This page shows Align Technology Inc (ALGN) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Align Technology Inc has an operating margin of 13.5%, meaning the company retains $14 of operating profit per $100 of revenue. This results in a moderate score of 52/100, indicating healthy but not exceptional operating efficiency. This is down from 15.2% the prior year.
Align Technology Inc's revenue grew a modest 0.9% year-over-year to $4.0B. This slow but positive growth earns a score of 35/100.
Align Technology Inc carries a low D/E ratio of 0.54, meaning only $0.54 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 91/100, indicating a strong balance sheet with room for future borrowing.
Align Technology Inc's current ratio of 1.36 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 23/100, which could limit financial flexibility.
Align Technology Inc has a free cash flow margin of 12.2%, earning a moderate score of 55/100. The company generates positive cash flow after capital investments, but with room for improvement.
Align Technology Inc's ROE of 10.1% shows moderate profitability relative to equity, earning a score of 34/100. This is down from 10.9% the prior year.
Align Technology Inc scores 4.96, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($12.2B) relative to total liabilities ($2.2B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Align Technology Inc passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Align Technology Inc generates $1.45 in operating cash flow ($593.2M OCF vs $410.4M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Align Technology Inc generated $4.0B in revenue in fiscal year 2025. This represents an increase of 0.9% from the prior year.
Align Technology Inc's EBITDA was $783.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 4.1% from the prior year.
Align Technology Inc reported $410.4M in net income in fiscal year 2025. This represents a decrease of 2.6% from the prior year.
Align Technology Inc earned $5.65 per diluted share (EPS) in fiscal year 2025. This represents an increase of 0.5% from the prior year.
Cash & Balance Sheet
Align Technology Inc generated $490.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 21.2% from the prior year.
Align Technology Inc held $1.1B in cash against $0 in long-term debt as of fiscal year 2025.
Align Technology Inc had 71M shares outstanding in fiscal year 2025. This represents a decrease of 3.4% from the prior year.
Margins & Returns
Align Technology Inc's gross margin was 67.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.8 percentage points from the prior year.
Align Technology Inc's operating margin was 13.5% in fiscal year 2025, reflecting core business profitability. This is down 1.7 percentage points from the prior year.
Align Technology Inc's net profit margin was 10.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.4 percentage points from the prior year.
Align Technology Inc's ROE was 10.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.8 percentage points from the prior year.
Capital Allocation
Align Technology Inc invested $369.9M in research and development in fiscal year 2025. This represents an increase of 1.6% from the prior year.
Align Technology Inc spent $465.9M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 32.0% from the prior year.
Align Technology Inc invested $102.4M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 11.4% from the prior year.
ALGN Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.0B+5.2% | $995.7M-1.7% | $1.0B+3.4% | $979.3M-1.6% | $995.2M+1.8% | $977.9M-4.9% | $1.0B+3.1% | $997.4M |
