“While we will continue to look for opportunities within SG&A to leverage as we grow, we would highlight that in 2025, we expect increased depreciation expenses given recent capital expenditures and higher legal expenses given ongoing litigation.”

In context

“, Georgia, and Mexicali. Given these activities, we expect elevated inventory levels during 2025. As we complete this cycle of manufacturing expansion that is driven by our strategy to operate at industrial scale, we anticipate lower levels of capital expenditures in 2025 and 2026 as compared to recent periods. Fourth quarter pro forma operating expenses increased 9% compared with last year, driven by increased headcount, higher variable compensation and increased legal expenses. Fourth quarter 2024 operating expenses included a $45 million contribution to the Intuitive Foundation, as compared to a $40 million contribution in Q4 of last year. Looking at operating expenses for the year, we delivered on planned leverage in SG&A, which improved by 180 basis points as a percentage of revenue. While we will continue to look for opportunities within SG&A to leverage as we grow, we would highlight that in 2025, we expect increased depreciation expenses given recent capital expenditures and higher legal expenses given ongoing litigation. Innovation continues to be critical to helping our customers make progress in the quintuple aim and therefore you should expect us to prioritize investments in R&D. Pro forma other income was $87.6 million for Q4, lower than $94.6 million in the prior quarter, primarily driven by FX remeasurement of the balance sheet. Our pro forma effective tax rate for the fourth quarter was 20.5%, a little lower than our expectations, reflecting net discrete benefits of $11 million related to statute of limitation expirations and other adjustments to certain tax items. Fourth quarter 2024 pro forma net income was $805 million, or $2.21 per share, compared with $574 million or $1.60 per share for the fourth quarter of last year. I will now summarize our GAAP results. GAAP net income was $686 million, or”