ALGN · Align Technology, Inc.

Clear Aligner Volume and ASP Growth Drove Top-Line Acceleration

Margin Expansion Reflects Operational Discipline and Favorable Mix

Gross profit grew 8.3% to $736.6 million, outpacing revenue growth, resulting in a gross margin of 70.8% compared to 69.5% in the prior year. The expansion was driven by operational efficiencies and a favorable product mix. Operating income increased 8.3% to $142.0 million, with operating margin improving to 13.6% from 13.4%, despite a $30.6 million legal settlement charge. The Systems and Services segment also saw operating margin improvement, attributed to higher gross margin and lower employee costs.

Cash Flow Strength Supports Capital Allocation Flexibility

Segment Operating Performance and Outlook

Clear Aligner operating margin increased compared to the same period in 2025, primarily due to higher gross margin and lower advertising and marketing expense, partially offset by an increase in employee costs and credit card transaction fees. Systems and Services operating margin increased due to higher gross margin and a decrease in operating expenses related to lower employee costs. Management continues to focus on strategic growth drivers and operational efficiency to drive long-term shareholder value.