Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 200

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 200
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 market demand. Specifically, we are managing financial impacts through strategic product innovations, introductions and pricing actions, implementing cost saving measures and evaluating hiring needs.

25 

As an example, there was significant adoption of the Invisalign Comprehensive 3in3 product after it was introduced in 2023 that continued in 2024. The 3in3 configuration offers doctors Invisalign Comprehensive treatment with a three-year treatment expiration date and three additional clear aligners included prior to the treatment expiration date. The 3in3 product also allows us to recognize more revenue up front while doing so at a lower price as compared to our traditional Invisalign comprehensive product that has a five-year treatment expiration date with unlimited additional clear aligners prior to the treatment end date.

Further discussion of the impact of these challenges on our business may be found in Part II, Item 1A “Risk Factors.”

Key Financial and Operating Metrics

We measure our performance against the foregoing strategic priorities by the achievement of key financial and operating metrics. For the three months ended March 31, 2025, our business operations reflect the following:

•Revenues of $979 million, a decrease of 1.8% year-over-year;

•Clear Aligner revenues of $797 million, a decrease of 2.5% year-over-year; 

•Clear Aligner case volume increased 6.2% year-over-year and Clear Aligner case volume for teens and growing patients increased from 199.2 thousand shipments to 225.8 thousand or 13.3% year-over-year; 

•Imaging Systems and computer-aided design and computer-aided manufacturing (“CAD/CAM”) Services revenues of $182 million, an increase of 1.2% year-over-year;

•Income from operations of $131 million and operating margin of 13.4%;

•Effective tax rate of 33.6%;

•Net income of $93 million with diluted net income per share of $1.27;

•Cash and cash equivalents of $873 million as of March 31, 2025;

•Cash provided by operating activities of $53 million;

•Capital expenditures of $25 million, primarily related to investments in our manufacturing capacity and facilities; and

•Number of employees was 21,200 as of March 31, 2025, a decrease of 2.2% year-over-year. 

Other Statistical Data and Trends

•As of March 31, 202