GICS Sector : Healthcare
Align Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontists and general practitioner dentists, and restorative and aesthetic dentistry.It operates in two segments, Clear Aligner; and Scanners and Services.The Clear Aligner segment consists of comprehensive products, including Invisalign comprehensive treatment that addresses the orthodontic needs of teenage patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of seven and ten years, which is a mixture of primary/baby and permanent teeth.
Align Technology reported total revenues of $996 million for Q3 2025, a 1.8% year-over-year increase, with Clear Aligner volumes up 5% to 648,000 cases. Non-GAAP operating margin was 23.9%, exceeding the company's outlook of approximately 22%. The company's non-GAAP net income per diluted share was $2.61, up $0.11 sequentially and up $0.26 year-over-year, beating analyst estimates of $2.37. Gross margin for the quarter was 64.2%, down 5.7 points sequentially and 5.5 points year-over-year, while non-GAAP gross margin was 70.4%, relatively flat year-over-year.
Publication Date: Oct -31
Clear Aligner revenues increased 2.4% year-over-year, driven by growth in EMEA and APAC regions, as well as strong sequential growth from APAC and Latin American regions. Invisalign First and Invisalign Palatal Expander continued to drive growth year-over-year across all regions. Systems and Services revenues were $189.9 million, down 8.6% sequentially and 0.6% year-over-year. The company's iTero Digital Solutions segment saw new product innovations, including AI-enabled X-ray assessment and dynamic personalized visualization.
The company expects Q4 2025 worldwide revenues to be in the range of $1.025 billion to $1.045 billion, up sequentially from Q3. For fiscal 2025, the company expects Clear Aligner volume growth to be mid-single digits and revenue growth to be flat to slightly up from 2024. The company's guidance implies a continued strong performance in the Clear Aligner segment, as well as expansion of digital scanning solutions.
At current prices, Align Technology trades at a P/E Ratio of 26.48, P/B Ratio of 2.53, and EV/EBITDA of 13.22. These valuation multiples suggest that the market is pricing in a certain level of growth and profitability for the company. With analysts estimating next year's revenue growth at 3.2%, it remains to be seen whether the company can meet or exceed these expectations.
The company highlighted the strength of its DSO partnerships, with about 25% of its business attributed to DSOs. The company's partnership with HFD is also paying off, with more doctors using it to help patients with financing. Joseph Hogan noted that DSOs are using algorithms to drive growth in specific segments within dental, and that the company's growth is due to DSOs' ability to offer competitive pricing and financing options.
Fisher Asset Management LLC Sells 4,660 Shares of Align Technology, Inc. $ALGN
Dec -04
Align Technology, Inc. (ALGN) Presents at Evercore 8th Annual Healthcare Conference Transcript
Dec -03
Align Technology, Inc. (ALGN) Presents at Piper Sandler 37th Annual Healthcare Conference Transcript
Dec -02
Financial Survey: Align Technology (NASDAQ:ALGN) & Straumann (OTCMKTS:SAUHY)
Dec -01
Financial Survey: McKesson (NYSE:MCK) vs. Align Technology (NASDAQ:ALGN)
Dec -01
Coldstream Capital Management Inc. Acquires 402 Shares of Align Technology, Inc. $ALGN
Nov -28
Align Technology Recognized for the 3rd Time in Extel's 2025 All-America Executive Team Rankings, Including the Most Honored Company Distinction
Nov -26
Creative Planning Grows Position in Align Technology, Inc. $ALGN
Nov -25
Align Technology's Clear Aligner growth is driven by increasing adoption in orthodontics and dentistry, expanding into new markets, and rising demand for aesthetic and convenient teeth straightening solutions. Additionally, the company's investments in digital marketing, sales force expansion, and strategic partnerships contribute to its growth.
Align Technology's Systems and Services segment growth is driven by increasing adoption of digital orthodontics, rising demand for Invisalign clear aligners, and expansion of iTero scanner sales. Additionally, strategic partnerships, geographic expansion, and investments in digital platforms contribute to the segment's 6% growth.
A series of custom-made, clear, removable aligners that gradually move teeth into their desired position.
A simplified, express version of Invisalign Clear Aligners for mild orthodontic cases.
A digital impression system that captures detailed 3D images of teeth and gums.
A portable, handheld intraoral scanner for dental impressions and oral examinations.
A software platform for orthodontists to plan and visualize treatment outcomes.
Align Technology, Inc. has a low threat of substitutes due to its unique and patented technology in the orthodontic and dental industries.
The bargaining power of customers is medium as Align Technology, Inc. has a diverse customer base, but some large customers may have negotiating power.
The bargaining power of suppliers is low as Align Technology, Inc. has a diversified supply chain and is not heavily dependent on a single supplier.
The threat of new entrants is low due to the high barriers to entry in the orthodontic and dental industries, including regulatory hurdles and significant capital requirements.
The intensity of rivalry is medium as Align Technology, Inc. operates in a competitive market, but has a strong market position and differentiated products.
| Value | |
|---|---|
| Debt Weight | 3.37% |
| Debt Cost | 3.95% |
| Equity Weight | 96.63% |
| Equity Cost | 12.26% |
| WACC | 11.98% |
| Leverage | 3.49% |
Value: 0.4
Growth: 8.2
Quality: 7.3
Yield: 0.0
Momentum: 8.0
Volatility: 6.0
1-Year Total Return ->
Value: 6.4
Growth: 6.4
Quality: 5.9
Yield: 3.0
Momentum: 2.0
Volatility: 5.0
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Value: 4.2
Growth: 6.1
Quality: 3.1
Yield: 0.0
Momentum: 10.0
Volatility: 4.0
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Value: 3.8
Growth: 6.3
Quality: 7.5
Yield: 0.0
Momentum: 2.5
Volatility: 6.0
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Value: 6.4
Growth: 2.3
Quality: 5.9
Yield: 0.0
Momentum: 3.0
Volatility: 5.0
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Value: 3.6
Growth: 5.3
Quality: 7.5
Yield: 0.0
Momentum: 1.0
Volatility: 2.7
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