Company: ISRG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001035267-25-000109
Chunk: 60

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 1
Chunk 60
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 165 Da Vinci System Installed Base under Operating Leasing ArrangementsFixed-payment operating lease arrangements1,308 1,223 Usage-based operating lease arrangements1,598 1,112 Total da Vinci system installed base under operating leasing arrangements2,906 2,335 

Operating lease revenue, including the contribution from Ion systems, was $195 million for the three months ended March 31, 2025, of which $112 million was variable lease revenue related to usage-based arrangements, compared to $148 million for the three months ended March 31, 2024, of which $70 million was variable lease revenue related to usage-based arrangements. Revenue from Lease Buyouts was $39 million for the three months ended March 31, 2025, compared to $29 million for the three months ended March 31, 2024. We expect revenue from Lease Buyouts to fluctuate period to period depending on the timing of when, and if, customers choose to exercise buyout options embedded in their leases.

The da Vinci surgical system ASP, excluding systems placed under fixed-payment or usage-based operating lease arrangements, Ion systems, and the impact of specified-price trade-in rights, was approximately $1.62 million for the three months ended March 31, 2025, compared to approximately $1.38 million for the three months ended March 31, 2024. The higher first quarter 2025 ASP was largely driven by favorable product mix, including from da Vinci 5 sales, and lower pricing discounts. ASP fluctuates from period to period based on geographic and product mix, product pricing, systems placed involving trade-ins, and changes in foreign exchange rates.

During the first quarter of 2025, 49 Ion systems were placed compared to 70 systems during the first quarter of 2024. By geography, 45 systems were placed in the U.S., three in Europe, and one in other markets during first quarter of 2025, compared to 66 systems placed in the U.S. and four in Europe during the first quarter of 2024. In the U.S., where we estimate that penetration of lung biopsy is approaching the halfway point, our customers’ focus has begun to shift from increasing 

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capacity to increasing utilization of their existing systems. As of March 31, 2025, we had an Ion system installed base of approximately 853 systems, compared to an installed base of approximately 604 systems as of March 31, 2024.

The