Align Technology delivered third-quarter results that exceeded Wall Street’s expectations, with international demand for its Clear Aligner products and traction among teens and kids segments playing central roles. Management cited double-digit Clear Aligner volume growth in EMEA and APAC regions, and strong adoption of innovations like the Invisalign Palatal Expander, as key performance drivers. CEO Joe Hogan highlighted that “88,000 doctors globally submitted Invisalign cases, an all-time record,” indicating continued expansion of the global doctor base, even as North America’s retail channel remained sluggish.
Is now the time to buy ALGN? Find out in our full research report (it’s free for active Edge members).
Align Technology (ALGN) Q3 CY2025 Highlights:
- Revenue: $995.7 million vs analyst estimates of $974.4 million (1.8% year-on-year growth, 2.2% beat)
- Adjusted EPS: $2.61 vs analyst estimates of $2.41 (8.4% beat)
- Adjusted EBITDA: $237.8 million vs analyst estimates of $250.7 million (23.9% margin, 5.1% miss)
- Revenue Guidance for Q4 CY2025 is $1.04 billion at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 9.7%, down from 16.6% in the same quarter last year
- Sales Volumes rose 4.9% year on year, in line with the same quarter last year
- Market Capitalization: $9.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Align Technology’s Q3 Earnings Call
- Elizabeth Anderson (Evercore ISI) asked about early Q4 trends and the margin impact of the ClinCheck Live Plan launch. CEO Joe Hogan described the tool as a productivity enhancer for doctors, helping accelerate patient conversion rates.
- Jonathan Block (Stifel) questioned the sequential decline in average selling price (ASP) and sought clarity on the role of geographic mix. CFO John Morici attributed it to higher China volumes, with improvement expected as Europe’s seasonality shifts in Q4.
- Michael Cherny (Leerink Partners) pressed Hogan on factors limiting North America retail recovery. Hogan explained that economic issues and consumer confidence remain challenges, and highlighted plans to increase localized support and marketing.
- Brandon Vazquez (William Blair) focused on the teens segment’s growth and whether the shift back to traditional braces is reversing. Hogan credited strong China demand and new products, particularly for early intervention, as growth drivers.
- Steven Valiquette (Mizuhu Securities) inquired about the HFD financing partnership’s impact. Morici confirmed growing doctor adoption and expects it to play a larger role in driving patient starts in future quarters.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) Clear Aligner volume trends in international markets to assess if double-digit growth persists, (2) the pace of U.S. retail recovery through patient financing adoption and targeted marketing, and (3) the impact of new AI-driven tools and digital workflows on doctor conversion rates and operational margins. Developments in the competitive landscape, especially in China, will also be closely tracked.
Align Technology currently trades at $135.67, up from $132.05 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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