Total Revenue

+4% (from $956.8M in Q4 2023 to $995.2M in Q4 2024)

Revenue growth was modest as overall sales increased by 4%, reflecting maintained performance across segments despite market pressures; improvements in international volumes likely helped offset some flat domestic trends. " "

U.S. Revenue

Flat at $403.9M

The U.S. market remained steady, indicating stable domestic demand; this balance may result from offsetting pressures such as pricing adjustments and competitive dynamics that kept revenue levels consistent compared to the previous period. " "

Switzerland Revenue

–4% (declined from $254.6M to $244.26M)

A 4% decline in Switzerland revenue suggests localized headwinds such as economic challenges or pricing pressure, reflecting a contraction in this traditional market compared to Q4 2023. " "

Other International Revenue

+16% (from $298.1M to $347.07M)

A robust 16% increase was driven by strong volume gains and favorable market dynamics in emerging regions, as well as improved pricing or mix effects, highlighting the international segment’s momentum relative to the prior period. " "

Operating Income (EBIT)

–16% (from $171.5M to $144.1M)

The 16% decline in EBIT reflects a compression of operating margins due to rising costs and expense increases even as revenue grew modestly; increased SG&A and R&D investments combined with shifts in cost allocations are key factors compared to Q4 2023. " "

Net Income

–16% (from $124.0M to $103.8M)

Net income fell by 16%, mirroring the EBIT decline; lower profitability was driven by higher operating expenses and potential tax or cost structure changes that negatively impacted bottom‐line results versus Q4 2023. " "

EPS

–15% (from $1.63 to $1.39)

The 15% reduction in EPS is directly tied to the decline in net income and the pressure of rising costs, showing that lower realized earnings per share emerged even as revenue growth was modest, in contrast to the previous quarter. " "

SG&A Expenses

+5.6% (from $402.5M to $424.97M)

SG&A expenses increased by 5.6% driven by higher employee-related costs—such as salaries, fringe benefits, and stock-based compensation—as the company invested in expanding its market presence and supporting operational activities relative to Q4 2023. " "

R&D Expenses

+15% (from ~$82.2M to ~$94.88M)

The 15% rise in R&D spending signals a strategic investment in innovation and product development, reinforcing future growth prospects despite the higher short-term expense burden when compared with Q4 2023. " "

Depreciation & Amortization

–~90% (from $33.73M to $3.70M)

An almost 90% drop is largely attributable to a change in accounting treatment or adjustments in asset reclassification that occurred in the previous period but did not reoccur in Q4 2024, leading to a much lower expense line compared to Q4 2023. " "

Net Change in Cash

Turnaround from –$300.8K to +$106,444K

The dramatic improvement from a negative net cash change to a positive $106.4M swing resulted mainly from strong operating cash generation, lower financing outflows, and a favorable shift in the impact of foreign exchange, reflecting a substantial liquidity improvement compared to Q4 2023. " "

Worldwide Revenues

Q1 2025

no prior guidance

$965M to $985M "

no prior guidance

Clear Aligner Volume

Q1 2025

no prior guidance

up slightly sequentially "

no prior guidance

Clear Aligner ASPs

Q1 2025

no prior guidance

down sequentially "

no prior guidance

Systems & Services

Q1 2025

no prior guidance

down sequentially "

no prior guidance

GAAP Operating Margin

Q1 2025

no prior guidance

~2 points below Q1 2024 margin "

no prior guidance

Non-GAAP Operating Margin

Q1 2025

no prior guidance

~1 point below Q1 2024 margin "

no prior guidance

Year-over-Year Revenue Growth

FY 2025

no prior guidance

low single digits "

no prior guidance

Clear Aligner Volume Growth

FY 2025

no prior guidance

mid single digits "

no prior guidance

Clear Aligner ASPs

FY 2025

no prior guidance

down year-over-year "

no prior guidance

Systems & Services Revenue Growth

FY 2025

no prior guidance

faster than Clear Aligner "

no prior guidance

GAAP Operating Margin

FY 2025

no prior guidance

~2 points above 2024 margin "

no prior guidance

Non-GAAP Operating Margin

FY 2025

no prior guidance

~22.5% "

no prior guidance

Capital Expenditures

FY 2025

no prior guidance

$100M to $150M "

no prior guidance

Innovation in scanning and aligner technology

In Q1 and Q3: Emphasized iTero Lumina enhancements (3x wider field of capture, 50% smaller wand) and direct 3D printing expansions (Invisalign Palatal Expander), plus faster ClinCheck planning. " " " " "

