ALGN Medical Instruments & Supplies
Align Technology, Inc.
Align makes Invisalign clear aligners — custom, removable plastic trays that straighten teeth in place of wires and brackets — along with iTero intraoral scanners and exocad dental design software. More than 22 million people have been treated with Invisalign. FY2025 revenue was $4.0 billion, up just 0.9%: case volume rose 4.7%, but revenue per aligner case fell 3.9%. Net income was $410 million, and Align has no debt and pays no dividend.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:20 (SEC EDGAR) · Source 10-K filed: February 27, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- ALIGN TECHNOLOGY INC
- Headquarters
- TEMPE, AZ
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: ALGN
- Industry
- Medical Instruments & Supplies
- CIK
- 1097149
- Website
- https://www.aligntech.com/ ↗
Workforce (as of FY2025 year-end)
Employees
20,290
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 23–29 days after quarter end (Oct 29, 2025; Oct 23, 2024; Oct 25, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 23–36 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Aug 5, 2026 10-Q (+36 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 29, 2026 (+29 days) | May 6, 2026 10-Q (+36 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 4, 2026 (+35 days) | Feb 27, 2026 10-K (+58 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Nov 5, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 30, 2025 (+30 days) | Aug 6, 2025 10-Q (+37 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 30, 2025 (+30 days) | May 8, 2025 10-Q (+38 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 5, 2025 (+36 days) | Feb 28, 2025 10-K (+59 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 23, 2024 (+23 days) | Nov 5, 2024 10-Q (+36 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 24, 2024 (+24 days) | Aug 2, 2024 10-Q (+33 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 24, 2024 (+24 days) | May 3, 2024 10-Q (+33 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 31, 2024 (+31 days) | Feb 28, 2024 10-K (+59 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 25, 2023 (+25 days) | Nov 3, 2023 10-Q (+34 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Clear Aligner
Invisalign
Examples: Comprehensive, First (children), Express/Lite/Moderate, Go
Custom clear aligners for mild to severe malocclusion.
Clear Aligner
Vivera retainers and Palatal Expander
Examples: Vivera, Invisalign Palatal Expander System
Retention and early-treatment appliances.
Systems and Services
iTero intraoral scanners
Examples: iTero Lumina, Lumina Pro (with NIRI imaging)
Digital scans for orthodontic and restorative work.
Systems and Services
exocad CAD/CAM software
Examples: exocad
Design software for dental labs and practices.
Descriptions are from the FY2025 Form 10-K's Item 1.
04
Recent strategic focus
FY2025 developments from the 10-K, and 2026 governance changes from 8-Ks.
New products
Restorative capabilities for iTero Lumina and the new iTero Lumina Pro (March 2025), AI-based Align X-ray Insights in the EU and U.K., and Invisalign with mandibular advancement for growing patients (December 2025).
Source: Form 10-K (FY2025) Item 1
Smaller workforce
Employees fell 3.1% in 2025 to about 20,290.
Source: Form 10-K (FY2025) MD&A
Chairman change
Kevin Conroy succeeded C. Raymond Larkin, Jr. as Chairman on July 1, 2026.
Source: 8-K filed 2026-06-22
Capex ÷ D&A (FY2025)
0.43x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$102M ÷ $237M = 0.43x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
9.2%
formularesearch & development expense ÷ revenue × 100
e.g.$370M ÷ $4,035M × 100 = 9.2%
M&A spend (5-year total)
$97M
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $401M in FY2021 to $102M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$4.03B
As reported in the 10-K
Revenue CAGR (4 years)
+0.5%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($4,035M ÷ $3,953M) ^ (1÷4) − 1 = 0.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
13.5%▼caution
-11.2pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$546M ÷ $4,035M × 100 = 13.5%
ROE (FY2025)
10.4%▲favorable
5-year average: 13.1%
As reported in the 10-K
P/B (FY2025 end)
2.75x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.27.6x × $5.65 ÷ $56.74 = 2.75x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
13.1x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($11,342M + $0M − $1,095M) ÷ ($546M + $237M) = 13.1x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +0.5% a year over 4 years (modest growth)
From $3.95B in FY2021 to $4.03B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 24.7% → 13.5%
How much operating profit is left per $100 of revenue. It moved -11.2 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 65.0% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 13.1% over 5 years (latest: 10.4%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Clear Aligner
Invisalign treatment: a doctor scans or takes an impression of the patient's teeth, Align's ClinCheck software builds a 3D treatment plan the doctor approves, and Align 3D-prints molds and forms a series of custom aligners that the patient switches about weekly. Also Vivera retainers and a palatal expander.
