ResMed Inc.

Data and privacy · Data protection and privacy laws

Our use and disclosure of personal information, including health information, is subject to federal, state and foreign privacy, artificial intelligence, data, biometrics and security regulations, and our failure to comply with those regulations or to adequately secure the information we hold could result in significant liability, regulatory investigations, legal actions, or reputational harm.

Industry regulation · Fda drug and device approval

Product sales, introductions or modifications may be delayed or canceled as a result of FDA regulations or similar foreign regulations, which could cause our sales and profits to decline...Before we can market or sell a new medical device in the U.S., we must obtain FDA clearance or approval, which can be a lengthy and time-consuming process.

Legal and litigation · Litigation and legal proceedings

We are subject to potential professional services liability claims due to our recent acquisition of VirtuOx, which may exceed the scope and amount of our insurance coverage, which would expose us to liability for uninsured claims.

Tax and financial reporting · Tax compliance and changes in tax law

Income tax laws, regulations, and enforcement practices in various jurisdictions are evolving and, as a result, tax authorities are aggressively pursuing taxpayers. This may result in expense as well as management distraction, which may result in a material adverse effect on our results of operations, cash flows and financial position.

Supply chain and procurement · Supplier operation and dependance

Disruptions in the supply of components from our suppliers could result in a significant reduction in sales and profitability. We purchase configured components for our devices from various suppliers, including some who are single-source suppliers for us.

Supply chain and procurement · Raw material availability and cost volatility

In particular, export controls and other trade restrictions on rare earth materials from China could limit the availability and increase the cost of key inputs in our supply chain...Such controls, combined with other geopolitical tensions, retaliatory tariffs or logistics disruptions may result in our suppliers being impacted by supply shortages or sharp price increases for the magnets on which many components depend.

Core operations · Quality control and product defects

If our software products fail to perform properly or if we fail to develop enhancements, we could lose customers, become subject to service performance or warranty claims and our sales could decline...The applications underlying our software solutions products are inherently complex and may contain material defects or errors, which may cause disruptions in availability or other performance problems.

Strategic execution · Merger acquisition and divestiture risks

Failure to identify, execute, and integrate acquired businesses into our operations successfully, or challenges related to the Company's strategic initiatives, including divestitures...Our integration of the operations of acquired businesses, or a divestiture of part of our existing businesses, including the separation of our MatrixCare business, requires significant efforts.

Customer and revenue · Customer retention and subscription renewal

The success of our software offerings depends substantially on customers entering, renewing, upgrading and expanding their agreements for cloud services, term licenses, and maintenance and support agreements with us. Any decline in our customer renewals, upgrades or expansions could adversely affect our future operating results.

Customer and revenue · Reimbursement and pricing pressure healthcare or insurance

Healthcare reform or other cost-cutting measures, including changes in coverage policy for our products and services, by government or commercial payors may have a material adverse effect on our industry and our results of operations.

Customer and revenue · Changing customer preferences and behavior

The perceived demand for our products in light of the introduction of pharmaceuticals to treat obesity and OSA; and general economic conditions, including rising interest rates, inflationary pressures, recessions, consumer sentiment and demand.

Technology infrastructure · Cloud services and data center operations

If there are interruptions or performance problems associated with our technology or infrastructure, our existing software customers may experience service outages, and our new customers may experience delays in the deployment of our platforms...If a service provider fails to provide sufficient capacity to support our platforms or otherwise experiences service outages, such failure could interrupt our customers' access to our service.

Digital transformation and innovation · Artificial intelligence and automation

Our use of artificial intelligence in certain products, software solutions and business operations may expose us to operational, regulatory and reputational risks that could adversely affect our business, financial condition and results of operations.

Cybersecurity and data protection · Data privacy and protection regulations

Numerous foreign, federal and state laws and regulations govern collection, dissemination, use and confidentiality of personally identifiable health information, including (i) state privacy and confidentiality laws (including state laws requiring disclosure of breaches); (ii) HIPAA; and (iii) European and other foreign data protection laws, including the EU GDPR and the UK GDPR.

Cybersecurity and data protection · Third party data security and vendors

We cannot assure that our third-party service providers with access to our, or our customers, patients and/or employees' personally identifiable and other sensitive or confidential information will not experience actual or attempted security breaches, which could have a negative effect on our business.

Natural and catastrophic events · Climate change and environmental impact

The impacts of climate change may include physical risks (such as frequency and severity of extreme weather conditions), social and human effects (such as population dislocations or harm to health and well-being), compliance costs and transition risks (including due to regulatory changes), shifts in market trends.

Geopolitical and trade · Government funding and budget changes

On July 4, 2025, President Trump signed the budget reconciliation bill...which includes significant changes to the Medicaid program. Among other things, the Bill includes changes to Medicaid eligibility and enrollment requirements, provider taxes, and state-directed payment policies that are intended to reduce federal Medicaid spending over time.

Capital structure and performance · Financial performance volatility

Our quarterly operating results are subject to fluctuation for a variety of reasons...Fluctuations in our quarterly operating results may cause the market price of our common stock to fluctuate.

Capital structure and performance · Dividend policy and capital allocation

Our ability to sustain or grow dividends or repurchase shares is subject to board discretion...The board of directors reviews these matters periodically and may, at any time and for any reason, decide to decrease, suspend or discontinue dividends, reduce or pause share repurchases.

Market and investment · Asset valuation and impairment

Moreover, we have recorded intangible assets, including goodwill, in connection with our acquisitions. We evaluate goodwill for impairment annually and other acquired intangible assets whenever events or changes in circumstances indicate that their carrying values may not be recoverable.