# EDGAR Filing Document

**Accession Number:** 0001097149
**File Stem:** 0001097149-26-000006
**Filing Date:** 2026-2
**Character Count:** 65890
**Document Hash:** b9df69aa3ac8680ff1fada94f21aac11
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001097149-26-000006.hdr.sgml**: 20260204

**ACCESSION NUMBER**: 0001097149-26-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260204

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260204

**DATE AS OF CHANGE**: 20260204

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALIGN TECHNOLOGY INC
- **CENTRAL INDEX KEY:** 0001097149
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 943267295
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-32259
- **FILM NUMBER:** 26598150

**BUSINESS ADDRESS:**
- **STREET 1:** 410 NORTH SCOTTSDALE ROAD, SUITE 1300
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85288
- **BUSINESS PHONE:** 408-470-1000

**MAIL ADDRESS:**
- **STREET 1:** 410 NORTH SCOTTSDALE ROAD, SUITE 1300
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85288

?xml version='1.0' encoding='ASCII'? algn-20260204

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): February 4, 2026

**ALIGN TECHNOLOGY, INC.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **000-32259** | **94-3267295** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

**410 North Scottsdale Road, Suite 1300, Tempe, Arizona 85288** 

(Address of principal executive offices) (Zip Code)

**(602) 742-2000** 

(Registrant's telephone number, including area code)

**Not applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock, $0.0001 par value | ALGN | The NASDAQ Stock Market LLC |
|  |  | (NASDAQ Global Select Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 4, 2026, Align Technology, Inc. issued a press release and will hold a conference call regarding its financial results for its fourth quarter and fiscal year ended December 31, 2025. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

This information is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](algn-q425earningspressrele.htm)</u> | <u>[Press Release of Align Technology, Inc. announcing its fourth quarter and fiscal year ended December 31, 202](algn-q425earningspressrele.htm)[5](algn-q425earningspressrele.htm)[financial results](algn-q425earningspressrele.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| | **ALIGN TECHNOLOGY, INC.** |
| By: | /s/ John F. Morici |
|  | John F. Morici<br>Chief Financial Officer and Executive Vice President, Global Finance |

---

Date: February 4, 2026

## Exhibit 99.1

**Exhibit 99.1**

Align Technology Announces Fourth Quarter and Fiscal 2025 Results

![image_0a.jpg](image_0a.jpg)

---

| | |
|:---|:---|
| <u>Align Technology</u> | <u>Zeno Group</u> |
| Madelyn Valente | Sarah Karlson |
| (909) 833-5839 | (828) 551-4201 |
| mvalente@aligntech.com | sarah.karlson@zenogroup.com |

---

**ALIGN TECHNOLOGY ANNOUNCES FOURTH QUARTER AND FISCAL 2025 FINANCIAL RESULTS**

**Q4'25 record total revenues of $1,047.6 million, up 5.2% sequentially and up 5.3% year-over-year. Q4'25 Systems and Services revenues up 10.3% sequentially, and up 4.2% year-over-year, reflecting continued iTero Lumina™ upgrades and higher volume across all regions, and higher services revenues. Q4'25 Clear Aligner revenues up 4.0% sequentially and up 5.5% year-over-year.**

**Q4'25 record Clear Aligner volumes of 676.9 thousand cases, up 4.5% sequentially, and up 7.7% year-over-year, driven by strength in the EMEA, Latin America and Asia Pacific regions and stability in North America. Q4'25 Clear Aligner volumes up 8.9% year-over-year in the Orthodontic channel, and up 5.3% year-over-year in the GP dentist channel. Q4'25 Clear Aligner volumes up 6.9% year-over-year in teens and kids, and up 8% year-over-year for adult patients.**

**FY2025 record total revenues of $4.0 billion, Clear Aligner revenues of $3.2 billion, and Systems and Services revenues of $789.6 million, up 0.9%, up 0.5%, and up 2.7%, respectively, compared to 2024.**

**During 2025, we achieved the following major milestones: over 22 million Invisalign**<sup>®</sup> **patients including over 6.5 million teens and growing kids, over 121 thousand active iTero™ scanner units, over 70 thousand exocad CAD/CAM licenses, over 295 thousand active Invisalign trained doctors, and over 2.4 billion clear aligners manufactured worldwide.** 

TEMPE, Ariz., February 4, 2026 -- Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign<sup>®</sup> System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry, today reported financial results for the fourth quarter ("Q4'25") and year ended December 31, 2025 ("2025"). Q4'25 total revenues were $1,047.6 million, up 5.2% sequentially and up 5.3% year-over-year. Q4'25 total revenues were unfavorably impacted by foreign exchange of approximately $3.0 million or 0.3% sequentially and favorably impacted by approximately $14.8 million or 1.4% year-over-year.<sup>(1)</sup> Q4'25 Clear Aligner revenues were $838.1 million, up 4.0% sequentially and up 5.5% year-over-year. Q4'25 Clear Aligner revenues were unfavorably impacted by foreign exchange of approximately $2.3 million or 0.3% sequentially and favorably impacted by approximately $12.4 million or 1.5% year-over-year.<sup>(1)</sup> Q4'25 Clear Aligner volume of 676.9 thousand cases was up 4.5% sequentially and up 7.7% year-over-year. Q4'25 Imaging Systems and CAD/CAM Services revenues were $209.4 million, up 10.3% sequentially and up 4.2% year-over-year. Q4'25 Imaging Systems and CAD/CAM Services revenues were unfavorably impacted by foreign exchange of approximately $0.7 million or 0.3% sequentially and favorably impacted by approximately $2.5 million or 1.2% year-over-year.<sup>(1)</sup>

(1) For more information, please see the tables captioned "Unaudited GAAP to Non-GAAP Reconciliation."

