Align Technology Q2 Results Miss Expectations, Announces Restructuring Plan.

Align Technology reported Q2 revenue of $1.01 billion, a 1.6% YoY decrease, and adjusted EPS of $2.49, missing analysts' expectations. The company announced a restructuring plan to streamline operations and reallocate resources, which will result in one-time charges of $150 million to $170 million. Shares plunged 37% on the news, the company's sharpest drop in over eight years.

Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company, reported mixed financial results for the second quarter of 2025. Total revenues for the quarter were $1,012.4 million, representing a 3.4% sequential increase but a 1.6% year-over-year decrease. The company's adjusted earnings per share (EPS) came in at $2.49, missing analysts' expectations [1].

The Q2 results were impacted by several factors. Revenue from Clear Aligners, the company's primary product, was down 3.3% year-over-year, primarily due to lower-than-expected volumes in Europe and North America. Conversely, Imaging Systems and CAD/CAM Services revenues saw a 13.9% sequential increase and a 5.6% year-over-year increase. The company's operating income was $163.0 million, resulting in an operating margin of 16.1%. Non-GAAP operating income was $215.9 million, resulting in a margin of 21.3% [1].

Align Technology also announced a restructuring plan to streamline operations and reallocate resources. The plan includes realigning certain business groups, optimizing the manufacturing footprint, and disposing of certain manufacturing capital assets. The company expects one-time charges of approximately $150 million to $170 million in the second half of 2025, primarily for the write-down of assets, accelerated depreciation expense, and restructuring charges. These actions are intended to achieve a GAAP operating margin of approximately 13.0%–14.0% and a non-GAAP operating margin slightly above 22.5% in FY 2025 [1].

Shares of Align Technology plunged 37% on the news, the company's sharpest drop in over eight years. The stock closed at $195.50 on July 30, 2025, down from $304.30 on July 22, 2025 [1].

References:
[1] https://investor.aligntech.com/news-releases/news-release-details/align-technology-announces-second-quarter-2025-financial-results