Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 79

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 79
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 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):

Nine Months Ended September 30,20252024Net cash provided by (used in):Operating activities$2,138.0 $1,592.4 Investing activities875.2 (2,008.6)Financing activities(2,226.6)101.5 Effect of exchange rates on cash, cash equivalents, and restricted cash0.5 (9.1)Net increase (decrease) in cash, cash equivalents, and restricted cash$787.1 $(323.8)

Operating Activities

For the nine months ended September 30, 2025, net cash provided by operating activities of $2.14 billion exceeded our net income of $2.08 billion, primarily due to the following factors:

1.Our net income included non-cash charges of $1.08 billion, consisting primarily of share-based compensation of $585 million and depreciation expense and losses on the disposal of property, plant, and equipment of $446 million.

2.Changes in operating assets and liabilities resulted in $1.02 billion of cash used in operating activities during the nine months ended September 30, 2025. Inventory, including the transfer of equipment from inventory to property, plant, and equipment, increased by $810 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 $249 million, primarily driven by tax payments, an increase in lease incentive assets associated with operating leases, and new and extended facilities leases. Accrued compensation and employee benefits decreased by $80 million, primarily due to payments for 2024 incentive compensation 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