v3.26.1
Segment Information
 12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We have two operating segments, which are the Sleep and Breathing Health segment and the Residential Care Software segment. The identification of operating segments is based on our internal organizational structure and the information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker (CODM). Our CODM evaluates segment performance and makes resource allocation decisions based on net revenue and net operating profit. Impacts to segment net operating profit are referenced by our CODM when deciding to enter new markets, launch new products, reinvest profits, acquire or otherwise invest in other companies, and for monitoring actual results against forecasts. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Segment net sales and segment net operating profit do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed.
Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, restructuring expenses, field safety notification expenses, acquisition and portfolio review related expenses, net interest expense (income), gains and losses attributable to equity method investments, gains and losses on equity investments, including gains associated with the fair value of previously held equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our CODM evaluate the operating segments using discrete asset information.
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, 2026, 2025 and 2024 (in thousands):
202620252024
Net revenue by segment
Sleep and Breathing Health
$4,977,630 $4,504,890 $4,101,172 
Residential Care Software
675,813 641,437 584,125 
Total$5,653,443 $5,146,327 $4,685,297 
Significant segment expenses
Cost of sales
Sleep and Breathing Health
$1,953,178 $1,852,574 $1,782,023 
Residential Care Software
207,318 195,043 190,186 
Total$2,160,496 $2,047,617 $1,972,209 
Research and development
Sleep and Breathing Health
$228,152 $196,340 $186,461 
Residential Care Software
103,539 97,959 95,490 
Total$331,691 $294,299 $281,951 
Selling, general, and administrative
Sleep and Breathing Health
$591,802 $491,591 $451,334 
Residential Care Software(1)
147,225 143,435 143,999 
Total$739,027 $635,026 $595,333 
Net operating profit by segment
Sleep and Breathing Health
$2,204,498 $1,964,385 $1,681,354 
Residential Care Software
217,731 205,000 154,450 
Total$2,422,229 $2,169,385 $1,835,804 
Reconciling items
Corporate costs$383,153 $406,114 $357,937 
Amortization of acquired intangible assets77,245 77,389 79,484 
Restructuring expenses21,745 — 64,228 
Masks with magnets field safety notification expenses (2)
— (1,512)6,351 
Astral field safety notification expenses (3)
41,885 — 7,911 
Acquisition and portfolio review related expenses11,486 2,031 — 
Interest (income) expense, net(49,914)(4,114)45,708 
(Gain) loss attributable to equity method investments(6,955)(3,644)1,848 
(Gain) loss on equity investments15,014 10,299 4,045 
Other, net9,154 5,256 3,494 
Income before income taxes$1,919,416 $1,677,566 $1,264,798 
Depreciation and amortization by segment
Sleep and Breathing Health
$112,224 $110,543 $86,070 
Residential Care Software
10,794 9,467 10,241 
Amortization of acquired intangible assets and corporate assets78,324 78,463 80,559 
Total$201,342 $198,473 $176,870 
(1)     During the fiscal years ended June 30, 2026 and June 30, 2024, we recorded $3 million and $4 million of operating lease right-of-use asset impairments within our Residential Care Software segment, respectively. 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 a certain component in some of our Astral devices.
The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2026, 2025 and 2024 (in thousands):
202620252024
Americas (A)
Devices$1,767,741 $1,654,413 $1,522,758 
Masks and other1,513,283 1,343,101 1,199,798 
Total Americas (A)
$3,281,024 $2,997,514 $2,722,556 
Rest of World (A)
Devices$1,124,487 $1,010,760 $921,253 
Masks and other572,119 496,616 457,363 
Total Rest of World (A)
$1,696,606 $1,507,376 $1,378,616 
Global revenue
Devices$2,892,228 $2,665,173 $2,444,011 
Masks and other2,085,402 1,839,717 1,657,161 
Total Sleep and Breathing Health
$4,977,630 $4,504,890 $4,101,172 
Residential Care Software
675,813 641,437 584,125 
Total$5,653,443 $5,146,327 $4,685,297 
(A) Historically we have presented our geographical split of revenue as “U.S., Canada, and Latin America” and “Combined Europe, Asia, and other markets”. Effective this quarter, this presentation has been renamed to Americas (formerly U.S., Canada, and Latin America) and Rest of World (formerly Combined Europe, Asia, and other markets). The methodology for attributing revenue to these geographies remains unchanged. Revenue from prior periods is consistent and comparable to previous reporting.
Revenue information by geographic area for the years ended June 30, 2026, 2025 and 2024 is summarized below (in thousands):
202620252024
United States$3,562,024 $3,285,581 $2,980,053 
Rest of the World2,091,419 1,860,746 1,705,244 
Total$5,653,443 $5,146,327 $4,685,297 
Long-lived assets of geographic areas are those assets used in our operations in each geographical area, and excludes goodwill, other intangible assets, and deferred tax assets. Long-lived assets by geographic area as of June 30, 2026 and 2025 is summarized below (in thousands):
20262025
United States$246,602 $240,326 
Australia121,377 135,327 
Singapore57,695 25,409 
Rest of the World309,322 317,225 
Total$734,996 $718,287