Align Technology Stock Earnings Reports

Align reported Q3 2025 revenue of $995.7M (+1.8% YoY, -1.7% QoQ). Clear Aligner revenue was $805.8M with 648k cases (+4.9% YoY, +~0.5% QoQ); growth was driven by EMEA, APAC and Latin America and strong teen/kids adoption (record teen/kids mix of 40%). Systems & Services revenue was $189.9M, down seasonally (-8.6% QoQ). iTero installations surpassed 120k units (12% YoY). Key product and technology initiatives include ClinCheck Live Plan (automated initial treatment plans in ~15 minutes), iTero Lumina adoption, exocad ART pilot expansion and rollout of Invisalign Palatal Expander and MAOB. GAAP gross margin was 64.2% (impacted by restructuring and noncash impairments); non-GAAP gross margin was ~70.4%. Q3 GAAP operating margin was 9.7% (non-GAAP 23.9%). Management disclosed restructuring and noncash charges of $145M–$155M expected for 2025 (mostly noncash, ~$45M cash outlay). Cash on hand was ~$1.005B; Q3 operating cash flow $188.7M and free cash flow $169M. They repurchased shares under an open program and have ~$928M remaining under the prior repurchase program. Guidance: Q4 2025 revenues $1.025B–$1.045B; non-GAAP operating margin ~26%; FY2025 Clear Aligner volumes expected mid-single-digit growth and revenue flat to slightly up (assuming current FX); management expects FY2026 operational improvements to lift margins by at least 100 bps year-over-year. Key investor takeaways: solid international volume expansion and product innovation (AI and digital workflow acceleration) offset by North America retail softness, meaningful one-time/noncash charges in 2025, and targeted margin improvement initiatives for 2026.