Core Insights - Align Technology, Inc. (ALGN) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.49, a 3.3% increase year-over-year, but missed the Zacks Consensus Estimate by 3.1% [1] - The company's revenues for the quarter were $1.01 billion, down 1.6% year-over-year, and also fell short of the Zacks Consensus Estimate by 4.6% [2] - Following the earnings announcement, ALGN's stock experienced a significant decline of 34.2% in after-market trading [1] Revenue Breakdown - ALGN operates in two reportable segments: Clear Aligner and Imaging Systems & CAD/CAM Services [3] - Revenues from the Clear Aligner segment decreased by 3.3% year-over-year to $804.6 million, despite a favorable foreign exchange impact of 0.6% [3] - Imaging Systems & CAD/CAM Services revenues increased by 5.6% to $207.8 million, also benefiting from a 0.5% favorable currency impact [3] Margin Analysis - Gross profit for the second quarter was $708.1 million, a decline of 2% year-over-year, with a gross margin of 69.9%, down 32 basis points [4] - Selling, General and Administrative (SG&A) expenses decreased by 0.8% to $448.7 million, while Research and Development (R&D) expenses rose by 4.6% to $96.4 million [4] - Operating income was $163 million, down 8.5% year-over-year, leading to an operating margin contraction of 122 basis points to 16.1% [4] Financial Position - At the end of the second quarter, ALGN had cash and cash equivalents of $901.2 million, up from $873 million at the end of the first quarter [5] - Net cash provided by operating activities was $181.3 million, compared to $188.5 million at the end of the second quarter of 2024 [5] Stock Repurchase Program - During the quarter, ALGN repurchased approximately 585.1 thousand shares at an average price of $164.14 per share, completing a $225 million open market repurchase initiated in the first quarter of 2025 [6] - This marked the completion of the entire $1 billion stock repurchase program approved in January 2023 [6] Future Outlook - For the full year 2025, ALGN 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] - For the third quarter, ALGN projects worldwide revenues between $965 million and $985 million, while the Zacks Consensus Estimate is $1.04 billion [11] Additional Insights - ALGN achieved a record number of teen cases, treating over 6 million teens and kids with the Invisalign system globally [14] - Despite the challenges, Clear Aligner volume grew in APAC and EMEA regions, driven by increased utilization among orthodontists and general practitioners [13]

View all Key Company Metrics for Align Technology here>>> Shares of Align Technology have returned +5.9% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Clear Aligner Shipments: 644 versus 672 estimated by two analysts on average. Net revenues- Imaging Systems and CAD/CAM Services: $207.83 million versus the three-analyst average estimate of $205.92 million. The repo ...

Company Performance - Align Technology reported quarterly earnings of $2.49 per share, missing the Zacks Consensus Estimate of $2.57 per share, but showing an increase from $2.41 per share a year ago [1] - The company posted revenues of $1.01 billion for the quarter, missing the Zacks Consensus Estimate by 4.61%, and down from $1.03 billion year-over-year [3] - The earnings surprise for the quarter was -3.11%, while the previous quarter saw a positive surprise of +7.58% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.73 on revenues of $1.04 billion, and for the current fiscal year, it is $10.33 on revenues of $4.16 billion [8] - The estimate revisions trend for Align Technology was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - Align Technology operates within the Medical - Dental Supplies industry, which is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - The performance of Align Technology's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [6][9]

