Company: ALGN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001097149-25-000079
Chunk: 229

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 229
---
.6 %9.0 %

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

Research and development expense generally includes personnel-related costs, including payroll and stock-based compensation, outside service costs associated with the research and development of new products and enhancements to existing products, software, equipment, material and maintenance costs, depreciation and amortization expense and allocations of corporate overhead expenses including facilities and IT.

For the three and nine months ended September 30, 2025, research and development expense increased compared to the same periods in 2024 primarily due to higher employee costs, including salaries, fringe benefits and stock-based compensation, partially offset by lower bonus cost.

Restructuring and other charges (in millions):

 Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 20252024Change20252024ChangeRestructuring and other charges$31.8 $— $31.8 $31.8 $— $31.8 % of net revenues3.2 %— %1.1 %— %

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

For the three and nine months ended September 30, 2025, restructuring and other charges increased compared to the same period in 2024. Refer to Note 15 "Restructuring and other charges" of the Notes to the Condensed Consolidated Financial Statements for more information.

34 

Legal settlement loss (in millions):  Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 20252024Change20252024ChangeLegal settlement loss$— $0.1 $(0.1)$4.2 $31.2 $(27.0)% of net revenues— %— %0.1 %1.0 %

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

For the nine months ended September 30, 2025, we recorded losses of $4 million due to legal settlements. Refer to Note 7 “Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements for more information.

Income from operations (in millions): Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 20252024Change20252024ChangeClear AlignerIncome from operations$250.7 $276.3 $(25.6)$