stockrowWhat it does
Align Technology designs, manufactures and markets products used by dental professionals to straighten teeth and plan dental treatment. Founded in 1997, the company is headquartered in Tempe, Arizona. Joseph M. Hogan is president and chief executive officer; Align has appointed Jennifer Davis to succeed him as president and CEO on December 31, 2026.
Its Invisalign system uses a series of removable, custom-made clear aligners to move teeth. An orthodontist or general dentist prescribes treatment, submits a scan or impression, and reviews and approves a digital plan. Align then manufactures the aligners and typically ships them to the doctor, who provides them to the patient. The company also sells Vivera retainers to help maintain tooth position after treatment.
Align’s iTero intraoral scanners capture digital images of patients’ teeth. Dental professionals can use those images for Invisalign prescriptions, treatment planning and restorative work. Its exocad software helps dental practices and laboratories design restorations and other dental work.
The products are connected through the Align Digital Platform, which combines scanning, treatment planning, manufacturing and monitoring tools. Customers include orthodontists, general dentists, dental laboratories and dental support organizations that provide business services to practices. Most products are sold directly to these professional customers, while some accessories also reach consumers through online and retail channels.
How it makes money
In FY2025, Clear Aligner revenue was $3.2 billion and Systems and Services revenue was $789.6 million. Worldwide revenue in Q3 2026 was $1.015 billion.
Clear Aligner is the larger business. It sells Invisalign treatment packages that vary with the complexity and expected length of treatment. Comprehensive packages address a range of cases, while lower-priced non-comprehensive packages serve less complex cases and other limited treatment needs. Many packages let doctors order additional aligners if treatment changes; some configurations include limited or no additional aligners, which may instead be purchased separately.
The segment also earns revenue from retainers, training, dental tools and accessories. Its Doctor Subscription Program charges a monthly subscription and gives participating doctors access to retainers and low-stage touch-up treatments within their subscribed tier. Clear aligner revenue per case shipment decreased from $1,295 in 2024 to $1,245 in 2025.
Systems and Services sells iTero scanners and associated software, as well as exocad dental design software. Revenue also comes from scanner leases, pre-owned systems, software subscriptions, disposable products and pay-per-scan services. Scanner software packages are included in the equipment price with a service period of 1 to 5 years.
Align says Q3 2026 Systems and Services revenue reflected a greater mix of lower-priced scanners and flexible acquisition models, including leasing and rentals. Those models provide doctors with alternatives to buying equipment upfront and can generate revenue over time.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Clear Aligner | $3.2 billion | 80.4% | 0.47% |
| Systems and Services | $789.6 million | 19.6% | 2.69% |
Customers and how it sells
Align sells primarily to orthodontists and general dentists, as well as dental laboratories and dental support organizations. Doctors must complete Invisalign training before providing the treatment. They control the clinical plan and dispense the aligners to their patients. Laboratories use Align products in their own work for licensed dentists, while dental support organizations provide non-clinical management and support to practices.
The company sells most products and services directly through its specialized sales force. It also uses agents and distributors in some countries. Accessories reach consumers through channels that include e-commerce sites, the company’s doctor portal, retailers and pharmacies.
In FY2025, the U.S. accounted for 41.2% of revenue, Switzerland for 22.8%, and Other International for 36.0%. Align has regional headquarters in North Carolina, Switzerland and Singapore, alongside its corporate headquarters in Arizona.
Customer performance varies by market and channel. Align says North American general-dentist retail demand remained pressured in Q3 2026, while general-dentist retail shipments grew year over year in Europe, the Middle East and Africa and in Asia Pacific. It also says North American orthodontist shipments increased year over year in that quarter, supported by dental support organizations.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| U.S. | $1.7 billion | 41.2% | −2.04% |
| Other International | $1.5 billion | 36.0% | 10.1% |
| Switzerland | $920.6 million | 22.8% | −6.41% |
Suppliers and costs
Align fabricates clear aligners in Mexico, China and Poland. It also assembles scanners and performs some scanner repairs in several locations, and operates treatment-planning facilities in multiple countries. For conventional aligner production, it uses a patient’s approved digital plan to make molds and then forms polymer sheets over them.
The company depends on suppliers of specialized scanning and prototyping equipment, resin, advanced materials, optics and electronic components. Many are single- or sole-source relationships. In particular, Align purchases the resin and polymer used as primary aligner raw materials from a single source; certain manufacturing equipment and scanner optics also come from single or sole sources.
Costs include manufacturing materials, labor, equipment, transportation, research and development, sales and marketing, and treatment planning. Align invests in automation and software to improve manufacturing and planning efficiency. It has also begun limited direct fabrication of appliances, a process that prints devices without first making a mold. Align says transportation costs, product and geographic mix, and lower clear aligner selling prices affected Q3 2026 gross margin.
