Align Technology's Q1 2025: Navigating Tariff Challenges and Consumer Confidence Contradictions
Earnings DecryptTuesday, May 13, 2025 11:09 am ET
2min read
Tariff impact on ASPs, tariff mitigation strategy, impact of economic conditions on the U.S. market, consumer confidence and market performance, and impact of tariffs on ASPs are the key contradictions discussed in Align Technology's latest 2025Q1 earnings call.
Clear Aligner Volume Growth:
- Align Technology reported a 6.2% year-over-year growth in Q1 Clear Aligner volumes, driven by continued strength in EMEA, APAC regions, and growth in North America.
- The growth was primarily across the Asia Pacific and EMEA regions, offset by lower volumes in Latin America.
Teen and Kids Segment Expansion:
- Q1 saw an increase of 13.3% year-over-year and 4.5% sequentially in teen and kids starting treatment, reflecting growth across regions, particularly from Invisalign First and Invisalign Palate Expander in APAC and EMEA regions.
- The growth was driven by the introduction of Invisalign Palate Expander and Invisalign First, which have seen strong uptake in various regions.
iTero Lumina Launch and Restorative Capabilities:
- The launch of the new iTero Lumina intraoral scanner and iTero Lumina Pro dental imaging system has been well-received, integrating restorative capabilities for GP dental practices.
- This is expected to transform the company's position in digital treatment for orthodontics and general dentistry practices, enhancing imaging, diagnostics, and restorative workflows.
Systems and Services Performance:
- Q1 Systems and Services revenues were up slightly year-over-year due to increased scanner and wand revenues, primarily from iTero Lumina, despite lower scanner system revenues and unfavorable foreign exchange impacts.
- The growth in iTero Lumina, wand upgrades, and new restorative capabilities are driving increased adoption among dental practitioners, contributing to the segment's performance.
Clear Aligner Volume Growth:
- Align Technology reported a 6.2% year-over-year growth in Q1 Clear Aligner volumes, driven by continued strength in EMEA, APAC regions, and growth in North America.
- The growth was primarily across the Asia Pacific and EMEA regions, offset by lower volumes in Latin America.
Teen and Kids Segment Expansion:
- Q1 saw an increase of 13.3% year-over-year and 4.5% sequentially in teen and kids starting treatment, reflecting growth across regions, particularly from Invisalign First and Invisalign Palate Expander in APAC and EMEA regions.
- The growth was driven by the introduction of Invisalign Palate Expander and Invisalign First, which have seen strong uptake in various regions.
iTero Lumina Launch and Restorative Capabilities:
- The launch of the new iTero Lumina intraoral scanner and iTero Lumina Pro dental imaging system has been well-received, integrating restorative capabilities for GP dental practices.
- This is expected to transform the company's position in digital treatment for orthodontics and general dentistry practices, enhancing imaging, diagnostics, and restorative workflows.
Systems and Services Performance:
- Q1 Systems and Services revenues were up slightly year-over-year due to increased scanner and wand revenues, primarily from iTero Lumina, despite lower scanner system revenues and unfavorable foreign exchange impacts.
- The growth in iTero Lumina, wand upgrades, and new restorative capabilities are driving increased adoption among dental practitioners, contributing to the segment's performance.
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