Align Technology (NasdaqGS:ALGN) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsJohn Morici - CFOJoseph Hogan - President and CEOShirley Stacy - Vice President of Corporate Communications and Head of Investor RelationsConference Call ParticipantsDylan Finley - AnalystElizabeth Anderson - AnalystErin Wright - AnalystJonathan Block - AnalystOperatorGreetings. Welcome to the Align Fourth Quarter and Full Year 2025 earnings call. At this time, all participants are in a listen-only mode. ...

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]

Align Technology (NasdaqGS:ALGN) Q4 2025 Earnings call February 04, 2026 04:30 PM ET Speaker2Greetings. Welcome to the Align Fourth Quarter and Full Year 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Shirley Stacy, with Align Technology. You may begin.Speaker3Good afternoon, and thank you for joining us. I'm Shirle ...

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]