Q1 2025 Financial Performance - Total revenues reached $979.3 million, a decrease of 1.6% quarter-over-quarter and 1.8% year-over-year[31] - Clear Aligner revenues totaled $796.8 million, up 0.3% quarter-over-quarter but down 2.5% year-over-year[31] - Systems and Services revenues amounted to $182.4 million, down 9.2% quarter-over-quarter but up 1.2% year-over-year[31] - GAAP operating margin was 13.4%, a decrease of 1.1 percentage points quarter-over-quarter and 2.1 percentage points year-over-year[31] Clear Aligner Segment - Worldwide Clear Aligner shipments were 642.3K, an increase of 2.2% quarter-over-quarter and 6.2% year-over-year[33] - Clear Aligner average per case shipment price was $1,240, a decrease of $25 sequentially and $110 year-over-year[96] - Teen and Kids Clear Aligner shipments increased 4.5% quarter-over-quarter and 13.3% year-over-year, reaching approximately 226K[49] Systems and Services Segment - Systems and Services revenues increased 1.2% year-over-year[68] - CAD/CAM and Services revenues represent 49.8% of the Systems and Services business[70] Financial Outlook - The company expects Q2 2025 worldwide revenues to be in the range of $1.05 billion to $1.07 billion[125] - The company expects 2025 year-over-year revenue growth to be in the range of 3.5% to 5.5% at current spot rates[125]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $979.3 million, down 1.6% sequentially and down 1.8% year over year [18] - Q1 clear aligner revenues were $796.8 million, up 0.3% sequentially but down 2.5% year over year [18][20] - Q1 systems and services revenue was $182.4 million, down 9.2% sequentially but up 1.2% year over year [21] - Overall gross margin for Q1 was 69.5%, down 0.6 points sequentially and down 0.5 points year over year [22] - Q1 net income per diluted share was $1.27, down $0.13 sequentially and year over year [26][27] Business Line Data and Key Metrics Changes - Clear aligner volumes grew 6.2% year over year, with significant growth in the EMEA and APAC regions [6][7] - Systems and services revenues were slightly up year over year due to the adoption of the iTero Lumina scanner platform [6][21] - Q1 clear aligner average per case shipment price was $12.40, down $110 year over year due to product mix shifts and discounts [20] Market Data and Key Metrics Changes - North America saw a year-over-year increase in clear aligner volumes, driven by the adoption of Invisalign First and other products [7][9] - EMEA region volumes reflected strong demand across both orthodontic and GP channels [8] - APAC region growth was led by increased utilization in both ortho and GP channels across various markets [8] Company Strategy and Development Direction - The company is focused on innovation in orthodontics, including the launch of the Invisalign Pallet Expander and the iTero Lumina scanner with restorative capabilities [10][12] - Align Technology aims to enhance clinical outcomes and patient experiences through its digital platform and new product offerings [13][40] - The company is committed to expanding its market presence and improving operational efficiencies to drive growth [39][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the clear aligner business despite global economic uncertainties [39] - The company anticipates Q2 2025 revenues to be in the range of $1.05 billion to $1.07 billion, indicating sequential growth [36] - Management highlighted the importance of digital workflows and the role of dental service organizations (DSOs) in driving growth [13][39] Other Important Information - The company received a favorable ruling regarding VAT applicability in the UK, which could enhance patient access to oral health [30] - Align Technology is actively managing tariff impacts through strategic production locations and supply chain adjustments [33][34] Q&A Session Summary Question: Strength in the quarter despite consumer sentiment decline - Management noted good volume growth across regions, particularly in North America, and highlighted the positive impact of new product launches [46][48] Question: Plans to mitigate tariff impacts - Management indicated confidence in their current production locations and supply chain strategies to mitigate tariff impacts [51][53] Question: Insights for the upcoming investor day - Management plans to provide a comprehensive overview of the company's technology and commercial positioning [55][56] Question: Clarification on 2025 revenue guidance and ASPs - Management confirmed that ASPs are expected to remain under pressure due to product mix shifts, but overall revenue growth is anticipated [58][60] Question: Performance of the teen segment - Management highlighted strong growth in the teen segment, driven by new products and effective distribution strategies [62][64] Question: ASP impacts from VAT and FX - Management discussed the potential for ASP improvements if the VAT situation in the UK is resolved favorably and noted that FX could become a positive contributor going forward [71][75]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $979.3 million, down 1.6% sequentially and down 1.8% year over year [18] - Q1 clear aligner revenues were $796.8 million, up 0.3% sequentially but down 2.5% year over year [19] - Q1 systems and services revenue was $182.4 million, down 9.2% sequentially but up 1.2% year over year [20] - Overall gross margin for Q1 was 69.5%, down 0.6 points sequentially and down 0.5 points year over year [22] - Q1 net income per diluted share was $1.27, down $0.13 sequentially and year over year [26] Business Line Data and Key Metrics Changes - Clear aligner volumes grew 6.2% year over year, with significant growth in the EMEA and APAC regions, and North America [6] - Systems and services revenues were slightly up year over year due to the adoption of the iTero Lumina scanner platform [7] - Clear aligner average per case shipment price decreased to $12.40, down $110 year over year due to product mix shifts and discounts [19] Market Data and Key Metrics Changes - North America saw a year-over-year increase in clear aligner volumes, driven by the adoption of Invisalign First for teens and kids [7] - EMEA region volumes reflected strong demand across both orthodontic and GP channels [8] - APAC region growth was driven by increased utilization in both ortho and GP channels across various markets [9] Company Strategy and Development Direction - The company is focused on innovation in orthodontics, including the launch of the Invisalign Pallet Expander system and the iTero Lumina scanner with restorative capabilities [10][11] - Align Technology aims to enhance clinical outcomes and patient experiences through its digital platform and new product offerings [12] - The company is committed to expanding its market presence and improving practice efficiency through digital workflows [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the clear aligner business despite global economic uncertainties and potential headwinds from tariffs [40] - The company anticipates Q2 2025 revenues to be in the range of $1.05 billion to $1.07 billion, indicating sequential growth [36] - For fiscal 2025, Align expects clear aligner volume growth to be mid-single digits year over year, with systems and services revenues growing faster than clear aligner revenues [39] Other Important Information - The company received a favorable ruling regarding VAT applicability for clear aligner sales in the UK, which could enhance patient access to oral health [31] - Align Technology is actively managing its supply chain to mitigate potential tariff impacts, maintaining a strong global presence [34][35] Q&A Session Summary Question: Strength in the quarter despite consumer sentiment decline - Management noted good volume growth across regions, particularly in North America, APAC, and Europe, indicating a decoupling from consumer sentiment trends [46][48] Question: Plans to mitigate tariff impacts - Management stated they are well-positioned to handle tariff impacts through global supply lines and operational adjustments [50][52] Question: Insights for the upcoming investor day - Management indicated that the investor day will provide a comprehensive overview of the company's portfolio and future positioning [56] Question: Clarification on 2025 revenue guidance - Management confirmed that the revenue guidance reflects a slight adjustment in ASP expectations, with clear aligner volumes expected to grow mid-single digits [58][60] Question: ASP dynamics and impacts from VAT - Management explained that the VAT impact from the UK could provide flexibility in pricing, potentially benefiting ASPs if the appeal does not proceed [72][74]

