Company: ISRG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001035267-25-000109
Chunk: 101

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 2
Chunk 101
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 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 following table summarizes our Ion system placements and systems installed at customers under leasing arrangements:

Three Months Ended March 31,20252024Ion System Placements under Leasing ArrangementsFixed-payment operating lease arrangements14 26 Usage-based operating lease arrangements15 13 Total Ion system placements under operating lease arrangements29 39 % of Total Ion system placements59%56%Sales-type lease arrangements3 — Total Ion system placements under leasing arrangements32 39 Ion System Installed Base under Operating Leasing ArrangementsFixed-payment operating lease arrangements124 111 Usage-based operating lease arrangements210 133 Total Ion system installed base under operating leasing arrangements334 244 

Service Revenue

Service revenue increased by 16% to $363 million for the three months ended March 31, 2025, compared to $314 million for the three months ended March 31, 2024. The increase in service revenue was primarily driven by a larger installed base of systems producing service revenue.

Gross Profit

Product

Product gross profit for the three months ended March 31, 2025, increased by 19% to $1.22 billion, representing 64.5% of product revenue, compared to $1.02 billion, representing 64.8% of product revenue, for the three months ended March 31, 2024. The lower product gross profit margin for the three months ended