Overview

* Align Q2 2025 revenue down 1.6% yr/yr, missing analyst expectations

* Adjusted EPS for Q2 2025 misses consensus, reflecting challenges in Clear Aligner sales

* Company plans to streamline operations and reduce workforce, incurring one-time charges of $150 mln to $170 mln

Outlook

* Align expects Q3 revenue between $965 mln and $985 mln

* Company anticipates Q3 GAAP gross margin of 64% to 65%

* Align forecasts fiscal 2025 Clear Aligner volume growth in low-single digits

* Company sees 2025 GAAP operating margin at 13% to 14%

Result Drivers

* FOREIGN EXCHANGE IMPACT - Revenues favorably impacted by foreign exchange, contributing $26.4 mln sequentially and $5.6 mln yr/yr

* CLEAR ALIGNER CHALLENGES - Lower-than-expected volumes in Europe and North America led to a decrease in Clear Aligner revenues yr/yr

* IMAGING SYSTEMS GROWTH - Strong sales of iTero Lumina scanner wand upgrades drove sequential and yr/yr growth in Imaging Systems and CAD/CAM Services

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.01 $1.06

Revenue bln bln (11

Analysts

)

Q2 Miss $2.49 $2.57

Adjusted (12

EPS Analysts

)

Q2 EPS $1.72

Q2 Miss $181.10 $188.20

Adjusted mln mln (10

Net Analysts

Income )

Q2 Net $124.60

Income mln

Q2 Miss $215.90 $228.70

Adjusted mln mln (11

Operatin Analysts

g Income )

Q2 21.3%

Adjusted

Operatin

g Margin

Q2 Gross $708.12

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for Align Technology Inc ( ALGN ) is $245.50, about 16.2% above its July 29 closing price of $205.81

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)