“Given the interest rate environment, we expect that the average interest yield on our cushion investments will decline going into 2025.”

In context

“and our growth. SG&A expenses continue to leverage as we benefit from prior investments that allow us to scale efficiently with growth. During the quarter we added approximately 617 employees, of which just over half were in our high volume I&A manufacturing facility in Mexicali to support procedure growth. On a year-to-date basis, through Q3 2024, pro forma operating margin was 36% of revenue, an increase of 184 basis points, compared to the same period in 2023 driven by higher gross margin and leverage of SG&A expenses. As a result of revenue growth and higher operating margins, on a year-to-date basis, pro forma EPS increased 25% from the prior year. Pro forma other income was $94.6 million for Q3, higher than $79.4 million in the prior quarter, primarily due to higher interest income. Given the interest rate environment, we expect that the average interest yield on our cushion investments will decline going into 2025. Our pro forma effective tax rate for the third quarter was 20.5%, reflecting discrete benefits of approximately $12 million, primarily relating to the expiration of statutory limitations for certain tax reserves and an adjustment to our deferred tax assets. Third quarter 2024 pro forma net income was $669 million or $1.84 per share, compared with $524 million or $1.46 per share for the third quarter of last year. I will now summarize our GAAP results. GAAP net income was $565 million or $1.56 per share for the third quarter of 2024, compared with GAAP net income of $416 million or $1.16 per share for the third quarter of 2023. The adjustments between pro forma and GAAP net income are outlined and quantified on our website and include excess tax benefits associated with employee equity pla”