Highlighted new iTero Lumina version launching end of Q1 2025 with restorative software, ClinCheck in Minutes, and ramp-up of direct 3D printing for retainers. " " "

Continues to be a critical driver with recurring updates in scanning, 3D printing, and advanced treatment planning. " "

Expansion in international markets, especially China

In Q1 and Q3: Saw strong China performance and growing APAC volumes, with teens a key contributor; other regions (EMEA, LATAM) also noted year-over-year volume growth. " "

Market in China described as stable, with growth in APAC led by increased utilization and teen/kids treatments; international markets remain more durable than the Americas. " " "

Ongoing strategic focus internationally, with stable China demand and stronger APAC momentum. " "

Macro uncertainties and currency headwinds

In Q1 and Q3: Weak consumer sentiment in the U.S. highlighted; FX impacted revenue and margins by ~$14M in Q3. " " " " " "

Less emphasis on macro concerns but FX headwinds remain significant, with a 2-point ASP impact and ~1-point drag on operating margins. " " " "

Currency remains a challenge, but macro worries have eased somewhat. "

Potential new tariffs from Mexico

Not mentioned in Q1 or Q3 [no references].

Could add ~$4–5M/month in extra costs if a 25% tariff is imposed, potentially affecting margins; however, no immediate change in manufacturing strategy. " " "

Newly emerged concern in Q4 with possible margin impact. " "

Restructuring and cost-saving measures

In Q1 and Q3: Discussed headcount reductions of ~700 positions, focus on ROI-driven investments and funding new technologies (e.g., 3D printing), with restructuring charges impacting operating expenses. " " " " " " "

Q4 figures show $33.3M sequential increase in operating expenses, mostly due to restructuring costs, affecting GAAP operating margin by ~3.7 points. Actions aim to improve margins into 2025. " "

Continued efforts to realign spending and drive future growth; higher restructuring charges than expected in Q4. "

Shift in US demand vs. stronger international growth

In Q1 and Q3: Stable U.S. demand in Q1 contrasted with a sluggish U.S. market in Q3; international markets (APAC, EMEA) showed stronger performance. " " " " " " "

U.S. demand growth expected to be slower versus international markets, which remain more durable and show better macro conditions. " "

Persistent disparity between weaker U.S. market and stronger international uptake. "

Evolution of the GP channel

No notable mentions in Q1 or Q3 [no references].

Identified as a key growth driver, with good results globally and strong support from DSOs. GP adoption helps offset orthodontic-channel headwinds. " "

Newly emphasized in Q4, with GP channel acting as a significant offset to U.S. ortho weakness. "

Competition and price sustainability concerns

In Q3: Market sluggishness linked more to macro issues than new competitors, though some price pressures from VAT changes and mix. " " " "

CEO acknowledged Chinese competitors with unsustainably low prices, expecting it to self-correct. Emphasis on brand, technology, and service to maintain leadership. " "

Ongoing topic; Align remains confident in pricing and brand differentiation. "

Changes in R&D and CapEx spending

In Q1 and Q3: R&D focused on Cubicure acquisition and 3D printing; CapEx reduced to ~$100M from previous ~$250M, as existing capacity (including Poland plant) remains sufficient. " " " "

CapEx of $23M in Q4, mainly for manufacturing and facilities. No specific R&D updates provided. "

Spending moderated to align with capacity needs and focus on key tech investments.

Digital Subscription Program

In Q1 and Q3: Incremental volume from DSP, especially for touch-up cases (+30% YoY in Q3, popular for doctors seeking flexibility). " "

No mention in Q4.

No current references; continues to be a past driver without Q4 commentary.

Marketing investments to support aligner volume growth

In Q1: Consumer advertising on social platforms, influencer campaigns, and digital apps to drive brand awareness; Q3 gave no detailed spend but focus on differentiating products. " " " " "

Higher advertising and marketing expenses contributed to a $54.8M YoY increase in operating expenses. "

Ongoing investment to bolster brand presence and aligner adoption, reflected in higher Q4 spend. "