U.S.

Total Revenue

58ced26253870ac1cd471f5980dd1694799853b70beb3d70ff2fb13974860d60

Instruments and Accessories

Systems

Services

Operating Lease Revenue

Variable Lease Revenue

Lease Buyouts

5ae1d7fc842952f17708f2d5e258c7f155a6e9823d4eb1d0f47850a122d66db2

The decline in cash and cash equivalents in Q1 2022 was primarily driven by several factors. **Taxes paid related to equity awards** reduced the cash balance, and the company also executed **share repurchases**—buying 398,000 shares at an average price of **$268** per share, which cost **$107 million**.  **[ISRG_297146_5]**  Additionally, **capital expenditures** of **$95 million** for infrastructure investments contributed to the decrease, and **unrealized losses on investments** further impacted the balance. These reductions were somewhat offset by **$223 million** generated from operating activities, but overall, these actions led to a notably lower cash position in Q1 2022.  **[0001035267-22-000085_isrg-20220331.htm:58]** **[ISRG_297146_4]** 

Why was Cash and cash equivalents so low in Q1 2022?

The significant decline in ISRG’s long-term investments in Q4 2022 was driven primarily by **large-scale share repurchases**—with about **$2.6 billion** used for this purpose—which consumed a substantial portion of available cash and investments. In addition, the company made sizeable **capital expenditures** to enhance its manufacturing capabilities and global supply chain, and it also incurred **unrealized losses on interest-bearing debt securities classified as available-for-sale**. These factors collectively led to the marked reduction in long-term investments during the period.  **[0001035267-23-000019_isrg-20221231.htm:163]** **[0001035267-23-000083_isrg-20230310.htm:44]** **[0001035267-23-000019_isrg-20221231.htm:148]** **[ISRG_3141193_9]** 

What drove the significant decline in Long-term investments in Q4 2022?

Intuitive Surgical’s decrease in total assets in Q4 2022 was driven by several factors. The most significant contributor was a sharp reduction in **long-term investments**, which fell from **$4,415.5 million** in 2021 to **$2,623.6 million** in 2022—a drop of **$1,791.9 million**. This decrease was compounded by **share repurchases** amounting to **$2.6 billion** that reduced cash and investments. Additionally, while there was an increase in **property, plant, and equipment** (from **$1,876.4 million to $2,374.2 million**) and **inventory** (from **$587.1 million to $893.2 million**), the overall effect of these changes, together with a net decline in liquid assets from mixed movements in cash and short-term investments, contributed to the overall reduction in total assets.  **[0001035267-23-000019_isrg-20221231.htm:163]** **[0001035267-23-000083_isrg-20230310.htm:44]** **[ISRG_3141193_5]** 

What contributed to the decrease in Total assets in Q4 2022?

The **retained earnings** dropped significantly in Q4 2022 primarily because of the **repurchase and retirement of common stock** amounting to **$2,607.4 million** during 2022, which more than offset the positive impact of the **net income of $1,322.3 million** for the year.  **[0001035267-23-000083_isrg-20230310.htm:44]** **[0001035267-23-000019_isrg-20221231.htm:166]** 

Why did Retained earnings drop significantly in Q4 2022?

The documents only indicate that **Intuitive Surgical, Inc.'s total liabilities increased by $257.9 million from the end of 2021 to Q4 2022**, resulting in liabilities of **$1,861.4 million** by Q4 2022.  **[0001035267-23-000019_isrg-20221231.htm:163]**  **However, they do not provide specific factors or reasons for this significant increase**.  **[0001035267-23-000019_isrg-20221231.htm:163]** 

What factors led to the significant increase in Total liabilities in Q4 2022?

6c397c02f79a7d498c32ce861d146bc690910e0508951246884bb21cf075fba5

Operating Cash Flow was high in **Q4 2024** because of a combination of strong underlying profitability and favorable non‐cash adjustments. Specifically, **net income increased substantially**—helped by a boost in revenue from higher da Vinci system placements and improved operating margins—which drove the higher cash inflows. Additionally, **non-cash expenses like increased share‐based compensation and higher depreciation and loss on disposal of property, plant, and equipment** further bolstered the cash flow. Changes in working capital, such as more favorable adjustments in inventory, accounts receivable, and accrued compensation, also contributed to the significant rise in operating cash flow in that period.  **[0001035267-25-000017_isrg-20241231.htm:172]** **[0001035267-25-000017_isrg-20241231.htm:151]** **[0001035267-25-000017_isrg-20241231.htm:152]** 

Why was Operating Cash Flow so high in Q4 2024?

The **Operating Cash Flow** in **Q1 2024** was lower because the **net cash provided by operating activities** decreased from **$371.4 million** in Q1 2023 to **$265.4 million** in Q1 2024. This decrease was primarily due to **non-cash charges**—including share-based compensation of **$153 million** and depreciation expenses and losses on property, plant, and equipment totaling **$104 million**—which were part of the **net income** of **$547 million**. Additionally, there were significant **changes in operating assets and liabilities**, with **$540 million** in cash being used in these areas, driven by a decrease in accrued compensation and employee benefits and an increase in inventory to support business growth and mitigate supply chain risks.  **[0001035267-24-000137_isrg-20240331.htm:60]** **[0001035267-24-000137_isrg-20240331.htm:3]** 

Why was Operating Cash Flow lower in Q1 2024?

