Align Technology Q2 revenue drops more than expected, to cut jobs and streamline operations
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/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $1.01 bln | $1.06 bln (11 Analysts) |
Q2 Adjusted EPS | Miss | $2.49 | $2.57 (12 Analysts) |
Q2 EPS |
| $1.72 |
|
Q2 Adjusted Net Income | Miss | $181.10 mln | $188.20 mln (10 Analysts) |
Q2 Net Income |
| $124.60 mln |
|
Q2 Adjusted Operating Income | Miss | $215.90 mln | $228.70 mln (11 Analysts) |
Q2 Adjusted Operating Margin |
| 21.3% |
|
Q2 Gross Profit |
| $708.12 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 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: ID:nBw4Lgxx8a
Related Articles
[U.S. IPO] Black Rock Coffee Bar Raises $294M in US IPO, Shattering Restaurant Sector's IPO Lull
TradingKey - U.S. coffee chain Black Rock Coffee Bar completed its initial public offering (IPO) on Thursday, becoming the first restaurant company to enter the U.S. market since Cava Group's listing in 2023.-6507598d1aaa47a897fa7c4e5c180b40.jpg)
What Is Worldcoin? Why Did WLD Surge Suddenly, and What’s Next?
Worldcoin is evolving from a “hype token” into a foundational layer for global identity. Its fusion of biometrics, blockchain, and financial inclusion has earned growing recognition from users and institutions. If it can overcome technical hurdles, launch real-world payment use cases, and stabilize
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
Unlocking Gold’s Next Leg: $4,000 in Reach by 2025？
TradingKey - Gold has kicked off a fresh uptrend in early September, breaking out of months of compression and reclaiming key territory. The decisive move above $3,500 establishes a new support base and puts higher objectives back on the table for the weeks ahead
