resupply and patient adherence programs directly impacts recurring revenue and patient outcomes. Revenues from Masks and other businesses grew 12% year over year in the US, Canada, and Latin America during the first quarter of fiscal year 2026, driven by resupply growth. Masks and other products represented 36% of the total sales mix in Q4 FY2025. The ResMed ReSupply™ program has a proven impact on adherence; a study of over 100,000 patients showed that those enrolled cut the rate of therapy termination in the first year in half. For one customer, implementing the solution led to a 42% increase in their resupply business.

Sales and marketing to Home Medical Equipment (HME) providers and direct-to-consumer activities are supported by significant operational spending. Selling, general, and administrative (SG&A) expenses for the full fiscal year 2025 amounted to $991.0 million. The SG&A expense ratio remained relatively stable, at 19.7% of revenue in Q4 FY2025 and 19.4% in Q1 FY2026. The increase in SG&A expenses in Q1 FY2026 was 7% on a constant currency basis, largely due to employee costs and marketing investments, including a recent global brand launch.

Here are some key financial metrics related to these activities for recent periods:

The company's focus areas within these activities include:

• Driving new product launches, such as the AirTouch N30i mask, which won two 2025 Red Dot Design Awards.
• Expanding U.S. manufacturing capacity with a new facility planned to be operational by 2027.
• Enhancing digital health with new myAir patient engagement features, including a Smartwatch App and Sleep Staging integration with Apple Health.
• Focusing on portfolio management within Residential Care Software, aiming to accelerate growth from mid-single-digit to sustainable high single-digit growth.

Finance: draft 13-week cash view by Friday.

ResMed Inc. (RMD) - Canvas Business Model: Key Resources

You're looking at the core assets that power ResMed Inc.'s market position as of late 2025. These aren't just abstract concepts; they are concrete, quantifiable advantages built over decades.

The patented cloud-connected devices are central. The AirSense 11 platform, for instance, is a key revenue driver, with devices overall accounting for 52% of ResMed's net revenues in Fiscal Year 2025. The company's full-year revenue for FY2025 reached $5.1 billion.

The proprietary software ecosystem is a massive resource. This includes platforms like AirView, Brightree, and MEDIFOX DAN. The Software as a Service (SaaS) segment, which encompasses these, represented 12% of total net revenue in the fourth quarter of FY2025. The AirView platform specifically monitors a huge base, with approximately 32 million patients as of Q3 FY2025.

ResMed's competitive moat is heavily fortified by its Intellectual Property (IP). The company protects its technology with approximately 9,711 global patents. This IP underpins the patented technology in devices like the AutoSet APAP machines.

The sheer scale of the connected ecosystem is a resource in itself. ResMed has amassed data from over 20 billion nights of respiratory medical data across its cloud platforms. Furthermore, the installed base includes 26 million to 29 million cloud-connected devices worldwide. Operationally, ResMed employs over 10,600 people and sells its products in more than 140 countries, supported by a manufacturing footprint including facilities in Sydney, Singapore, and Atlanta.

Here's a quick snapshot of the quantitative resources underpinning the business:

The value of the data resource is evident when you look at the financial outcomes it helps drive. For the full year 2025, non-GAAP diluted earnings per share reached $9.55.

The key digital assets driving recurring value include:

• AirView platform patient base: Approximately 32 million patients.
• myAir app adoption: More than double the rate of the prior AirSense 10 platform.
• Geographic Reach: Products sold in over 140 countries.
• Workforce Size: Over 10,600 employees.

The manufacturing and operational footprint, while less frequently updated with specific capacity numbers, is geographically diverse, spanning locations like Sydney, Singapore, and Atlanta, which helps mitigate single-region supply chain risk.

Finance: draft 13-week cash view by Friday.

ResMed Inc. (RMD) - Canvas Business Model: Value Propositions

You're looking at the core value ResMed Inc. delivers, which is all about connecting devices, data, and care outside the hospital walls. It's a powerful setup, especially when you see the numbers behind the digital push.

