Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results

Q4’25 record total revenues of $1,047.6 million, up 5.2% sequentially and up 5.3% year-over-year. Q4’25 Systems and Services revenues up 10.3% sequentially, and up 4.2% year-over-year, reflecting continued iTero Lumina™ upgrades and higher volume across all regions, and higher services revenues. Q4’25 Clear Aligner revenues up 4.0% sequentially and up 5.5% year-over-year.

Q4’25 record Clear Aligner volumes of 676.9 thousand cases, up 4.5% sequentially, and up 7.7% year-over-year, driven by strength in the EMEA, Latin America and Asia Pacific regions and stability in North America. Q4’25 Clear Aligner volumes up 8.9% year-over-year in the Orthodontic channel, and up 5.3% year-over-year in the GP dentist channel. Q4’25 Clear Aligner volumes up 6.9% year-over-year in teens and kids, and up 8% year-over-year for adult patients.

FY2025 record total revenues of $4.0 billion, Clear Aligner revenues of $3.2 billion, and Systems and Services revenues of $789.6 million, up 0.9%, up 0.5%, and up 2.7%, respectively, compared to 2024.

During 2025, we achieved the following major milestones: over 22 million Invisalign^® patients including over 6.5 million teens and growing kids, over 121 thousand active iTero™ scanner units, over 70 thousand exocad CAD/CAM licenses, over 295 thousand active Invisalign trained doctors, and over 2.4 billion clear aligners manufactured worldwide.

TEMPE, Ariz.–(BUSINESS WIRE)–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 fourth quarter (“Q4’25”) and year ended December 31, 2025 (“2025”). Q4’25 total revenues were $1,047.6 million, up 5.2% sequentially and up 5.3% year-over-year. Q4’25 total revenues were unfavorably impacted by foreign exchange of approximately $3.0 million or 0.3% sequentially and favorably impacted by approximately $14.8 million or 1.4% year-over-year.⁽¹⁾ Q4’25 Clear Aligner revenues were $838.1 million, up 4.0% sequentially and up 5.5% year-over-year. Q4’25 Clear Aligner revenues were unfavorably impacted by foreign exchange of approximately $2.3 million or 0.3% sequentially and favorably impacted by approximately $12.4 million or 1.5% year-over-year.⁽¹⁾ Q4’25 Clear Aligner volume of 676.9 thousand cases was up 4.5% sequentially and up 7.7% year-over-year. Q4’25 Imaging Systems and CAD/CAM Services revenues were $209.4 million, up 10.3% sequentially and up 4.2% year-over-year. Q4’25 Imaging Systems and CAD/CAM Services revenues were unfavorably impacted by foreign exchange of approximately $0.7 million or 0.3% sequentially and favorably impacted by approximately $2.5 million or 1.2% year-over-year.⁽¹⁾

Q4’25 gross profit was $683.6 million resulting in a gross margin of 65.3%. Q4’25 gross margin was unfavorably impacted by foreign exchange of approximately 0.1 point sequentially and favorably impacted by approximately 0.5 points year-over-year.⁽¹⁾ On a non-GAAP basis, Q4’25 gross profit was $754.7 million resulting in a gross margin of 72.0%.

Q4’25 operating income was $155.3 million resulting in an operating margin of 14.8%. Q4’25 operating margin was unfavorably impacted by foreign exchange of approximately 0.3 points sequentially and favorably impacted by approximately 0.2 points year-over-year.⁽¹⁾ Q4’25 net income was $135.8 million, or $1.89 per diluted share. Q4’25 diluted net income per share was unfavorably impacted by a stronger U.S. dollar, which amounted to approximately $0.05 per diluted share due to foreign exchange. On a non-GAAP basis, Q4’25 net income was $236.0 million, or $3.29 per diluted share. During Q4’25, we incurred a total of $67.5 million of restructuring and accelerated depreciation charges.

2025 total revenues of $4.0 billion were favorably impacted by foreign exchange of approximately $4.9 million or 0.1% compared to 2024.⁽¹⁾ 2025 Clear Aligner revenues of $3.2 billion were favorably impacted by foreign exchange of approximately $4.1 million or 0.1% compared to 2024.⁽¹⁾ 2025 Imaging Systems and CAD/CAM Services revenues of $789.6 million were favorably impacted by foreign exchange of approximately $0.8 million or 0.1% compared to 2024.⁽¹⁾ 2025 Clear Aligner volume of 2.6 million cases, was up 4.7% year-over-year. During 2025, we incurred restructuring and other charges primarily related to post-employment benefits of $42.9 million, and other non-cash items, including impairment on assets held for sale, depreciation expense on assets disposed of other than by sale, and impairment loss on inventory, for an aggregate of $157.9 million.

