Align Technology: 2025 Q4 Revenue Up 5.3% YoY, China Drives Double-Digit Growth in Asia Pacific Clear Aligner Shipments

*Source: Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results

Revenue Hit Record High of $1.048 Billion / Q4 Clear Aligner Shipments Reached Record 676,900 Cases / iTero Lumina Accounted for Approximately 86% of System Shipments

DentalGoodNews | Invisalign parent company Align Technology recently released its fourth quarter and full-year 2025 financial results. Fourth quarter total revenues reached $1.048 billion (approximately RMB 7.271 billion), up 5.2% sequentially and 5.3% year-over-year, setting a record high; full-year revenues totaled $4.035 billion (approximately RMB 27.996 billion), up 0.9% year-over-year.

For the Clear Aligner business, fourth quarter revenues were $838 million (approximately RMB 5.814 billion), up 4.0% sequentially and 5.5% year-over-year; shipment volume reached 676,900 cases, up 4.5% sequentially and 7.7% year-over-year, setting a record high. The company noted that the year-over-year shipment growth in the fourth quarter was primarily driven by EMEA, Latin America, and Asia Pacific regions, with North America remaining stable.

From a doctor and channel structure perspective, fourth quarter clear aligner orthodontist channel shipments increased 8.9% year-over-year, while general practitioner (GP) channel shipments increased 5.3% year-over-year; by patient demographics, teens and growing kids increased 6.9% year-over-year, and adult patients increased 8% year-over-year. The company disclosed that 87,700 doctors submitted Invisalign cases in the fourth quarter, a record high for any fourth quarter, primarily driven by increased case submissions from orthodontists.

For the full year 2025, Clear Aligner business revenues totaled $3.245 billion (approximately RMB 22.514 billion), up 0.5% year-over-year; clear aligner shipment volume was 2,611,300 cases, up 4.7% year-over-year. In 2025, teens and growing kids treatment starts totaled 935,800 cases, up 7.8% year-over-year; Invisalign DSP Touch Up shipments exceeded 136,000 cases, up 35.7% year-over-year.

For Imaging Systems and CAD/CAM Services, fourth quarter revenues were $209 million (approximately RMB 1.450 billion), up 10.3% sequentially and 4.2% year-over-year. For the full year, Systems and CAD/CAM Services revenues totaled $790 million, up 2.7% year-over-year. The company attributed the growth to higher shipment volumes driven by continuous upgrades of the iTero Lumina intraoral scanner, and disclosed that iTero Lumina accounted for approximately 86% of "full system shipments" in the fourth quarter.

Regarding the China market, the company mentioned its critical role in Asia Pacific growth multiple times during the 2025 fourth quarter earnings call. Align Technology management stated that fourth quarter Asia Pacific region clear aligner shipments achieved double-digit year-over-year growth, with China, India, and South Korea jointly driving quarterly shipment volume to a record high; in terms of patient structure, fourth quarter teen and pediatric case starts increased year-over-year, with Asia Pacific region leading the performance, and China being one of the main drivers.

Regarding China's clear aligner volume-based procurement (VBP) progress, the company noted that implementation continues to face delays, expected to be rolled out first within the public hospital system. The company emphasized that currently over 85% of China business comes from the private dental care market, so VBP has limited impact on overall business. The company's full-year 2026 guidance does not incorporate the impact of China VBP on shipment volume or average selling price, and stated it has prepared for potential policy changes through local manufacturing, regulatory and commercial system development, and product portfolio tailored to the China market.

*Source: Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results

Regarding profitability, the company achieved fourth quarter net income of $136 million (approximately RMB 944 million), up 30.8% year-over-year and 139.2% sequentially; on a Non-GAAP basis, fourth quarter net income was $236 million (approximately RMB 1.637 billion), up 29.9% year-over-year and 24.9% sequentially. For the full year, 2025 GAAP net income was $410 million (approximately RMB 2.845 billion), down 2.6% year-over-year; Non-GAAP net income was $763 million (approximately RMB 5.294 billion), up 9.0% year-over-year, with core operating profit maintaining growth momentum.

*Source: Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results

Fourth quarter GAAP gross margin was 65.3%; GAAP operating income was $155 million (approximately RMB 1.075 billion), with operating margin at 14.8%; GAAP net income was $136 million (approximately RMB 944 million). On a Non-GAAP basis, fourth quarter Non-GAAP gross margin was 72.0%, and Non-GAAP net income was $236 million (approximately RMB 1.637 billion). The company disclosed that fourth quarter included restructuring and accelerated depreciation expenses totaling $67.5 million (approximately RMB 468 million).

*Source: Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results

Regarding cash flow, the company did not separately disclose fourth quarter operating cash flow. For the full year, 2025 net cash flow from operating activities was $593 million (approximately RMB 4.114 billion), down from $738 million (approximately RMB 5.120 billion) in 2024. As of December 31, 2025, the company's cash and cash equivalents stood at $1.095 billion (approximately RMB 7.597 billion), an increase of approximately $51 million (approximately RMB 354 million) from year-end, maintaining stable liquidity levels.

*Source: Align Technology Announces Fourth Quarter and Fiscal 2025 Financial Results

Regarding business operation metrics, clear aligner doctor-side activity maintained steady improvement. In the fourth quarter, shipments were made to approximately 87,700 Invisalign-trained doctors, slightly down from 88,200 in the third quarter, but still at historically high levels; for full-year 2025, shipments were made to 130,000 doctors, essentially flat compared to 2024. Regarding doctor utilization, fourth quarter average shipments per doctor were 7.7 cases, up from 7.3 cases in the third quarter; full-year doctor utilization was 20.1 cases, higher than 19.1 cases in 2024. Regarding revenue per case, fourth quarter clear aligner average revenue per case was $1,240 (approximately RMB 8,603.37), consistent with first quarter levels; full-year 2025 average revenue per case was $1,245 (approximately RMB 8,638.06), remaining overall stable.

Regarding share repurchases, the company continued its share buyback program in the fourth quarter. The company repurchased approximately 700,000 shares of common stock in the fourth quarter, at an average repurchase price of $142.87 per share (approximately RMB 991.26 per share). This repurchase was executed under the $200 million open market repurchase plan announced in August 2025, and was completed in January 2026. For the full year, 2025 total repurchases were approximately 2.9 million shares, at an average repurchase price of $162.09 per share (approximately RMB 1,124.61 per share), for a total repurchase amount of $465.9 million (approximately RMB 3.233 billion). As of December 31, 2025, the company has approximately $831.2 million (approximately RMB 5.767 billion) remaining under its $1 billion share repurchase plan announced in April 2025 for future repurchases.

The company expects first quarter 2026 revenues of $1.010-1.030 billion (approximately RMB 7.008-7.146 billion), representing 3%-5% year-over-year growth; clear aligner shipment volume is expected to grow in the "mid-single digits" year-over-year, with average selling price (ASP) expected to increase sequentially due to more favorable regional mix; Systems and Services revenue is expected to decline sequentially, consistent with typical first quarter seasonality.

For full-year 2026, the company expects revenues to grow 3%-4% year-over-year, with clear aligner shipment volume growing in the "mid-single digits" year-over-year; the company also expects GAAP operating margin slightly below 18.0%, an improvement of approximately 400 basis points versus 2025, and Non-GAAP operating margin of approximately 23.7%, an improvement of 100 basis points year-over-year. Regarding capital expenditures, the company expects 2026 capital expenditures of $125-150 million (approximately RMB 867-1,041 million), primarily for technology upgrades, expanded manufacturing capacity, and routine maintenance investments.