Company: ALGN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001097149-25-000012
Chunk: 104

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 104
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 partially offset by unfavorable foreign exchange rates which decreased net revenues by $7 million.

Cost of net revenues and gross profit (in millions): 

 Year Ended December 31,Year Ended December 31, 20242023Change20232022ChangeClear AlignerCost of net revenues$952.1 $911.3 $40.8 $911.3 $844.4 $66.9 % of net segment revenues29.5 %28.5 %28.5 %27.5 %Gross profit$2,278.0 $2,288.0 $(10.1)$2,288.0 $2,228.2 $59.9 Gross margin %70.5 %71.5 %71.5 %72.5 %Systems and ServicesCost of net revenues$247.7 $244.1 $3.6 $244.1 $256.4 $(12.3)% of net segment revenues32.2 %36.8 %36.8 %38.7 %Gross profit$521.2 $418.8 $102.3 $418.8 $405.6 $13.2 Gross margin %67.8 %63.2 %63.2 %61.3 %Total cost of net revenues$1,199.9 $1,155.4 $44.5 $1,155.4 $1,100.9 $54.5 % of net revenues30.0 %29.9 %29.9 %29.5 %Gross profit$2,799.2 $2,706.9 $92.3 $2,706.9 $2,633.8 $73.1 Gross margin %70.0 %70.1 %70.1 %70.5 %

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

The gross margin percentage decreased