Financial Data and Key Metrics Changes - Total Q2 revenues were $1,012,400,000, reflecting a 3.4% sequential increase but a 1.6% year-over-year decrease [6][16][24] - Clear aligner revenues for Q2 were $804,600,000, up 1% sequentially but down 3.3% year-over-year [16][17] - Overall gross margin for Q2 was 69.9%, up 0.5 points sequentially but down 0.3 points year-over-year [19][20] - Q2 operating income was $163,000,000, resulting in an operating margin of 16.1%, up 2.7 points sequentially and 1.7 points year-over-year [22][24] Business Line Data and Key Metrics Changes - Systems and services segment revenues for Q2 were $207,800,000, up 13.9% sequentially and 5.6% year-over-year, driven by higher scanner system revenue [9][18] - Clear aligner volumes increased slightly year-over-year in APAC and EMEA regions, but were offset by lower volumes in The Americas [10][12] - The average per case shipment price for clear aligners was $12.50, down $45 year-over-year due to discounts and a product mix shift [17][20] Market Data and Key Metrics Changes - In North America, clear aligner volumes were down slightly year-over-year, reflecting solid growth in the Latin America teen segment [11][12] - EMEA region saw year-over-year growth in clear aligner volume driven by increased utilization across both orthodontists and GP dentist channels [12] - APAC region experienced year-over-year growth in clear aligner volume, particularly in China [12][13] Company Strategy and Development Direction - The company plans to streamline operations and reallocate resources to align with long-term growth and profitability objectives, including reducing the global workforce and optimizing manufacturing [28][30] - The focus will be on innovation, efficiency, and execution, with investments in next-generation technology and treatment platforms [38][39] - The company aims to enhance customer engagement and improve case conversion through integrated consumer marketing programs [40][41] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty, including US tariff turmoil and less affordable financing options, impacted demand for clear aligners and new iTero scanning systems [8][9] - Despite challenges, consumer interest in Invisalign treatment remains strong, and the company is focused on driving engagement and effectiveness of commercial marketing programs [9][38] - The outlook for Q3 anticipates continued economic uncertainty, with expected revenues in the range of $965,000,000 to $985,000,000 [33][34] Other Important Information - The company repurchased approximately 585,100 shares at an average price of $164.14 per share, completing a $1,000,000,000 stock repurchase program [26][27] - Cash and cash equivalents as of June 30, 2025, were $901,200,000, up $28,100,000 sequentially [25][27] Q&A Session Summary Question: Can you talk about case conversion trends across the quarter? - Management noted that case conversion was uneven, particularly in June, which did not materialize as expected, primarily affecting North America and parts of Europe [44][46] Question: What are the levers being pulled regarding orthodontists using more brackets and wires? - Management indicated that orthodontists who have not fully committed to digital solutions may revert to using wires and brackets due to economic pressures and inventory considerations [46][48] Question: How does the company view its market position relative to competitors? - Management stated that competitive dynamics have not changed significantly, and while there are pressures from competitors, the company remains confident in its market position [77][78] Question: Can you provide insights on the restructuring and its impact on manufacturing? - Management explained that the restructuring aims to optimize manufacturing and reduce costs, with a focus on transitioning to more efficient technologies [68][69]

Financial Data and Key Metrics Changes - Total Q2 revenues were $1,012,400,000, reflecting a 3.4% sequential increase but a 1.6% year-over-year decrease [5][14] - Clear aligner revenues for Q2 were $804,600,000, up 1% sequentially but down 3.3% year-over-year, primarily due to lower average selling prices (ASPs) and discounts [14][15] - Overall gross margin for Q2 was 69.9%, up 0.5 points sequentially but down 0.3 points year-over-year [18][19] - Net income per diluted share for Q2 was $1.72, up $0.45 sequentially and up $0.43 year-over-year [24] Business Line Data and Key Metrics Changes - Systems and services segment revenues for Q2 were $207,800,000, up 13.9% sequentially and 5.6% year-over-year, driven by higher scanner system revenue [8][17] - Clear aligner volumes increased slightly year-over-year in the APAC and EMEA regions, but were offset by lower volumes in The Americas [9][10] - The iTero Lumina scanner sales were strong, but full system sales were lower than expected, impacting overall revenue [5][14] Market Data and Key Metrics Changes - In North America, clear aligner volumes were down slightly year-over-year, while Latin America saw solid growth in the teen segment [10][11] - EMEA region clear aligner volume grew year-over-year, driven by increased utilization across both orthodontists and GP dentist channels [11] - APAC region clear aligner volume also grew year-over-year, led by increased submitters in China [11] Company Strategy and Development Direction - The company plans to streamline operations and reallocate resources to align with long-term growth and profitability objectives, including reducing workforce and optimizing manufacturing [28][29] - Focus on innovation and new product cycles to drive engagement and effectiveness in commercial marketing programs [7][38] - The company is committed to enhancing customer trust and providing value-based innovation to remain competitive [37][40] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty, including US tariff turmoil and less affordable financing options, impacted demand for clear aligners and new iTero scanning systems [6][7] - Despite challenges, consumer interest in Invisalign treatment remains strong, and the company is focused on driving engagement and improving case conversion [36][39] - The outlook for Q3 anticipates continued economic uncertainty, with expected revenues in the range of $965,000,000 to $985,000,000 [32] Other Important Information - The company repurchased approximately 585,100 shares of common stock at an average price of $164.14 per share, completing a $1,000,000,000 stock repurchase program [26] - Clear aligner deferred revenues decreased year-over-year, indicating potential future revenue recognition challenges [17] Q&A Session Summary Question: Can you talk about case conversion trends across the quarter? - Management noted that case conversion was weaker than expected, particularly in June, which did not materialize as anticipated [44][45] Question: What levers can be pulled regarding the shift back to brackets and wires? - Management indicated that orthodontists not fully committed to digital solutions may revert to traditional methods due to economic pressures [46][47] Question: How does the company view its market share in the clear aligner market? - Management believes that competitive dynamics have not significantly changed, and they are not losing market share despite economic challenges [78] Question: What actions are being taken to stimulate demand? - The company is focusing on closer collaboration with doctors and enhancing marketing efforts to drive patient conversion [97]