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

Q4'25 gross profit was $683.6 million resulting in a gross margin of 65.3%. Q4'25 gross margin was unfavorably impacted by foreign exchange of approximately 0.1 point sequentially and favorably impacted by approximately 0.5 points year-over-year.<sup>(1)</sup> On a non-GAAP basis, Q4'25 gross profit was $754.7 million resulting in a gross margin of 72.0%.

Q4'25 operating income was $155.3 million resulting in an operating margin of 14.8%. Q4'25 operating margin was unfavorably impacted by foreign exchange of approximately 0.3 points sequentially and favorably impacted by approximately 0.2 points year-over-year.<sup>(1)</sup> Q4'25 net income was $135.8 million, or $1.89 per diluted share. Q4'25 diluted net income per share was unfavorably impacted by a stronger U.S. dollar, which amounted to approximately $0.05 per diluted share due to foreign exchange. On a non-GAAP basis, Q4'25 net income was $236.0 million, or $3.29 per diluted share. During Q4'25, we incurred a total of $67.5 million of restructuring and accelerated depreciation charges.

2025 total revenues of $4.0 billion were favorably impacted by foreign exchange of approximately $4.9 million or 0.1% compared to 2024.<sup>(1)</sup> 2025 Clear Aligner revenues of $3.2 billion were favorably impacted by foreign exchange of approximately $4.1 million or 0.1% compared to 2024.<sup>(1)</sup> 2025 Imaging Systems and CAD/CAM Services revenues of $789.6 million were favorably impacted by foreign exchange of approximately $0.8 million or 0.1% compared to 2024.<sup>(1)</sup> 2025 Clear Aligner volume of 2.6 million cases, was up 4.7% year-over-year. During 2025, we incurred restructuring and other charges primarily related to post-employment benefits of $42.9 million, and other non-cash items, including impairment on assets held for sale, depreciation expense on assets disposed of other than by sale, and impairment loss on inventory, for an aggregate of $157.9 million.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

Commenting on Align's Q4'25 and 2025 results, Align Technology President and CEO Joe Hogan said, "I am pleased to report fourth quarter results and better than expected revenues and Clear Aligner volumes, as well as non-GAAP gross margin and non-GAAP operating margin — both above our outlook. For Q4, total revenues were a record $1,047.6 million, an increase of 5.3% year-over-year and an increase of 5.2% sequentially. Q4 Clear Aligner revenues of $838.1 million increased 5.5% year-over-year and increased 4.0% sequentially. Q4 Clear Aligner volume was a record 676.9 thousand cases, up 7.7% year-over-year and up 4.5% sequentially. On a year-over-year basis, Q4 Clear Aligner volume growth was driven by strength in EMEA, Latin America and APAC — with stability in North America. Q4 Clear Aligner volume growth year-over-year reflects strength from adult and teens and growing kid patients, as well as growth in both the GP and Ortho channels. On a sequential basis, Q4 Clear Aligner volumes reflect strong growth from the EMEA region, driven primarily by adult patients, as well as continued strength in Latin America from teens, growing kids and adult patients. During Q4, 87.7 thousand doctors submitted Invisalign<sup>®</sup> cases globally, a record high for a fourth quarter, driven primarily by a record number of Orthodontist submitters. For Systems and Services, Q4 revenues were $209.4 million, up 4.2% year-over-year and up 10.3% sequentially. Year-over-year revenue growth reflects higher volumes driven by continued iTero Lumina™ scanner sales. iTero Lumina with iTero Multi-Direct Capture™ technology elevates the scanning workflow with ease-of-use and exceptional visualization, helping doctors move seamlessly into our next-generation imaging platform. For Q4, iTero Lumina represented approximately 86% of our full systems units."

Continued Hogan, "For the full year fiscal 2025, total revenues were a record $4.0 billion, up 0.9% year-over-year, and Systems and Services revenues were $789.6 million, up 2.7% year-over-year. Fiscal 2025 Clear Aligner revenues were $3.2 billion, up 0.5% year-over-year on record Clear Aligner volumes of 2.6 million cases, which were up 4.7% year-over-year. For the year, a record 935.8 thousand teens and kids started treatment with Invisalign clear aligners, up 7.8% year-over-year. For fiscal 2025, total Invisalign<sup>®</sup> DSP Touch Up cases shipped were over 136 thousand, up 35.7% compared to 2024. We delivered fiscal 2025 non-GAAP operating margin of 22.7%, above our 2025 outlook."

------

Align Technology Announces Fourth Quarter and Fiscal 2025 Results

**<u>Financial Summary - Fourth Quarter Fiscal 2025</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Q4'25** | Q3'25 | Q4'24 | *Q/Q Change* | *Y/Y Change* |
| Clear Aligner Shipments | **676855** | 647750 | 628730 | *+4.5%* | *+7.7%* |
| **GAAP** |  |  |  |  |  |
| Net Revenues | **$1,047.6M** | $995.7M | $995.2M | *+5.2%* | *+5.3%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clear Aligner | **$838.1M** | $805.8M | $794.3M | *+4.0%* | *+5.5%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imaging Systems and CAD/CAM Services | **$209.4M** | $189.9M | $200.9M | *+10.3%* | *+4.2%* |
| Net Income | **$135.8M** | $56.8M | $103.8M | *+139.2%* | *+30.8%* |
| Diluted EPS | **$1.89** | $0.78 | $1.39 | *$+1.11* | *$+0.50* |
| **Non-GAAP** |  |  |  |  |  |
| Net Income  | **$236.0M** | $189.0M | $181.6M | *+24.9%* | *+29.9%* |
| Diluted EPS  | **$3.29** | $2.61 | $2.44 | *+$0.68* | *+$0.85* |