Integrated digital health ecosystem for remote patient monitoring

ResMed Inc. built an ecosystem that captures massive amounts of patient data for remote patient monitoring (RPM). This is where the scale really shows up; they are tracking care across 140 countries. The AirView software platform now supports approximately 32 million patients. Furthermore, the company has more than 29 million cloud-connectable devices sending data back to the cloud. This connectivity means they have aggregated over 22 billion nights of respiratory medical data for analysis. To further streamline the diagnostic side of this ecosystem, ResMed acquired VirtuOx in 2025 to enhance at-home diagnosis for sleep, respiratory, and cardiac conditions.

Improved patient adherence and clinical outcomes for chronic diseases

The digital tools are designed to directly impact how patients use their therapy, which translates to better health. For instance, patients using the myAir application show an average usage time of 46 minutes longer per night compared to patients not using it. This adherence focus also shows up in new patient pathways; data presented in 2025 indicated that patients prescribed GLP-1 drugs were 10.8% more likely to start Positive Airway Pressure (PAP) therapy. For those already on therapy, the same group showed higher resupply rates, being 3.1 percentage points higher at one year and 5.2 percentage points higher at two years post-setup.

Reduced overall healthcare costs for providers and payors

The value proposition here centers on the 'triple aim' of healthcare: improving quality, preventing disease progression, and lowering costs. Keeping patients managing chronic conditions at home instead of in a hospital setting is inherently less expensive. ResMed Inc.'s vision explicitly targets lower costs for consumers and healthcare systems across the 140 countries it serves. This focus on home-based care helps reduce the impact of chronic disease, which is a key driver for payor savings.

Premium, comfortable masks and quiet, small CPAP devices

The hardware remains central, with strong global demand for their devices and masks driving financial results. For the full fiscal year 2025, net revenue from the Sleep and Breathing Health business grew 10% year-over-year to $4,504.9 million. The AirSense 11 CPAP platform is a key revenue driver. In terms of patient experience, the company received dual Red Dot Product Design 2025 awards for the AirTouch N30i mask, which features a soft, breathable, fabric-wrapped frame. The overall market for these therapeutic devices, the leading segment in 2025, was valued at USD 9.7 billion.

Here's a quick look at the scale of ResMed Inc.'s operations as of late 2025:

Comprehensive software solutions for out-of-hospital care management

The software-as-a-service (SaaS) component is a significant growth area, supporting professionals managing care in the home. For the fourth quarter of fiscal year 2025, the Residential Care Software revenue showed continued organic growth, increasing by 9 percent on a constant currency basis. This contrasts with the 8 percent growth seen in the second quarter of fiscal year 2025. ResMed Inc. has an ambitious vision tied to this segment: to improve 250 million lives through out-of-hospital healthcare by the end of 2025.

You should note the growth in the software segment is a key part of the overall financial picture, which saw total revenue rise 10% in FY2025. Finance: draft 2026 budget assumptions for software segment growth by next Tuesday.

ResMed Inc. (RMD) - Canvas Business Model: Customer Relationships

You're looking at how ResMed Inc. (RMD) keeps its customers-both the patients using the devices and the providers selling and managing them-locked in. It's a mix of high-tech remote care and direct provider support, all aimed at long-term adherence and recurring sales.

Automated, remote patient monitoring via AirView platform

The core of the connected care relationship is the remote monitoring ecosystem. ResMed Inc. (RMD) uses its cloud-connected devices to feed data back for proactive management. As of the August 2025 10-K filing, the AirView platform was used to monitor over 28 million patients. This system allows healthcare professionals to identify issues quickly, often using a manage by exception feature, which is based on a similar tool in U-Sleep that reduced clinicians' patient management time by 59%. Studies show that for patients on cloud-connected devices via AirView, the likelihood of therapy termination decreased by over 50% after one year, based on data from approximately 100,000 patients.

The relationship is quantified by platform scale:

Dedicated sales and support teams for HME/DME providers

ResMed Inc. (RMD) supports its primary channel partners-Home Medical Equipment (HME) and Durable Medical Equipment (DME) providers-with dedicated resources. The company maintains a global footprint across more than 140 countries. To service these providers and the broader out-of-hospital care market, ResMed Inc. (RMD) had approximately 8.5K employees as of October 2025. The company uses both direct sales teams and distributors to maintain market coverage. The U.S. market penetration for their solutions exceeds 10%, while international markets are still under 10%, indicating a focus area for these relationship teams.

