Total Revenue

–1.8% (from $997.4M to $979.3M)

Total revenue declined mainly because the Clear Aligner segment contracted by 2.5%, partially offset by a modest 1.2% increase in Systems and Services revenue. This builds on previous period trends where pricing pressures, lower ASPs, and unfavorable foreign exchange rates negatively impacted Clear Aligner revenues. " " " "

Clear Aligner Revenue

–2.5% (from $817.3M to $796.8M)

Clear Aligner revenue declined due to lower average selling prices and a product mix shift toward lower-priced offerings, partly driven by unfavorable currency impacts—a trend consistent with earlier periods, which saw similar impacts on revenue growth. " "

Systems and Services Revenue

+1.2% (from $180.2M to $182.4M)

Systems and Services revenue grew modestly as continued demand for digital workflows and higher scanner wand sales supported growth. This follows the strong performance seen in prior periods (e.g., a 16.0% increase in FY 2024), although the growth rate slowed in Q1 2025. " "

U.S. Revenue

–2.1% (from $432.1M to $423.3M)

U.S. segment revenue declined reflecting challenges in the Americas market. This decrease aligns with previous period trends where lower ASPs and competitive pricing pressure in the region reduced revenue. "

Switzerland Revenue

–11% (from $251.8M to $224.1M)

Switzerland revenue fell sharply by nearly 11%, suggesting significant regional headwinds or adverse currency effects compared to prior performance, indicating an intensification of market-specific challenges. "

Other International Revenue

+5.8% (from $313.6M to $331.8M)

Other International revenue increased by 5.8%, driven by stronger performance in key markets outside the U.S. and Switzerland, leveraging favorable market conditions that have supported growth relative to previous periods. "

Net Income

–11.2% (from $105,028K to $93,230K)

Net income declined by 11.2%, a result of the combined effects of lower total revenue and margin pressures, which echo earlier challenges such as declining ASPs and cost headwinds that have previously impacted profitability. " "

Income from Operations

–15% (from $154,135K to $131,100K)

Operating income dropped by 15%, reflecting the adverse impact of reduced revenue, higher discounting on Clear Aligner products, and additional cost pressures, consistent with trends observed in previous periods. " "

Basic EPS

Declined from $1.40 to $1.27 (~–9.3%)

Basic EPS fell as a downstream effect of lower net income and declining operating margins, mirroring the overall revenue and cost challenges seen in prior periods. " "

Worldwide Revenues

Q2 2025

$965 million to $985 million "

$1.05 billion to $1.07 billion "

raised

Clear Aligner Volume

Q2 2025

up slightly sequentially "

up sequentially "

raised

Clear Aligner ASPs

Q2 2025

down sequentially "

up sequentially "

raised

Systems and Services Revenue

Q2 2025

down sequentially "

up sequentially "

raised

GAAP Operating Margin

Q2 2025

approximately 2 points below Q1 2024 GAAP operating margin "

up sequentially by approximately 3 points "

raised

Non-GAAP Operating Margin

Q2 2025

approximately 1 point below Q1 2024 non-GAAP operating margin "

up sequentially by approximately 3 points "

raised

Worldwide Gross Margin

Q2 2025

no prior guidance

up sequentially "

no prior guidance

Year-over-Year Revenue Growth

FY 2025

low single digits "

3.5% to 5.5% "

raised

Clear Aligner Volume Growth

FY 2025

up approximately mid-single digits year-over-year "

up approximately mid-single digits year-over-year "

no change

Clear Aligner ASPs

FY 2025

down year-over-year "

down year-over-year "

no change

Systems and Services Revenue Growth

FY 2025

grow faster than Clear Aligner revenues "

grow faster than Clear Aligner revenues "

no change

GAAP Operating Margin

FY 2025

approximately 2 points above 2024 GAAP operating margin "

approximately 2 points above the 2024 GAAP operating margin "

no change

Non-GAAP Operating Margin

FY 2025

approximately 22.5% "

approximately 22.5% "

no change

Capital Expenditures

FY 2025

$100 million to $150 million "

$100 million to $150 million "

no change

Global Demand

In Q3 2024, strong Clear Aligner volume growth in APAC, EMEA, and Latin America was noted despite softness in the U.S. market. " " In Q4 2024, growth was reported in EMEA and APAC with North American stability noted. " "

Q1 2025 saw broad‐based growth across multiple regions – with stability in North America, robust demand in APAC (driven by China, India, Korea) and strong performance in EMEA – even amid macroeconomic uncertainties. " " " "

Consistent focus on international expansion with an increasing emphasis on diversified, global growth.