---

**<u>Financial Summary - Fiscal 2025</u>**

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | 2024 | *Y/Y Change* |
| Clear Aligner Shipments | **2611280** | 2493735 | *+4.7%* |
| **GAAP** |  |  |  |
| Net Revenues | **$4,035.0M** | $3,999.0M | *+0.9%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clear Aligner | **$3,245.4M** | $3,230.1M | *+0.5%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imaging Systems and CAD/CAM Services | **$789.6M** | $768.9M | *+2.7%* |
| Net Income | **$410.4M** | $421.4M | *(2.6)%* |
| Diluted EPS | **$5.65** | $5.62 | *$+0.03* |
| **Non-GAAP** |  |  |  |
| Net Income  | **$763.0M** | $699.7M | *+9.0%* |
| Diluted EPS  | **$10.51** | $9.33 | *+$1.18* |

---

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

As of December 31, 2025, we had $1,094.9 million in cash and cash equivalents compared to $1,004.6 million as of September 30, 2025. As of December 31, 2025, we had $300.0 million available under a revolving line of credit.

Commenting on Align's fourth quarter and fiscal 2025 results, outlook for Q1'26 and Fiscal 2026, Align Technology CFO and EVP Global Finance, John Morici said, "Q4 was a good finish to the year, with results that came in better than expected and reflect the continued strength of our business fundamentals. As we enter 2026, we're executing with focus and discipline, and we're encouraged by the progress we're seeing across regions and key customer segments. Our confidence is grounded in the actions we're taking to actively manage the business and drive growth through our core strategic priorities — expanding international adoption, increasing orthodontic utilization particularly among teens and kids, accelerating GP engagement including restorative dentistry, and strengthening consumer demand conversion with greater emphasis on local, last-mile marketing. While the macro environment remains dynamic, we are cautiously optimistic. With a strong innovation roadmap, disciplined operational execution, and a global team committed to delivering for doctors and their patients, we believe we are well positioned to deliver growth and value in 2026 and beyond."

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

**<u>Align Announcement Highlights</u>**

• February 2, 2026 – Align Technology announced a collaboration with the University of Bern on Switzerland's first Swiss Oral Health Study, an epidemiological initiative led by Professor Dr. Hendrik Meyer-Lückel, director of the Clinic for Conservative, Preventive, and Pediatric Dentistry at the University of Bern. As part of this collaboration, Align is providing its state-of-the-art iTero Lumina™ intraoral scanner, which will have a central role in the study's data collection.

• January 13, 2026 – Align Technology announced a new initiative with the Canadian Foundation for the Advancement of Orthodontics ("CFAO"). Under this initiative, Align has committed to support Invisalign treatment for 30 eligible patients through CFAO's Smiles4Canada program.

• December 8, 2025 – Align Technology launched the Invisalign<sup>®</sup> System with mandibular advancement in Thailand. The system features occlusal blocks designed to correct Class II skeletal and dental issues by advancing the mandible while aligning teeth.

• December 3, 2025 – Align Technology showcased its latest innovations at the Greater New York Dental Meeting 2025, one of the largest U.S. dental congresses. Highlights included hands-on demos of the iTero Lumina™ scanner, Align™ Oral Health Suite, Invisalign Smile Architect™, iTero™ Design Suite, and ClinCheck<sup>®</sup> Signature experience.

• November 25, 2025 – Align Technology announced that it received top-tier recognition in the 2025 All-America Executive Team rankings from Extel Insights (formerly Institutional Investor Research). The rankings evaluate the quality of investor relations programs, corporate leadership, and governance based on voting from buy- and sell-side analysts. Align earned multiple #1, #3, and top-10 placements for executive leadership, board governance, investor relations, and investor/analyst events within the Health Care Technology & Distribution sector and the Large-Cap ($10B–$50B) category. Align was also named a Most Honored Company in the 2025 survey, recognizing U.S. companies that achieve consistently high rankings across categories.

• November 24, 2025 – Align Technology introduced the Invisalign<sup>®</sup> System with mandibular advancement in the Philippines, featuring occlusal blocks for simultaneous mandibular advancement and tooth alignment to address Class II correction.

• November 4, 2025 – Align Technology announced participation in key financial conferences: UBS Global Healthcare, Jefferies Healthcare, Piper Sandler Healthcare (37th Annual), and Evercore Healthcare (8th Annual).

• November 3, 2025 – Align Technology opened its 2026 Annual Research Award Program, offering up to $300,000 to support global university research in orthodontics and dentistry. Since 2010, the program has funded approximately $3.96 million in scientific and technological initiatives to advance patient care.

**<u>Q4'25 and 2025 Stock Repurchases</u>**

• During Q4'25, we repurchased approximately 0.7 million shares of our common stock at an average price per share of $142.87. These repurchases were made pursuant to the $200.0 million open market repurchase plan announced in August 2025, and were completed in January 2026. During 2025, we repurchased 2.9 million shares of our common stock at an average price per share of $162.09, for a total of $465.9 million. As of December 31, 2025, $831.2 million remains available for repurchases of our common stock under our $1.0 billion stock repurchase program announced in April 2025.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

**<u>Tariff Update as of December 31, 2025</u>**

**•** Currently, we do not expect a material change to our operations as a consequence of the latest U.S. tariff actions, and we refer you to our Q1'25 press release and earnings materials, as well as our Q2'25 webcast slides which includes specifics regarding potential impacts of U.S. Tariffs

**<u>Fiscal 2026 Business Outlook</u>**

Assuming no circumstances occur beyond our control, such as foreign exchange, macroeconomic conditions, and changes to currently applicable duties, including tariffs or other fees that could impact our business:

**<u>Q1'26:</u>**

• We expect Q1'26 worldwide revenues to be in the range of $1,010M to $1,030M, up 3% to 5% year-over-year

