Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 203

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 203
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 increase in Systems and Services net revenue primarily due to an increase in sales of scanner wands. 

Clear Aligner 

For the three months ended March 31, 2025, Clear Aligner net revenues decreased by $20 million as compared to the same period in 2024, primarily due to a decrease in ASP, driven by higher discounts and a product mix shift to lower priced products, resulting in a decrease of net revenues of $40 million and a net revenue decrease of $26 million from unfavorable 

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foreign exchange rates. These decreases were partially offset by an increase in volume which increased net revenue by $46 million.

Systems and Services

For the three months ended March 31, 2025, Systems and Services net revenues increased by $2 million as compared to the same period in 2024, primarily due to an increase of $12 million in sales of scanner wands, driven by strong volume partially offset by lower ASP, and a $4 million increase from non-system sales. These increases were partially offset by lower scanner system sales of $9 million, driven by lower volume and ASP, and $5 million lower net revenues from unfavorable foreign exchange rates. 

Cost of net revenues and gross profit (in millions): Three Months EndedMarch 31, 20252024ChangeClear AlignerCost of net revenues$234.8 $238.1 $(3.4)% of net segment revenues29.5 %29.1 %Gross profit$562.1 $579.1 $(17.1)Gross margin %70.5 %70.9 %Systems and ServicesCost of net revenues$64.4 $61.5 $2.9 % of net segment revenues35.3 %34.1 %Gross profit$118.0 $118.7 $(0.7)Gross margin %64.7 %65.9 %Total cost of net revenues$299.2 $299.6 $(0.5)% of net revenues30.5 %30.0 %Gross profit$680.1 $697.8 $(17.7)Gross margin %69.5 %70.0 %

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