| Cost of Revenue | $364.0M+2.1% | $356.5M+17.1% | $304.3M+1.7% | $299.2M+0.3% | $298.3M+0.7% | $296.1M-3.2% | $305.9M+2.1% | $299.6M |
| Gross Profit | $683.6M+6.9% | $639.2M-9.7% | $708.1M+4.1% | $680.1M-2.4% | $696.9M+2.2% | $681.8M-5.7% | $722.6M+3.6% | $697.8M |
| R&D Expenses | $83.0M-11.0% | $93.3M-3.2% | $96.4M-0.8% | $97.2M+2.4% | $94.9M+11.3% | $85.3M-7.5% | $92.2M+0.4% | $91.9M |
| SG&A Expenses | $441.7M+5.7% | $417.8M-6.9% | $448.7M+0.2% | $447.6M+5.3% | $425.0M-2.1% | $434.1M-4.0% | $452.3M+0.1% | $451.8M |
| Operating Income | $155.3M+61.3% | $96.3M-40.9% | $163.0M+24.4% | $131.1M-9.1% | $144.1M-11.2% | $162.3M+10.4% | $147.0M-4.6% | $154.1M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $40.8M+7.5% | $38.0M-22.3% | $48.9M+3.6% | $47.2M+27.7% | $37.0M-26.0% | $50.0M+5.6% | $47.3M-11.3% | $53.4M |
| Net Income | $135.8M+139.2% | $56.8M-54.5% | $124.6M+33.7% | $93.2M-10.2% | $103.8M-10.5% | $116.0M+20.1% | $96.6M-8.1% | $105.0M |
| EPS (Diluted) | N/A | $0.78-54.7% | $1.72+35.4% | $1.27 | N/A | $1.55+21.1% | $1.28-7.9% | $1.39 |
ALGN Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $6.2B0.0% | $6.2B+0.2% | $6.2B+1.9% | $6.1B-1.8% | $6.2B-2.4% | $6.4B+3.4% | $6.2B0.0% | $6.2B |
| Current Assets | $2.6B+3.3% | $2.5B+3.5% | $2.4B+1.9% | $2.4B-3.6% | $2.5B-4.0% | $2.6B+7.7% | $2.4B-2.7% | $2.5B |
| Cash & Equivalents | $1.1B+9.0% | $1.0B+11.5% | $901.2M+3.2% | $873.0M-16.4% | $1.0B+0.2% | $1.0B+36.8% | $761.4M-12.1% | $865.8M |
| Inventory | $226.3M-0.8% | $228.2M-6.4% | $243.8M-1.1% | $246.6M-3.0% | $254.3M+0.1% | $254.1M-2.1% | $259.5M-7.3% | $280.1M |
| Accounts Receivable | $1.1B+0.2% | $1.1B-1.5% | $1.1B+5.1% | $1.1B+6.7% | $995.7M-1.5% | $1.0B-0.9% | $1.0B+7.3% | $950.7M |
| Goodwill | $491.8M+0.1% | $491.5M+0.1% | $491.1M+7.3% | $457.6M+3.4% | $442.6M-6.1% | $471.5M+3.7% | $454.5M-0.8% | $458.2M |
| Total Liabilities | $2.2B-4.0% | $2.3B-1.3% | $2.3B-0.1% | $2.3B-2.3% | $2.4B-2.4% | $2.4B+0.9% | $2.4B+0.2% | $2.4B |
| Current Liabilities | $1.9B-2.4% | $2.0B-1.5% | $2.0B+0.2% | $2.0B-2.3% | $2.0B-1.2% | $2.1B+1.2% | $2.0B+0.8% | $2.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $4.0B+2.3% | $4.0B+1.1% | $3.9B+3.1% | $3.8B-1.5% | $3.9B-2.3% | $3.9B+5.0% | $3.8B-0.1% | $3.8B |
| Retained Earnings | $2.5B+2.0% | $2.4B-0.3% | $2.4B+1.5% | $2.4B-3.8% | $2.5B-3.5% | $2.6B+4.7% | $2.5B-1.8% | $2.5B |
ALGN Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $223.2M+18.3% | $188.7M+46.7% | $128.7M+144.2% | $52.7M-81.6% | $286.1M+8.5% | $263.7M+65.0% | $159.8M+457.6% | $28.7M |
| Capital Expenditures | $35.9M+81.8% | $19.8M-8.0% | $21.5M-15.1% | $25.3M+10.1% | $23.0M-22.9% | $29.8M-44.2% | $53.5M+470.5% | $9.4M |
| Free Cash Flow | $187.3M+10.8% | $169.0M+57.7% | $107.2M+291.3% | $27.4M-89.6% | $263.1M+12.5% | $233.9M+119.8% | $106.4M+451.3% | $19.3M |
| Investing Cash Flow | -$35.9M-81.8% | -$19.8M+37.2% | -$31.5M-24.5% | -$25.3M+53.1% | -$53.9M-504.5% | -$8.9M+92.1% | -$112.5M-41.4% | -$79.6M |
| Financing Cash Flow | -$97.4M-51.9% | -$64.1M+33.4% | -$96.3M+53.4% | -$206.8M-1.8% | -$203.0M-2020.3% | $10.6M+107.0% | -$151.6M-1193.6% | -$11.7M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $97.2M+35.9% | $71.6M-25.5% | $96.0M-52.2% | $201.1M-0.9% | $202.9M | $0-100.0% | $150.0M | $0 |
ALGN Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.3%+1.1pp | 64.2%-5.7pp | 69.9%+0.5pp | 69.5%-0.6pp | 70.0%+0.3pp | 69.7%-0.5pp | 70.3%+0.3pp | 70.0% |
| Operating Margin | 14.8%+5.2pp | 9.7%-6.4pp | 16.1%+2.7pp | 13.4%-1.1pp | 14.5%-2.1pp | 16.6%+2.3pp | 14.3%-1.2pp | 15.4% |
| Net Margin | 13.0%+7.3pp | 5.7%-6.6pp | 12.3%+2.8pp | 9.5%-0.9pp | 10.4%-1.4pp | 11.9%+2.5pp | 9.4%-1.1pp | 10.5% |
