Align Technology's fourth quarter was met with a positive market response, as management pointed to strong growth in clear aligner volumes and continued momentum within dental service organizations (DSOs). CEO Joe Hogan highlighted that the improved results were driven by record case volumes in Europe, Latin America, and Asia-Pacific, with DSOs in the Americas delivering double-digit year-over-year growth. Hogan noted the company's broadening product portfolio and targeted marketing strategies, which supported both adult and teen patient segments, as key factors behind the volume gains.
Is now the time to buy ALGN? Find out in our full research report (it’s free for active Edge members).
Align Technology (ALGN) Q4 CY2025 Highlights:
- Revenue: $1.05 billion vs analyst estimates of $1.03 billion (5.3% year-on-year growth, 1.2% beat)
- Adjusted EPS: $3.29 vs analyst estimates of $2.97 (10.8% beat)
- Adjusted EBITDA: $273.8 million vs analyst estimates of $295 million (26.1% margin, 7.2% miss)
- Revenue Guidance for Q1 CY2026 is $1.02 billion at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 14.8%, in line with the same quarter last year
- Market Capitalization: $14.08 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 Q4 Earnings Call
- Elizabeth Anderson (Evercore ISI) asked about the sources of improved volume, seeking to distinguish market trends from internal initiatives. CEO Joe Hogan credited both market stability and successful execution in DSOs and product innovation focused on younger patients.
- Brandon Baskas (William Blair) inquired about assumptions behind 2026 guidance, particularly for international and Americas markets. CFO John Morici explained forecasts assume stable market conditions, with growth driven by active conversion efforts and targeted last-mile marketing.
- Jeff Johnson (Baird) pressed for details on the adult segment's volume growth and the stabilization of North American retail. Hogan attributed progress to DSOs, financial credit options, and increased scanning, with Morici confirming improved retail stability and DSO-driven gains.
- Jon Block (Stifel) sought clarity on average selling price (ASP) trends and the impact of geographic mix. Morici noted that ASPs are expected to decline modestly due to country and product mix, with foreign exchange and lower-priced market growth contributing to the trend.
- David Saxon (Needham and Company) questioned the margin impact of direct fabrication. Hogan and Morici acknowledged that initial rollout will be dilutive to gross margin, but volume scaling should drive improvement, with this impact already factored into margin guidance.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will monitor (1) the expansion and performance of DSOs as a core growth channel, (2) adoption and clinical outcomes from new AI-driven and 3D printed products, and (3) progress in international markets, particularly as regional product strategies roll out. Additionally, tracking the scalability of direct fabrication and its impact on margins will be important for assessing longer-term profitability.
Align Technology currently trades at $196.16, up from $161.30 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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