Core Viewpoint - Align Technology reported quarterly results that exceeded Wall Street expectations and forecasted first-quarter revenue in line with estimates, driven by strong demand for its dental aligners [1] Financial Performance - The company achieved quarterly results above Wall Street expectations, indicating robust financial health and operational efficiency [1] - The forecast for first-quarter revenue aligns with market estimates, suggesting stability in future earnings [1] Market Demand - Strong demand for dental aligners has been a significant driver of the company's performance, highlighting a positive trend in consumer preferences towards orthodontic solutions [1]

Group 1 - Samsung Electronics opened its first "Samsung House" at Milan's historic Palazzo Serbelloni [1] - The initiative aims to raise the company's profile during the Milano Cortina Winter Olympics [1]

Financial Data and Key Metrics Changes - Q4 revenues reached a record $1.048 billion, up 5.3% year-over-year and 5.2% sequentially, while full year 2025 revenues were $4 billion, up 1% year-over-year [5][33] - Non-GAAP gross margin for Q4 was 72%, up 1.6 points sequentially and 1.2 points year-over-year, while GAAP gross margin was 65.3%, up 1.1 points sequentially but down 4.8 points year-over-year [40][42] - Q4 operating income was $155.3 million, resulting in an operating margin of 14.8%, up approximately 5.2 points sequentially and 0.3 points year-over-year [46] Business Line Data and Key Metrics Changes - Systems and services revenues were $790 million, up 2.7% year-over-year, while clear aligner revenues for fiscal 2025 were $3.2 billion, up 0.5% year-over-year with record clear aligner volumes of 2.6 million cases [6][7] - Q4 clear aligner revenues were $838 million, up 5.5% year-over-year and 4% sequentially, with a record volume of 677,000 cases, up 7.7% year-over-year [7][8] - Q4 systems and services revenues were $209.4 million, up 10.3% sequentially and 4.2% year-over-year, driven by higher scanner system sales [37][38] Market Data and Key Metrics Changes - Clear aligner volume growth in Q4 was driven by strength in EMEA, Latin America, and APAC, with stability in North America [8][15] - In EMEA, DSO performance showed double-digit growth year-over-year, while in Latin America, clear aligner volumes grew double digits, achieving record quarterly shipments [14][15] - In APAC, clear aligner volumes also grew double digits year-over-year, with significant contributions from China, India, and Korea [19] Company Strategy and Development Direction - The company aims to expand international adoption, increase orthodontic utilization, and strengthen consumer demand conversion through localized marketing [63][68] - The focus on DSOs as a strategic growth channel is emphasized, with partnerships driving digital dentistry adoption [10][12] - Investments in innovation, including AI-driven treatment planning and direct fabrication capabilities, are prioritized to enhance margins and operational efficiency [66][68] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, highlighting the importance of disciplined execution across regions and channels [67] - The company expects Q1 2026 worldwide revenues to be in the range of $1.01 billion to $1.03 billion, reflecting a year-over-year growth of 3%-5% [58] - For fiscal 2026, the company anticipates revenue growth of 3%-4% year-over-year, with clear aligner volume growth expected to be in the mid-single digits [60] Other Important Information - Cash and cash equivalents as of December 31, 2025, were $1.0949 billion, with $831.2 million remaining available for stock repurchases under the program [53][55] - The company repurchased approximately 0.7 million shares in Q4 2025 at an average price of $142.87 [54] Q&A Session Summary Question: Can you parse apart the improved volume performance? - Management noted stability in markets and effective execution, particularly with DSOs driving growth [72] Question: What are the assumptions for 2026 guidance regarding end markets? - Management expects markets to behave consistently with recent trends, focusing on active conversion strategies [83] Question: Can you discuss the growth of DSOs and their adoption curve? - Management indicated that DSOs are expanding and that there are still growth opportunities in this segment [86] Question: What is driving the improvement in the adult business? - Factors include DSO growth, financial credit availability, and effective patient conversion strategies [92] Question: How do you view ASPs for 2026? - Management expects ASPs to decline by 1%-2% year-over-year due to country and product mix [101]