[Executive Summary & Q1'25 Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%2725%20Financial%20Highlights) Align Technology reported Q1'25 revenues of $979.3 million, impacted by FX, with growth in Clear Aligner volume and key operational milestones [Q1'25 Key Financial Metrics](index=1&type=section&id=Q1%2725%20Key%20Financial%20Metrics) Align Technology reported Q1'25 total revenues of $979.3 million, a slight decrease year-over-year, significantly impacted by unfavorable foreign exchange. Clear Aligner volume showed growth, especially in teens and growing patients, while Clear Aligner revenues saw a slight year-over-year decline. Imaging Systems and CAD/CAM Services revenues increased year-over-year | Metric | Q1'25 Value | Sequential Change | Year-over-Year Change | | :-------------------------------- | :---------- | :---------------- | :-------------------- | | Total Revenues | $979.3M | -1.6% | -1.8% | | Clear Aligner Revenues | $796.8M | +0.3% | -2.5% | | Clear Aligner Volume | 642.3K cases | +2.2% | +6.2% | | Teen & Growing Patient Aligner Volume | 225.8K cases | +4.5% | +13.3% | | Imaging Systems & CAD/CAM Services Revenues | $182.4M | -9.2% | +1.2% | | GAAP Operating Income | $131.1M | - | - | | GAAP Operating Margin | 13.4% | - | - | | Non-GAAP Operating Margin | 19.1% | -4.1 pts | -0.7 pts | | GAAP Diluted EPS | $1.27 | -$0.13 | -$0.13 | | Non-GAAP Diluted EPS | $2.13 | -$0.31 | -$0.01 | | Cash and Cash Equivalents | $873.0M | -$170.9M | - | - Foreign exchange unfavorably impacted total revenues by approximately **$21.4 million** sequentially and **$31.1 million** year-over-year[2](index=2&type=chunk)[3](index=3&type=chunk) - Q1'25 marks the highest year-over-year growth rate for both adult and teen patients since 2021[3](index=3&type=chunk) [Operational Highlights & Milestones](index=2&type=section&id=Operational%20Highlights%20%26%20Milestones) Align Technology celebrated a significant milestone of 20 million Invisalign patients globally, reflecting strong doctor and consumer confidence. The company also noted increased Clear Aligner volumes in both orthodontic and GP dentist channels, with record utilization for GP dentists in Q1. The iTero Lumina scanner platform continued its adoption, with a new restorative software launch - Reached the **20 million** Invisalign patient 'smilestone', initiating a year-long celebration[3](index=3&type=chunk) - Q1 Clear Aligner volumes in orthodontic and GP dentist channels increased year-over-year, with record GP dentist utilization for a first quarter[3](index=3&type=chunk) - Continued adoption of the iTero™ Lumina scanner platform and launch of iTero Lumina with restorative software at the end of March[3](index=3&type=chunk) [Detailed Financial Performance (Q1'25)](index=3&type=section&id=Detailed%20Financial%20Performance%20(Q1%2725)) This section details Align Technology's Q1'25 financial performance, including revenue breakdown, profitability, and cash flow [Revenue Breakdown](index=3&type=section&id=Revenue%20Breakdown) Align Technology's Q1'25 net revenues were $979.3 million, a 1.6% sequential and 1.8% year-over-year decrease. Clear Aligner revenues were $796.8 million, showing a slight sequential increase but a 2.5% year-over-year decline. Imaging Systems and CAD/CAM Services revenues were $182.4 million, down sequentially but up 1.2% year-over-year | Metric | Q1'25 | Q4'24 | Q1'24 | Q/Q Change | Y/Y Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Revenues | $979.3M | $995.2M | $997.4M | (1.6)% | (1.8)% | | Clear Aligner Revenues | $796.8M | $794.3M | $817.3M | +0.3% | (2.5)% | | Imaging Systems and CAD/CAM Services | $182.4M | $200.9M | $180.2M | (9.2)% | +1.2% | - Clear Aligner shipments increased by **2.2%** sequentially to **642,305 cases** and by **6.2%** year-over-year[4](index=4&type=chunk) [Profitability and EPS](index=3&type=section&id=Profitability%20and%20EPS) GAAP net income for Q1'25 was $93.2 million, resulting in diluted EPS of $1.27, both down sequentially and year-over-year. Non-GAAP net income was $156.9 million, with diluted EPS of $2.13, also showing declines