Digital self-service and educational content for end-users

For the end-user, the relationship is managed through digital engagement tools like the myAir app. This platform provides motivational data tracking and coaching to boost compliance. The scale of this direct-to-patient relationship is significant, with over 10 million patients registered on myAir as of the August 2025 10-K. This digital self-service component helps patients stay engaged, which is critical since myAir users use their devices an average of 46 minutes longer per night than other patients.

High-touch, consultative sales for Residential Care Software clients

The Software as a Service (SaaS) segment, which includes Residential Care Software solutions like Brightree, MatrixCare, and MEDIFOX DAN, relies on a more consultative sales approach to facility-based organizations, home health, and skilled nursing providers. This business unit is a key enabler for the overall strategy. The focus on this segment is yielding results, with Residential Care Software revenue showing organic growth of nearly 10% for the first half of fiscal year 2025, and growing by 9% on a constant currency basis in Q4 Fiscal Year 2025.

Long-term relationship focus driven by recurring resupply needs

The relationship is fundamentally long-term because of the ongoing need for consumables, like masks and accessories, which is the engine for recurring revenue. This focus is evident in the growth of the core Sleep and Respiratory Care business, where revenues from Masks and other businesses grew 12% year over year across the U.S., Canada, and Latin America in the first quarter of fiscal year 2026, reflecting continued growth in resupply and new patient setups. The company's overall FY2025 revenue reached $5.15 billion, with the recurring nature of supplies being a key driver of financial stability.

• The company executed a stock buyback worth $125 million during the first half of FY2025, showing strong cash flow generation supporting shareholder returns.
• The company is focused on enhancing therapy performance and user experience through innovation, which directly supports long-term adherence and resupply cycles.

Finance: draft 13-week cash view by Friday.

ResMed Inc. (RMD) - Canvas Business Model: Channels

The Channels block for ResMed Inc. details how the company delivers its value propositions-sleep and breathing health devices, masks, and out-of-hospital software-to its diverse customer segments.

Global network of Durable Medical Equipment (DME) providers

ResMed Inc. relies heavily on established healthcare infrastructure for device and mask distribution. In many geographies, the channel involves selling products directly to Home Medical Equipment (HME) providers or hospitals, which then dispense the products to patients. This segment faces consolidation, as HME providers, DME suppliers, and residential health providers are consolidating, potentially leading to greater concentration of purchasing power among these channel partners.

For fiscal year 2025, total Net Revenue for ResMed Inc. reached $5,146.3 million, a 10% increase compared to fiscal year 2024. The segment encompassing masks and other products, which heavily flows through these provider channels, generated $1,839.7 million for the year ended June 30, 2025.

In specific markets like Germany, Australia, New Zealand, and South Korea, ResMed Inc. bypasses some of the traditional DME/HME intermediary role by operating home healthcare businesses, providing products and services directly to patients via a vertically integrated network.

Direct sales force to hospitals and sleep labs

A dedicated employee sales organization supports the distribution of certain product lines, particularly the Residential Care Software segment. The company also directly engages with clinical settings. For instance, the launch of the AirSense 11 version of VPAP Tx, a sleep lab testing and titration platform, indicates continued direct channel focus toward specialized clinical environments.

The overall revenue contribution from Devices was 52% of total revenue in the third quarter of fiscal year 2025, while Masks and other products accounted for 35%.

Residential Care Software direct sales to care facilities

The Residential Care Software (RCS) business, which includes solutions like MatrixCare, utilizes a direct sales approach to reach its primary customers: senior living, skilled nursing, life plan communities, home health, home care, and hospice agencies. MatrixCare management solutions are primarily sold through direct sales, while ancillary solutions use both direct sales and channel sellers. RCS revenue showed organic growth, increasing by 10% on a constant currency basis in the third quarter of fiscal year 2025.

