Financial Analysis

Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Companys exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any material claims or been required to defend any action related to its indemnification obligations. As of March 31, 2026 and December 31, 2025, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities. Legal Contingencies From time to time, the Company may be involved in legal proceedings arising in the ordinary course of our business. The Company is not presently a party to any legal proceedings that, in the opinion of management, would have a material adverse effect on the business. Regardless of outcome, litigation can have an adverse impact on the Company due to defense and settlement costs, diversion of management resources, negative publicity and reputation harm, and other factors. A liability and related charge to earnings are recorded in the financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each accounting period and is based on all available information. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Long-Term Debt Term Loan Facility In October 2022, the Company entered into a loan and security agreement (as amended, the Agreement) with Canadian Imperial Bank of Commerce, or CIBC. The Agreement provides for a senior secured term loan facility in the aggregate principal amount of $52.0 million (the ""Term Loan Facility"") which was borrowed in full. The Term Loan Facility is scheduled to mature on the fifth anniversary of the closing date (the Maturity Date). The Company has the option to prepay the Term Loan Facility without any prepayment charge or fee. The loan borrowed under the Term Loan Facility bears interest at an annual rate equal to the secured overnight financing rate or SOFR (calculated based on an adjustment of .10%, .15% and .25%, respectively, for one-month, three-month or six-month term SOFR as of a specified date, subject to a floor of 1.5%) plus an applicable margin of 2.25%. The weighted-average interest rate for the periods ending March 31, 2026 and 2025 were 5.9%, and 6.6%, respectively. The obligations under the Agreement are secured by substantially all of the Company's assets, including its intellectual property and by a pledge all of the Company's equity interests in its U.S. subsidiaries and 65% of the Company's equity interests in its non-U.S. subsidiaries that are directly owned by the Company. In August 2025, the Company entered into a second amendment to the Agreement (the Second Amendment), which, among other things, modified the repayment t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The following is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2026 December 31, 2025 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 12,229 $ $ $ 12,229 $ 11,417 $ $ $ 11,417 Cash equivalents 233,412 233,412 275,086 275,086 Total cash and cash equivalents $ 245,641 $ $ $ 245,641 $ 286,503 $ $ $ 286,503 Cash equivalents consist primarily of money market deposit funds. The carrying value of the Companys long-term debt approximates fair value as the debt bears interest at variable SOFR rates at March 31, 2026 and December 31, 2025, which is observable at commonly quoted intervals for the full term of the loan, and therefore, is considered a Level 2 item in the fair value hierarchy. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Leases Facility Lease In December 2021, the Company entered into a lease for two existing buildings, comprising approximately 158,221 square feet of space, located in San Jose, California. The lease commenced in July 2022, and will continue for 122 months following thereafter, with two five year options to extend the term of the lease. Rent expense recognized under the lease, including additional rent charges for utilities, parking, maintenance, and real estate taxes, was $1.4 million and $1.6 million for the three months ended March 31, 2026 and 2025. Future minimum annual operating lease payments are as follows (in thousands): As of March 31, 2026 Amount 2026 $ 3,319 2027 4,808 2028 4,952 2029 5,101 2030 5,254 Thereafter 11,943 Total minimum payments 35,377 Less: amount representing interest/unamortized debt discount (9,045) Present value of future payments 26,332 Less: current portion (2,358) Non-current portion $ 23,974 As of March 31, 2026 and December 31, 2025, the Companys security deposit is in the form of, and recorded as, restricted cash. Lessor Information for Robotic Systems Contractual maturities of gross lease receivables as of March 31, 2026 are as follows (in thousands): Fiscal Year Amount 2026 $ 1,048 2027 1,274 2028 1,274 2029 1,137 2030 and thereafter 747 Total $ 5,480 March 31, December 31, 2026 2025 Gross receivables $ 5,480 $ 5,829 Unearned interest income (701) (1,028) Net investment in sales-type leases $ 4,779 $ 4,801 The components of income from sal …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 provides a practical expedient and, if applicable, an accounting policy election to simplify the measurement of credit losses for certain receivables and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued or made available for issuance. The Company adopted this ASU effective January 1, 2026. The ASU did not have a material impact to the Companys financial statements. Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASUs require public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue The following table presents revenue disaggregated by type and geography (in thousands): Three Months Ended March 31, 2026 2025 U.S. System sales and rentals $ 23,386 $ 18,687 Handpieces and other consumables 43,018 38,011 Service 5,614 3,596 Total U.S. revenue 72,018 60,294 Outside of U.S. System sales and rentals 3,853 3,853 Handpieces and other consumables 6,372 4,477 Service 889 538 Total outside of U.S. revenue 11,114 8,868 Total revenue $ 83,132 $ 69,162 During the three months ended March 31, 2026, the Company recognized $5.2 million of revenue, that was included in the deferred revenue balance as of December 31, 2025. During the three months ended March 31, 2025, the Company recognized $4.0 million of revenue, that was included in the deferred revenue balance as of December 31, 2024.

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Segment, Geographical, and Customer Concentration The Company operates as a single operating segment. The Companys chief operating decision maker, or CODM, its Chief Executive Officer, reviews the Companys forecast, as well as budget to actual financial information, as key inputs to making decisions on resource allocation and assessing the performance of the business. The CODM monitors budget versus actual results using income (loss) from operations, income (loss) before provision for income taxes, and net income (loss). Significant expenses within income from operations, as well as within net income (loss), include cost of goods sold, research and development expenses, and selling, general and administrative expenses, which are each separately presented on the Companys consolidated statements of operations. Other segment items within net income (loss) include interest expense, and interest and other income, net on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The Companys assets are primarily based in the United States. No customers accounted for more than 10% of revenue during the three months ended March 31, 2026 and 2025. No customer accounted for more than 10% of accounts receivable at March 31, 2026 and December 31, 2025. The following table presents revenue by significant geographical locations for the periods indicated: Three Months Ended March 31, 2026 2025 United States 87 % 87 % Outside the United States 13 % 13 % …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Basis of Preparation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and pursuant to the rules and regulations of the United States Securities and Exchange Commission or SEC. These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Unaudited Interim Financial Statements The accompanying balance sheet as of March 31, 2026, the statements of operations and comprehensive loss and cash flows for the three months ended March 31, 2026 and 2025, and the statements of stockholders equity as of March 31, 2026 and 2025, are unaudited. The financial data and other information disclosed in these notes to the financial statements related to March 31, 2026, and the three months ended March 31, 2026 and 2025, are also unaudited. The accompanying balance sheet as of December 31, 2025 has been derived from the audited consolidated financial statements included in the Companys Annual Report on Form 10-K (Annual Report) filed with the Securities and Exchange Commission. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing