Company: ALGN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001097149-25-000064
Chunk: 162

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 162
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 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 six months ended June 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.

32 

Legal settlement loss (in millions):  Three Months EndedJune 30,Six Months EndedJune 30, 20252024Change20252024ChangeLegal settlement loss$— $31.1 $(31.1)$4.2 $31.1 $(26.9)% of net revenues— %3.0 %0.2 %1.5 %

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

For the six months ended June 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 EndedJune 30,Six Months EndedJune 30, 20252024Change20252024ChangeClear AlignerIncome from operations$267.0 $299.6 $(32.6)$527.2 $585.9 $(58.6)Operating margin %33.2 %36.0 %32.9 %35.5 %Systems and ServicesIncome from operations$85.7 $70.8 $14.9 $144.2 $120.5 $23.7 Operating margin %41.3 %36.0 %37.0 %32.0 %Total income from operations 1$163.0 $147.0 $16.0 $294.1 $301.2 $(7.0)Operating margin %16.1 %14.3 %14.8 %14.9 %

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 Ge