E-commerce and direct-to-consumer (DTC) for mask resupply

ResMed Inc. is actively reflecting growing direct-to-consumer engagement through its online presence. The resmed.com online store generated annual sales of $462.5 million in 2024, with a forecast of 5-10% growth for 2025. In September 2025 alone, the website recorded online sales of $41,492,993 with an average order value (AOV) ranging from $325 to $350.

The company is investing in its distribution footprint to support this channel, including opening a $30 million facility in Calabasas, California, earlier in 2025, which doubled its U.S. manufacturing and distribution capacity for items like mask resupply.

International distributors and partners in over 140 countries

ResMed Inc. has a broad global reach, marketing products in most major countries across combined Europe, Asia, and other geographies. The company operates in over 140 countries.

The international channel strategy involves a combination of a direct sales force and independent distributors selected based on their knowledge of respiratory medicine. The company maintains wholly owned subsidiaries in numerous key international markets:

• Australia
• Austria
• China
• Czech Republic
• Denmark
• Finland
• France
• Germany
• India
• Ireland
• Japan
• Korea
• Netherlands
• New Zealand
• Norway
• Poland
• Sweden
• Switzerland
• Taiwan
• Thailand
• United Kingdom

Geographically, for the third quarter of fiscal year 2025, the U.S., Canada, and Latin America generated 58% of revenue, while Europe, Asia, and other regions contributed 29%.

The following table summarizes the revenue contribution by product type, which is indicative of the channels used for delivery:

The company is focused on achieving world-class delivery in the U.S., aiming to get to 90% of customers within two business days of delivery, supported by expanded domestic manufacturing and distribution.

ResMed Inc. (RMD) - Canvas Business Model: Customer Segments

You're looking at the core groups ResMed Inc. serves to generate its $5,146.3 million in net revenue for fiscal year 2025. It's a mix of direct patients, the providers who treat them, and the software users managing care outside the hospital. Honestly, understanding these buckets is key to seeing where the money comes from.

Patients with Obstructive Sleep Apnea (OSA) and COPD

This is the ultimate end-user base, and the scale of the need is massive. While ResMed Inc. generated $4,504.9 million from its Sleep and Breathing Health segment in FY2025, the potential patient pool continues to grow. For instance, a study led by ResMed Inc. researchers projects that by 2050, OSA will affect nearly 77 million U.S. adults. To put that in perspective, globally, OSA affects nearly 1 billion people, with more than 80% of cases going undiagnosed and untreated. For COPD, approximately 16 million adults in the U.S. are affected. The company's devices, which accounted for approximately 52% of net revenues in FY2025, directly serve these individuals.

Home Medical Equipment (HME)/Durable Medical Equipment (DME) providers

HME/DME providers are critical channel partners; they are typically the ones purchasing the therapy equipment from ResMed Inc. and then selling or renting it to the patient. The U.S. DME market itself was valued at USD 66.81 billion in 2024, showing the size of the ecosystem ResMed Inc. operates within. Many of these providers are consolidating, which means ResMed Inc. is dealing with fewer, but larger, purchasing entities. The company's mask systems and accessories, which made up about 36% of net revenue, are also distributed through this channel.

Here's a quick look at the revenue generated from the Sleep and Breathing Health segment that flows through these providers:

Sleep labs and pulmonologists (referring physicians)

These clinicians are essential for diagnosis and prescription, which initiates the entire patient journey for ResMed Inc.'s core products. The company directly educates physicians and sleep clinics about its offerings. The high number of undiagnosed OSA cases-over 80% globally-represents a significant opportunity for these referring physicians to drive new patient flow into the system.

Residential care facilities and home health agencies (SaaS users)

This segment is served by the Residential Care Software business, which brought in $641.4 million in net revenue for fiscal year 2025, representing about 12% of the total. These platforms, like Brightree, are sold to providers in post-acute care settings. The company has a large installed base leveraging its digital ecosystem, with more than 28 million patients on its AirView platform and over 8.3 million on the myAir platform (data from late 2024, but indicative of the scale).

The software customer base includes:

• Providers of business management software for HME in the U.S.
• Home health and hospice organizations using EHR platforms.
• Providers needing secure digital collaboration platforms for care teams.
• Organizations requiring scalable, cloud-hosted services.

