| Schedule of Revenue by Segment and Reconciling Items |
The table below presents a reconciliation of net revenues, significant expenses, net operating profit and depreciation and amortization by reportable segments for the years ended June 30, 2025, 2024 and 2023 (in thousands): | | | | | | | | | | | | | | | | | | | 2025 | | 2024 | | 2023 | | Net revenue by segment | | | | | | Sleep and Breathing Health | $ | 4,504,890 | | | $ | 4,101,172 | | | $ | 3,725,017 | | Residential Care Software | 641,437 | | | 584,125 | | | 497,976 | | | Total | $ | 5,146,327 | | | $ | 4,685,297 | | | $ | 4,222,993 | | | | | | | | Significant segment expenses | | | | | | Cost of Sales | | | | | | Sleep and Breathing Health | $ | 1,852,574 | | | $ | 1,782,023 | | | $ | 1,659,037 | | Residential Care Software | 195,043 | | | 190,186 | | | 174,718 | | | Total | $ | 2,047,617 | | | $ | 1,972,209 | | | $ | 1,833,755 | | | | | | | | Selling, general, and administrative | | | | | | Sleep and Breathing Health | $ | 491,591 | | | $ | 451,334 | | | $ | 443,467 | | Residential Care Software(1) | 143,435 | | | 143,999 | | | 120,483 | | | Total | $ | 635,026 | | | $ | 595,333 | | | $ | 563,950 | | | | | | | | Research and development | | | | | | Sleep and Breathing Health | $ | 196,340 | | | $ | 186,461 | | | $ | 175,393 | | Residential Care Software | 97,959 | | | 95,490 | | | 87,120 | | | Total | $ | 294,299 | | | $ | 281,951 | | | $ | 262,513 | | | | | | | | | Net operating profit by segment | | | | | | Sleep and Breathing Health | $ | 1,964,385 | | | $ | 1,681,354 | | | $ | 1,447,120 | | Residential Care Software | 205,000 | | | 154,450 | | | 115,655 | | | Total | $ | 2,169,385 | | | $ | 1,835,804 | | | $ | 1,562,775 | | | | | | | | | Reconciling items | | | | | | | Corporate costs | $ | 406,114 | | | $ | 357,937 | | | $ | 338,362 | | | Amortization of acquired intangible assets | 77,389 | | | 79,484 | | | 72,416 | | | Restructuring expenses | — | | | 64,228 | | | 9,177 | | | | | | | | Masks with magnets field safety notification expenses (2) | (1,512) | | | 6,351 | | | — | | Astral field safety notification expenses (3) | — | | | 7,911 | | | — | | | Acquisition related expenses | 2,031 | | | — | | | 10,949 | | | Interest (income) expense, net | (4,114) | | | 45,708 | | | 47,379 | | | (Gain) loss attributable to equity method investments | (3,644) | | | 1,848 | | | 7,265 | | | (Gain) loss on equity investments | 10,299 | | | 4,045 | | | (9,922) | | | Gain on insurance recoveries | — | | | — | | | (20,227) | | | Other, net | 5,256 | | | 3,494 | | | 5,712 | | | Income before income taxes | $ | 1,677,566 | | | $ | 1,264,798 | | | $ | 1,101,664 | | | | | | | | | Depreciation and amortization by segment | | | | | | Sleep and Breathing Health | $ | 110,543 | | | $ | 86,070 | | | $ | 82,544 | | Residential Care Software | 9,467 | | | 10,241 | | | 9,119 | | | Amortization of acquired intangible assets and corporate assets | 78,463 | | | 80,559 | | | 73,493 | | | Total | $ | 198,473 | | | $ | 176,870 | | | $ | 165,156 | |
(1) During the fiscal year ended June 30, 2024, we recorded $4.1 million of operating lease right-of-use asset impairments within our Residential Care Software segment. The impairments related to leases for office space and were recorded within selling, general and administrative expenses. (2) The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets. (3) The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.
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| Schedule of Revenue by Segment, Product, and Region |
The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2025, 2024 and 2023 (in thousands): | | | | | | | | | | | | | | | | | | | 2025 | | 2024 | | 2023 | | U.S., Canada and Latin America | | | | | | | Devices | $ | 1,654,413 | | | $ | 1,522,758 | | | $ | 1,444,361 | | | Masks and other | 1,343,101 | | | 1,199,798 | | | 1,039,026 | | | Total U.S., Canada and Latin America | $ | 2,997,514 | | | $ | 2,722,556 | | | $ | 2,483,387 | | | | | | | | | Combined Europe, Asia and other markets | | | | | | | Devices | $ | 1,010,760 | | | $ | 921,253 | | | $ | 826,341 | | | Masks and other | 496,616 | | | 457,363 | | | 415,289 | | | Total Combined Europe, Asia and other markets | $ | 1,507,376 | | | $ | 1,378,616 | | | $ | 1,241,630 | | | | | | | | | Global revenue | | | | | | | Devices | $ | 2,665,173 | | | $ | 2,444,011 | | | $ | 2,270,702 | | | Masks and other | 1,839,717 | | | 1,657,161 | | | 1,454,315 | | Total Sleep and Breathing Health | $ | 4,504,890 | | | $ | 4,101,172 | | | $ | 3,725,017 | | | | | | | | Residential Care Software | 641,437 | | | 584,125 | | | 497,976 | | | Total | $ | 5,146,327 | | | $ | 4,685,297 | | | $ | 4,222,993 | |
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