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).
Nearly flat sales are producing less profit as margin compression and weaker cash conversion overpower steady overhead control.
From FY2024 to FY2025, accounts receivable rose by about$106M while revenue increased less than1.0% , a working-capital shift that helps explain the drop in operating cash flow despite similar earnings. Because capex eased to$102M and free cash flow still slipped to$491M , the weaker cash conversion looks tied more to collection timing than to expansion spending.
The business still has a high gross-margin core—FY2025 gross margin remained above
The balance-sheet posture improved in FY2025, with liabilities down to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Align Technology Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Align Technology Inc has an operating margin of 13.5%, meaning the company retains $14 of operating profit per $100 of revenue. This strong profitability earns a score of 78/100, reflecting efficient cost management and pricing power. 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 40/100.
Align Technology Inc has a moderate D/E ratio of 0.54. This balance of debt and equity financing earns a leverage score of 58/100.
Align Technology Inc's current ratio of 1.36 indicates adequate short-term liquidity, earning a score of 36/100. The company can meet its near-term obligations, though with limited headroom.
Align Technology Inc converts 12.2% of revenue into free cash flow ($490.8M). This strong cash generation earns a score of 77/100.
Align Technology Inc earns a strong 10.1% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 78/100. This is down from 10.9% the prior year.
Align Technology Inc scores 5.13, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($12.8B) relative to total liabilities ($2.2B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Align Technology Inc passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 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 $410.0M 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 $410.0M 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 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.0B-0.7% | $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 |
| Cost of Revenue | $303.5M-16.6% | $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 |
| Gross Profit | $736.6M+7.8% | $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 |
| R&D Expenses | $98.7M+18.8% | $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 |
| SG&A Expenses | $465.3M+5.4% | $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 |
| Operating Income | $142.0M-8.6% | $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 |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $36.1M-11.6% | $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 |
| Net Income | $112.8M-16.7% | $135.4M+138.6% | $56.8M-54.5% | $124.6M+33.7% | $93.2M-9.9% | $103.4M-10.8% | $116.0M+20.1% | $96.6M |
| EPS (Diluted) | $1.57 | N/A | $0.78-54.7% | $1.72+35.4% | $1.27 | N/A | $1.55+21.1% | $1.28 |
ALGN Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $6.3B+1.3% | $6.2B0.0% | $6.2B+0.2% | $6.2B+1.9% | $6.1B-1.8% | $6.2B-2.4% | $6.4B+3.4% | $6.2B |
| Current Assets | $2.7B+1.5% | $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 |
| Cash & Equivalents | $1.1B-3.2% | $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 |
| Inventory | $214.9M-5.0% | $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 |
| Accounts Receivable | $1.1B+2.1% | $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 |
| Goodwill | $503.0M+2.3% | $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 |
| Total Liabilities | $2.2B-0.9% | $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 |
| Current Liabilities | $1.9B-0.7% | $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 |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $4.1B+2.5% | $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 |
| Retained Earnings | $2.5B+3.4% | $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 |
ALGN Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $151.0M-32.3% | $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 |
| Capital Expenditures | $30.8M-14.3% | $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 |
| Free Cash Flow | $120.3M-35.8% | $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 |
| Investing Cash Flow | -$131.6M-266.4% | -$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 |
| Financing Cash Flow | -$48.1M+50.6% | -$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 |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $31.2M-67.9% | $97.2M+35.9% | $71.6M-25.5% | $96.0M-52.2% | $201.1M-0.9% | $202.9M | $0-100.0% | $150.0M |
ALGN Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 70.8%+5.6pp | 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% |
| Operating Margin | 13.7%-1.2pp | 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% |
| Net Margin | 10.8%-2.1pp | 12.9%+7.2pp | 5.7%-6.6pp | 12.3%+2.8pp | 9.5%-0.9pp | 10.4%-1.5pp | 11.9%+2.5pp | 9.4% |
| Return on Equity | 2.7%-0.6pp | 3.3%+1.9pp | 1.4%-1.8pp | 3.2%+0.7pp | 2.5%-0.2pp | 2.7%-0.2pp | 2.9%+0.4pp | 2.6% |
| Return on Assets | 1.8%-0.4pp | 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% |
| Current Ratio | 1.39+0.0 | 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 |
| Debt-to-Equity | 0.52-0.0 | 0.54-0.0 | 0.58-0.0 | 0.59-0.0 | 0.610.0 | 0.610.0 | 0.61-0.0 | 0.64 |
| FCF Margin | 11.6%-6.3pp | 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% |
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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 $410.0M 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 5.13, 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 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 61 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.