• We expect Q1'26 Clear Aligner volume to be up mid-single digits year-over-year

• We expect Q1'26 Clear Aligner average selling price ("ASP") to be up sequentially from favorable geographic mix

• We expect Systems & Services revenue to be down sequentially, consistent with typical Q1 seasonality

• We expect our Q1'26 GAAP operating margin to be 12.4% to 12.8%, down sequentially and Q1'26 Non-GAAP operating margin to be approximately 19.5%, consistent with typical Q1 seasonality

**<u>For fiscal 2026:</u>**

• We expect 2026 worldwide revenue growth to be up 3% to 4% year-over-year

• We expect 2026 Clear Aligner volume growth to be up mid-single digits year-over-year

• We expect the 2026 GAAP operating margin to be slightly below 18.0%, approximately 400 basis points improvement over 2025 and non-GAAP operating margin to be approximately 23.7%, 100 basis points improvement year-over-year as communicated during our third quarter earnings call

• We expect our investments in capital expenditures for fiscal 2026 to be $125 million to $150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity as well as maintenance

**<u>Align Web Cast and Conference Call</u>**

We will host a conference call today, February 4, 2026, at 4:30 p.m. EST, 2:30 p.m. MST, to review our fourth quarter and full year 2025 results, discuss future operating trends, and our business outlook. The conference call will also be webcast live via the Internet. To access the webcast, go to the "Events & Presentations" section under

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

Company Information on Align's Investor Relations website at http://investor.aligntech.com. To access the conference call, participants may register for the call at https://edge.media-server.com/mmc/p/m68uzfsd/. Once registered, participants will receive an email with dial-in number and unique PIN number to access the live event. An archived audio webcast will be available 2 hours after the call's conclusion and will remain available for one month.

**<u>About Non-GAAP Financial Measures</u>**

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles ("GAAP") in the United States ("U.S. GAAP"), we use the following non-GAAP financial measures: constant currency net revenues, constant currency gross profit, constant currency gross margin, constant currency income from operations, constant currency operating margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP total operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP financial measures exclude certain items that may not be indicative of our fundamental operating performance, including foreign currency exchange rate impacts, the effects of stock-based compensation, amortization of intangible assets related to certain acquisitions, restructuring and other charges, costs to resolve litigation and legal settlements, acquisition-related costs, discrete cash and non-cash charges or gains and associated tax impacts that are included in the most directly comparable GAAP financial measure.

Our management believes that the use of certain non-GAAP financial measures provides meaningful supplemental information regarding our recurring core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by our institutional investors and the analyst community to help them analyze the performance of our business.

There are material limitations to using non-GAAP financial measures as they are not prepared in accordance with U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. Non-GAAP financial measures exclude certain items that may have a material impact upon our reported results of operations, which can limit their usefulness for comparison purposes. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which charges and gains are excluded or included from the non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on both a GAAP and non-GAAP basis and by providing specific information regarding the GAAP amounts excluded or included from these non-GAAP financial measures in our public disclosures. The presentation of non-GAAP financial information is meant to be considered in addition to, not as a substitute for, superior to, or in isolation from, the directly comparable financial measures prepared in accordance with U.S. GAAP. We urge investors to review the reconciliation of our GAAP financial measures to the comparable non-GAAP financial measures included herein and not to rely on any single financial measure to evaluate our business. For more information on these non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the tables captioned "Unaudited GAAP to Non-GAAP Reconciliation."

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

**<u>About Align Technology, Inc.</u>**

Align Technology designs and manufactures the Invisalign<sup>®</sup> System, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for approximately 295.6 thousand doctor customers and are key to accessing Align's 600 million consumer market opportunity worldwide. Over the past 28 years, Align has helped doctors treat approximately 22.1 million patients with the Invisalign System and is driving the evolution in digital dentistry through the Align™ Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners. Visit www.aligntech.com for more information.

For additional information about the Invisalign System or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.

Invisalign, iTero, exocad, Align, Align Digital Platform, and iTero Lumina are trademarks of Align Technology, Inc.

**<u>Forward-Looking Statements</u>**

This news release, including the tables below, contains forward-looking statements, including statements of our current intentions, beliefs and expectations regarding our ability to deliver growth and value in 2026 and beyond, actively manage our business, drive growth through our core strategic priorities, and drive consumer demand and patient conversion; the continued strength of our business fundamentals; our progress across regions and key customer segments; our confidence and optimism during a dynamic macroeconomic environment; our expectations for implemented or proposed tariffs; our expectations for Q1'26 worldwide revenues, Clear Aligner volume, Clear Aligner ASPs, Systems and Services revenues, and GAAP and non-GAAP operating margin; our expectations for fiscal year 2026 worldwide revenue growth, Clear Aligner volume growth, GAAP and non-GAAP operating margin, and investments in capital expenditures. Forward-looking statements contained in this press release are based upon information available to Align as of the date hereof. These forward-looking statements reflect our best judgments based on currently known facts and circumstances and are subject to risks and uncertainties, and assumptions that may be inaccurate. As a result, actual results may differ materially and adversely from those expressed or implied in any forward-looking statement.