Healthcare payors and government health systems

Payors, including both private insurers and government programs, are key decision-makers influencing which products are reimbursed and used. ResMed Inc.'s strategy explicitly aims to improve patient outcomes and lower overall healthcare costs, which directly appeals to these entities. The company's focus on digital health and remote monitoring is designed to provide data that helps manage chronic disease more efficiently, thereby reducing the financial burden on payors. In certain markets, like Germany and Korea, ResMed Inc. receives payments directly from these payors.

ResMed Inc. (RMD) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive ResMed Inc.'s operations as of late 2025. It's a mix of making the hardware, selling it globally, and investing heavily in the software side of the business.

Cost of Goods Sold (COGS) for devices and masks, impacting the non-GAAP gross margin of 60.0% in FY2025

The cost to produce the flow generators, masks, and accessories is managed to keep the gross margin high. For the full year ended June 30, 2025, the non-GAAP gross margin improved to 60.0%. This margin reflects efficiencies gained in production and distribution.

Selling, General, and Administrative (SG&A) expenses, projected at 18%-20% of revenue

SG&A covers the costs of running the global sales force, marketing, and general overhead. Management projected this expense category to fall between 18% and 20% of revenue for the remainder of FY2025. For the quarter ended June 30, 2025, the actual SG&A expense was 19.7 percent of revenue. That's a tight range for a company operating in over 140 countries.

Research and Development (R&D) expenses, projected at 6%-7% of revenue

ResMed Inc. maintains a commitment to reinvesting in innovation, particularly around connected care and digital health platforms. The company is committed to utilizing around 6% to 7% of its revenue for R&D. For context, R&D expenses as a percentage of revenue was reported at 6.3% in a prior period of FY2025.

Manufacturing and logistics costs for global distribution

These costs are a key component of COGS, and efficiencies here directly boost the gross margin. The improvement in gross margin to 59.9% in Q3 FY2025 and 60.0% for the full year was driven by manufacturing and logistics efficiencies. The company produces its devices in key locations:

• Sydney
• Singapore
• Atlanta

Further investment in this area includes the opening of a new manufacturing facility in Calabasas, California, which is set to double the U.S. manufacturing footprint.

Employee-related costs for a global workforce of over 10,000

Personnel costs are a significant driver within operating expenses, especially SG&A. The total number of employees for ResMed Inc. in 2025 was 10,600. Increases in SG&A expenses in Q3 FY2025 were mainly attributed to increases in employee-related costs and marketing expenses. Here's a look at the scale of the workforce:

ResMed Inc. (RMD) - Canvas Business Model: Revenue Streams

You're looking at the core ways ResMed Inc. brings in cash as of late 2025. The overall picture for the full fiscal year 2025 shows solid growth, with total revenue hitting $5.1 billion, marking a 10% increase year-over-year. On the profitability side, the Non-GAAP diluted earnings per share (EPS) for that same fiscal year landed at $9.55. That tells you the business is scaling well across its different revenue engines.

The real detail comes when you break down the revenue mix from the third quarter of fiscal year 2025, which totaled $1.29 billion. The streams are clearly segmented, showing a balanced approach between hardware sales and recurring service/software revenue. Here's the quick math on how those streams contributed during Q3 FY2025:

The largest piece, the sales of devices like CPAP and ventilators, accounted for 52% of that quarter's revenue. This is the upfront sale of the core medical hardware that patients need to start therapy. Still, the recurring revenue from masks and accessories is a very strong second pillar, making up 35% of the revenue base. This resupply component is key for patient adherence and predictable cash flow.

The fastest-growing component, though smallest in percentage terms, is the Software as a Service (SaaS) segment. This stream accounted for 13% of the Q3 FY2025 revenue. This revenue is driven by the continued adoption of their digital health ecosystem, which includes platforms like Brightree and MEDIFOX DAN. This segment represents the future focus for ResMed Inc. because it locks in customers and provides high-margin, predictable income.

The SaaS revenue is built on several key offerings:

• Residential Care Software (OOH RCS) growth.
• Continued organic growth in the software portfolio.
• Revenue from platforms like Brightree.
• Revenue from solutions such as MEDIFOX DAN.

Finance: draft 13-week cash view by Friday.