Company: ALGN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001097149-25-000079
Chunk: 150

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 150
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 awards and employee stock purchase plan for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands): Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 2025202420252024Cost of net revenues$1,540 $3,070 $4,714 $7,716 Selling, general and administrative35,226 34,937 99,577 97,705 Research and development11,611 11,032 37,291 29,434 Total stock-based compensation$48,377 $49,039 $141,582 $134,855 Restricted Stock Units (“RSUs”)The fair value of RSUs is based on the closing price of our stock on the date of grant. Generally, RSUs vest over a period of four years. A summary for the nine months ended September 30, 2025 is as follows:Number of SharesUnderlying RSUs(in thousands)Weighted Average Grant Date Fair ValueWeighted Average RemainingContractual Term (in years)Aggregate Intrinsic Value(in thousands)Unvested as of December 31, 20241,019 $331.10 Granted677 196.72 Vested and released(307)356.81 Forfeited(99)280.42 Unvested as of September 30, 20251,290 $258.36 1.5$161,601 As of September 30, 2025, we expect to recognize $226.3 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 2.6 years.Market-Performance Based Restricted Stock Units (“MSUs”)

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We grant MSUs to members of senior management. Each MSU represents the right to one share of our common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of our stock price relative to the performance of a stock market index over the vesting period. MSUs vest over a period of three years and the maximum number of shares eligible to vest is 250% of the MSUs initially granted. The following table summarizes the MSU performance activity for the nine months ended September 30, 2025: Number of SharesUnderlying MSUs(in thousands)Weighted Average Grant Date Fair ValueWeighted