Align Technology Inc.

ALGN
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.0B
Q1 2026 · +6.2% YoY
TTM ROIC
13.9%
FY2025 · NOPAT / Invested Capital (NOPAT = EBIT × (1 - tax rate); Invested Capital = Total Equity + Total Debt - Cash & Investments) · WACC ~9.9% · Moat spread +4pp

Financial Snapshot

ticker: ALGN step: 04 generated: 2026-05-13 source: quick-research

Align Technology Inc. (ALGN) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $3.73B $3.86B $4.00B +3.5%
Gross Margin ~70.7% ~70.1% ~70.0%
Operating Margin ~15% ~12% ~14%
Net Income ~$552M ~$418M $421M +0.7%
EPS (diluted) ~$7.10 ~$5.55 ~$5.65 +1.8%

Revenue growth has slowed dramatically from the COVID-era boom (~$4B peak in 2021, then $3.95B in 2022, then soft recovery). Clear aligner volumes grew 3.5% in 2024 to 2.5M cases. Q1 2026 revenue up 6.2% YoY; Q4 2025 record 676.9k cases (+7.7% YoY).

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$700M
Free Cash Flow ~$500M
Capital Expenditures ~$200M
Cash & Equivalents ~$800M
Total Debt Minimal (net cash position)

Key Ratios (approximate)

  • P/E: ~20-22x | EV/EBITDA: ~15x | FCF Yield: ~4.5%
  • Gross Margin: ~70% (industry-leading for MedTech)
  • Net Cash Position: Positive; recently announced $200M share repurchase (Q1 2026)

Growth Profile

Align's revenue growth slowed from 60%+ pandemic-era peaks to mid-single digits (3-4% annually) as pent-up demand normalized. The global clear aligner penetration rate remains extremely low (~5-8% of orthodontic cases use clear aligners), suggesting a multi-decade runway. Key growth vectors: (1) expanding Invisalign Go into general dentistry, (2) teens/kids market (5.8M treated to date), (3) international markets (Europe, LATAM, APAC showing stronger growth than U.S.), (4) iTero Lumina scanner cycle driving case submission growth.

Forward Estimates

  • FY2026 Guidance: Revenue growth 3-4%; operating margins ~14-16%; $200M buyback
  • FY2026 Q1 actual: Revenue $979.3M (+6.2% YoY); beat estimates; reaffirmed guidance
  • Analyst consensus: Moderate Buy; avg. target ~$186 (range $140-$220)
  • Elliott Management activist involvement: pressure on cost structure and capital allocation

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $ALGN.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/algn/financials/md · → thesis · → memo