Align Guides Fourth-Quarter Revenue To $1.00 Billion-$1.02 Billion, Plans $300 Million Buyback
The Invisalign maker saw North American orthodontist shipments rise for the first time in six quarters, but guides to a softer fourth quarter.
Align Technology, which makes Invisalign clear aligners, reported third-quarter revenue of $1,014.8 million, up 1.9% from a year earlier but down 3.9% from the second quarter, and guided fourth-quarter revenue to $1,000 million to $1,020 million. It also said it expects to buy back up to $300 million of stock in the fourth quarter.
Aligners up, scanners down
Clear Aligner revenue rose 4.2% to $839.3 million, on a 6.6% gain in volume to 690.6 thousand cases. Imaging Systems and CAD/CAM Services revenue fell 7.6% to $175.5 million.
Revenue per aligner case shipped was $1,215, down from $1,260 in the second quarter, according to the company's business metrics table.
CEO Joe Hogan said that for the first time in six quarters, orthodontist shipments in North America rose from a year earlier, and shipments to dental support organizations were up double digits. Scanner placements, including leased, rented and certified pre-owned units, rose double digits to more than 157,000 systems globally.
Margins improve, EPS jumps
Diluted earnings per share were $1.90, against $0.78 a year earlier. On an adjusted basis they were $2.80, against $2.61, with adjusted operating margin of 24.4%, up 0.5 points. Standard operating margin was 16.7%, against 9.7%.
Adjusted gross margin of 70.4% was flat from a year ago and modestly below the company's expectation. Hogan blamed higher fuel-related transportation costs, lower aligner selling prices and mix.
A softer quarter ahead, buybacks continue
Align said it expects fourth-quarter Clear Aligner volume up low single digits and aligner prices down about 1% from a year earlier. It guided adjusted operating margin to about 26.0%. For 2026 it expects revenue of about $4,110 million to $4,130 million and about $500 million of buybacks.
CFO John Morici said demand across dental and orthodontics was still hit by a softer environment for discretionary healthcare spending and equipment investment. He said preliminary 2027 planning "does not require a consumer recovery."
In the third quarter Align repurchased about 627.3 thousand shares at an average $164.73. It held $1,144.9 million in cash at September 30. Hogan also said a U.S. pilot of a 3D-printed Invisalign Sports Guard would begin this week.
Align hosts its earnings call at 4:30 p.m. ET on Wednesday to discuss trends and the fourth-quarter outlook.
