Company Overview - Align Technology, Inc. is the company behind Invisalign, a clear plastic alternative to traditional metal braces, headquartered in Tempe, AZ, with a market cap of $9.5 billion [2] - Since receiving FDA clearance in 1998, Invisalign has gained traction, particularly among adult users seeking a discreet solution for teeth alignment [2] Market Dynamics - The treatment process involves consultation, digital scanning with Align's proprietary iTero technology, and the delivery of custom plastic aligners, with dental professionals monitoring progress [3] - Demand surged during COVID lockdowns in 2020–21, but growth has moderated in recent years due to intensified competition following the expiration of key patents in 2017 [3] - In 2024, approximately 65% of volume came from adult customers, making the business sensitive to economic trends [3] Financial Performance - Align maintains a strong franchise with roughly 20.8 million lifetime patients and a 70% gross margin pre-charges [4] - The company has over 100,000 installed iTero scanners, representing about half the global intraoral scanning market [4] - Clear aligner average selling prices (ASPs) have been pressured by product mix shifts and discounting, while volume growth remains flat [4] Competitive Position - Align's economic moat now relies more on its digital workflow platform, ADP tools, and scanner ecosystem, along with significant brand recognition [4] - Many consumers refer to all clear aligners as "Invisalign," indicating strong brand loyalty and high switching costs for dental offices already embedded in its system [4] - The company's leading innovation position continues to make it the most likely source of future breakthroughs in clear aligner technology, providing long-term upside potential despite near-term margin pressures and competitive headwinds [4] Investment Thesis - The bullish thesis emphasizes Align Technology's clear aligner leadership, digital workflow platform, and brand recognition as core drivers of long-term value [5]