Factors that might cause such a difference include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic conditions, including fluctuations in foreign currency exchange rates, inflation, general economic weakness, actual or potential slowdowns or recessions, interest rates and market volatility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geopolitical events, such as wars, military conflicts (such as those involving Ukraine, the Middle East and China), terrorism and major public health crises, which could result in, among other things, disruptions to our supply chain and the global economy;

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tariffs or proposed tariffs, customs duties, or fees, and any retaliatory tariffs, international trade disputes, or protectionist trade measures taken in response to such tariffs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• customer and consumer purchasing behavior and changes in consumer spending habits as a result of, among other things, prevailing macroeconomic conditions, declining customer confidence and consumer sentiment, employment levels, health insurance coverage, wages, debt obligations, discretionary income, inflationary pressure, and perceptions of current and future economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in our geographic, channel or product mix, product launches, product pilots and product adoption, and selling prices regionally and globally, including product mix shifts to lower priced products or to products with a higher percentage of deferred revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition from existing and new competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competitive pressure from AI-powered technologies in the dental industry, regulatory and legal risks surrounding implementation of AI, and reputational harm from improper use of AI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declines in, or the slowing of the growth of, sales of our clear aligners and intraoral scanners domestically and/or internationally and the impact either would have on the adoption of Invisalign products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to implement and realize the anticipated benefits currently expected from actions to realign certain business groups and reduce our global workforce in response to the prevailing macroeconomic environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that the development and release of new products or enhancements to existing products do not proceed in accordance with the anticipated timeline or may themselves contain bugs, errors, or defects in software or hardware requiring remediation and that the market for the sale of these new or enhanced products may not develop as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing, availability and cost of raw materials, components, products and other shipping and supply chain constraints and disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected or rapid changes in the growth or decline of our domestic and/or international markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rapidly evolving and groundbreaking advances that fundamentally alter the dental industry or the way new and existing customers market and provide products and services to consumers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to protect our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with regulatory requirements and obtain and maintain regulatory approvals or clearances, including as a result of any shutdowns of the U.S. federal government or reductions in government personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to sustain or increase profitability or revenue growth in future periods (or minimize declines) while controlling expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expansion of our business and products;

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of excess or constrained capacity at our manufacturing and treat operations facilities and pressure on our internal systems and personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• security breaches, data breaches, or other cybersecurity incidents involving any customer and/or patient data, and our failure to comply with laws, regulations and other obligations related to privacy, data protection, data governance and cybersecurity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing of case submissions from our doctor customers within a quarter as well as an increased manufacturing costs per case; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the loss of key personnel, labor shortages, or work stoppages for us or our suppliers.

The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission ("SEC") on February 28, 2025 and our latest Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, which was filed with the SEC on November 5, 2025. Align undertakes no obligation, and does not intend, to revise or update publicly any forward-looking statements for any reason.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $1047561 | $995219 | $4034964 | $3999012 |
| Cost of net revenues | 363974 | 298278 | 1323951 | 1199853 |
| Gross profit | 683587 | 696941 | 2711013 | 2799159 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 441676 | 424971 | 1755791 | 1763193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 83036 | 94878 | 369911 | 364202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges | 3551 | 33168 | 35378 | 33168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlement loss |  | (225) | 4178 | 30968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 528263 | 552792 | 2165258 | 2191531 |
| Income from operations | 155324 | 144149 | 545755 | 607628 |
| Interest income and other income (expense), net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4621 | 8522 | 16045 | 20218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 16650 | (11894) | 23487 | (18887) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income and other income (expense), net | 21271 | (3372) | 39532 | 1331 |
| Net income before provision for income taxes | 176595 | 140777 | 585287 | 608959 |
| Provision for income taxes | 40835 | 36970 | 174936 | 187597 |
| Net income | $135760 | $103807 | $410351 | $421362 |
| Net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.89 | $1.39 | $5.66 | $5.63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.89 | $1.39 | $5.65 | $5.62 |
| Shares used in computing net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 71684 | 74419 | 72542 | 74877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 71757 | 74465 | 72588 | 74993 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2025** | **December 31,<br>2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1094908 | $1043887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 1101757 | 995685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 226343 | 254287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 165571 | 198582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | 27983 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2616562 | 2492441 |
| Property, plant and equipment, net | 1131453 | 1271134 |
| Operating lease right-of-use assets, net | 108322 | 113376 |
| Goodwill | 491833 | 442630 |
| Intangible assets, net | 93933 | 103488 |
| Deferred tax assets | 1513542 | 1557372 |
| Other assets | 278048 | 234159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6233693 | $6214600 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $121450 | $108693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 536749 | 598188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues | 1261816 | 1331146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1920015 | 2038027 |
| Income tax payable | 68200 | 96466 |
| Operating lease liabilities | 82507 | 88214 |
| Other long-term liabilities | 113824 | 139908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2184546 | 2362615 |
| Total stockholders' equity | 4049147 | 3851985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $6233693 | $6214600 |

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

---

| | | |
|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | $593223 | $738231 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (112445) | (254912) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (464580) | (355722) |
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 35025 | (21153) |
| Net increase in cash, cash equivalents, and restricted cash | 51223 | 106444 |
| Cash, cash equivalents, and restricted cash at beginning of the period | 1044963 | 938519 |
| Cash, cash equivalents, and restricted cash at end of the period | $1096186 | $1044963 |

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

INVISALIGN BUSINESS METRICS

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Q1**<br>**2024** | **Q2**<br>**2024** | **Q3**<br>**2024** | **Q4**<br>**2024** | **Fiscal**<br>**2024** | **Q1**<br>**2025** | **Q2**<br>**2025** | **Q3**<br>**2025** | **Q4**<br>**2025** | **Fiscal**<br>**2025** |
| **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** | **Number of Invisalign Trained Doctors Cases Were Shipped To** |
| 83510 | 86135 | 87380 | 85685 | 130370 | 85275 | 86250 | 88155 | 87710 | 130015 |
| **Invisalign Trained Doctor Utilization Rates\*** | **Invisalign Trained Doctor Utilization Rates\*** | **Invisalign Trained Doctor Utilization Rates\*** | **Invisalign Trained Doctor Utilization Rates\*** |  |  |  |  |  |  |
| 7.2 | 7.5 | 7.1 | 7.3 | 19.1 | 7.5 | 7.5 | 7.3 | 7.7 | 20.1 |
| **Clear Aligner Revenue Per Case Shipment\*\*** | **Clear Aligner Revenue Per Case Shipment\*\*** | **Clear Aligner Revenue Per Case Shipment\*\*** | **Clear Aligner Revenue Per Case Shipment\*\*** |  |  |  |  |  |  |
| $1350 | $1295 | $1275 | $1265 | $1295 | $1240 | $1250 | $1245 | $1240 | $1245 |

---

*\* number of cases shipped / number of doctors to whom cases were shipped*

*\*\* Clear Aligner revenues / Case shipments* 

*.*

ALIGN TECHNOLOGY, INC.

