What ResMed Inc. told the SEC could break it.

Magnets made from rare earth materials are integral to assemblies in ResMed's products; China's Ministry of Commerce introduced license requirements and volume caps on these materials and finished magnet products (reservable/reinstatable at will), so disruption could force ResMed to absorb higher costs, qualify alternatives, redesign components, or delay deliveries.

“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. Recently, China's Ministry of Commerce introduced license requirements and volume caps covering these materials and certain finished magnet products, while reserving the right to suspend or reinstate them at any time.”

ResMed manufactures substantially all of its products outside the U.S. (main facilities in Tuas Singapore, Sydney Australia, Johor Bahru Malaysia, Suzhou China, Lyon France, plus California/Georgia) and sells ~36% of revenue outside the U.S., exposing it to international, currency, and trade risks.

“We manufacture substantially all of our products outside the U.S. and sell a significant portion of our products outside the U.S. Sales in combined Europe, Asia and other regions accounted for approximately 36% and 36% of our net revenues in the -28- Table of Contents PART I Item 1A RESMED INC. AND SUBSIDIARIES years ended June 30, 2025 and June 30, 2024, respectively.”

ResMed's demand depends heavily on third-party (government and commercial) reimbursement; the July 2025 One Big Beautiful Bill Act cuts federal Medicaid funding by $930B over ten years and, by widening the deficit, may trigger mandatory Medicare cuts and lower provider payments, plus ACA changes that could reduce enrollment.

“Most recently, on July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the Bill), which among other things, cuts federal Medicaid funding by $930 billion over ten years but provides reimbursement rate increases for providers. Notably, however, the Bill is projected to increase the federal deficit, which may lead to mandatory Medicare cuts and reduction in payments to providers in the future.”

ResMed has incurred field-safety-notification costs (~$14.3M combined in FY2024) to provide alternative masks to patients after updated contraindications for masks incorporating magnets, and to replace a certain component in Astral ventilation devices manufactured 2013–2019 — quality/recall exposure on installed product.

“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. 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.”