Company: ISRG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001035267-25-000192
Chunk: 74

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 74
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 profit margin for the three months ended June 30, 2025, was primarily driven by incremental fixed costs, 

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including depreciation expense, higher costs associated with the phased launch of our da Vinci 5 surgical system, and new tariffs, partially offset by lower logistics costs.

Service gross profit for the six months ended June 30, 2025, increased by 12% to $493 million, representing 65.4% of service revenue, compared to $442 million, representing 70.1% of service revenue, for the six months ended June 30, 2024. The higher service gross profit for the six months ended June 30, 2025, was primarily driven by higher service revenue, reflecting a larger installed base of da Vinci surgical systems, and a lower service gross profit margin. The lower service gross profit margin for the six months ended June 30, 2025, was primarily driven by an unfavorable repair mix, higher costs associated with the phased launch of our da Vinci 5 surgical system, incremental fixed costs, including depreciation expense, and new tariffs, partially offset by lower logistics costs.

Service gross profit for the three and six months ended June 30, 2025, included share-based compensation expense of $8.6 million and $16.8 million, respectively, compared with $7.6 million and $14.6 million for the three and six months ended June 30, 2024, respectively. Service gross profit for the three and six months ended June 30, 2025, included intangible assets amortization expense of $0.2 million and $0.4 million, respectively, compared with $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses include costs for sales, marketing, and administrative personnel, sales and marketing activities, trade show expenses, legal expenses, regulatory fees, and general corporate expenses.

Selling, general, and administrative expenses for the three months ended June 30, 2025, increased by 7% to $561 million, compared to $525 million for the three months ended June 30, 2024. The increase in selling, general, and administrative expenses for the three months ended June 30, 2025, was primarily driven by higher headcount and personnel-related expenses, including share-based compensation expense as well as higher variable compensation,