Commenting on Align’s Q4’25 and 2025 results, Align Technology President and CEO Joe Hogan said, “I am pleased to report fourth quarter results and better than expected revenues and Clear Aligner volumes, as well as non-GAAP gross margin and non-GAAP operating margin — both above our outlook. For Q4, total revenues were a record $1,047.6 million, an increase of 5.3% year-over-year and an increase of 5.2% sequentially. Q4 Clear Aligner revenues of $838.1 million increased 5.5% year-over-year and increased 4.0% sequentially. Q4 Clear Aligner volume was a record 676.9 thousand cases, up 7.7% year-over-year and up 4.5% sequentially. On a year-over-year basis, Q4 Clear Aligner volume growth was driven by strength in EMEA, Latin America and APAC — with stability in North America. Q4 Clear Aligner volume growth year-over-year reflects strength from adult and teens and growing kid patients, as well as growth in both the GP and Ortho channels. On a sequential basis, Q4 Clear Aligner volumes reflect strong growth from the EMEA region, driven primarily by adult patients, as well as continued strength in Latin America from teens, growing kids and adult patients. During Q4, 87.7 thousand doctors submitted Invisalign^® cases globally, a record high for a fourth quarter, driven primarily by a record number of Orthodontist submitters. For Systems and Services, Q4 revenues were $209.4 million, up 4.2% year-over-year and up 10.3% sequentially. Year-over-year revenue growth reflects higher volumes driven by continued iTero Lumina™ scanner sales. iTero Lumina with iTero Multi-Direct Capture™ technology elevates the scanning workflow with ease‑of‑use and exceptional visualization, helping doctors move seamlessly into our next‑generation imaging platform. For Q4, iTero Lumina represented approximately 86% of our full systems units.”

Continued Hogan, “For the full year fiscal 2025, total revenues were a record $4.0 billion, up 0.9% year-over-year, and Systems and Services revenues were $789.6 million, up 2.7% year-over-year. 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, which were up 4.7% year-over-year. For the year, a record 935.8 thousand teens and kids started treatment with Invisalign clear aligners, up 7.8% year-over-year. For fiscal 2025, total Invisalign^® DSP Touch Up cases shipped were over 136 thousand, up 35.7% compared to 2024. We delivered fiscal 2025 non-GAAP operating margin of 22.7%, above our 2025 outlook.”

Financial Summary – Fourth Quarter Fiscal 2025

Financial Summary – Fiscal 2025

As of December 31, 2025, we had $1,094.9 million in cash and cash equivalents compared to $1,004.6 million as of September 30, 2025. As of December 31, 2025, we had $300.0 million available under a revolving line of credit.

Commenting on Align’s fourth quarter and fiscal 2025 results, outlook for Q1’26 and Fiscal 2026, Align Technology CFO and EVP Global Finance, John Morici said, “Q4 was a good finish to the year, with results that came in better than expected and reflect the continued strength of our business fundamentals. As we enter 2026, we’re executing with focus and discipline, and we’re encouraged by the progress we’re seeing across regions and key customer segments. Our confidence is grounded in the actions we’re taking to actively manage the business and drive growth through our core strategic priorities — expanding international adoption, increasing orthodontic utilization particularly among teens and kids, accelerating GP engagement including restorative dentistry, and strengthening consumer demand conversion with greater emphasis on local, last‑mile marketing. While the macro environment remains dynamic, we are cautiously optimistic. With a strong innovation roadmap, disciplined operational execution, and a global team committed to delivering for doctors and their patients, we believe we are well positioned to deliver growth and value in 2026 and beyond.”