STOCK-BASED COMPENSATION

(in thousands)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Q1**<br>**2024** | **Q2**<br>**2024** | **Q3**<br>**2024** | **Q4**<br>**2024** | **Fiscal**<br>**2024** | **Q1**<br>**2025** | **Q2**<br>**2025** | **Q3**<br>**2025** | **Q4**<br>**2025** | **Fiscal**<br>**2025** |
| ***Stock-based Compensation (SBC):*** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC included in Gross Profit | $2064 | $2582 | $3070 | $(721) | $6995 | $1538 | $1636 | $1540 | $1463 | $6177 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC included in Operating Expenses | 36724 | 44446 | 45969 | 39569 | 166708 | 43459 | 46572 | 46837 | 42825 | 179693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total SBC | $38788 | $47028 | $49039 | $38848 | $173703 | $44997 | $48208 | $48377 | $44288 | $185870 |

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION<sup>+</sup>

CONSTANT CURRENCY NET REVENUES

(in thousands, except percentages)

Sequential constant currency analysis:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| | **December 31, 2025** | **September 30, 2025** |<br>**Impact % of Revenue** |
| **GAAP net revenues** | $1047561 | $995692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact <sup>(1)</sup> | 2965 |  | 0.3% |
| **Constant currency net revenues** <sup>(1)</sup> | $1050526 |  |  |
| **GAAP Clear Aligner net revenues** | $838145 | $805799 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clear Aligner constant currency impact <sup>(1)</sup> | 2312 |  | 0.3% |
| **Clear Aligner constant currency net revenues** <sup>(1)</sup> | $840457 |  |  |
| **GAAP Imaging Systems and CAD/CAM Services net revenues** | $209416 | $189893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imaging Systems and CAD/CAM Services constant currency impact <sup>(1)</sup> | 653 |  | 0.3% |
| **Imaging Systems and CAD/CAM Services constant currency net revenues** <sup>(1)</sup> | $210069 |  |  |

---

Year-over-year constant currency analysis:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | |
| | **2025** | **2024** |<br>**Impact % of Revenue** |
| **GAAP net revenues** | $1047561 | $995219 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact <sup>(1)</sup> | (14810) |  | (1.4)% |
| **Constant currency net revenues** <sup>(1)</sup> | $1032751 |  |  |
| **GAAP Clear Aligner net revenues** | $838145 | $794289 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clear Aligner constant currency impact <sup>(1)</sup> | (12351) |  | (1.5)% |
| **Clear Aligner constant currency net revenues** <sup>(1)</sup> | $825794 |  |  |
| **GAAP Imaging Systems and CAD/CAM Services net revenues** | $209416 | $200930 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imaging Systems and CAD/CAM Services constant currency impact <sup>(1)</sup> | (2458) |  | (1.2)% |
| **Imaging Systems and CAD/CAM Services constant currency net revenues** <sup>(1)</sup> | $206958 |  |  |

---

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED<sup>+</sup>

CONSTANT CURRENCY NET REVENUES CONTINUED

(in thousands, except percentages)

Current year versus prior year constant currency analysis:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | |
| | **2025** | **2024** |<br>**Impact % of Revenue** |
| **GAAP net revenues** | $4034964 | $3999012 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact <sup>(1)</sup> | (4875) |  | (0.1)% |
| **Constant currency net revenues** <sup>(1)</sup> | $4030089 |  |  |
| **GAAP Clear Aligner net revenues** | $3245404 | $3230122 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clear Aligner constant currency impact <sup>(1)</sup> | (4077) |  | (0.1)% |
| **Clear Aligner constant currency net revenues** <sup>(1)</sup> | $3241327 |  |  |
| **GAAP Imaging Systems and CAD/CAM Services net revenues** | $789560 | $768890 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imaging Systems and CAD/CAM Services constant currency impact <sup>(1)</sup> | (798) |  | (0.1)% |
| **Imaging Systems and CAD/CAM Services constant currency net revenues** <sup>(1)</sup> | $788762 |  |  |

---

Note:

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> We define constant currency net revenues as total net revenues excluding the effect of foreign exchange rate movements and use it to determine the percentage for the constant currency impact on net revenues on a sequential, year-over-year and current year versus prior year basis. Constant currency impact in dollars is calculated by translating the current period GAAP net revenues using the foreign currency exchange rates that were in effect during the previous comparable period and subtracting it by the current period GAAP net revenues. The percentage for the constant currency impact on net revenues is calculated by dividing the constant currency impact in dollars (numerator) by constant currency net revenues in dollars (denominator).

