Company: ALGN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001097149-25-000064
Chunk: 46

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 46
---
$181,326 $188,491 Investing activities(56,768)(192,077)Financing activities(303,055)(163,275)Effect of exchange rate changes on cash, cash equivalents and restricted cash35,876 (9,196)Net decrease in cash, cash equivalents and restricted cash$(142,621)$(176,057)

35 

Operating Activities

For the six months ended June 30, 2025, cash flows from operations of $181 million resulted primarily from our net income of approximately $218 million as well as the following:

 Significant adjustments to net income

•Depreciation and amortization of $80 million related to our investments in property, plant and equipment and intangible assets; 

•Stock-based compensation of $93 million related to equity awards granted to employees and directors;

•Non-cash operating lease costs of $19 million; and

•Other non-cash operating activities of $8 million primarily related to an increase in our bad debt allowance.

Significant changes in working capital

•Net outflow of $121 million in accounts receivable due to timing of collections; 

•Net outflow of $36 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 $65 million in deferred revenue.

Investing Activities

Net cash used in investing activities was $57 million for the six months ended June 30, 2025 which was primarily related to an outflow of $47 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 $303 million for the six months ended June 30, 2025 and primarily consisted of an outflow of $297 million for share repurchases and payroll taxes paid for equity awards through share withholdings of $20 million which were partially offset by $14 million of proceeds from the issuance of common stock under our employee stock purchase plan. 

Critical Accounting Estimates

Management’s discussion and analysis of our financial condition and results of operations is based upon our Condensed Consolidated Financial Statements which have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and disclosures at the date of the financial statements. We evaluate our estimates on an ongoing basis, including those