Align Announcement Highlights

• February 2, 2026 – Align Technology announced a collaboration with the University of Bern on Switzerland’s first Swiss Oral Health Study, an epidemiological initiative led by Professor Dr. Hendrik Meyer-Lückel, director of the Clinic for Conservative, Preventive, and Pediatric Dentistry at the University of Bern. As part of this collaboration, Align is providing its state-of-the-art iTero Lumina™ intraoral scanner, which will have a central role in the study’s data collection.
• January 13, 2026 – Align Technology announced a new initiative with the Canadian Foundation for the Advancement of Orthodontics (“CFAO”). Under this initiative, Align has committed to support Invisalign treatment for 30 eligible patients through CFAO’s Smiles4Canada program.
• December 8, 2025 – Align Technology launched the Invisalign^® System with mandibular advancement in Thailand. The system features occlusal blocks designed to correct Class II skeletal and dental issues by advancing the mandible while aligning teeth.
• December 3, 2025 – Align Technology showcased its latest innovations at the Greater New York Dental Meeting 2025, one of the largest U.S. dental congresses. Highlights included hands-on demos of the iTero Lumina™ scanner, Align™ Oral Health Suite, Invisalign Smile Architect™, iTero™ Design Suite, and ClinCheck^® Signature experience.
• November 25, 2025 – Align Technology announced that it received top‑tier recognition in the 2025 All‑America Executive Team rankings from Extel Insights (formerly Institutional Investor Research). The rankings evaluate the quality of investor relations programs, corporate leadership, and governance based on voting from buy‑ and sell‑side analysts. Align earned multiple #1, #3, and top‑10 placements for executive leadership, board governance, investor relations, and investor/analyst events within the Health Care Technology & Distribution sector and the Large‑Cap ($10B–$50B) category. Align was also named a Most Honored Company in the 2025 survey, recognizing U.S. companies that achieve consistently high rankings across categories.
• November 24, 2025 – Align Technology introduced the Invisalign^® System with mandibular advancement in the Philippines, featuring occlusal blocks for simultaneous mandibular advancement and tooth alignment to address Class II correction.
• November 4, 2025 – Align Technology announced participation in key financial conferences: UBS Global Healthcare, Jefferies Healthcare, Piper Sandler Healthcare (37th Annual), and Evercore Healthcare (8th Annual).
• November 3, 2025 – Align Technology opened its 2026 Annual Research Award Program, offering up to $300,000 to support global university research in orthodontics and dentistry. Since 2010, the program has funded approximately $3.96 million in scientific and technological initiatives to advance patient care.

Q4’25 and 2025 Stock Repurchases

• During Q4’25, we repurchased approximately 0.7 million shares of our common stock at an average price per share of $142.87. These repurchases were made pursuant to the $200.0 million open market repurchase plan announced in August 2025, and were completed in January 2026. During 2025, we repurchased 2.9 million shares of our common stock at an average price per share of $162.09, for a total of $465.9 million. As of December 31, 2025, $831.2 million remains available for repurchases of our common stock under our $1.0 billion stock repurchase program announced in April 2025.

Tariff Update as of December 31, 2025

• Currently, we do not expect a material change to our operations as a consequence of the latest U.S. tariff actions, and we refer you to our Q1’25 press release and earnings materials, as well as our Q2’25 webcast slides which includes specifics regarding potential impacts of U.S. Tariffs

Fiscal 2026 Business Outlook

Assuming no circumstances occur beyond our control, such as foreign exchange, macroeconomic conditions, and changes to currently applicable duties, including tariffs or other fees that could impact our business:

Q1’26:

• We expect Q1’26 worldwide revenues to be in the range of $1,010M to $1,030M, up 3% to 5% year-over-year
• We expect Q1’26 Clear Aligner volume to be up mid-single digits year-over-year
• We expect Q1’26 Clear Aligner average selling price (“ASP”) to be up sequentially from favorable geographic mix
• We expect Systems & Services revenue to be down sequentially, consistent with typical Q1 seasonality
• We expect our Q1’26 GAAP operating margin to be 12.4% to 12.8%, down sequentially and Q1’26 Non-GAAP operating margin to be approximately 19.5%, consistent with typical Q1 seasonality

For fiscal 2026:

• We expect 2026 worldwide revenue growth to be up 3% to 4% year-over-year
• We expect 2026 Clear Aligner volume growth to be up mid-single digits year-over-year
• We expect the 2026 GAAP operating margin to be slightly below 18.0%, approximately 400 basis points improvement over 2025 and non-GAAP operating margin to be approximately 23.7%, 100 basis points improvement year-over-year as communicated during our third quarter earnings call
• We expect our investments in capital expenditures for fiscal 2026 to be $125 million to $150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity as well as maintenance

