Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 150

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 150
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 scanner wands, driven by strong volume partially offset by lower ASP, and a $4 million increase from non-system sales. These increases were partially offset by lower scanner system sales of $9 million, driven by lower volume and ASP, and $5 million lower net revenues from unfavorable foreign exchange rates. 

Cost of net revenues and gross profit (in millions): Three Months EndedMarch 31, 20252024ChangeClear AlignerCost of net revenues$234.8 $238.1 $(3.4)% of net segment revenues29.5 %29.1 %Gross profit$562.1 $579.1 $(17.1)Gross margin %70.5 %70.9 %Systems and ServicesCost of net revenues$64.4 $61.5 $2.9 % of net segment revenues35.3 %34.1 %Gross profit$118.0 $118.7 $(0.7)Gross margin %64.7 %65.9 %Total cost of net revenues$299.2 $299.6 $(0.5)% of net revenues30.5 %30.0 %Gross profit$680.1 $697.8 $(17.7)Gross margin %69.5 %70.0 %

Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.

Cost of net revenues includes personnel-related costs including payroll and stock-based compensation for staff involved in the production process, the cost of materials, packaging, freight and shipping, depreciation on capital equipment and facilities used in the production process, amortization of acquired intangible assets and training costs.

Clear Aligner

For the three months ended March 31, 2025, our gross margin percentage decreased as compared to the same period in 2024 primarily due to lower ASPs partially offset by lower manufacturing spend.

Systems and Services

For the three months ended March 31, 2025, our gross margin percentage decreased as compared to the same period in 2024 primarily due to a decrease in scanner wand and scanner system ASPs, partially offset by lower manufacturing spend and services efficiency.

28 

Selling, general and administrative (in millions): Three Months EndedMarch 31, 20252024ChangeSelling, general and administrative$447.6 $451.8 $(4.