Align Technology (ALGN) investor relations material

Executive summary

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

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

• Discretionary healthcare spending and capital-equipment investment remained soft; FY26 revenue guidance was reduced from the prior outlook.

Financial highlights

• Revenue was up 2.4% at constant currency; Clear Aligner revenue rose 4.2% to $839.3M, while Systems & Services revenue fell 7.6% to $175.5M.

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

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

• GAAP net income was $135.0M and diluted EPS was $1.90, versus $56.8M and $0.78 YoY; non-GAAP diluted EPS was $2.80 versus $2.61.

Outlook and guidance

• Q4 revenue guidance is $1.00B–$1.02B; Clear Aligner volume is expected to grow low single digits YoY, ASP to decline ~1%, and Systems & Services revenue to be $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%, with ASP slightly down and Systems & Services revenue of $715M–$725M.

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

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