Align Web Cast and Conference Call

We will host a conference call today, February 4, 2026, at 4:30 p.m. EST, 2:30 p.m. MST, to review our fourth quarter and full year 2025 results, discuss future operating trends, and our business outlook. The conference call will also be webcast live via the Internet. To access the webcast, go to the “Events & Presentations” section under Company Information on Align’s Investor Relations website at http://investor.aligntech.com. To access the conference call, participants may register for the call at https://edge.media-server.com/mmc/p/m68uzfsd/. Once registered, participants will receive an email with dial-in number and unique PIN number to access the live event. An archived audio webcast will be available 2 hours after the call’s conclusion and will remain available for one month.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S. GAAP”), we use the following non-GAAP financial measures: constant currency net revenues, constant currency gross profit, constant currency gross margin, constant currency income from operations, constant currency operating margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP total operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP financial measures exclude certain items that may not be indicative of our fundamental operating performance, including foreign currency exchange rate impacts, the effects of stock-based compensation, amortization of intangible assets related to certain acquisitions, restructuring and other charges, costs to resolve litigation and legal settlements, acquisition-related costs, discrete cash and non-cash charges or gains and associated tax impacts that are included in the most directly comparable GAAP financial measure.

Our management believes that the use of certain non-GAAP financial measures provides meaningful supplemental information regarding our recurring core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by our institutional investors and the analyst community to help them analyze the performance of our business.

There are material limitations to using non-GAAP financial measures as they are not prepared in accordance with U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. Non-GAAP financial measures exclude certain items that may have a material impact upon our reported results of operations, which can limit their usefulness for comparison purposes. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which charges and gains are excluded or included from the non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on both a GAAP and non-GAAP basis and by providing specific information regarding the GAAP amounts excluded or included from these non-GAAP financial measures in our public disclosures. The presentation of non-GAAP financial information is meant to be considered in addition to, not as a substitute for, superior to, or in isolation from, the directly comparable financial measures prepared in accordance with U.S. GAAP. We urge investors to review the reconciliation of our GAAP financial measures to the comparable non-GAAP financial measures included herein and not to rely on any single financial measure to evaluate our business. For more information on these non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the tables captioned “Unaudited GAAP to Non-GAAP Reconciliation.”

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign^® System, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for approximately 295.6 thousand doctor customers and are key to accessing Align’s 600 million consumer market opportunity worldwide. Over the past 28 years, Align has helped doctors treat approximately 22.1 million patients with the Invisalign System and is driving the evolution in digital dentistry through the Align™ Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners. Visit www.aligntech.com for more information.

For additional information about the Invisalign System or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.

Invisalign, iTero, exocad, Align, Align Digital Platform, and iTero Lumina are trademarks of Align Technology, Inc.

Forward-Looking Statements

This news release, including the tables below, contains forward-looking statements, including statements of our current intentions, beliefs and expectations regarding our ability to deliver growth and value in 2026 and beyond, actively manage our business, drive growth through our core strategic priorities, and drive consumer demand and patient conversion; the continued strength of our business fundamentals; our progress across regions and key customer segments; our confidence and optimism during a dynamic macroeconomic environment; our expectations for implemented or proposed tariffs; our expectations for Q1’26 worldwide revenues, Clear Aligner volume, Clear Aligner ASPs, Systems and Services revenues, and GAAP and non-GAAP operating margin; our expectations for fiscal year 2026 worldwide revenue growth, Clear Aligner volume growth, GAAP and non-GAAP operating margin, and investments in capital expenditures. Forward-looking statements contained in this press release are based upon information available to Align as of the date hereof. These forward-looking statements reflect our best judgments based on currently known facts and circumstances and are subject to risks and uncertainties, and assumptions that may be inaccurate. As a result, actual results may differ materially and adversely from those expressed or implied in any forward-looking statement.

Factors that might cause such a difference include, but are not limited to:

• macroeconomic conditions, including fluctuations in foreign currency exchange rates, inflation, general economic weakness, actual or potential slowdowns or recessions, interest rates and market volatility;
• geopolitical events, such as wars, military conflicts (such as those involving Ukraine, the Middle East and China), terrorism and major public health crises, which could result in, among other things, disruptions to our supply chain and the global economy;
• tariffs or proposed tariffs, customs duties, or fees, and any retaliatory tariffs, international trade disputes, or protectionist trade measures taken in response to such tariffs;
• customer and consumer purchasing behavior and changes in consumer spending habits as a result of, among other things, prevailing macroeconomic conditions, declining customer confidence and consumer sentiment, employment levels, health ins

Contacts

Align Technology
Madelyn Valente

(909) 833-5839

[email protected]

Zeno Group
Sarah Karlson

(828) 551-4201

[email protected]

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