Align Technology(US:ALGN)2025-10-29 20:05Financial Performance - Q3'25 total revenues were $995.7 million, up 1.8% year-over-year and down 1.7% sequentially, exceeding guidance of $965 million to $985 million[2] - Q3'25 diluted net income per share was $0.78, while non-GAAP diluted net income per share was $2.61, representing a 7.6% year-over-year increase[4] - Net revenues for Q3 2025 were $995.7 million, a 1% increase from $977.9 million in Q3 2024[27] - Gross profit for Q3 2025 was $639.2 million, down 6.2% from $681.8 million in Q3 2024[27] - Operating expenses totaled $542.9 million in Q3 2025, compared to $519.5 million in Q3 2024, reflecting a 4.5% increase[27] - Net income for Q3 2025 was $56.8 million, a decrease of 51% from $116.0 million in Q3 2024[27] - Basic net income per share for Q3 2025 was $0.78, down from $1.55 in Q3 2024[27] - GAAP net revenues for Q3 2025 were $995,692, reflecting a constant currency impact decrease of $11,680 or 1.2% from Q2 2025[32] - GAAP gross profit for Q3 2025 was $639,201, with a gross margin of 64.2%, down from 69.9% in Q2 2025[34] - GAAP income from operations for Q3 2025 was $96,298, resulting in an operating margin of 9.7%, down from 16.1% in Q2 2025[35] - Non-GAAP gross profit for Q3 2025 was $701,099,000, compared to $688,546,000 in Q3 2024, reflecting an increase of 1.6%[36] - Non-GAAP net income for Q3 2025 was $188,988,000, compared to $175,622,000 in Q3 2024, an increase of 7.8%[37] - GAAP operating margin for Q3 2025 was 9.7%, down from 16.6% in Q3 2024[36] - Non-GAAP operating margin for Q3 2025 was 23.9%, compared to 22.1% in Q3 2024, indicating an improvement of 1.8 percentage points[36] Cash and Investments - Cash and cash equivalents as of September 30, 2025, were $1,004.6 million, up from $901.2 million as of June 30, 2025[6] - Cash, cash equivalents, and restricted cash at the end of the period were $1,005,808, down from $1,042,981 at the end of the previous year[29] - Net cash provided by operating activities decreased to $370,046, down 18.2% from $452,153 in the same period last year[29] - Net cash used in investing activities was $76,529, a significant reduction from $200,996 in the previous year[29] Shareholder Actions - During Q3'25, approximately 0.5 million shares were repurchased at an average price of $136.77 per share, as part of a $200 million repurchase plan[8] Future Projections - Q4'25 worldwide revenues are expected to be in the range of $1,025 million to $1,045 million, indicating sequential growth from Q3'25[13] - Q4'25 non-GAAP operating margin is projected to be approximately 26.0%, up sequentially from Q3'25[15] - The company expects fiscal 2025 Clear Aligner volume growth to be mid-single digits, with revenue growth flat to slightly up from 2024[15] - The company expects growth in Clear Aligner volume and revenue for fiscal year 2025[23] - The company expects Q4 2025 GAAP gross margin to be between 65.5% and 66.0%[40] - For fiscal 2025, the company anticipates a GAAP operating margin of 13.6% to 13.8%[41] - The expected non-GAAP operating margin for fiscal 2025 is approximately 22.5%[41] Product Developments - Q3'25 Clear Aligner revenues were $805.8 million, up 2.4% year-over-year and up 0.1% sequentially, with volume at 647.8 thousand cases, reflecting a 4.9% year-over-year increase[3] - Align Technology announced the ClinCheck Live Plan, a new feature that automates treatment planning within 15 minutes, significantly reducing the planning cycle[7] - Clear Aligner revenue per case shipment in Q3 2025 was $1,245, a decrease from $1,250 in Q2 2025[30] - The number of Invisalign trained doctors receiving cases in Q3 2025 was 88,155, showing a slight increase from 87,380 in Q2 2025[30] Legal Matters - Align Technology filed a complaint against Angelalign Technology, alleging patent infringement related to clear aligners[7] Asset Management - Total assets as of September 30, 2025, were $6.23 billion, slightly up from $6.21 billion at the end of 2024[28] - Accounts receivable increased to $1.10 billion from $995.7 million at the end of 2024[28] - Cash and cash equivalents decreased to $1.00 billion from $1.04 billion at the end of 2024[28] Research and Development - Align Technology continues to invest in research and development, with expenses rising to $93.3 million in Q3 2025 from $85.3 million in Q3 2024[27]