Align Technology (ALGN) investor relations material

Executive summary

• Q3 revenue was $1,014.8M, up 1.9% YoY and 2.4% at constant currency; Clear Aligner shipments rose 6.6% to 690.6K cases.

• Record doctor submitters reached 90.9K, up 3.1%, and utilization rose 3.4%; non-GAAP operating margin reached 24.4%, up 0.5 points YoY.

• International growth was offset by soft discretionary spending and capital equipment demand; FY26 revenue guidance was reduced versus the prior outlook.

Financial highlights

• Clear Aligner revenue was $839.3M, up 4.2% YoY; revenue per case shipment was $1,215, down 2.3%.

• Systems & Services revenue was $175.5M, down 7.6% YoY; like-for-like scanner pricing stabilized amid a shift to lower-priced configurations and flexible acquisition models.

• GAAP gross margin was 68.7%; non-GAAP gross margin was 70.4%, flat YoY and ~0.7 points higher at constant currency.

• GAAP operating income was $169.2M and non-GAAP operating income was $247.8M; non-GAAP operating income increased $10.0M YoY.

• GAAP diluted EPS was $1.90 and non-GAAP diluted EPS was $2.80; FX reduced GAAP EPS by $0.24 YoY.

Outlook and guidance

• Q4 revenue guidance is $1.00B–$1.02B; Clear Aligner volume growth is expected in the low single digits YoY, ASP down ~1%, and Systems & Services revenue of $170M–$180M.

• Q4 GAAP/non-GAAP gross margin guidance is ~71%/~72%; operating margin guidance is ~20%/~26%.

• FY26 revenue guidance is $4.110B–$4.130B; Clear Aligner volume and revenue growth are expected at ~5%–6%, ASP slightly down, and Systems & Services revenue at $715M–$725M.

• FY26 GAAP operating margin is expected at ~16.2%; non-GAAP margin at ~23.7%, up ~100 bps YoY. FY26 capex is expected at $125M–$150M.

• Preliminary FY27 framework targets revenue growth and at least 100 bps of non-GAAP operating margin improvement, assuming current market conditions and no consumer recovery.