Product Innovation

Q3 2024 featured innovations such as the iTero Lumina Scanner (with multi-direct capture) and continued commercialization of the Invisalign Palatal Expander. " " In Q4 2024, new iterations of the iTero Lumina, ClinCheck in Minutes, and IPE were introduced. " "

In Q1 2025, the company launched the next-generation iTero Lumina intraoral scanner with enhanced features including NIRI technology, and enhanced digital workflow tools (e.g., AI-powered ClinCheck enhancements), reinforcing their technology adoption strategy. " " "

Ongoing iterative improvements – with evolving features and broader application – reflecting a steady commitment to advancing digital and restorative solutions.

Execution Risk

No discussion of execution risk was present in Q3 2024. In Q4 2024, challenges around IPE adoption were highlighted, including regulatory hurdles and doctor familiarization. " "

In Q1 2025, while the term “execution risk” was not explicitly used, discussions emphasized significant initiatives to train doctors and support distribution for new products (such as the iTero Lumina scanner and Mandibular Advancement devices). " "

An emerging focus on managing adoption risks – from enhanced training and support initiatives – indicating a growing awareness of execution challenges as product portfolios expand.

Supply Chain Diversification

Q3 2024 did not mention supply chain topics. In Q4 2024, manufacturing in Mexico was referenced along with monitoring tariff risks, especially regarding potential tariffs on shipments from Mexico. " "

Q1 2025 provided a detailed view of a diversified supply chain spanning Mexico, Poland, China, and Israel, with explicit strategies to mitigate tariff impacts (e.g., regional manufacturing strategies and adjustments in raw material sourcing). " " " "

A rising theme with increased detail – evolving from basic mentions in Q4 to a comprehensive strategic narrative in Q1, underscoring its significance for future stability.

Currency Headwinds & FX Impacts

In Q3 2024, FX was noted to negatively impact revenues, margins, and EPS modestly. " " " " In Q4 2024, FX impacted ASPs and revenues, with discussion of a strengthened U.S. dollar and its moderating effect. " " "

Q1 2025 provided detailed quantification of FX impacts on revenues, gross margin, operating margin, and EPS; however, management expects a turnaround as FX becomes a positive contributor moving forward. " " " "

FX remains a persistent challenge over periods, with increasing detail in risk quantification in Q1 yet optimistic future outlook potentially mitigating its negative effects.

Margin Pressure & Pricing Dynamics

Q3 2024 discussed margin pressures driven by pricing dynamics, including lower ASPs (partly due to mix shifts and discounts) and the impact of restructuring. " " " In Q4 2024, lower-than-expected ASPs and FX impacts were noted, though margins remained robust. " " "

Q1 2025 highlighted continued margin pressure with overall gross margins declining and lower Clear Aligner ASPs due to unfavorable FX, product mix shifts, and higher discounts, partially offset by cost reductions in some areas. " " "

A persistent concern; despite operational adjustments, pricing dynamics and FX pressures continue to challenge margins, with Q1 sentiment indicating a more cautious outlook.

GP Channel Expansion & Customer Relationship Focus

Q3 2024 did not mention GP channel expansion. In Q4 2024, there were indications of volume growth in the Americas benefiting GP channels. "

In Q1 2025, there was an explicit emphasis on expanding GP dentist channels with record submitter numbers and enhanced technology (e.g., iTero Lumina with restorative software) aimed at improving patient and customer experiences. " " "

A new and potentially high-impact focus emerging in Q1 – moving from a lesser emphasis in earlier periods to a clear strategic priority for customer engagement and market expansion.

Operational Restructuring & Investment Adjustments

In Q3 2024, restructuring actions were announced – including efforts involving approximately 700 personnel – to align the business with current economic conditions and support margin improvements. " " " In Q4 2024, higher restructuring charges were noted, impacting GAAP margins. "

Q1 2025 showed a reduced impact from restructuring expenses, with operating expenses declining due to lower nonrecurring charges and a clear outline of capital expenditure plans and investments in manufacturing capacity. " " "

Consistent restructuring efforts persist with a trend toward reducing one-time costs while shifting investments into growth-enabling capital expenditures, signaling ongoing adaptation to market challenges.