PresentationJeffrey JohnsonSenior Research Analyst All right. Good morning. Why don't we get started? My name is Jeff Johnson. I'm the senior medical technology analyst at Baird. Our next presentation this morning is from Align Technology, a leading manufacturer in the $6.5 billion global orthodontics market with Invisalign, a system of clear aligners designed -- well, we know what Invisalign is. I'm not going to read the whole description. We'll just stop it there. But with us today, we're happy to have Ch ...

Align Technology (NasdaqGS:ALGN) 2025 Conference September 10, 2025 11:25 AM ET Company ParticipantsJohn Morici - CFO & EVP - Global FinanceShirley Stacy - VP - Finance, Corporate & Investor CommunicationsConference Call ParticipantsJeffrey Johnson - Senior Research AnalystJeffrey JohnsonAll right. Good morning. Why don't we get started? My name is Jeff Johnson. I'm the Senior Medical Technology Analyst at Baird.Our next presentation this morning is from Align Technology, a leading manufacturer in the $6,50 ...

PresentationErin Wilson WrightEquity Analyst Hi. Good morning, everyone. My name is Erin wright, the health care services analyst at Morgan Stanley. Welcome to the second day of the Morgan Stanley Healthcare Conference. We're happy to have you here, bright and early this morning. So for more important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. And wit ...

Align Technology (NasdaqGS:ALGN) FY Conference September 09, 2025 07:00 AM ET Company ParticipantsJohn Morici - CFO & EVP - Global FinanceShirley Stacy - VP - Finance, Corporate & Investor CommunicationsConference Call ParticipantsErin Wright - Senior Equity Research Analyst - HealthcareErin WrightHi, good morning everyone. My name is Erin Wright, the Healthcare Services Analyst at Morgan Stanley. Welcome to the second day of the Morgan Stanley Healthcare Conference. We're happy to have you here bright and ...

Question-and-Answer SessionJohn MoriciCFO & Executive VP of Global Finance Well, the majority of the discussions were just on kind of how the quarter played out and what our expectations were versus what actually happened. I mean on a typical basis, you go from first quarter to second quarter, you see a sequential improvement in terms of volume. Most of the Western World, you have teens that go into treatment over that time period. You see some of that growth that you would expect to -- as they get into tha ...

Align Technology (ALGN) FY 2025 Conference September 03, 2025 10:15 AM ET Company ParticipantsJohn Morici - CFO & EVP - Global FinanceShirley Stacy - VP - Finance, Corporate & Investor CommunicationsConference Call ParticipantsVik Chopra - Equity Research AnalystVik ChopraOkay. Good morning, everyone. My name is Vic Chopra. I work on the Medical Devices team at Wells Fargo. Pleased to introduce management from Align Technologies for this session.Joining us from the company are John Morici, CFO and EVP, Glob ...

Financial Data and Key Metrics Changes - The company experienced sequential improvement in volume from Q1 to Q2, but the growth was not as strong as expected, particularly in the teen treatment segment [2][3] - Guidance for Q3 was based on June data, with expectations for a step-up in Q4, particularly in Europe and North America [4][5] - Margin guidance indicates a significant increase in Q4, driven by volume leverage and benefits from UK VAT adjustments [9][10] Business Line Data and Key Metrics Changes - The iTero segment is expected to see increased sales of full systems in Q4, alongside upgrades [5][34] - New product introductions, such as mandibular advancement and occlusal blocks, are anticipated to drive volume growth in Europe [6][10] - The company is adapting its product offerings to meet changing customer preferences, with a shift towards lower-cost options [20][23] Market Data and Key Metrics Changes - The clear aligner market is facing challenges in North America, but many international markets are experiencing double-digit growth [14][15] - DSOs are growing faster than individual practices, indicating a shift in market dynamics [40][41] - The teen segment represents a significant growth opportunity, with 75% of orthodontic case starts being in this demographic [42][43] Company Strategy and Development Direction - The company aims to leverage its diverse product portfolio to meet varying customer needs, including lower-priced options [20][23] - There is a focus on educating potential patients and their parents about the benefits of clear aligners [49][50] - The company is committed to innovation and protecting its intellectual property through legal actions against competitors [67][68] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of elevated interest rates and inflation on patient purchasing behavior, with interest rates being a key factor in elective dental procedures [11][12] - The company remains optimistic about its long-term growth potential, despite current macroeconomic challenges [58][62] - Future pricing strategies are expected to reflect a shift towards lower-priced products, impacting average selling prices [54][56] Other Important Information - The company is actively working to enhance its manufacturing capabilities to improve profitability [65][66] - There is an ongoing effort to drive conversion rates among orthodontists and dental practices [17][20] Q&A Session Summary Question: What investor feedback have you received since reporting Q2? - Discussions focused on the quarter's performance and expectations versus actual results, with a particular emphasis on the teen treatment segment [2][3] Question: How do you see the rest of the year playing out for Q3 and Q4? - Guidance for Q3 is based on June data, with expectations for a step-up in Q4 driven by seasonal trends and new product launches [4][5] Question: What is the impact of the macro environment on elective dental procedures? - Interest rates are seen as a significant factor affecting patient conversion rates, with lower rates potentially driving more patients to seek treatment [11][12] Question: How is the clear aligner market expected to recover? - While North America faces challenges, many international markets are experiencing strong growth, and the company is focused on driving conversion through education and product offerings [14][15] Question: What strategies are being deployed to overcome uneven patient case conversion? - The company is actively working with orthodontists to promote the benefits of clear aligners and provide financing options to patients [20][21] Question: What are the expectations for pricing in 2026? - Pricing is expected to trend down slightly due to a shift towards lower-priced products, but the company aims to maintain profitability through volume growth [54][56] Question: Can you provide an update on the patent infringement lawsuits? - The company is pursuing legal action against competitors for patent infringement, emphasizing the importance of protecting its intellectual property [67][68]

