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• Total Revenue: $979.3 million, down 1.6% sequentially and 1.8% year over year.

• Clear Aligner Revenue: $796.8 million, up 0.3% sequentially, down 2.5% year over year.

• Systems and Services Revenue: $182.4 million, down 9.2% sequentially, up 1.2% year over year.

• Gross Margin: 69.5%, down 0.6 points sequentially and 0.5 points year over year.

• Operating Margin: 13.4%, down 1.1 points sequentially and 2.1 points year over year.

• Net Income per Diluted Share (GAAP): $1.27, down $0.13 sequentially and year over year.

• Net Income per Diluted Share (Non-GAAP): $2.13, down $0.31 sequentially and $0.01 year over year.

• Cash and Cash Equivalents: $873 million, down $170.9 million sequentially, up $7.2 million year over year.

• Free Cash Flow: $27.4 million.

• Clear Aligner Volume Growth: 6.2% year over year.

• Clear Aligner Average Price per Case: $1,240, down $25 sequentially, down $110 year over year.

• Operating Expenses: $549 million, down 0.7% sequentially, up 1% year over year.

• Deferred Revenue (Clear Aligners): Decreased $9.3 million sequentially, decreased $74.7 million year over year.

• Deferred Revenue (Systems and Services): Decreased $11.3 million sequentially, decreased $37.2 million year over year.

• Cash Flow from Operations: $52.7 million.

• Warning! GuruFocus has detected 4 Warning Signs with ALGN.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Align Technology Inc (NASDAQ:ALGN) reported first-quarter revenues, operating margin, and earnings in line with their outlook, indicating a strong start to fiscal 2025.

• Clear Aligner volumes increased both sequentially and year over year, with notable strength in the Asia Pacific, EMEA regions, and growth in North America.

• The company saw a record number of doctor submitters and utilization for GP dentists, reflecting increased adoption of their products.

• Align Technology Inc (NASDAQ:ALGN) launched new products, such as the Invisalign Palate Expander system and the iTero Lumina scanner with restorative software, which are expected to drive future growth.

• The company reported strong growth in the Teen and Growing Kids segment, with a 13.3% year-over-year increase in Invisalign Clear Aligner treatments for this demographic.

Negative Points

• Total revenues for the first quarter were down 1.6% from the prior quarter and down 1.8% from the corresponding quarter a year ago, impacted by unfavorable foreign exchange.

• Clear Aligner average per case shipment price decreased due to unfavorable foreign exchange and a product mix shift to lower-priced products.

• Systems and Services revenue was down 9.2% sequentially, primarily due to lower scanner systems revenues and unfavorable foreign exchange.

• Operating margin decreased by 1.1 points sequentially and 2.1 points year over year, with foreign exchange negatively impacting the margin.

• Align Technology Inc (NASDAQ:ALGN) faces potential challenges from tariffs and macroeconomic conditions, which could impact future performance.