Company: ISRG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001035267-25-000192
Chunk: 45

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 45
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 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 Total Ion system placements under leasing arrangements157 122 112 

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Operating lease revenue has grown at a faster rate than overall systems revenue and was $654 million, $501 million, and $377 million for the years ended December 31, 2024, 2023, and 2022, respectively, of which $338 million, $217 million, and $133 million, respectively, was variable lease revenue related to our usage-based operating lease arrangements. Variable lease revenue related to our usage-based operating lease arrangements has been included in our operating lease metrics herein.

Revenue for systems sold or placed under a sales-type lease arrangement is recognized upfront whereas revenue for fixed-payment operating lease arrangements is recognized on a straight-line basis over time. Therefore, in a period when the number of operating lease placements increases as a proportion of total system placements, total systems revenue is reduced, which can create volatility in the systems revenue recognized in any given period. We generally set fixed-payment and usage-based operating lease arrangements’ pricing at a modest premium relative to purchased systems reflecting the time