“We've also said that we don't have a management expectation to have our op margins above 40%.”

In context

“r. Two for me might both be for Jamie. I'll let you decide. Maybe first, the margins were once again really impressive, both gross margin and operating margin. Really the question is, how much more room do you feel like there is to go? We're just starting to see DaVinci 5 flow through, and I know there is definitely some depreciation benefit flowing through this year that probably wanes into next year and we're coming off a very heavy investment period. So I guess the question is, as we move forward, how should we think about the margin progression as you have these new products flowing through and the mix starts to evolve? Jamie Samath: Yes, maybe just some framing first. I think we've consistently said we look to have margins that are kind of top tier with respect to our med tech peers. We've also said that we don't have a management expectation to have our op margins above 40%. I know they were at that level back pre-COVID, but we don't have a management objective to be back at that level and that's just us balancing the rate of investment with what we think is the right level of profitability. We were 37% of margin this quarter, 36% year-to-date. What I would expect is for 2025 on the gross margin front just given the significant incremental depreciation that we've described, you should expect gross margins to be a little lower next year as we start to take on board that incremental depreciation expense. And you'll have a period as those new facilities come online where, in fact, we're period expensing that depreciation, because you're early in the phase of kind of ramping production in those facilities versus capitalizing them into inventory. I think what we'v”