Company: ISRG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001035267-25-000192
Chunk: 129

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 2
Chunk 129
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 we anticipate that we will continue to be able to fund future growth through cash provided by our operations. We believe that our current cash, cash equivalents, and investment balances, together with income to be derived from our business, will be sufficient to meet our liquidity requirements for the foreseeable future. However, we may experience reduced cash flow from operations as a result of macroeconomic and geopolitical headwinds.

See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our Form 10-K for the fiscal year ended December 31, 2024, for discussion on the impact of interest rate risk and market risk on our investment portfolio.

Condensed Consolidated Cash Flow Data

The following table summarizes our cash flows (in millions):

Six Months Ended June 30,20252024Net cash provided by (used in):Operating activities$1,297.0 $885.9 Investing activities474.2 (595.6)Financing activities(383.6)3.3 Effect of exchange rates on cash, cash equivalents, and restricted cash(3.5)3.1 Net increase in cash, cash equivalents, and restricted cash$1,384.1 $296.7 

Operating Activities

For the six months ended June 30, 2025, net cash provided by operating activities of $1.30 billion was less than our net income of $1.37 billion, primarily due to the following factors:

1.Changes in operating assets and liabilities resulted in $710 million of cash used in operating activities during the six months ended June 30, 2025. Inventory, including the transfer of equipment from inventory to property, plant, and equipment, increased by $494 million, primarily to address the growth in our business, including the expansion of our leasing business, and to mitigate risks of disruption that could arise from global supply chain shortages. Refer to Note 4 to the Financial Statements for further details in the supplemental cash flow information. Prepaids and other assets increased by $142 million, primarily driven by tax payments and new and extended facility leases. Accrued compensation and employee benefits decreased by $115 million, primarily due to payments of 2024 incentive compensation and commissions and stock purchases related to our ESPP.  The unfavorable impact of these items on cash provided by operating activities was partially offset by an increase in accounts payable of $72 million, primarily related to increased inventory purchases, and an increase in deferred revenue of $49 million, primarily