Align Technology Reports Q1 2025 Financial Results with Revenue Decline and Strategic Acquisition

Align Technology, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $979.3 million, a decrease of 1.8% compared to $997.4 million in the same period last year. The decline was primarily attributed to a drop in Clear Aligner revenues, which fell by 2.5% to $796.8 million, driven by lower average selling prices and unfavorable foreign exchange rates. Despite this, the company saw a 6.2% increase in Clear Aligner case volume, with shipments rising from 605.1 thousand to 642.3 thousand. The Systems and Services segment, which includes iTero intraoral scanners, experienced a slight revenue increase of 1.2%, reaching $182.4 million.

Align's operating income for the quarter was $131.1 million, down from $154.1 million a year earlier, resulting in an operating margin of 13.4%. The company reported a net income of $93.2 million, or $1.27 per diluted share, compared to $105 million, or $1.39 per diluted share, in the prior year. The decrease in profitability was influenced by increased operating expenses, including a legal settlement loss of $4.2 million, and higher research and development costs, which rose to $97.2 million from $91.9 million.

In terms of strategic developments, Align completed the acquisition of Cubicure GmbH, a company specializing in 3D printing solutions, on January 2, 2024. This acquisition is expected to enhance Align's innovation capabilities and strengthen its digital platform. The company also reported a decrease in cash and cash equivalents, which stood at $873 million as of March 31, 2025, down from $1.04 billion at the end of 2024. Align's employee headcount decreased by 2.2% year-over-year to 21,200.

Geographically, Align's revenues were impacted by macroeconomic conditions, including inflation and currency fluctuations. The U.S. market generated $423.3 million in revenue, while Switzerland contributed $224.1 million, and other international markets accounted for $331.8 million. The company noted that the strengthening of the U.S. dollar against other currencies negatively affected its financial results.

Looking ahead, Align Technology anticipates continued challenges due to macroeconomic factors and competitive pressures. The company remains focused on its strategic priorities, including international expansion and enhancing its product offerings to meet evolving customer demands. Align's management expressed confidence in its ability to navigate these challenges while maintaining operational efficiency and pursuing growth opportunities in the digital transformation of dentistry.