| Return on Equity | 3.4%+1.9pp | 1.4%-1.8pp | 3.2%+0.7pp | 2.5%-0.2pp | 2.7%-0.2pp | 2.9%+0.4pp | 2.6%-0.2pp | 2.8% |
| Return on Assets | 2.2%+1.3pp | 0.9%-1.1pp | 2.0%+0.5pp | 1.5%-0.1pp | 1.7%-0.2pp | 1.8%+0.3pp | 1.6%-0.1pp | 1.7% |
| Current Ratio | 1.36+0.1 | 1.29+0.1 | 1.23+0.0 | 1.21-0.0 | 1.22-0.0 | 1.26+0.1 | 1.18-0.0 | 1.23 |
| Debt-to-Equity | 0.54-0.0 | 0.58-0.0 | 0.59-0.0 | 0.610.0 | 0.610.0 | 0.61-0.0 | 0.640.0 | 0.64 |
| FCF Margin | 17.9%+0.9pp | 17.0%+6.4pp | 10.6%+7.8pp | 2.8%-23.6pp | 26.4%+2.5pp | 23.9%+13.6pp | 10.3%+8.4pp | 1.9% |
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Frequently Asked Questions
What is Align Technology Inc's annual revenue?
Align Technology Inc (ALGN) reported $4.0B in total revenue for fiscal year 2025. This represents a 0.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Align Technology Inc's revenue growing?
Align Technology Inc (ALGN) revenue grew by 0.9% year-over-year, from $4.0B to $4.0B in fiscal year 2025.
Is Align Technology Inc profitable?
Yes, Align Technology Inc (ALGN) reported a net income of $410.4M in fiscal year 2025, with a net profit margin of 10.2%.
What is Align Technology Inc's EBITDA?
Align Technology Inc (ALGN) had EBITDA of $783.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Align Technology Inc's gross margin?
Align Technology Inc (ALGN) had a gross margin of 67.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Align Technology Inc's operating margin?
Align Technology Inc (ALGN) had an operating margin of 13.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Align Technology Inc's net profit margin?
Align Technology Inc (ALGN) had a net profit margin of 10.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Align Technology Inc's return on equity (ROE)?
Align Technology Inc (ALGN) has a return on equity of 10.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Align Technology Inc's free cash flow?
Align Technology Inc (ALGN) generated $490.8M in free cash flow during fiscal year 2025. This represents a -21.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Align Technology Inc's operating cash flow?
Align Technology Inc (ALGN) generated $593.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Align Technology Inc's total assets?
Align Technology Inc (ALGN) had $6.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Align Technology Inc's capital expenditures?
Align Technology Inc (ALGN) invested $102.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Align Technology Inc spend on research and development?
Align Technology Inc (ALGN) invested $369.9M in research and development during fiscal year 2025.
What is Align Technology Inc's current ratio?
Align Technology Inc (ALGN) had a current ratio of 1.36 as of fiscal year 2025, which is considered adequate.
What is Align Technology Inc's debt-to-equity ratio?
Align Technology Inc (ALGN) had a debt-to-equity ratio of 0.54 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Align Technology Inc's return on assets (ROA)?
Align Technology Inc (ALGN) had a return on assets of 6.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Align Technology Inc's Altman Z-Score?
Align Technology Inc (ALGN) has an Altman Z-Score of 4.96, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Align Technology Inc's Piotroski F-Score?
Align Technology Inc (ALGN) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Align Technology Inc's earnings high quality?
Align Technology Inc (ALGN) has an earnings quality ratio of 1.45x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Align Technology Inc?
Align Technology Inc (ALGN) scores 48 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.