compared to prior periods | Metric | Q1'25 | Q4'24 | Q1'24 | Q/Q Change | Y/Y Change | | :---------------- | :------ | :------ | :------ | :--------- | :--------- | | GAAP Net Income | $93.2M | $103.8M | $105.0M | (10.2)% | (11.2)% | | GAAP Diluted EPS | $1.27 | $1.39 | $1.39 | ($0.13) | ($0.13) | | Non-GAAP Net Income | $156.9M | $181.6M | $161.4M | (13.6)% | (2.8)% | | Non-GAAP Diluted EPS | $2.13 | $2.44 | $2.14 | ($0.31) | ($0.01) | [Cash and Liquidity](index=3&type=section&id=Cash%20and%20Liquidity) As of March 31, 2025, Align Technology held $873.0 million in cash and cash equivalents, a decrease from $1,043.9 million at the end of Q4'24. The company also had $300.0 million available under its revolving line of credit | Metric | March 31, 2025 | December 31, 2024 | | :---------------------- | :------------- | :---------------- | | Cash and Cash Equivalents | $873.0 million | $1,043.9 million | - Available revolving line of credit: **$300.0 million** as of March 31, 2025[7](index=7&type=chunk) [Corporate and Strategic Updates](index=3&type=section&id=Corporate%20and%20Strategic%20Updates) Align Technology updated on product launches, stock repurchases, and regulatory and tariff developments [Recent Announcements and Product Launches](index=3&type=section&id=Recent%20Announcements%20and%20Product%20Launches) Align Technology made several key announcements, including an upcoming Investor Day, commercial availability of the Invisalign System with mandibular advancement in Australia and New Zealand, a partnership with Bay Football Club, and the launch of Align™ X-ray Insights, an AI-powered software for 2D radiograph analysis in Europe and the UK. Additionally, restorative capabilities were added to the iTero Lumina™ intraoral scanner, and the Invisalign Palatal Expander System was approved in Turkey - Investor Day scheduled for May 6, 2025[8](index=8&type=chunk) - Invisalign System with mandibular advancement commercially available in Australia and New Zealand[8](index=8&type=chunk) - Launched Align™ X-ray Insights in EU and UK, an AI-based solution for 2D radiograph analysis[8](index=8&type=chunk) - Added restorative capabilities to iTero Lumina™ intraoral scanner and launched iTero Lumina™ Pro for efficient ortho-restorative workflows[8](index=8&type=chunk) - Invisalign Palatal Expander System approved and commercially available in Turkey[8](index=8&type=chunk) [Stock Repurchase Program](index=4&type=section&id=Stock%20Repurchase%20Program) During Q1'25, Align Technology completed the remaining $72.1 million of a $275.0 million open market repurchase initiated in Q4'24. A new plan was initiated to repurchase the remaining $225.0 million under the January 2023 approved $1.0 billion stock repurchase program, with $129.0 million repurchased as of March 31, 2025 - Completed **$72.1 million** of the **$275.0 million** Q4'24 open market repurchase[12](index=12&type=chunk) - Initiated a new plan to repurchase the remaining **$225.0 million** under the **$1.0 billion** January 2023 Stock Repurchase Program[12](index=12&type=chunk) - Repurchased **$129.0 million** as of March 31, 2025, under the new plan[12](index=12&type=chunk) [Regulatory and Tariff Updates](index=4&type=section&id=Regulatory%20and%20Tariff%20Updates) Align Technology received a favorable UK VAT ruling, classifying Clear Aligners as 'dental prostheses' for VAT exemption. Regarding tariffs, USMCA compliant goods from Mexico are currently exempt from new US tariffs, but the situation remains fluid. For China, the company expects to mitigate most retaliatory tariff exposure through supply chain adjustments. Israeli goods imported into the U.S. face an estimated $1 million monthly impact from a 10% tariff, which has been factored into guidance - Received a favorable UK VAT ruling on April 24, 2025, determining Clear Aligners are 'dental prostheses' and thus exempt from VAT[12](index=12&type=chunk) - Clear Aligners and Intraoral Scanners made in Mexico and imported into the U.S. are compliant with USMCA and currently exempt from new tariffs, though the situation is fluid[12](index=

