Align Technology (ALGN) Baird Global Healthcare Conference 2025 summary

Product and pricing strategy

• New pricing alternatives are being introduced, allowing doctors to select packages with fewer included refinements and lower upfront costs, such as 3x2, 3x1, and 3x0 options, with additional refinements available for purchase as needed.

• The 3x3 product, offering three refinements over three years, is currently the best-selling option, reflecting demand for flexibility and lower initial pricing.

• Lower entry-level pricing aims to make clear aligners more competitive with traditional wires and brackets, potentially reducing cost-driven switching by doctors.

• The new pricing structure is expected to improve gross margin rates for lower-refinement products, while maintaining flexibility for doctors and supporting overall portfolio growth.

• Average selling price (ASP) calculations will remain stable, as revenue recognition is deferred based on refinements, and the new model is designed to expand adoption without negatively impacting ASP.

Financing and patient conversion

• A financing pre-qualification feature is being added to the doctor locator, aiming to reduce barriers for patients considering orthodontic treatment.

• The partnership with HFD expands financing acceptance across a wider range of credit scores and offers lower interest rates, improving patient conversion rates.

• Lower interest rates in the broader economy are expected to further support patient financing and increase treatment uptake.

Market trends and regional performance

• June and July volumes in North America and Western Europe were softer than expected, attributed to weaker seasonality and economic uncertainty, which informed more cautious guidance for the third quarter.

• EMEA performance is mixed, with strong double-digit growth in Turkey and Eastern Europe, but softer results in France and Germany due to economic and tariff uncertainties.

• Marketing and product portfolio adjustments are being used to stimulate demand in challenged markets, with a focus on under-penetrated regions.