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what it is
Align sells clear teeth-straightening systems, mouth scanners, and treatment software to dentists and orthodontists.
how it gets paid
Last year Align Technology made $4.0B in revenue.
why it's growing
Revenue grew 0.9% last year. Fourth-quarter revenue reached a record $1,047.6 million (about +5.3% YoY), ahead of consensus near $1,033 million, with non-GAAP EPS of $3.29 versus estimates near $2.99.
what just happened
Fourth-quarter 2025 revenue was $1,047.6 million with non-GAAP EPS of $3.29; Clear Aligner revenue was $838.1 million for the quarter and Imaging Systems & CAD/CAM Services was $209.4 million.
At a glance
B+ balance sheet — decent shape, but not bulletproof
50/100 earnings predictability — expect surprises
16.4x trailing non-GAAP p/e — the market's not buying it — or you found a deal
17.0% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Align sells clear teeth-straightening systems, mouth scanners, and treatment software to dentists and orthodontists.
You do not buy one tray. You buy a full system. Align’s three core pieces — Invisalign aligners, iTero scanners, and ClinCheck treatment software — keep doctors inside one workflow, which makes switching annoying and expensive. That system produced $4.0 billion of revenue in 2025 with a 67.2% GAAP gross margin (gross margin → money left after making the product → so the business still has room to earn even after manufacturing costs).
How they make money
$4.0B
annual revenue · their business grew +0.9% last year
total revenue
$4.0B
+0.9%
The products that matter
clear aligner treatment system
Invisalign clear aligners
~$3.2B Clear Aligner revenue (FY2025)
this is still the center of gravity. company filings break out Clear Aligner revenue separately from scanners and services — aligner demand still drives most of the $4.0B top line.
core driver
digital intraoral scanning
iTero scanners
~$790M Systems & Services (FY2025)
imaging and CAD/CAM services are smaller than aligners but matter because they sit upstream of treatment volume and help keep doctors inside Align's workflow.
funnel control
treatment planning software
digital workflow software
supports ~19% non-GAAP net margin
software is not the headline product, but it helps explain how a business growing just 0.9% still converts roughly 19 cents of every revenue dollar into profit on a non-GAAP basis.
margin support
Key numbers
$4.0B
annual revenue
That is the size of the business today, and it only grew 0.9%, which tells you this is a scale story fighting for speed.
67.2%
GAAP gross margin (FY2025)
Gross margin → money left after production costs → so Align still has strong pricing power before overhead and legal costs show up.
16.4x
trailing non-GAAP p/e
P/E → price divided by earnings → on a non-GAAP basis this is not a wild multiple versus expected 2026–2027 profit.
17.0%
return on capital
Return on capital → profit generated from the money used in the business → so Align is still producing solid returns, not just selling a cool product.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- net profit margin ~19% non-GAAP net margin — about 19 cents of each revenue dollar on an adjusted basis
- return on equity 17% — $0.17 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ALGN 3 years ago → it's now worth $6,380.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Fourth-quarter revenue hit $1,047.6 million, ahead of consensus near $1,033 million.
Non-GAAP diluted EPS was $3.29 versus consensus near $2.99. GAAP diluted EPS was $1.89. Non-GAAP gross margin was 72.0% for the quarter; Clear Aligner revenue was $838.1 million and Imaging Systems & CAD/CAM Services was $209.4 million.
$1,047.6M
revenue
$3.29
non-GAAP eps
72.0%
non-GAAP gross margin
the number that mattered
Record quarterly revenue with a double-digit non-GAAP EPS beat versus the Street showed demand held up even as full-year growth stayed near flat.
-
align technology’s 2025 fourth-quarter report set a quarterly revenue record.
-
sales clocked in at $1,047.6 million, translating to non-GAAP earnings per share of $3.29.
-
consensus had been closer to $1,033 million in revenue and about $2.99 in non-GAAP EPS.
-
clear aligner growth was handsome, thanks to a sizable push on the international front.
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in turn, there was some softness in north america and at imaging operations.still, the investment community chose to focus on the positives, including stronger adoption among teenagers and an all-time high in the number of doctors submitting cases.
source: Align Technology Q4 & FY2025 release (Feb 4, 2026)
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What could go wrong
the #1 risk is ongoing antitrust and pricing scrutiny around Invisalign sales practices.
med
regulatory and antitrust pressure can hit margins before it hits growth
Align paid $31.7M in april 2025 to settle a consumer pricing case and $27.5M in august 2024 to settle antitrust claims. that is $59.2M already out the door, with other actions still pending.
if regulators or courts force changes to pricing or doctor-contract practices, the company risks losing part of the margin profile that currently makes 16.4x non-GAAP earnings look cheap.
med
0.9% revenue growth leaves very little room for mistakes
this is still a $4.0B business with fiscal 2025 non-GAAP operating margin of 22.7%, but the top line barely moved last year. when growth slows that much, every soft quarter looks structural until proven otherwise.
a business expected to stay around $4B in revenue does not usually win a premium multiple. if case growth stalls again, the valuation discount can persist even if profits hold up.
med
the story still runs through one franchise
this page does not provide a diversified segment mix. Invisalign, scanners, and software work together, but the economic story is still overwhelmingly tied to aligner case volume and doctor adoption.
if orthodontists slow submissions or competitors win share at the doctor level, there is no second engine on this page large enough to hide the slowdown.
$59.2M in settlements is manageable for a $4.0B revenue company. a flat growth profile means it is still a real overhang, not just a footnote.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next revenue print versus the $4B flatline
analysts are modeling roughly $4B in fy2026 revenue. if that starts to move meaningfully higher, the multiple debate changes fast.
risk
court and regulatory updates
you want to know whether pending antitrust actions stay as settlement costs or become operating restrictions.
metric
doctor submissions and teen case demand
management highlighted record doctor submissions and teen adoption. those are the early signals for future aligner volume.
trend
north america versus international
international is carrying more of the growth load right now. you want to see whether north america stabilizes or keeps lagging.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong near-term edge either way.
risk profile
average
stability score 3 — this sits in the middle of the risk pack, even if the share price itself has been jumpy.
chart momentum
below average
technical score 4 — the tape is not giving you much help from here.
earnings predictability
50 / 100
earnings are harder to model than average. translation: you should expect a few clean quarters and a few annoying ones.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 346 buyers vs. 339 sellers in 3q2025. total institutional holdings: 67.5M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$122
$282
$168
current price
$202
target midpoint · +20% from current · 3-5yr high: $420 (+150% · 26% ann'l return)
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