Align Technology, Inc. (ALGN) is set to release first-quarter 2025 results on April 30, after the closing bell.The company posted adjusted earnings per share (EPS) of $2.44 in the last reported quarter, which topped the Zacks Consensus Estimate by 0.4%. Align Technology beat on earnings in each of the trailing four quarters, the average surprise being 3.53%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)ALGN’s Q1 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $975 ...

Align Technology (ALGN) shares rallied 14.4% in the last trading session to close at $165.03. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.6% loss over the past four weeks.Align Technology scored a strong price increase on investors’ optimism surrounding its impending 2025 first-quarter financial results, slated to release on Apr. 30 after the market closes. In the last reported fourth quarter, the bott ...

Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Align Technology (ALGN) and Merit Medical (MMSI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings esti ...

Align Technology, Inc. (ALGN) recently made its Invisalign System with mandibular advancement featuring occlusal blocks commercially available. It is designed for Class II skeletal and dental correction with simultaneous teeth alignment.The latest clinical innovation is expected to expand Align Technology’s Class II treatment portfolio for kids and teenage patients, offering practitioners a comprehensive solution. ALGN Stock’s Likely Trend Following the NewsAfter the announcement, shares of ALGN increased 3 ...

Core Insights - Align Technology is strategically positioning itself to capture the growing malocclusion market, which has a significant portion of untreated individuals, through various strategic alliances and geographic expansion [1][3][10] Company Performance - Align Technology's stock has decreased by 49.1% over the past year, contrasting with a 3.1% decline in the industry and a 7.7% increase in the S&P 500 [2] - The company has a market capitalization of $11.66 billion and projects a long-term estimated earnings growth rate of 10.6%, higher than the industry's 9.4% [2] - Align Technology has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 3.5% [2] Market Opportunities - Malocclusion affects approximately 60% to 75% of the global population, equating to around 600 million people, presenting a substantial growth opportunity for Align Technology, particularly with its Invisalign Clear Aligner [3] - The company aims to increase its market share in orthodontic case starts, especially among teens and adults, by addressing negative perceptions of traditional braces and improving accessibility [3] Sales and Marketing Strategies - Align Technology has established strong relationships with dental support organizations (DSOs) and is focusing on marketing to young adults and teens through partnerships with athletes and influencers [5][6] - The company has expanded its marketing efforts in the EMEA region through social media platforms and testimonial campaigns [6] Geographic Expansion - By the end of 2023, Align Technology sold its products in over 100 countries and opened a new clear aligner fabrication facility in Wroclaw, Poland, enhancing its manufacturing capabilities [7][9] - The company reported strong growth in Clear Aligner sales in APAC, particularly in China and Japan, as well as in EMEA and Latin America [10] Challenges - Align Technology faces macroeconomic challenges, including staffing shortages, supply chain issues, and inflationary pressures, which are impacting revenues and margins [11] - The company's heavy reliance on the Invisalign Technology System for revenue raises concerns about its future success if market preferences shift towards competitors [12] Financial Estimates - The Zacks Consensus Estimate for Align Technology's 2025 earnings per share (EPS) is $9.99, with projected revenues of $4.09 billion, indicating a 2.3% increase from the previous year [13]

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