The significant increase in operating cash flow in FY 2024 was driven by several factors. **Higher net income**—rising from **$1,817.3 million in FY 2023** to **$2,337.5 million in FY 2024**—was a key contributor. Additionally, **increased non-cash charges**, including higher **share-based compensation** and **depreciation expenses**, boosted the cash flow. Changes in working capital, such as adjustments in **inventory**, **accounts receivable**, **prepaid and other assets**, and **other liabilities**, also played a role. Finally, **improved revenue performance** and operating efficiency reinforced this growth in operating cash flow.  **[0001035267-25-000017_isrg-20241231.htm:172]** **[0001035267-25-000017_isrg-20241231.htm:152]** **[0001035267-25-000017_isrg-20241231.htm:140]** 

What drove the significant increase in Operating Cash Flow in FY 2024?

Capital expenditures increased in Q2 2024 because the company significantly ramped up its investments to expand manufacturing and commercial capabilities. This included major spending on new facility construction, vertical integration of critical technologies, and capacity expansion—particularly to support the da Vinci 5 system during a period of planned hardware and software updates.  **[0001035267-24-000207_isrg-20240630.htm:71]** **[ISRG_3393436_4]** 

Why did capital expenditures increase in Q2 2024?

The sharp cash decline in Q3 2024 was primarily driven by a **significant outflow from investing activities**—specifically, increased capital expenditures and investments resulted in a large cash outflow that outweighed the stable operating cash generation and improved financing activities. Additionally, a **negative impact from exchange rate fluctuations** further contributed to the decrease.  **[0001035267-24-000247_isrg-20240930.htm:69]** 

What caused the sharp cash decline in Q3 2024?

d6ea11fc2e33ac88d06afc64f3a054811ce53154636657a5b5cb8e707cbf7279

Net income (USD, millions)

Depreciation and loss on disposal of property, plant, and equipment, net (USD, millions)

Amortization of intangible assets (USD, millions)

(Gain) loss on investments and (accretion) amortization of investment discounts and premiums, net (USD, millions)

Deferred income taxes (USD, millions)

Share-based compensation expense (USD, millions)

Amortization of contract acquisition assets (USD, millions)

Changes in Accounts receivable (USD, millions)

Changes in Inventory (USD, millions)

Changes in Prepaids and other assets (USD, millions)

Changes in Accounts payable (USD, millions)

Changes in Accrued compensation and employee benefits (USD, millions)

Changes in Deferred revenue (USD, millions)

Changes in Other liabilities (USD, millions)

Net cash provided by operating activities (USD, millions)

Purchases of investments (USD, millions)

Proceeds from sales of investments (USD, millions)

Proceeds from maturities of investments (USD, millions)

Purchase of property, plant, and equipment (USD, millions)

Net cash provided by (used in) investing activities (USD, millions)

Proceeds from issuance of common stock relating to employee stock plans (USD, millions)

Taxes paid related to net share settlement of equity awards (USD, millions)

Payment of deferred purchase consideration (USD, millions)

Net cash provided by (used in) financing activities (USD, millions)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (USD, millions)

24af65fbae53bf40f4f0a8541fe618faafa206a749874d64376e2278b49c21ce

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, net (USD, millions)

Inventory (USD, millions)

Prepaids and other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant, and equipment, net (USD, millions)

Long-term investments (USD, millions)

Deferred tax assets (USD, millions)

Intangible and other assets, net (USD, millions)

Goodwill (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Accrued compensation and employee benefits (USD, millions)

Deferred revenue (USD, millions)

Other accrued liabilities (USD, millions)

Total current liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total Intuitive Surgical, Inc. stockholders’ equity (USD, millions)

Noncontrolling interest in joint venture (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

3753e3a04cafc07b6d86d8872c46f2b2a755abb868f99a0a468638db86540e48

Product Revenue (USD, millions)

Service Revenue (USD, millions)

Total Revenue (USD, millions)

Product Cost of Revenue (USD, millions)

Service Cost of Revenue (USD, millions)

Total Cost of Revenue (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Operating Expenses (USD, millions)

Research and Development Operating Expenses (USD, millions)

Total Operating Expenses (USD, millions)

Income from Operations (USD, millions)

Interest and Other Income, Net (USD, millions)

Income Before Taxes (USD, millions)

Income Tax Expense (USD, millions)

Net Income (USD, millions)

Net Income Attributable to Noncontrolling Interest in Joint Venture (USD, millions)

Net Income Attributable to Intuitive Surgical, Inc. (USD, millions)

8d5e8c406a9fb628567484a2eb50310acf2a1253139371b8ef421fd926ef17a7

ce3e742332fcb2748bf618beb31c382aab9a955fd1cf36e3810b06eb9824b132

0d85bd709d115e0564815994e3dd3a452d83873a65b110ecd1cabe574406d13f

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

881b26934748cfac9aa1ff005109c0abd9e51d57ac7214b7bc374663157268f0

4414b83948f55608c1978e5590c7efc9aea62fb34accef543c634c9708b72f93

dcda9eefdba79d1dd5b5e8e7fc1367faf00922696513af15f74411f2cf8c52b7

7d41e1f4c70b1af7b1a35f56eb106b59f96b8577457b2f5f4a3e0997f249946b

INTUITIVE SURGICAL (ISRG)

Financials