Align Technology (ALGN) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record revenues of $1,048 billion, up 5.3% YoY and 5.2% sequentially, with Clear Aligner volumes and non-GAAP margins exceeding expectations.

• Full year 2025 revenues reached $4.0 billion, up 1% YoY, with Clear Aligner revenues at $3.2 billion (+0.5%) and Systems & Services at $789.6 million (+2.7%).

• Clear Aligner case shipments hit a record 2.6 million for the year (+4.7% YoY), 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 22 million patients treated worldwide, including 936,000 teens and kids started treatment in 2025 (up 7.8% YoY).

Financial highlights

• Q4 Clear Aligner revenue: $838.1 million, up 5.5% YoY and 4% sequentially; Q4 Clear Aligner volume: 677,000 cases, up 7.7% YoY.

• Q4 Systems & Services revenue: $209.4 million, up 4.2% YoY and 10.3% sequentially.

• Q4 non-GAAP gross margin: 72%; non-GAAP operating margin: 26.1%.

• Q4 non-GAAP EPS: $3.29, up $0.85 YoY; Q4 GAAP EPS: $1.89.

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

Outlook and guidance

• Q1 2026 revenue expected at $1.01–$1.03 billion, up 3–5% YoY; Clear Aligner volume to grow mid-single digits YoY.

• 2026 full year revenue growth projected at 3–4% YoY; Clear Aligner volume growth mid-single digits.

• 2026 GAAP operating margin expected slightly below 18%; non-GAAP operating margin ~23.7%.

• Capital expenditures for 2026 expected at $125–$150 million.