Align Technology (ALGN) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record revenues of $1.048 billion, up 5.3% year-over-year, with Clear Aligner volumes and non-GAAP margins exceeding expectations.

• Full year 2025 revenues reached $4.0 billion, up 0.9% year-over-year, with Clear Aligner revenues at $3.2 billion and Systems & Services at $789.6 million.

• Clear Aligner case shipments hit a record 2.6 million for the year, with strong growth in EMEA, Latin America, and APAC, and stable performance in North America.

• Non-GAAP operating margin for 2025 was 22.7%, the highest since 2021, while GAAP operating margin was 13.5%.

• Over 22 million Invisalign patients treated to date, including 6.5 million teens and kids.

Financial highlights

• Q4 2025 Clear Aligner revenues were $838.1 million, up 5.5% year-over-year and 4% sequentially; Systems & Services revenues were $209.4 million, up 4.2% year-over-year and 10.3% sequentially.

• Q4 2025 non-GAAP gross margin was 72%, up 1.6 points sequentially and 1.2 points year-over-year; GAAP gross margin was 65.3%.

• Q4 2025 non-GAAP operating margin was 26.1%, up 2.3 points sequentially and 3 points year-over-year; GAAP operating margin was 14.8%.

• Q4 2025 non-GAAP EPS was $3.29, up $0.68 sequentially and $0.85 year-over-year; GAAP EPS was $1.89.

• Cash and cash equivalents at year-end were $1.095 billion; free cash flow for 2025 was $490.8 million.

Outlook and guidance

• Q1 2026 revenue expected between $1.01–$1.03 billion, up 3–5% year-over-year; Clear Aligner volume expected to grow mid-single digits year-over-year.

• Q1 2026 GAAP operating margin expected at 12.4–12.8%; non-GAAP margin around 19.5%.

• Full year 2026 revenue growth projected at 3–4% year-over-year; Clear Aligner volume growth mid-single digits; GAAP operating margin slightly below 18%, non-GAAP margin around 23.7%.

• Capital expenditures for 2026 expected at $125–$150 million.