Company: ALGN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001097149-25-000079
Chunk: 228

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 228
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 Assets held for sale of $23 million and depreciation on assets disposed of other than by sale of $14 million. Clear Aligner gross margin was also negatively impacted by lower ASP’s. These decreases were partially offset by lower Cost of net revenues, excluding the items noted previously, from operational efficiencies.

Systems and Services

For the three and nine months ended September 30, 2025, our gross margin decreased as compared to the same periods in 2024 primarily due to lower ASP's and an impairment loss on inventory of $15 million. These decreases were partially offset by lower Cost of net revenues, excluding the impairment loss, from operational efficiencies.

33 

Selling, general and administrative (in millions): Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 20252024Change20252024ChangeSelling, general and administrative$417.8 $434.1 $(16.3)$1,314.1 $1,338.2 $(24.1)% of net revenues42.0 %44.4 %44.0 %44.6 %

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

Selling, general and administrative expense generally includes personnel-related costs, including payroll, stock-based compensation and commissions for our sales force, marketing and advertising expenses including media, market research, marketing materials, clinical education, trade shows and industry events, legal and outside service costs, equipment, software and maintenance costs, depreciation and amortization expense and allocations of corporate overhead expenses including facilities and IT.

For the three months ended September 30, 2025, selling, general and administrative expense decreased compared to the same period in 2024 primarily due to lower employee costs, including salaries, fringe benefits and bonus and lower marketing expense.

For the nine months ended September 30, 2025, selling, general and administrative expense decreased compared to the same period in 2024 primarily due to lower employee costs, including salaries, fringe benefits, and bonus and lower outside services, partially offset by higher clinical education expense.

Research and development (in millions):  Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 20252024Change20252024ChangeResearch and development$93.3 $85.3 $8.0 $286.9 $269.3 $17.6 % of net revenues9.4 %8.7 %9