ALIGN TECHNOLOGY INC (ALGN)

Price—Loading quote

AI: Fair-priced

Price checkAt $181.31, the shares look reasonably valued, but offer little obvious bargain.

The August 14 close values 71.245 million shares at about $12.9 billion. Trailing net income was approximately $414 million, while free cash flow—cash left after operations and capital spending—was about $634 million. The price therefore equals roughly 31 times earnings and 20 times free cash flow; $1.10 billion of cash provides some support. A simplified model using a 9% required return and 3% long-run growth suggests the price requires roughly 4% annual cash-flow growth for ten years: achievable, but not deeply discounted.

Big pictureSales are recovering, but profits and cash have not fully regained earlier strength.

Revenue rose just 0.9% to $4.03 billion in 2025, while operating income fell 10.2% to $546 million and free cash flow dropped 21% to $491 million. The first half of 2026 improved: revenue increased 5.2% to $2.10 billion and free cash flow reached $277 million, versus $135 million a year earlier. However, operating income barely increased. Cash generation has remained positive since 2020, but elective orthodontic treatment and dental equipment purchases can be postponed, making results sensitive to household confidence and dentists’ spending plans.

Business strengthA cash-rich balance sheet and shrinking share count protect owners during slower demand.

At June 2026, Align held $1.10 billion of cash, $2.66 billion of current assets and $1.91 billion of current liabilities, plus $4.23 billion of shareholders’ equity. That provides room to invest or absorb setbacks. Shares outstanding fell 9.7% from December 2020 to 71.245 million. From 2021 through 2025, buybacks totaled $2.22 billion against $761 million of employee share compensation, producing genuine net shrinkage. The caution is that 2025 buybacks nearly matched free cash flow; the planned $400 million to $500 million for 2026 leaves less cash for other uses.

What could change the storyFaster aligner growth could justify today’s price; scanner weakness or legal limits could not.

The bull case rests on second-quarter aligner volume growing 7.4% and aligner revenue rising 8.2%, supported by international demand. Management expects 3% to 4% total revenue growth and a 23.7% adjusted operating margin in 2026, then at least one percentage point of further margin improvement in 2027. The bear case is concrete: scanner revenue fell 10.8%, United Kingdom customers face 20% tax from September, and Europe is examining scanner-aligner practices. Sustained aligner growth near 6% with rising cash margins would strengthen the case; growth below 3% would weaken it.

$181.31 price considered

AI: News

Mixed second-quarter resultsSales rose, but weaker scanner demand and cautious guidance outweighed record aligner volume.

On July 29, Align reported record quarterly revenue of $1.056 billion, up 4.3%, as aligner shipments increased 7.4% to 691,785. Systems and services revenue fell 10.8%, however, and third-quarter revenue guidance of $1.00 billion to $1.02 billion was below the range some analysts expected. Shares fell about 6% after hours and closed 3.7% lower the next day. The timing strongly suggests the outlook mattered, although it cannot prove a single cause.

Elliott-backed strategic reviewA major shareholder pushed for board changes, a business review, and larger share buybacks.

On July 29, following discussions with Elliott Investment Management, Align said it would appoint three independent directors and conduct a strategic and operating review with an outside adviser. It also raised planned 2026 repurchases to $400 million to $500 million. These steps could improve costs, sales execution and oversight, but benefits remain unproven. Reuters reported a 4.5% after-hours decline; because earnings and guidance arrived simultaneously, that reaction cannot be attributed specifically to the Elliott-related announcement.

European competition investigationEuropean regulators are examining whether Align unfairly linked its scanners with Invisalign treatment.

On June 30, the European Commission opened a formal investigation into whether Align restricted competing scanners or tied iTero scanners to Invisalign orders. This was an investigation opening, not a finding of wrongdoing, and Align disputes the concerns. An adverse outcome could require greater scanner compatibility, weaken the value of Align’s connected product system, or produce penalties. Shares fell 2.75% that day but rebounded 7.61% the next session, so price timing does not establish the investigation’s market effect.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$4.03B	$4.00B	$3.86B	$3.73B	$3.95B	$2.47B	$2.41B	$1.97B	$1.47B	$1.08B	$845.5M	$761.7M	$660.2M	$560.0M	$479.7M	$387.1M	$312.3M	$304.0M
Gross profit	$2.71B	$2.80B	$2.71B	$2.63B	$2.94B	$1.76B	$1.74B	$1.45B	$1.12B	$815.3M	$640.1M	$578.4M	$498.1M	$416.4M	$361.3M	$303.4M	$233.5M	$225.1M
Research & development	$369.9M	$364.2M	$346.8M	$305.3M	$250.3M	$175.3M	$157.4M	$128.9M	$97.6M	$75.7M	$61.2M	$52.8M	$44.1M	$42.9M	$37.2M	$26.0M	$22.3M	$26.2M
Operating expenses	$2.17B	$2.19B	$2.06B	$1.99B	$1.96B	$1.38B	$1.20B	$981.3M	$763.3M	$566.4M	$451.5M	$384.9M	$403.9M	$330.8M	$270.9M	$200.7M	$267.5M	$209.6M
Operating income	$545.8M	$607.6M	$643.3M	$642.6M	$976.4M	$387.2M	$542.5M	$466.6M	$353.6M	$248.9M	$188.6M	$193.6M	$94.2M	$85.6M	$90.4M	$102.7M	−$34.0M	$15.5M
EBITDAderived	$783.2M	$752.7M	$785.7M	$768.4M	$1.09B	$480.7M	$621.5M	$521.3M	$391.4M	$272.9M	$206.6M	$211.4M	$111.0M	$103.4M	$102.5M	$114.1M	−$23.8M	$25.5M
Net income	$410.4M	$421.4M	$445.1M	$361.6M	$772.0M	$1.78B	$442.8M	$400.2M	$231.4M	$189.7M	$144.0M	$145.8M	$64.3M	$58.7M	$66.7M	$74.3M	−$31.3M	$80.0M
Basic EPSper diluted share	$5.66	$5.63	$5.82	$4.62	$9.78	$22.55	$5.57	$5.00	$2.89	$2.38	$1.80	$1.81	$0.80	$0.73	$0.86	$0.98	-$0.45	$1.20
Diluted EPSper diluted share	$5.65	$5.62	$5.81	$4.61	$9.69	$22.41	$5.53	$4.92	$2.83	$2.33	$1.77	$1.77	$0.78	$0.71	$0.83	$0.95	-$0.45	$1.18

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$2.53M disclosed value

Sells (SEC code S)1$1.51M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 18, 2026Form 4	Morici JohnEVP, CHIEF FINANCIAL OFFICER	SellCommon Stock	8.0K	$189.31	$1.51M	8.2K
Aug 1, 2025Form 4	HOGAN JOSEPH MPRESIDENT AND CEO	BuyCommon Stock	7.6K	$131.49	$996.2K	184.9K
Jul 31, 2025Form 4	Coletti Julie AnnEVP, CHIEF LEGAL & REGULATORY	BuyCommon Stock	42	$109.66	$4.6K	7.1K
Aug 15, 2024Form 4	LARKIN C RAYMOND JRDirector	BuyCommon Stock	6.5K	$235.33	$1.53M	28.2K

Review ownership filings at SEC.gov ↗

ALIGN TECHNOLOGY INC (ALGN)

Financial charts

Financial statements

Insider buys & sells