01 what it draws on
Inputs & resources
- ClinCheck treatment-planning software built on data from over 22 million patients
- Fabrication plants in Juarez (Mexico), Ziyang (China), and Wroclaw (Poland)
- 1,137 active U.S. patents
02 what it does
Activities
- Planning treatment
- 3D printing molds and forming aligners
03 who it serves
Customers
- Orthodontists and general dentists (about 130,000 doctors shipped cases in 2025)
04 how money comes in
How it earns
- Per-case treatment packages priced by complexity
- Monthly doctor subscription program in some regions
Clear Aligner: how it makes money
- Revenue $3.25B (+0.5%) and segment operating income $1.03B in FY2025.
- Teen and growing-patient case shipments rose 7.8% to 935,800.
- Revenue per case fell to $1,245 from $1,295.
Systems and Services
iTero intraoral scanners and services used for Invisalign submissions and restorative dentistry, and exocad CAD/CAM software for dental labs and practices.
01 what it draws on
Inputs & resources
- iTero scanner hardware and imaging technology
- exocad software
02 what it does
Activities
- Selling and servicing scanners
- Licensing design software
03 who it serves
Customers
- Dental practices and labs
04 how money comes in
How it earns
- Scanner sales, service contracts, and software licenses
Systems and Services: how it makes money
- Revenue $790M (+2.7%) and segment operating income $306M in FY2025.
- Launched iTero Lumina Pro and restorative capabilities in 2025.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Clear Aligner
3,245 (80%)profit 1,035 · margin 31.9%
Systems and Services
790 (20%)profit 306 · margin 38.7%
Source: Form 10-K (FY2025) — MD&A and Note 16, Segments and Geographical Information Profit is segment income from operations before unallocated corporate expenses; consolidated operating income was $546M.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 41% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
1,661 (41%)Switzerland
921 (23%)Other International
1,453 (36%)
Source: Form 10-K (FY2025) — Note 16, Segments and Geographical Information Attributed by where Align's legal entities recognize the revenue, not where patients are; Align's EMEA regional headquarters is in Switzerland.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Align sells case by case: doctors order Invisalign treatment packages priced by the complexity of the case, and some packages include additional aligners if treatment strays from plan. Scanners are sold with service contracts, and some regions have a monthly doctor subscription program.
Invisalign treatment packages
Clear Aligner: $3.25B (80% of FY2025 revenue)
Typical term: Comprehensive packages allow additional aligners until a five-year treatment expiration date; the 3in3 option has a three-year expiration and three sets of additional aligners
Lower-priced Express, Lite, Moderate, and Go packages cover simpler cases.
Doctor Subscription Program
Part of Clear Aligner revenue
Typical term: Monthly subscription for retainers and low-stage touch-up aligners
Available in North America, Latin America, and parts of Europe.
iTero scanners and exocad software
Systems and Services: $790M (20%)
Typical term: Equipment sales plus services and software
Source: Form 10-K (FY2025) — Item 1
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Orthodontists and general dental practitioners, plus dental labs for scanners and software; Align sells mostly through its own sales force, with distributors in some countries.
Named by the company
No customer is named.
What the filings disclose
- About 130,000 doctors had cases shipped in 2025, averaging 20.1 cases each. (Form 10-K (FY2025), MD&A)
- Doctors must complete an Invisalign training course before offering treatment. (Form 10-K (FY2025), Item 1)
Suppliers
Polymer materials and 3D printing equipment for aligner fabrication, and components for iTero scanners; the 10-K excerpts reviewed don't name suppliers.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- Aligners are fabricated in Juarez, Mexico; Ziyang, China; and Wroclaw, Poland, with treatment planning done in Costa Rica, China, Germany, Spain, Poland, Japan, and elsewhere. (Form 10-K (FY2025), Item 1)
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Align's 10-K says Invisalign competes with traditional wires and brackets, with clear aligners from regional competitors, larger companies and well-capitalized entrants, with direct-to-consumer aligner companies, and with doctors who 3D-print their own aligners. iTero competes with other intraoral scanners, from dental conglomerates to scanner specialists, and with traditional impressions and x-rays. No company is named.
Competitors named in the 10-K
Align's 10-K doesn't name competitors.
Peer group the company chose
2025 peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Medical device and technology companies — the industries Align primarily recruits from and competes with for executive talent — with market capitalization of about 0.25–4.0x and revenue of about 0.33–3.0x Align's. Unchanged from 2024.