Q2 2025 Financial Results Align Technology, Inc. July 30, 2025 ©2025 Align Technology Inc. All rights reserved. ©2025, Align Technology Inc. All rights reserved. Safe Harbor and Forward-Looking Statements This presentation, including the tables below, contains forward-looking statements, including statements of beliefs and expectations regarding our ability to successfully manage our business and operations, reduce costs, manage investments and pursue our strategic growth drivers, our expectations regarding ...

Exhibit 99.1 Align Technology Announces Second Quarter 2025 Results ALIGN TECHNOLOGY ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS TEMPE, Ariz., July 30, 2025 -- Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry, today reported financial results for the second quarter ("Q2'25"). Q2'25 total rev ...

Core Viewpoint - Align Technology, Inc. (ALGN) is expected to report its second-quarter 2025 results on July 30, with adjusted earnings per share (EPS) anticipated at $2.57, reflecting a 6.6% increase year-over-year, and revenues projected at $1.06 billion, indicating a 3.2% rise from the previous year [1][2][7]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for revenues is set at $1.06 billion, suggesting a 3.2% increase from the year-ago figure [2]. - The Zacks Consensus Estimate for earnings is pinned at $2.57 per share, implying a 6.6% rise from the year-ago recorded actuals [2]. - Estimates for second-quarter earnings have remained unchanged at $2.57 per share over the past 30 days [3]. Group 2: Business Performance Factors - The Clear Aligner business is expected to show strength in volumes for both teens and adult patients, particularly in the APAC and EMEA regions, driven by orthodontic and GP dentist channels [4]. - In the first quarter, Clear Aligner volume from DSO customers increased year-over-year, with significant growth in the U.S. DSO business, benefiting from partnerships with SmileDoctors and Heartland Dental [5]. - The approval of the Invisalign Palatal Expander System in China and the introduction of the Invisalign System with mandibular advancement are anticipated to contribute positively to second-quarter revenues [6]. Group 3: Systems & Services Business - The Systems & Services business is projected to experience growth due to increased scanner volumes and non-system revenues from iTero Lumina wand upgrades [7]. - The launch of next-generation iTero Lumina solutions and Align X-ray Insights is expected to have a positive impact on the company's second-quarter top line [9]. - The positive customer response to the iTero Lumina Scanner with ortho workflow is likely to have boosted revenues [8].

Group 1 - Align Technology (ALGN) has reached a significant support level and is considered a good investment pick from a technical perspective, having recently broken through the 200-day moving average, indicating a long-term bullish trend [1] - ALGN shares have increased by 9.1% over the past four weeks, and the company holds a Zacks Rank 2 (Buy), suggesting potential for continued price appreciation [2] - Positive earnings estimate revisions support the bullish outlook for ALGN, with no estimates decreasing in the past two months and two estimates increasing, alongside a rising consensus estimate [3]

From a technical perspective, Align Technology (ALGN) is looking like an interesting pick, as it just reached a key level of support. ALGN recently overtook the 20-day moving average, and this suggests a short-term bullish trend.The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.Like ...