Financial Data and Key Metrics Changes - Q4 revenues reached a record $1.048 billion, up 5.3% year-over-year and 5.2% sequentially [5] - For the full year 2025, total revenues were a record $4 billion, up 1% year-over-year [5] - Q4 overall gross margin was 65.3%, up 1.1 points sequentially but down 4.8 points year-over-year [40][41] - Q4 net income per diluted share was $1.89, up $1.11 sequentially and up $0.50 year-over-year [51] Business Line Data and Key Metrics Changes - Systems and services revenues were $790 million, up 2.7% year-over-year [6] - Clear aligner revenues for Q4 were $838 million, up 5.5% year-over-year and up 4% sequentially [7][34] - Fiscal 2025 clear aligner revenues were $3.2 billion, up 0.5% year-over-year on record clear aligner volumes of 2.6 million cases [6] Market Data and Key Metrics Changes - Q4 clear aligner volume was a record 677,000 cases, up 7.7% year-over-year [8] - In EMEA, clear aligner volumes grew double digits year-over-year, with significant growth in Iberia, the Nordics, and the UK [18] - In APAC, clear aligner volumes also grew double digits year-over-year, with record shipments from China, India, and Korea [19] Company Strategy and Development Direction - The company is focusing on expanding international adoption and increasing orthodontic utilization, particularly among teens and kids [62] - Strengthening consumer demand conversion through localized last-mile marketing is a key strategy [62] - The company aims to enhance its digital platform and maintain leadership in treatment planning and 3D printing manufacturing [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the macro environment while highlighting strong fundamentals and execution [61][66] - The company expects Q1 2026 worldwide revenues to be in the range of $1.01 billion to $1.03 billion, up 3%-5% year-over-year [57] - For fiscal 2026, the company anticipates worldwide revenue growth of 3%-4% year-over-year [59] Other Important Information - The company repurchased approximately 0.7 million shares of common stock at an average price of $142.87 during Q4 [53] - Cash and cash equivalents as of December 31, 2025, were $1.0949 billion, up $90.3 million sequentially [52] Q&A Session Summary Question: Can you parse apart the improved volume performance? - Management noted stability in markets and effective execution, particularly with DSOs driving growth [71] Question: What are the assumptions for 2026 guidance regarding end markets? - Management expects markets to behave consistently with recent trends and emphasizes active conversion strategies [82] Question: Can you discuss the growth of DSOs and their adoption curve? - Management indicated that DSOs are expanding and that there are good growth parameters in this business [86] Question: What is driving the improvement in the adult business? - Factors include DSO growth, financial credit support, and effective patient conversion strategies [91] Question: How do you view the ASPs for 2026? - Management expects ASPs to be down 1%-2% year-over-year due to country and product mix [101]

Financial Data and Key Metrics Changes - Q4 2025 revenues reached a record $1.048 billion, up 5.3% year-over-year and 5.2% sequentially [3][19] - Full year 2025 total revenues were $4 billion, up 1% year-over-year [3] - Non-GAAP operating margin for Q4 was 22.7%, the highest since 2021 [4] - Q4 overall gross margin was 65.3%, up 1.1 points sequentially but down 4.8 points year-over-year [23][24] Business Line Data and Key Metrics Changes - Systems and services revenues were $790 million, up 2.7% year-over-year [4] - Clear aligner revenues for Q4 were $838 million, up 5.5% year-over-year and up 4% sequentially [4][20] - Fiscal 2025 clear aligner revenues were $3.2 billion, up 0.5% year-over-year with record volumes of 2.6 million cases [4] Market Data and Key Metrics Changes - Q4 clear aligner volume was a record 677,000 cases, up 7.7% year-over-year [5] - Strong growth in EMEA, Latin America, and APAC, with stability in North America [5] - In North America, clear aligner volumes were up year-over-year, with double-digit growth in Latin America [9] Company Strategy and Development Direction - Focus on expanding international adoption and increasing orthodontic utilization, particularly among teens and kids [36][38] - Strengthening partnerships with dental service organizations (DSOs) to drive digital dentistry adoption [6][9] - Continued investment in innovation, including AI-driven treatment planning and direct fabrication capabilities [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, emphasizing the importance of disciplined execution across regions and channels [36][39] - The macro environment remains dynamic, but the company is encouraged by progress in key customer segments [36] - Management highlighted the need for sustained momentum in North America and improving conversion rates [38] Other Important Information - Cash and cash equivalents as of December 31, 2025, were $1.0949 billion, up $90.3 million sequentially [30] - The company repurchased approximately 0.7 million shares at an average price of $142.87 during Q4 2025 [31] Q&A Session Summary Question: Improved volume performance and its drivers - Management noted stability in markets and effective execution, particularly with DSOs driving growth [42][43] Question: Guidance assumptions for 2026 - Management expects markets to behave similarly to the second half of 2025, focusing on active conversion strategies [51][52] Question: DSO adoption curve and growth potential - Management indicated continued DSO penetration and growth opportunities, with many DSOs expanding globally [53][55] Question: Adult business performance and drivers - Management attributed improved adult business performance to DSOs, financial credit options, and effective patient conversion strategies [60][61] Question: North American retail business stability - Management reported improved stability in the North American retail business, aided by DSOs and a broader product portfolio [63][64] Question: ASP expectations for 2026 - Management anticipates ASPs to decline by 1%-2% year-over-year due to product and country mix [67][70] Question: Tax receipts and stimulus impact - Management did not plan around potential tax receipts but acknowledged them as possible upside [72]