- Agilent Technologiessite ↗
- Hologicsite ↗
- Revvitysite ↗
- Avantorsite ↗
- IDEXX Laboratoriessite ↗
- STERISsite ↗
- Bio-Rad Laboratoriessite ↗
- Illuminasite ↗
- Teleflexsite ↗
- Dentsply Sironasite ↗
- Insuletsite ↗
- CooperCompaniessite ↗
- DexComsite ↗
- Masimosite ↗
- Waterssite ↗
- Edwards Lifesciencessite ↗
- Mettler-Toledosite ↗
- Zimmer Biometsite ↗
- ResMedsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 3,953 | 3,735 | 3,862 | 3,999 | 4,035 |
| Operating income | 976 | 643 | 643 | 608 | 546 |
| Pretax income | 1,012 | 599 | 641 | 609 | 585 |
| Net income (attributable) | 772 | 362 | 445 | 421 | 410 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | -5.5% | 3.4% | 3.5% | 0.9% |
| Operating margincalcoperating income ÷ revenue × 100 | 24.7% | 17.2% | 16.7% | 15.2% | 13.5% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 19.5% | 9.7% | 11.5% | 10.5% | 10.2% |
| Balance sheet ($M) | |||||
| Total assets | 5,942 | 5,948 | 6,084 | 6,215 | 6,234 |
| Total equity | 3,623 | 3,601 | 3,630 | 3,852 | 4,049 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | — | — | — | — | 0 |
| Equity ratio | 61.0% | 60.5% | 59.7% | 62.0% | 65.0% |
| ROE | 21.3% | 10.0% | 12.3% | 11.3% | 10.4% |
| Cash flow ($M) | |||||
| Operating CF | 1,173 | 569 | 786 | 738 | 593 |
| Investing CF | -563 | -213 | -196 | -255 | -112 |
| Financing CF | -458 | -502 | -598 | -356 | -465 |
| Free cash flowcalccash flow from operations − capital expenditures | 771 | 277 | 608 | 623 | 491 |
| Cash and equivalents | 1,099 | 942 | 937 | 1,044 | 1,095 |
| Per share & other | |||||
| EPS ($) | 9.69 | 4.61 | 5.81 | 5.62 | 5.65 |
| BVPS ($) | 46.03 | 46.61 | 48.36 | 52.16 | 56.74 |
| P/E (x) | 67.8 | 45.8 | 47.2 | 37.1 | 27.6 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 47.2 | 20.3 | 25.5 | 19.4 | 13.1 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 14.28 | 4.53 | 5.67 | 4.00 | 2.75 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
12
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
10.9%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$546M × (1 − 21%) ÷ $3,951M × 100 = 10.9%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
10.77%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $11.34B ÷ ($11.34B + $0) = 100.0%
e.g.Debt weight: $0 ÷ ($11.34B + $0) = 0.0%
e.g.WACC: 10.8% × 100.0% + 4.0% × (1 − 21%) × 0.0% = 10.77%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 10.77% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 1.23 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 10.77%
- Cost of debt
- 4.00% (no debt on record, using the risk-free rate)
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 100% : 0%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 10.77%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 1.23 (price-derived adjusted beta. Raw β 1.35, R² 0.24, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.347 + 0.33 = 1.233
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 1.23 × 5.5% = 10.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
13
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
6.0%
Perpetual FCF growth: g = r − FCF ÷ EV = 10.8% − 4.8%
Past FCF growth (FY2021–FY2025)
-10.7%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+0.5%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $491M (operating CF − capex); enterprise value $10.25B = market cap $11.34B + debt $0 − cash and short-term investments $1.09B; r = WACC of 10.8% using this page’s default assumptions (β 1.23, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$10.22B
FCF $491M ÷ (10.8% − 6.0%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| 0% | 0.54x | 0.49x | 0.44x | 0.41x | 0.37x |
| 2% | 0.70x | 0.61x | 0.54x | 0.49x | 0.44x |
| 4% | 1.00x | 0.83x | 0.70x | 0.61x | 0.54x |
| 6% | 1.71x | 1.26x | 1.00x | 0.83x | 0.70x |
| 8% | 5.99x | 2.66x | 1.71x | 1.26x | 1.00x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
14
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.61x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.9%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 93%
Most profit comes from core operations.
- !
Days sales outstanding: 83 → 100 days
Receivables are growing faster than revenue — worth checking for looser collection terms or channel stuffing.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$593M ÷ $410M = 1.45x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$546M ÷ $585M × 100 = 93%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$1,102M ÷ $4,035M × 365 = 100 days
15
Strengths & weaknesses
Strengths
1. Scale and data in clear aligners
More than 22 million patients treated, whose data feeds Align's ClinCheck treatment planning; about 130,000 doctors shipped cases in 2025.
Evidence: Form 10-K (FY2025) Item 1 and MD&A
2. Large untapped market
Align estimates about 600 million people globally have malocclusion that could benefit from treatment, while only about 22 million a year start orthodontic treatment.
