Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 155

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 155
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$52,676 $28,664 Investing activities(25,289)(79,584)Financing activities(206,756)(11,716)Effect of exchange rate changes on cash, cash equivalents and restricted cash8,480 (9,004)Net decrease in cash, cash equivalents and restricted cash$(170,889)$(71,640)

Operating Activities

For the three months ended March 31, 2025, cash flows from operations of $53 million resulted primarily from our net income of approximately $93 million as well as the following:

 Significant adjustments to net income

•Deferred taxes of $34 million related to a decrease in our long term deferred tax position;

•Depreciation and amortization of $39 million related to our investments in property, plant and equipment and intangible assets; 

•Stock-based compensation of $45 million related to equity awards granted to employees and directors;

•Non-cash operating lease costs of $9 million related to operating lease cost; and

•Other non-cash operating activities of $3 million primarily related to an increase in our bad debt allowance.

Significant changes in working capital

•Net outflow of $65 million in accounts receivable due to timing of collections; 

•Net outflow of $68 million in accrued and other long-term liabilities primarily due to the payment of fiscal year 2024 bonuses; and

•Net outflow of $35 million in deferred revenue.

Investing Activities

Net cash used in investing activities was $25 million for the three months ended March 31, 2025 which was solely related to purchases of property, plant and equipment.

Financing Activities

Net cash used in financing activities was $207 million for the three months ended March 31, 2025 and primarily consisted of an outflow of $201 million for share repurchases and payroll taxes paid for equity awards through share withholdings of $20 million which were partially offset by $14 million of proceeds from the issuance of common stock under our employee stock purchase plan. 

Critical Accounting Estimates

32 

Management’s discussion and analysis of our financial condition and results of operations is based upon our Condensed Consolidated Financial Statements which have been prepared in accordance with accounting principles generally accepted in the U.S. The preparation of financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and disclosures at the date of the financial statements. We evaluate our estimates on an ongoing basis, including those related to revenue recognition