Q4 and Full Year 2025 Financial Results Align Technology, Inc. February 4, 2026 ©2026, Align Technology Inc. All rights reserved. ©2026 Align Technology Inc. All rights reserved. 1 Q4 2025 Conference Call Details Conference Call Speakers: Webcast Archive: • Audio webcast archive will be available at http://investor.aligntech.com for one month Contacts Website: http://investor.aligntech.com Email: investorinfo@aligntech.com Tel: (602) 742-2000 Corporate and Investor Communications: ©2026 Align Technology Inc ...

Financial Performance - Q4'25 total revenues reached $1,047.6 million, up 5.2% sequentially and 5.3% year-over-year[4] - Q4'25 Clear Aligner revenues were $838.1 million, reflecting a 4.0% sequential increase and a 5.5% year-over-year increase[4] - FY2025 total revenues were $4.0 billion, with Clear Aligner revenues of $3.2 billion and Systems and Services revenues of $789.6 million, representing increases of 0.9%, 0.5%, and 2.7% year-over-year, respectively[3] - Net revenues for Q4 2025 were $1,047,561, compared to $995,219 in Q4 2024, marking an increase of approximately 5.3%[29] - GAAP net revenues for 2025 were $4,034,964 thousand, a slight increase from $3,999,012 thousand in 2024, representing a growth of 0.9%[35] - Clear Aligner net revenues for 2025 were $3,245,404 thousand, up from $3,230,122 thousand in 2024, indicating a growth of 0.5%[35] Profitability - Q4'25 gross profit was $683.6 million, resulting in a gross margin of 65.3%[5] - Q4'25 net income was $135.8 million, or $1.89 per diluted share, with a non-GAAP net income of $236.0 million, or $3.29 per diluted share[5] - Gross profit for the year ended December 31, 2025, was $2,711,013, down from $2,799,159 in 2024[29] - GAAP gross profit for Q4 2025 was $683,587 thousand, compared to $696,941 thousand in Q4 2024, a decrease of 1.9%[36] - The constant currency gross margin for Q4 2025 was 64.8%, down from 70.0% in Q4 2024, reflecting a decline of 5.2 percentage points[36] - Non-GAAP gross profit for the three months ended December 31, 2025, was $754,727, compared to $705,152 in 2024, with a non-GAAP gross margin of 72.0% versus 70.9%[40] Operational Metrics - Q4'25 Clear Aligner volumes totaled 676.9 thousand cases, up 4.5% sequentially and 7.7% year-over-year[2] - In FY2025, 935.8 thousand teens and kids started treatment with Invisalign clear aligners, up 7.8% year-over-year[6] - The number of Invisalign trained doctors in Q4 2025 was 87,710, slightly down from 85,685 in Q4 2024, a decrease of 2.4%[32] - The average Clear Aligner revenue per case shipment in Q4 2025 was $1,240, down from $1,265 in Q4 2024, a decline of 2.0%[32] Future Guidance - Q1'26 worldwide revenues are expected to be in the range of $1,010M to $1,030M, representing a year-over-year increase of 3% to 5%[17] - Q1'26 Clear Aligner volume is anticipated to grow in the mid-single digits year-over-year[17] - Q1'26 GAAP operating margin is projected to be between 12.4% and 12.8%, with a Non-GAAP operating margin of approximately 19.5%[17] - For fiscal year 2026, worldwide revenue growth is expected to be up 3% to 4% year-over-year[17] - The 2026 GAAP operating margin is expected to be slightly below 18.0%, with a 400 basis points improvement over 2025[17] Shareholder Actions - During Q4'25, the company repurchased approximately 0.7 million shares at an average price of $142.87, completing a $200 million repurchase plan[12] Strategic Initiatives - The company launched the Invisalign System with mandibular advancement in Thailand and the Philippines, addressing Class II correction[13] - The company aims to expand international adoption and increase orthodontic utilization, particularly among teens and kids, as part of its strategic priorities for 2026[10] Cash Flow and Assets - Net cash provided by operating activities decreased to $593,223 thousand in 2025 from $738,231 thousand in 2024, a decline of 19.7%[31] - Total assets increased to $6,233,693 thousand in 2025 from $6,214,600 thousand in 2024, reflecting a growth of 0.3%[30] - Total stockholders' equity increased to $4,049,147 thousand in 2025 from $3,851,985 thousand in 2024, a growth of 5.1%[30] - Total current liabilities decreased to $1,920,015 thousand in 2025 from $2,038,027 thousand in 2024, a reduction of 5.8%[30] Cost Structure and Expenses - The company initiated restructuring plans to reduce headcount and increase efficiencies, impacting operating expenses and overall cost structure[42] - Stock-based compensation for the year ended December 31, 2025, amounted to $185,870, up from $173,703 in 2024[42] - Stock-based compensation is projected to account for approximately 5.0% in Q1 2026 and 5.1% in fiscal 2026[45][46] - Amortization of intangibles is estimated to be around 0.5% for both Q1 2026 and fiscal 2026[45][46] - Depreciation on assets disposed of other than by sale is expected to be approximately 1.3% to 1.5% in Q1 2026 and 0.3% to 0.4% in fiscal 2026[45][46] Impairment and Losses - The company recorded an impairment loss related to a manufacturing facility classified as assets held for sale during Q3 2025[44] - An impairment loss for obsolete inventory was also recorded in Q3 2025[44] - Costs related to the disposal of certain manufacturing fixed assets were recorded in Q4 2025[44]

