Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 152

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 152
---
260.2 $286.2 $(26.0)Operating margin %32.7 %35.0 %Systems and ServicesIncome from operations$58.5 $49.7 $8.8 Operating margin %32.0 %27.6 %Total income from operations 1$131.1 $154.1 $(23.0)Operating margin %13.4 %15.5 %

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

1 Refer to Note 14 “Segments and Geographical Information” of the Notes to Condensed Consolidated Financial Statements for details on unallocated corporate expenses and the reconciliation to Condensed Consolidated Income from Operations.

For the three months ended March 31, 2025, our operating margin percentage decreased compared to the same period in 2024 primarily due to lower gross margin from our clear aligner reportable segment and an increase in legal settlement losses. Refer to Note 7 “Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements for more information.

Clear Aligner

For the three months ended March 31, 2025, our operating margin percentage decreased compared to the same period in 2024 primarily due to a decrease in gross margin and a decrease in operating leverage primarily due to higher marketing spend.

Systems and Services

For the three months ended March 31, 2025, our operating margin percentage increased compared to the same period in 2024 primarily due to operating leverage partially offset by lower gross margin.

Interest income (in millions):  Three Months EndedMarch 31, 20252024ChangeInterest income$5.3 $4.4 $0.9 % of net revenues0.5 %0.4 %

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

Interest income generally includes interest earned on cash, cash equivalents and investment balances. 

For the three months ended March 31, 2025, interest income increased compared to the same period in 2024 primarily due to higher cash and cash equivalents.

Other income (expense), net (in millions):  Three Months EndedMarch 31, 20252024ChangeOther income (expense), net$4.0 $(0.1)$4.2 % of net revenues0.4 %— %

Changes and percentages are based on actual values.