- Revenue$4.0B
- Cost of revenue−$1.3B
- Research and development−$369.9M
- Selling, general and administrative−$1.8B
- Other operating costs−$39.6M
- Operating income$545.8M
Competitive position
Invisalign competes with conventional braces made from wires and brackets, other manufacturers’ clear aligners, direct-to-consumer aligner providers, and doctors who make their own aligners or retainers with 3D printing. Align estimates that its share of the approximately 22 million annual orthodontist case starts worldwide is approximately 10%.
In scanners, Align competes with other digital systems and with conventional dental impressions. It has identified Dentsply Sirona’s PrimeScan and 3Shape in confocal-imaging scanners, and Shining 3D and Medit among lower-end scanner competitors. Its dental software also competes with other software solutions.
Align’s competitive resources include a doctor-trained sales and treatment network, its Invisalign brand, proprietary manufacturing processes and software, and a digital workflow connecting scans to treatment plans and production. Its planning software uses insights from data on more than 22 million patients treated worldwide.
Our reading: The connected workflow and trained-doctor relationships provide a meaningful source of differentiation because they link equipment, planning and custom treatment, although practices can use some third-party scanners for Invisalign submissions. Our reading: Patient data and manufacturing expertise support the product offering, but their protective value is limited by the continuing availability of braces, competing aligners and alternative scanners.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Dentsply Sirona | Confocal-imaging intraoral scanners | Medium |
| 3Shape | Confocal-imaging intraoral scanners | Medium |
| Shining 3D | Lower-end intraoral scanners | Medium |
| Medit | Lower-end intraoral scanners | Medium |
Growth opportunities
Align’s growth strategy centers on increasing use of clear aligners by orthodontists, expanding adoption among general dentists, reaching more patients internationally and generating consumer demand. It also seeks to connect scanning and restorative dentistry with Invisalign treatment, and to expand relationships with dental support organizations.
The company estimates that approximately 600 million people globally have misaligned teeth and could benefit from straightening them. It estimates that approximately 22 million people annually elect treatment by orthodontists, and aims both to win cases from conventional braces and to expand the market, particularly among adults.
For younger patients, Align offers products including Invisalign First and the Invisalign Palatal Expander. It is also developing direct 3D printing for more products. In Q3 2026, Align said it was beginning a U.S. pilot of a custom-printed sports mouthguard made from an iTero scan.
Affordability is another focus. Align has integrated patient financing into the Invisalign workflow through a collaboration with Healthcare Finance Direct and is evaluating other financing options. It is also expanding the Doctor Subscription Program in additional markets.
For fiscal 2026, Align expects worldwide revenue of approximately $4.11 billion to $4.13 billion and clear aligner volume and revenue growth of approximately 5% to 6% year over year. It expects Systems and Services revenue to be $715 to $725 million.
- $4.0BFY2021
- $3.7BFY2022
- $3.9BFY2023
- $4.0BFY2024
- $4.0BFY2025
- $4.1BFY2026 guidance
Structural risks
- Patient demand: Economic conditions, inflation and interest rates can affect discretionary spending and demand for dental care. Align says uncertainty can also affect doctors’ treatment recommendations, including the choice between clear aligners and braces.
- Competition and pricing: Align faces competing aligners, conventional braces and scanners. Discounts, shifts toward lower-priced products or markets, and competitive pricing pressure can affect revenue and results.
- Supply and manufacturing: Single-source materials and equipment create exposure to supplier disruption. Production can also be interrupted by shipping problems, software issues, equipment downtime or quality concerns.
- Regulation and data: Align must obtain and maintain medical-device authorizations and comply with quality, privacy and data-protection requirements across markets. Delays, lost authorizations or compliance failures can disrupt sales or lead to sanctions.
- Capital equipment demand: Dental practices may defer scanner purchases or choose lower-priced configurations, leases and rentals. Align says the shift in scanner mix reduced Systems and Services revenue in Q3 2026.
- Trade and international operations: Tariffs, trade restrictions, foreign exchange movements and geopolitical tensions can affect revenue, component availability, transportation and other costs.
Bottom line
Our reading
Our reading: Align combines a custom medical-device manufacturing business with scanners and software that help doctors plan and deliver treatment. Its recurring opportunities in retainers, subscriptions and services sit alongside substantial exposure to individual treatment starts and equipment demand. Our reading: The connected workflow and installed relationships support the business, while competition from braces and other aligners, affordability pressures and single-source supplies remain important constraints.