Group 1 - Financial giants have shown a bullish sentiment towards Align Technology, with 33% of traders being bullish and 11% bearish, indicating a positive outlook on the stock [1] - The predicted price range for Align Technology over the recent three months is between $160.0 and $180.0, suggesting significant investor interest in this price territory [2] - The mean open interest for Align Technology options trades is 111.0, with a total volume of 1,172.00, reflecting active trading and interest in the stock [3] Group 2 - An industry analyst has set an average target price of $200.0 for Align Technology, with a specific analyst from Mizuho maintaining an Outperform rating and the same target price [4] - The current trading volume for Align Technology is 425,991, with the stock price increasing by 1.5% to reach $159.41, indicating a slight upward trend [5] - Current RSI values suggest that Align Technology's stock is neutral, positioned between overbought and oversold conditions, which may indicate potential for future movement [5]

Core Insights - Align Technology (ALGN) is expected to report quarterly earnings of $2.99 per share, a 22.5% increase year-over-year, with revenues projected at $1.03 billion, reflecting a 3.9% year-over-year growth [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 1.1%, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics Projections - Analysts estimate 'Net revenues- Imaging Systems and CAD/CAM Services' to be $208.31 million, representing a 3.7% increase from the previous year [5] - 'Net revenues- Clear Aligner' are forecasted to reach $825.06 million, indicating a year-over-year change of 3.9% [5] - The consensus for 'Clear Aligner Shipments' is projected at 655, compared to 629 in the same quarter last year [5] Stock Performance - Align Technology shares have recorded a return of +2.2% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [6] - With a Zacks Rank of 2 (Buy), ALGN is expected to outperform the overall market in the upcoming period [6]

Core Insights - Align Technology, Inc. collaborates with the University of Bern on Switzerland's first Swiss Oral Health Study, aiming to gather comprehensive data on the oral health of the Swiss population [1][3][9] Group 1: Study Overview - The Swiss Oral Health Study is a large-scale epidemiological initiative targeting three age groups: 6–12, 35–44, and 65–74 years, with a goal to examine approximately 1,800 children by June 2026 and 1,650 adults by the end of 2027 across six cantons [3][4] - The study aims to identify trends in oral health, such as early-childhood caries, and establish a baseline for future public health strategies [4] Group 2: Technology Utilization - Align Technology is providing its iTero Lumina intraoral scanner, which will play a central role in data collection, enhancing diagnostic accuracy and patient experience [5][9] - The iTero Lumina scanner features advanced capabilities, including near-infrared imaging technology for real-time monitoring of dental conditions without harmful radiation [6][10] Group 3: Implementation and Impact - An Align-branded mobile dental van equipped with the iTero Lumina scanner will facilitate on-site examinations and digital scans in schools and communities across Switzerland [2][7] - The collaboration exemplifies the integration of industry and academia to drive innovation in oral health research, with the potential to improve patient outcomes significantly [8][9]