Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 45

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 45
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 various factors, including system internet connectivity, hospital and distributor reporting behavior, inherent complexities in new agreements, changes in treatment modalities, and hospital and distributor reporting behavior. Such estimates and judgments are also susceptible to algorithmic or other technical errors. The relationship between these metrics and our revenues may fluctuate from period to period, and growth  rates for each metric may not correspond to an increase in revenue. These operational metrics supplement our financial results prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and should be considered alongside, not as a replacement for, revenue and other financial measures.

Intuitive System Leasing

Since 2013, we have entered into sales-type and fixed-payment operating lease arrangements directly with certain qualified customers as a way to offer customers flexibility in how they acquire systems and expand their robotic-assisted programs while leveraging our balance sheet. These leases generally have commercially competitive terms as compared to other third-party entities that offer equipment leasing. We also enter into usage-based operating lease arrangements with qualified customers that have committed da Vinci programs where we charge for the system and service as procedures are performed, offering greater predictability in costs for customers. We believe that all of these alternative financing structures have been effective and well-received, and we are willing to expand the proportion of any of these structures based on customer needs and demand.

We include systems placed under fixed-payment and usage-based operating lease arrangements, as well as sales-type lease arrangements, in our system placement and installed base disclosures. We exclude operating lease-related revenue, including usage-based revenue, and Ion system revenue from our da Vinci surgical system average selling price (“ASP”) computations.

The following table summarizes our system placements under leasing arrangements:

Year Ended December 31,202420232022Da Vinci System Placements under Leasing ArrangementsFixed-payment operating lease arrangements309 304 276 Usage-based operating lease arrangements467 355 216 Total da Vinci system placements under operating lease arrangements776 659 492 % of Total da Vinci system placements51 %48 %39 %Sales-type lease arrangements88 45 99 Total da Vinci system placements under leasing arrangements864 704 591 Ion System Placements under Leasing ArrangementsFixed-payment operating lease arrangements85 63 61 Usage-based operating lease arrangements68 54 40 Total Ion system placements under operating lease arrangements153 117 101 % of Total Ion system placements56 %55 %53 %Sales-type lease arrangements4 5 11