Align Technology (ALGN) Jefferies Global Healthcare Conference 2026 summary

Macro environment and business outlook

• International markets are experiencing double-digit growth, especially in APAC, EMEA, and Latin America, while North America shows stability but faces retail-side pressure.

• Guidance for the year includes 3%-4% revenue growth and a 100 basis point operating margin improvement, reflecting ongoing cost actions and productivity gains.

• Sequential revenue growth from Q1 to Q2 is expected to be more modest (midpoint of 1%) due to prudent guidance amid ongoing macro uncertainty.

• Cost actions and increased volume are driving operating margin leverage, with a 250 basis point improvement ex-FX in Q1.

• The company feels well-positioned for the year, executing strategies despite an uncertain environment.

Product innovation and rollout

• The comprehensive product with no refinements is being rolled out broadly, targeting orthodontists and DSOs, with full rollout expected by year-end.

• This product is designed to compete with wires and brackets, offering price competitiveness and high gross margins due to fewer refinements.

• Early adoption among DSOs has led to increased utilization, and similar trends are emerging among retail accounts.

• Flexibility in product offerings, such as the 3-and-3 plan, allows doctors to choose service levels, supporting adoption.

• Gross margins are equal to or better in DSOs compared to retail, with operational efficiencies contributing to higher operating margins.

Tools and programs to drive conversion

• Financing programs like HFD and Smile Advance, offering low down payments and 0% APR, are helping drive patient conversion, with over 6,000 offices enrolled.

• These programs benefit both patients (affordability) and doctors (upfront cash flow), with high acceptance rates and support from DSOs.

• Adoption is faster in DSOs due to top-down implementation, but retail doctors are also being targeted with support and education.

• Financing is more common among general dentists than orthodontists, but both segments are being addressed to drive conversion.

• Visualization tools and active sales support help doctors convert interested patients into treatments.