Core Viewpoint - Align Technology's recent earnings report showed mixed results, with adjusted earnings per share increasing but revenues missing estimates, leading to questions about future performance [2][3][9]. Financial Performance - Adjusted earnings per share for Q2 2025 were $2.49, a 3.3% increase year-over-year, but missed the Zacks Consensus Estimate by 3.1% [2] - GAAP earnings per share rose 43.4% to $1.72 compared to $1.28 in Q2 2024 [2] - Total revenues decreased 1.6% year-over-year to $1.01 billion, missing estimates by 4.6% [3] Segment Analysis - Clear Aligner segment revenues fell 3.3% year-over-year to $804.6 million, with a slight favorable foreign exchange impact of 0.6% [4] - Imaging Systems & CAD/CAM Services revenues increased by 5.6% to $207.8 million, also benefiting from a 0.5% favorable currency impact [4] Margin and Expenses - Gross profit for Q2 was $708.1 million, down 2% year-over-year, with a gross margin of 69.9%, a contraction of 32 basis points [5] - SG&A expenses decreased by 0.8% to $448.7 million, while R&D expenses increased by 4.6% to $96.4 million [5] - Operating income was $163 million, down 8.5% year-over-year, with an operating margin of 16.1%, a decrease of 122 basis points [5] Cash Position - At the end of Q2, cash and cash equivalents stood at $901.2 million, up from $873 million at the end of Q1 [6] - Net cash provided by operating activities was $181.3 million, compared to $188.5 million in Q2 2024 [6] Stock Repurchase - The company repurchased approximately 585.1 thousand shares at an average price of $164.14, completing a $225 million repurchase initiated in Q1 2025 [7] - This marked the completion of a $1 billion stock repurchase program approved in January 2023 [7] Future Outlook - For full-year 2025, Align Technology expects Clear Aligner revenue growth to be flat to slightly up from 2024, with Systems and Services revenues anticipated to grow faster [9] - The Zacks Consensus Estimate for 2025 revenues is $4.16 billion, indicating a 3.9% year-over-year growth [9] - The company expects a GAAP gross margin of 67-68% and an operating margin between 13% and 14% for 2025 [10] - For Q3 2025, worldwide revenues are projected to be between $965 million and $985 million, with the Zacks Consensus Estimate at $1.04 billion [10] Estimate Trends - Estimates for Align Technology have trended downward, with a consensus estimate shift of -15.84% over the past month [11][13] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [13] Industry Comparison - Align Technology operates within the Zacks Medical - Dental Supplies industry, where competitor West Pharmaceutical Services has seen a 2.6% gain over the past month [14] - West Pharmaceutical reported revenues of $766.5 million, a year-over-year increase of 9.2%, and has a Zacks Rank 1 (Strong Buy) [15][16]

Core Viewpoint - The company, Times Angel, reported a significant increase in revenue and net profit for the first half of 2025, but is facing a patent infringement lawsuit from Align Technology, the parent company of Invisalign, which could impact its international expansion plans [1][3][4]. Financial Performance - Times Angel achieved revenue of $161 million, a 33.1% increase year-over-year, and a net profit of $14 million, reflecting a 583.6% increase compared to the same period last year [1]. - This marks the first positive net profit growth in the mid-year results for Times Angel in three years [1]. Business Segmentation - The invisible orthodontic solutions contributed approximately 53.4% of the total revenue, generating $86 million, with a total case number growth of 47.7% to about 225,800 cases [2]. - In the Chinese market, the case number reached approximately 108,600, a 14% year-over-year increase, while the international market saw a case number growth of 103.5% to about 117,200 cases [2]. - The company reported a slight revenue increase of 0.7% in the mainland China market, totaling $89.7 million, with a segment operating profit of $17.19 million, a 52.1% increase [2]. Challenges and Legal Issues - Times Angel is currently facing a patent infringement lawsuit initiated by Align Technology, which claims that Times Angel's products and related software infringe on multiple patents related to orthodontic innovations [3]. - The lawsuit has been filed in key jurisdictions including the United States, Europe, and China, where Align has heavily invested in innovation and manufacturing [3]. - Times Angel has publicly denied the infringement claims, asserting that the competitor's allegations are baseless [4]. Strategic Adjustments - To counteract intense competition, Times Angel has implemented strategic price adjustments, which have successfully attracted more end customers, particularly in lower-tier markets and early treatment segments [2]. - The company plans to establish a manufacturing facility in the United States by 2025, indicating its ambition to expand its global footprint despite the ongoing legal challenges [4].

NEW YORK, Aug. 25, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Align Technology, Inc. ("Align" or the "Company") (NASDAQ: ALGN).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.  The investigation concerns whether Align and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action]On July 30, 2025, Ali ...