Align Technology, Inc. is a medical technology enterprise that develops, produces, and markets its leading products: Invisalign transparent dental aligners and iTero ...
Align Technology, Inc., headquartered in Tempe, Arizona, is a leading medical device company that revolutionized the field of orthodontics with the introduction of the Invisalign system, a series of clear, removable aligners that serve as an alternative to traditional braces. Founded in 1997 by Zia Chishti and Kelsey Wirth, the ...Align Technology, Inc., headquartered in Tempe, Arizona, is a leading medical device company that revolutionized the field of orthodontics with the introduction of the Invisalign system, a series of clear, removable aligners that serve as an alternative to traditional braces. Founded in 1997 by Zia Chishti and Kelsey Wirth, the company has grown from a small startup into a global enterprise with over 20,000 employees. Its operations are organized into two primary segments: Clear Aligner and Scanners and Services. The Clear Aligner segment offers a comprehensive portfolio including Invisalign Full for teenagers with features like mandibular advancement and compliance tracking, Invisalign First for early intervention in children aged seven to ten, and non-comprehensive options such as Invisalign Moderate, Lite, Express, and Go for less complex cases. Additionally, it provides retention products and training for dental practitioners. The Scanners and Services segment is built around the iTero intraoral scanner, a digital impression system that enables 3D scanning for restorative and orthodontic procedures. This segment offers specialized software for different dental specialties, CAD/CAM services, and innovative tools like the Invisalign Outcome Simulator and TimeLapse technology for tracking treatment progress. Align Technology sells its products in over 100 countries, with significant markets in the United States, Switzerland, and China. The company is led by President and CEO Joseph M. Hogan, who has been at the helm since 2015, and it has demonstrated strong financial performance with a market capitalization of over $12 billion, robust profit margins, and a commitment to ongoing research and development, investing about 9% of revenue back into innovation. Beyond its products, Align Technology is dedicated to advancing digital dentistry through education and partnerships, aiming to improve patient experiences and outcomes. With a focus on transforming smiles and lives, the company continues to lead the industry in clear aligner therapy and intraoral scanning technology.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.0B
+0.9%
+1.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$410.4M
-2.6%
-4.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+68.3%
-2.4%
-8.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+15.3%
+0.5%
-29.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+10.2%
-3.5%
-5.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$490.8M
-21.2%
+85.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+12.2%
-21.9%
+83.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
2.8%
-8.7%
+2.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.36x
+11.4%
+0.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to the Align Second Quarter 2026 Earnings Call. Please note, this conference is being recorded. I will now turn the conference over to your host, Shirley Stacy, with Align Technology. You may begin.
Shirley Stacy: Good afternoon, and thank you for joining us. I'm Shirley Stacy, Vice President of Corporate Communications and Investor Relations. Joining me for today's call is Joe Hogan, President and CEO; and John Morici, CFO. We issued second quarter 2026 financial results today via Business Wire, which is available on our website at investor.aligntech.com. Today's conference call is being audio webcast and will be archived on our website for approximately 1 month. As a reminder, the information provided and discussed today will include forward-looking statements, including statements about Align's future events, product outlook and financial expectations. These forward-looking statements are only predictions and involve risks and uncertainties that are described in more detail in our most recent periodic reports filed with the Securities and Exchange Commission available on our website and at sec.gov. Actual results may vary significantly, and Align expressly assumes no obligation to update any forward-looking statements. We have posted historical financial statements with corresponding reconciliations, including our GAAP to non-GAAP reconciliation, if applicable, and our second quarter 2026 conference call slides on our website under Quarterly Results. Please refer to these files for more detailed information. With that, I'll turn the call over to Align Technology's President and CEO, Joe Hogan. Joe?
Joseph Hogan: Thanks, Shirley. Good afternoon, and thank you for joining us today. On today's call, I'll start with an overview of our second quarter 2026 results, discuss performance across our 2 operating segments, Clear Aligners and Systems and Services. John will then walk you through our financial results and outlook for Q3 and 2026. And after that, I'll come back and highlight a few key takeaways before we open the call for questions. We delivered a solid second quarter with record revenues of $1.06 billion, up 4.3% year-over-year, driven by record Clear Aligner volumes of 692,000 cases and 8.2% Clear Aligner revenue growth. Q2 '26 revenues and Clear Aligner volumes were in line with our outlook, while Clear Aligner ASPs and non-GAAP operating margin of 22.9% exceeded our expectations. Q2 '26 year-over-year Clear Aligner volume growth of 7.4% was driven by continued double-digit expansion across APAC, EMEA and Latin America, together with stable performance in North America. Growth reflected continuing adoption across orthodontists and GP dentist channels and across adult, teen and growing patient segments as well as continued double-digit growth from our DSOs. Investments in patient financing, clinical support programs, doctor subscription offerings and practice productivity solutions supported adoption and …
