Align Technology (ALGN) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record revenues of $1,047.6M–$1.048B, up 5.3% year-over-year and 5.2% sequentially, with Clear Aligner volumes and non-GAAP margins exceeding expectations.

• Full year 2025 revenues reached $4.0B, up 0.9%–1% year-over-year, with Clear Aligner revenues at $3.2B (+0.5%) and Systems & Services at $789.6M (+2.7%).

• Clear Aligner case shipments hit a record 2.6M for the year (+4.7% Y/Y), with strong growth in EMEA, Latin America, and APAC, and stable performance in North America.

• Non-GAAP operating margin for 2025 was 22.7%, above outlook, while GAAP operating margin was 13.5%.

• Over 22M Invisalign patients treated to date, including 6.5M teens and kids.

Financial highlights

• Q4 2025 Clear Aligner revenues: $838.1M (+5.5% Y/Y, +4% Q/Q); Systems & Services: $209.4M (+4.2% Y/Y, +10.3% Q/Q).

• Q4 2025 non-GAAP gross margin: 72%, up 1.6 points sequentially and 1.2 points year-over-year.

• Q4 2025 non-GAAP operating margin: 26.1%, up 2.3 points sequentially and 3 points year-over-year.

• Q4 2025 non-GAAP EPS: $3.29, up $0.68 sequentially and $0.85 year-over-year.

• Cash and cash equivalents at year-end were $1,094.9M; free cash flow for 2025 was $490.8M.

Outlook and guidance

• Q1 2026 revenue expected between $1.01B and $1.03B, up 3%–5% year-over-year.

• Q1 2026 Clear Aligner volume projected to grow mid-single digits year-over-year; ASP expected to rise sequentially.

• FY2026 revenue growth expected at 3%–4% year-over-year; Clear Aligner volume growth mid-single digits.

• FY2026 GAAP operating margin expected slightly below 18%, non-GAAP margin around 23.7%.

• Capital expenditures for 2026 projected at $125M–$150M.