# Align Technology Inc. (ALGN) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ALGN/thesis · /stocks/ALGN/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ALGN/fundamental

## Navigation

- Overview: /stocks/ALGN
- Financials (this page): /stocks/ALGN/financials
- Thesis: /stocks/ALGN/thesis
- Investment Memo: /stocks/ALGN/memo
- Coverage universe: /stocks