Company: ALGN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001097149-25-000079
Chunk: 176

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 176
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Sources and Uses of Cash 

The following table summarizes our Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (in thousands):

 Nine Months EndedSeptember 30, 20252024Net cash provided by (used in):Operating activities$370,046 $452,153 Investing activities(76,529)(200,996)Financing activities(367,174)(152,703)Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash34,502 6,008 Net (decrease) increase in cash, cash equivalents and restricted cash$(39,155)$104,462 

Operating Activities

For the nine months ended September 30, 2025, cash flows from operations of $370 million resulted primarily from our net income of approximately $275 million as well as the following:

 Significant adjustments to reconcile net income to net cash provided by operating activities

•Depreciation and amortization of $135 million related to our investments in property, plant and equipment and intangible assets; 

•Stock-based compensation of $142 million related to equity awards granted to employees and directors;

•Non-cash operating lease costs of $30 million;

•Other non-cash operating activities of $29 million primarily related to an impairment loss on inventory and an increase in our bad debt allowance; and

•Impairment loss on Assets held for sale of $23 million.

Significant changes in working capital

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•Net outflow of $118 million in accounts receivable due to timing of collections; 

•Net outflow of $68 million in accrued and other long-term liabilities primarily due to the payment of fiscal year 2024 bonuses in the first quarter of 2025; and

•Net outflow of $89 million in deferred revenue.

Investing Activities

Net cash used in investing activities was $77 million for the nine months ended September 30, 2025 which was primarily related to an outflow of $67 million for purchases of property, plant and equipment and $10 million for our additional investment in SD Holding Company.

Financing Activities

Net cash used in financing activities was $367 million for the nine months ended September 30, 2025 which was primarily related to outflows of $369 million for share repurchases and $20 million for payroll taxes paid for vested equity awards, partially offset by $22 million of proceeds from the issuance of common stock under our employee stock purchase plan