What is the revenue and EPS growth rate for Align Technology year over year?

Did Align Technology beat or miss consensus estimates last quarter?

What factors drove the changes in Align Technology's revenue and profit?

What is Align Technology's gross profit margin?

What guidance did Align Technology's management provide for the next earnings period?

What were the key takeaways from Align Technology’s earnings call?

What does Align Technology do and what are its main business segments?

What is the market's earnings forecast for Align Technology next quarter?

- **Revenue Resilience**: Q3 revenue growth (+1.8% YoY) driven by Clear Aligner (+2.4% YoY) and DSOs (+20%+ in key regions). 
- **Teen/Kids Growth**: Teens/kids cases up 14.7% QoQ and 8.3% YoY, supported by Invisalign First and Palatal Expander. 
- **AI Innovation**: ClinCheck Live Plan slashes treatment planning time to 15 minutes, enhancing doctor efficiency. 
- **Q4 Guidance**: Revenue $1.025-1.045B (+2-4% QoQ), non-GAAP margin targets 71% gross / 26% operating. 
- **Margin Expansion**: 2026+ margin improvement of 100+bps via restructuring and digital workflow efficiency. 
- **China Risk**: VBP implementation could impact pricing, but positioning for Tier 3/4 growth with lower-priced solutions.

**【CEO Summary Section】**
- Q3 total revenue of $996 million, up 1.8% year-over-year, driven by Clear Aligner growth (+2.4% YoY) and strong DSO (Dental Support Organization) performance (+20%+ in some regions). 
- Clear Aligner volume reached 648,000 cases (+5% YoY), with teens/kids cases up 14.7% sequentially and 8.3% YoY, fueled by Invisalign First and Palatal Expander adoption. 
- Introduced ClinCheck Live Plan, enabling 15-minute treatment plans,,, a major efficiency gain for doctors. 
- Systems & Services revenue down 8.6% sequentially due to scanner seasonality, but active iTero units expanded to 120,000 globally (+12% YoY). 
- Non-GAAP operating margin of 23.9% beat guidance, reflecting cost control and restructuring benefits. 

**【CFO Financial Commentary】**
- GAAP net income $96.3 million, EPS $0.78, with non-GAAP EPS $2.61 (up $0.11 QoQ). 
- Gross margin 64.2% (down 5.7pts QoQ) due to restructuring charges and inventory write-offs, but non-GAAP gross margin 70.4% stable. 
- Operating expenses $542.9 million (+4.5% YoY) driven by restructuring costs, but non-GAAP OpEx down 6.9% QoQ. 
- Q4 2025 guidance: Revenue $1.025-1.045B (+2-4% QoQ), non-GAAP gross margin ~71%, operating margin ~26%. 
- FY2025 outlook: Clear Aligner volume growth mid-single digits, GAAP operating margin ~13.6-13.8%, with $145-155M restructuring charges. 

**【Q&A Highlights】**
- **ASP Trends**: Sequential decline due to China mix, but Q4 expected to improve with Europe growth. 
- **China Market**: Strong Q3 growth despite VBP uncertainty; positioning for Tier 3/4 cities with lower-priced solutions. 
- **DSO Growth**: DSOs account for ~25% of business, driven by digital workflows and HFD financing partnerships. 
- **North America**: Retail channel remains weak, but DSOs +20% YoY offset some weakness. 
- **AI Impact**: ClinCheck Live Plan reducing treatment planning time from days to minutes, boosting doctor efficiency. 
- **2026 Outlook**: Target 100bps+ margin expansion via restructuring and cost optimization.

Align Technology, Inc. (ALGN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ALGN

ALGN fundamentals

You can ask Aime