Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 208

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 208
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 reasonably likely to have, a current or future material impact on our liquidity or capital resources.

•As of March 31, 2025, we agreed, in principle, to settle a legal matter for a total of $31.75 million. We expect to seek court or administrative approvals, as applicable, in the second quarter of 2025. Settlement payments will be made in accordance with the terms and conditions as set forth in the settlement agreements and/or court approvals. Refer to Note 7 “Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements for more information.

Sources and Uses of Cash 

The following table summarizes our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (in thousands):

 Three Months EndedMarch 31, 20252024Net cash flow provided by (used in):Operating activities$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