<sup>(+)</sup> Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding. Refer to *"About Non-GAAP Financial Measures"* section of press release.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED<sup>+</sup> 

CONSTANT CURRENCY GROSS PROFIT AND GROSS MARGIN

(in thousands, except percentages)

Sequential constant currency analysis:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2025** | **September 30,<br>2025** |
| **GAAP gross profit** | $683587 | $639201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact on net revenues | 2965 |  |
| **Constant currency gross profit** | $686551 |  |

---

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2025** | **September 30,<br>2025** |
| **GAAP gross margin** | 65.3% | 64.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin constant currency impact <sup>(1)</sup> | 0.1 |  |
| **Constant currency gross margin** <sup>(1)</sup> | 65.4% |  |

---

Year-over-year constant currency analysis:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** |
| | **2025** | **2024** |
| **GAAP gross profit** | $683587 | $696941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact on net revenues | (14810) |  |
| **Constant currency gross profit** | $668776 |  |

---

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** |
| | **2025** | **2024** |
| **GAAP gross margin** | 65.3% | 70.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin constant currency impact <sup>(1)</sup> | (0.5) |  |
| **Constant currency gross margin** <sup>(1)</sup> | 64.8% |  |

---

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED<sup>+</sup> 

CONSTANT CURRENCY GROSS PROFIT AND GROSS MARGIN

(in thousands, except percentages)

Current year versus prior year constant currency analysis:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| **GAAP gross profit** | $2711013 | $2799159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact on net revenues | (4875) |  |
| **Constant currency gross profit** | $2706138 |  |

---

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| **GAAP gross margin** | 67.2% | 70.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constant currency impact on net revenues<sup>(1)</sup> | (0.04) |  |
| **Constant currency gross margin**<sup>(1)</sup> | 67.1% |  |

---

Note:

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> We define constant currency gross margin as constant currency gross profit as a percentage of constant currency net revenues. Gross margin constant currency impact is the increase or decrease in constant currency gross margin compared to the GAAP gross margin.

<sup>(+)</sup> Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding. Refer to *"About Non-GAAP Financial Measures"* section of press release.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED<sup>+</sup>

CONSTANT CURRENCY INCOME FROM OPERATIONS AND OPERATING MARGIN

(in thousands, except percentages)

Sequential constant currency analysis:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2025** | **September 30,<br>2025** |
| **GAAP income from operations** | $155324 | $96298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations constant currency impact <sup>(1)</sup> | 3554 |  |
| **Constant currency income from operations** <sup>(1)</sup> | $158878 |  |

---

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2025** | **September 30,<br>2025** |
| **GAAP operating margin** | 14.8% | 9.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating margin constant currency impact <sup>(2)</sup> | 0.3 |  |
| **Constant currency operating margin** <sup>(2)</sup> | 15.1% |  |

---

Year-over-year constant currency analysis:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** |
| | **2025** | **2024** |
| **GAAP income from operations** | $155324 | $144149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations constant currency impact <sup>(1)</sup> | (3898) |  |
| **Constant currency income from operations** <sup>(1)</sup> | $151426 |  |

---

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** |
| | **2025** | **2024** |
| **GAAP operating margin** | 14.8% | 14.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating margin constant currency impact <sup>(2)</sup> | (0.2) |  |
| **Constant currency operating margin** <sup>(2)</sup> | 14.7% |  |

---

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED<sup>+</sup>

CONSTANT CURRENCY INCOME FROM OPERATIONS AND OPERATING MARGIN CONTINUED

(in thousands, except percentages)

Current year versus prior year constant currency analysis:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| **GAAP income from operations** | $545755 | $607628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations constant currency impact <sup>(1)</sup> | 4935 |  |
| **Constant currency income from operations** <sup>(1)</sup> | $550690 |  |

---

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| **GAAP operating margin** | 13.5% | 15.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating margin constant currency impact <sup>(2)</sup> | 0.1 |  |
| **Constant currency operating margin** <sup>(2)</sup> | 13.7% |  |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> We define constant currency income from operations as GAAP income from operations excluding the effect of foreign exchange rate movements for GAAP net revenues and operating expenses on a sequential, year-over-year and current year versus prior year basis. Constant currency impact in dollars is calculated by translating the current period GAAP net revenues and operating expenses using the foreign currency exchange rates that were in effect during the previous comparable period and subtracting it by the current period GAAP net revenues and operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> We define constant currency operating margin as constant currency income from operations as a percentage of constant currency net revenues. Operating margin constant currency impact is the increase or decrease in constant currency operating margin compared to the GAAP operating margin.

<sup>(+)</sup> Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding. Refer to *"About Non-GAAP Financial Measures"* section of press release.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED<sup>+</sup>

FINANCIAL MEASURES OTHER THAN CONSTANT CURRENCY

(in thousands, except per share data)

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| **GAAP gross profit** | $683587 | $696941 | $2711013 | $2799159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1463 | (721) | 6177 | 6995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | 3841 | 3699 | 14979 | 14803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges <sup>(2)</sup> | 718 | 3823 | 7763 | 3823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets held for sale <sup>(3)</sup> |  |  | 23142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation on assets disposed of other than sale <sup>(4)</sup> | 63257 |  | 76920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on inventory <sup>(5)</sup> |  |  | 14924 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-GAAP items <sup>(6)</sup> | 1861 | 1410 | 1861 | 1410 |
| **Non-GAAP gross profit** | $754727 | $705152 | $2856779 | $2826190 |
| **GAAP gross margin** | 65.3% | 70.0% | 67.2% | 70.0% |
| **Non-GAAP gross margin** | 72.0% | 70.9% | 70.8% | 70.7% |
| **GAAP total operating expenses** | $528263 | $552792 | $2165258 | $2191531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | (42825) | (39569) | (179693) | (166708) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | (940) | (879) | (3624) | (3497) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges <sup>(2)</sup> | (3551) | (33168) | (35181) | (32722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlement loss |  | 225 | (4178) | (30968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-GAAP items <sup>(6)</sup> |  | (4676) |  | (4676) |
| **Non-GAAP total operating expenses** | $480947 | $474725 | $1942582 | $1952960 |
| **GAAP income from operations** | $155324 | $144149 | $545755 | $607628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 44288 | 38848 | 185870 | 173703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | 4781 | 4578 | 18603 | 18300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges <sup>(2)</sup> | 4269 | 36991 | 42944 | 36545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlement loss |  | (225) | 4178 | 30968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets held for sale <sup>(3)</sup> |  |  | 23142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation on assets disposed of other than sale <sup>(4)</sup> | 63257 |  | 76920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on inventory <sup>(5)</sup> |  |  | 14924 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-GAAP items <sup>(6)</sup> | 1861 | 6086 | 1861 | 6086 |
| **Non-GAAP income from operations** | $273780 | $230427 | $914197 | $873230 |
| **GAAP operating margin** | 14.8% | 14.5% | 13.5% | 15.2% |
| **Non-GAAP operating margin** | 26.1% | 23.2% | 22.7% | 21.8% |

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.

UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED

FINANCIAL MEASURES OTHER THAN CONSTANT CURRENCY CONTINUED

(in thousands, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| **GAAP net income before provision for income taxes** | $176595 | $140777 | $585287 | $608959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 44288 | 38848 | 185870 | 173703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | 4781 | 4578 | 18603 | 18300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges <sup>(2)</sup> | 4269 | 36991 | 42944 | 36545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlement loss |  | (225) | 4178 | 30968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets held for sale <sup>(3)</sup> |  |  | 23142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation on assets disposed of other than sale <sup>(4)</sup> | 63257 |  | 76920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on inventory <sup>(5)</sup> |  |  | 14924 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-GAAP items <sup>(6)</sup> | 1861 | 6086 | 1861 | 6086 |
| **Non-GAAP net income before provision for income taxes** | $295051 | $227055 | $953729 | $874561 |
| **GAAP provision for income taxes** | $40835 | $36970 | $174936 | $187597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax impact on non-GAAP adjustments | 18175 | 8441 | 15810 | (12715) |
| **Non-GAAP provision for income taxes** | $59010 | $45411 | $190746 | $174882 |
| **GAAP effective tax rate** | 23.1% | 26.3% | 29.9% | 30.8% |
| **Non-GAAP effective tax rate** | 20.0% | 20.0% | 20.0% | 20.0% |
| **GAAP net income** | $135760 | $103807 | $410351 | $421362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 44288 | 38848 | 185870 | 173703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | 4781 | 4578 | 18603 | 18300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges <sup>(2)</sup> | 4269 | 36991 | 42944 | 36545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlement loss |  | (225) | 4178 | 30968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets held for sale <sup>(3)</sup> |  |  | 23142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation on assets disposed of other than sale <sup>(4)</sup> | 63257 |  | 76920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on inventory <sup>(5)</sup> |  |  | 14924 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-GAAP items <sup>(6)</sup> | 1861 | 6086 | 1861 | 6086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax impact on non-GAAP adjustments | (18175) | (8441) | (15810) | 12715 |
| **Non-GAAP net income** | $236041 | $181644 | $762983 | $699679 |
| **GAAP diluted net income per share** | $1.89 | $1.39 | $5.65 | $5.62 |
| **Non-GAAP diluted net income per share** | $3.29 | $2.44 | $10.51 | $9.33 |
| **Shares used in computing diluted net income per share** | 71757 | 74465 | 72588 | 74993 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amortization of intangible assets related to certain acquisitions

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup>&nbsp;&nbsp;&nbsp;&nbsp;During the fourth quarters of 2024 and the third quarter of 2025, we initiated restructuring plans to reduce headcount and increase efficiencies across the organization and lower the overall cost structure. Restructuring charges are primarily related to involuntary termination benefits, including employee severance and other post-employment one-time benefits.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>During the third quarter of 2025, we recorded an impairment loss related to a manufacturing facility that met the criteria to be classified as assets held for sale during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>During the third quarter of 2025, we initiated the disposal, other than by sale, of certain manufacturing fixed assets. Accordingly, we revised the useful lives of these assets and recorded accelerated depreciation expenses.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>During the third quarter of 2025, we recorded an impairment loss for obsolete inventory.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>During the fourth quarter of 2025, we recorded costs to dispose of certain manufacturing fixed assets. Other Non-GAAP items from the fourth quarter of 2024 primarily include settlements of various indirect tax obligations related to prior years.

<sup>(+)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding. Refer to *"About Non-GAAP Financial Measures"* section of press release.

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Align Technology Announces Fourth Quarter and Fiscal 2025 Results

ALIGN TECHNOLOGY, INC.&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;

Q1 2026 OUTLOOK - GAAP TO NON-GAAP RECONCILIATION

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| | |
|:---|:---|
| **GAAP operating margin** | **12.4% - 12.8%** |
| &nbsp;&nbsp;Stock-based compensation | ~5.0% |
| &nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | ~0.5% |
| &nbsp;&nbsp;Depreciation on assets disposed of other than by sale | ~1.3% - 1.5% |
| **Non-GAAP operating margin** | **Approximately 19.5%** |

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*Percentages do not add up due to rounding.*

ALIGN TECHNOLOGY, INC.&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;

FISCAL 2026 OUTLOOK - GAAP TO NON-GAAP RECONCILIATION

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| | |
|:---|:---|
| **GAAP operating margin** | **Slightly below 18.0%** |
| &nbsp;&nbsp;Stock-based compensation | ~5.1% |
| &nbsp;&nbsp;Amortization of intangibles <sup>(1)</sup> | ~0.5% |
| &nbsp;&nbsp;Depreciation on assets disposed of other than by sale | ~0.3 - 0.4% |
| **Non-GAAP operating margin** | **Approximately 23.7%** |

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*Percentages do not add up due to rounding.*

<sup>(1)</sup> Amortization of intangible assets related to certain acquisitions

Refer to *"About Non-GAAP Financial Measures"* section of press release.