Evidence: Form 10-K (FY2025) Item 1
3. Debt-free balance sheet
About $1.1B of cash and no outstanding borrowings under its $300M credit facility at year-end 2025, with an equity ratio of 65%.
Evidence: Form 10-K (FY2025) MD&A; SEC EDGAR XBRL
4. Patent portfolio
1,137 active U.S. patents, 1,147 foreign patents, and 1,070 pending applications at year-end 2025.
Evidence: Form 10-K (FY2025) Item 1
Weaknesses
1. Stalled growth
Revenue has been roughly flat at $3.7–4.0B since FY2021, and grew only 0.9% in 2025.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A
2. Falling price per case
Clear aligner revenue per case fell 3.9% to $1,245 in 2025 as volume grew faster than revenue.
Evidence: Form 10-K (FY2025) MD&A
3. Shrinking margins
Operating income fell from $976M (FY2021) to $546M (FY2025); the operating margin was 13.5% in 2025.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A
16
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
27.6x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
4.3%
(Operating CF − capex) ÷ market cap
1. Market leader with room to grow
Only a small share of the estimated 600 million people with malocclusion are treated each year, and teen volume grew 7.8% in 2025.
- What has to hold
- Clear aligners keep taking share from wires and brackets.
- The other side
- Revenue has barely grown since 2021, and price per case is falling.
Evidence: Form 10-K (FY2025) Item 1 and MD&A; SEC EDGAR XBRL
2. Cash-rich and buying back stock
No debt, about $1.1B of cash, and shares outstanding down from 79M (FY2021) to 71M (FY2025).
- What has to hold
- Cash generation holds up.
- The other side
- Operating cash flow fell to $593M in 2025 from $1.17B in 2021.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A
3. Valuation has come down
The year-end P/E fell from about 68x (FY2021) to about 28x (FY2025).
- What has to hold
- Earnings stabilize.
- The other side
- The lower multiple reflects lower margins and slower growth, and Align's beta (1.35) is above the market's.
Evidence: This site's P/E calculation
Align doesn't pay a dividend. P/E and FCF yield use the FY2025 year-end share price.
17
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
No debt due
$1.09B vs. $0
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -5.5% in FY2022 ($3.95B → $3.73B) | Yes, by FY2024 |
| Operating income | -34.2% in FY2022 ($976M → $643M) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
No debt
Align had about $1.1B of cash (about $929M held by foreign subsidiaries) and no outstanding borrowings under its credit facility at year-end 2025.
Source: Form 10-K (FY2025), MD&A
Recurring doctor base
About 130,000 doctors submitted cases in 2025, and their average utilization rose to 20.1 cases.
Source: Form 10-K (FY2025), MD&A
Discretionary demand
Utilization rates have been affected by macroeconomic conditions, so a consumer downturn can cut case starts.
Source: Form 10-K (FY2025), MD&A
Regional production
Fabrication in three regions keeps production closer to customers.
Source: Form 10-K (FY2025), Item 1
18
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
Geopolitical risk highlights
- [4]International trade measures
- 1Competition & technology shift
Competing aligners and in-office 3D printing
- Company disclosure (summarized from the 10-K)
- Align faces regional competitors, large companies and well-funded entrants, direct-to-consumer aligner companies, and doctors who make their own aligners with 3D printers, plus price-focused competition in new markets.
- Company’s stated mitigation
- Sales force focus, the Align Digital Platform, and patents.
- This site’s assessment
- Impact High / Likelihood High
- 2Demand & macro
Consumer spending
- Company disclosure (summarized from the 10-K)
- Utilization rates have been affected by macroeconomic conditions, and Align expects them to fluctuate from period to period.
- Company’s stated mitigation
- Not stated in the 10-K excerpts reviewed.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Supply chain
Concentrated manufacturing
- Company disclosure (summarized from the 10-K)
- Aligners are made in a few regional plants (Mexico, China, Poland); disruptions such as supply chain, software, or extreme-weather issues could delay deliveries.
- Company’s stated mitigation
- Three regional fabrication sites.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Geopolitical
International trade measures
- Company disclosure (summarized from the 10-K)
- Import and export controls, including on data, could disrupt operations and supply chains.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Med / Likelihood Med
19
What to watch going forward
- Whether case volume growth turns into revenue growth or keeps being offset by lower prices per case.
- Teen and growing-patient volume, the fastest-growing group.
- Competition from direct-to-consumer brands and in-office 3D printing.
- Operating margin recovery.
20
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:20 (SEC EDGAR) · Source 10-K filed: February 27, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Align Technology, Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.