ALGNMEDIUM SIGNALFINANCIAL10-K

Align Technology shows mixed financial performance with strong revenue growth offset by declining operating cash flow and reduced share count from accelerated buybacks.

The company maintained solid revenue momentum with nearly 24% growth while managing to reduce inventory levels, suggesting improved operational efficiency. However, the 20% decline in operating cash flow combined with increased share repurchases indicates potential cash flow pressures that warrant monitoring, particularly given the disconnect between revenue growth and operating income performance.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

Align delivered strong top-line growth with revenue expanding 24% while successfully reducing inventory by 11%, indicating better demand forecasting and working capital management. However, operating cash flow declined meaningfully by 20% even as operating income fell more modestly by 10%, creating a concerning divergence between earnings and cash generation. The company accelerated share buybacks by 32% to $466 million, contributing to a notable reduction in outstanding shares from 73.6 million to 71.3 million, though this aggressive capital return strategy may be pressuring liquidity amid weaker cash flow trends.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+32%
$352.9M→$465.9M

Share repurchases increased 32% — management returning capital, signals confidence in intrinsic value.

Revenue
P&L
+23.9%
$312.3M→$387.1M

Revenue growing 23.9% — solid top-line momentum, watch margins for quality of growth.

Operating Cash Flow
Cash Flow
-19.6%
$738.2M→$593.2M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Inventory
Balance Sheet
-11%
$254.3M→$226.3M

Inventory reduced 11% — lean inventory management or demand outpacing supply.

Accounts Receivable
Balance Sheet
+10.7%
$995.7M→$1.1B

Receivables grew 10.7% — monitor days sales outstanding for collection efficiency.

Operating Income
P&L
-10.2%
$607.6M→$545.8M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
On February 20, 2026, 71,282,132 shares of the registrant s common stock were outstanding.
Business 3 Information about our Executive Officers 22 Item 1A.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 97 Item 9A.
Form 10-K Summary 102 Signatures 103 Invisalign, Align, the Invisalign logo, ClinCheck, Invisalign Assist, Invisalign First, Invisalign Go, the Invisalign sonic logo, Vivera, SmartForce, SmartTrack, SmartStage, SmileView, iTero, iTero Element, iTero Lumina, Orthocad, exocad, Align Digital Platform, Align Oral Health Suite, Invisalign Smile Architect, iTero exocad Connector, exocad Dental CAD, and Cubicure, among others, are trademarks and/or service marks of Align Technology, Inc.
In some cases, you can identify forward-looking statements by terms such as anticipates, believes, estimates, expects, intends, may, plans, and similar expressions intended to identify forward-looking statements.
Given these risks and uncertainties, you should not to place undue reliance on such forward-looking statements.
Also, these forward-looking statements represent our estimates and assumptions only as of the date of this filing.
For the year ended December 31, 2025, Clear Aligner net revenues represented approximately 80% of worldwide net revenues, while Systems and Services net revenues represented the remaining 20%.
Our iTero intraoral scanners are used by dental professionals, labs, and service providers for restorative and orthodontic digital procedures, Invisalign case submissions, and comprehensive digital dentistry diagnosis, treatment planning and treatment monitoring.
Our Products, Services and Technologies Align TM Digital Platform For nearly 30 years, Align has been transforming smiles and changing lives; driving innovation in digital orthodontics and dentistry, helping doctors transform their practices using digital tools and technology to deliver exceptional, modern treatment 4 experiences and outcomes to over 22 million people worldwide.
REMOVED
On February 20, 2025, 73,597,648 shares of the registrant s common stock were outstanding.
Business 3 Information about our Executive Officers 20 Item 1A.
Changes in and Disagreements W ith Accountants on Accounting and Financial Disclosure 92 Item 9A.
Form 10-K Summary 98 Signatures 99 Invisalign, Align, the Invisalign logo, ClinCheck, Invisalign Assist, Invisalign Teen, Invisalign First, Invisalign Go, the Invisalign sonic logo, Vivera, SmartForce, SmartTrack, SmartStage, SmileView, iTero, iTero Element, iTero Lumina, Orthocad, exocad, Align Digital Platform, Invisalign Smile Architect, iTero exocad Connector and exocad Dental CAD, among others, are trademarks and/or service marks of Align Technology, Inc.
These statements may contain words such as expects, anticipates, intends, plans, believes, estimates, or other words indicating future results.
Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
For the year ended December 31, 2024, Clear Aligner net revenues represented approximately 81% of worldwide net revenues, while Systems and Services net revenues represented the remaining 19%.
Our iTero intraoral scanners are used by dental professionals, labs, and service providers for restorative and orthodontic digital procedures as well as Invisalign case submissions.
Our Products, Services and Technologies Align TM Digital Platform We strive to be at the forefront of innovation in digital orthodontics and dentistry, helping doctors transform their practices using digital tools and technology to deliver exceptional, modern treatment experiences and outcomes to patients worldwide.
The Align TM Digital Platform is the foundation of our goal to revolutionize the practice of dentistry, delivering interconnected, interdisciplinary workflows and treatment solutions designed to improve all aspects of treatment, from initial consultations to final smiles with our doctor-centered treatment model.
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