UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal 2024 868,140 1,625,595 |
2,493,735 |
130,370 3,230,122 768,890 |
3,999,012 |
952,136 247,717 |
1,199,853 |
2,799,159 1,763,193 364,202 33,168 30,968 |
2,191,531 |
607,628 20,218 (18,887) |
1,331 |
608,959 187,597 |
$ 421,362 |
$ 5.63 |
$ 5.62 |
74,877 |
74,993 |
70.0% 70.5% 67.8% 44.1% 9.1% 0.8% 0.8% 15.2% 10.5% 3.5% 3.6% 3.5% 1.0% 16.0% 3.4% 6.2% -5.6% -5.3% |
Q4 | Fiscal | |
2025 | 2025 | |
230,910 | 935,830 | |
445,945 | 1,675,450 | |
676,855 | 2,611,280 | |
87,710 | 130,015 | |
838,145 | 3,245,404 | |
209,416 | 789,560 | |
1,047,561 | 4,034,964 | |
300,387 | 1,058,893 | |
63,587 | 265,058 | |
363,974 | 1,323,951 | |
683,587 | 2,711,013 | |
441,676 | 1,755,791 | |
83,036 | 369,911 | |
3,551 | 35,378 | |
- | 4,178 | |
528,263 | 2,165,258 | |
155,324 | 545,755 | |
4,621 | 16,045 | |
16,650 | 23,487 | |
21,271 | 39,532 | |
176,595 | 585,287 | |
40,835 | 174,936 | |
$ 135,760 | $ 410,351 | |
$ 1.89 | $ 5.66 | |
$ 1.89 | $ 5.65 | |
71,684 | 72,542 | |
71,757 | 72,588 | |
65.3% | 67.2% | |
64.2% | 67.4% | |
69.6% | 66.4% | |
42.2% | 43.5% | |
7.9% | 9.2% | |
0.3% | 0.9% | |
0.0% | 0.1% | |
14.8% | 13.5% | |
13.0% | 10.2% | |
7.7% | 4.7% | |
2.4% | -0.3% | |
5.3% | 0.9% | |
5.5% | 0.5% | |
4.2% | 2.7% | |
-1.9% | -3.1% | |
-4.4% | -1.2% | |
7.8% | -10.2% | |
30.8% | -2.6% | |
4.5% | ||
-0.5% | ||
5.2% | ||
4.0% | ||
10.3% | ||
6.9% | ||
-2.7% | ||
61.3% | ||
139.2% | ||
(in thousands except per share data)
Clear Aligner Shipments:
Q3 Q4
2024 2024
Q1 Q2 Q3
2025 2025 2025
Q1 Q2 Q3
2026 2026 2026
WW Teenagers 236,285 215,945
WW Adults 380,935 412,785
Total Shipments 617,220 628,730
Invisalign doctors cases shipped to WW
Total Invisalign doctors cases shipped to WW 87,380 85,685
Net Revenues:
Clear Aligner Net Revenues (1)(3) 786,844 794,289
Imaging Systems and CAD/CAM Services Net Revenues 191,028 200,930
Total Worldwide Net Revenues 977,872 995,219
Cost of Net Revenues:
Cost of net revenues Clear Aligner 234,003 236,827 Cost of net revenues Imaging Systems and CAD/CAM Services 62,095 61,451 Total cost of net revenues 296,098 298,278
Gross profit 681,774 696,941
Operating Expenses:
Selling, general and administrative 434,138 424,971
Research and development 85,272 94,878
Restructuring and other charges - 33,168
Legal settlements and contingencies 66 (225)
Total operating expenses 519,476 552,792
Operating Income 162,298 144,149
Interest income and other income (expense), net:
Interest income 4,003 8,522
Other income (expense), net (371) (11,894)
Total interest income and other income (expense), net 3,632 (3,372)
225,755 223,160 256,005
416,550 421,210 391,745
642,305 644,370 647,750
85,275 86,250 88,155
796,843 804,617 805,799
182,419 207,832 189,893
979,262 1,012,449 995,692
234,754 240,811 282,941
64,400 63,521 73,550
299,154 304,332 356,491
680,108 708,117 639,201
447,629 448,686 417,800
97,201 96,398 93,276
- - 31,827
4,178 - -
549,008 545,084 542,903
131,100 163,033 96,298
5,316 2,859 3,249
4,026 7,624 (4,813)
9,342 10,483 (1,564)
236,555 239,170 274,580
449,095 452,615 416,055
685,650 691,785 690,635
88,065 89,175 90,910
856,024 870,874 839,272
184,063 185,318 175,491
1,040,087 1,056,192 1,014,763
243,155 249,370 257,915
60,345 49,392 59,377
303,500 298,762 317,292
736,587 757,430 697,471
465,342 462,671 410,554
98,658 102,032 93,873
- - 17,231
30,632 38,714 6,649
594,632 603,417 528,307
141,955 154,013 169,164
3,911 4,636 6,212
3,020 (9,956) (5,302)
6,931 (5,320) 910
Net income before provision for (benefit from) income taxes
165,930 140,777
140,442 173,516 94,734
148,886 148,693 170,074
Provision for (benefit from) income taxes 49,967 36,970
47,212 48,908 37,981
36,115 40,399 35,030
Net Income
Net Income per share
basic
diluted
Shares used in computing net income per share
$ 115,963
$ 1.55
$ 1.55
$ 103,807
$ 1.39
$ 1.39
$ 93,230
$ 1.27
$ 1.27
$ 124,608
$ 1.72
$ 1.72
$ 56,753
$ 0.78
$ 0.78
$ 112,771
$ 1.58
$ 1.57
$ 108,294
$ 1.51
$ 1.51
$ 135,044
$ 1.90
$ 1.90
- basic 74,736 74,419
- diluted 74,757 74,465
Margin Analysis:Gross margin 69.7% 70.0%
-Clear Aligner 70.3% 70.2%
-Imaging Systems and CAD/CAM Services 67.5% 69.4%
Selling, general and administrative 44.4% 42.7%
Research and development 8.7% 9.5%
Restructuring and other charges 0.0% 3.3%
Legal settlements and contingencies 0.0% 0.0%
Operating margin 16.6% 14.5%
Net margin 11.9% 10.4%
Year Over Year Analysis:Clear Aligner shipments change YoY 2.5% 6.1%
Invisalign doctors cases shipment change YoY 2.6% 2.4%
Net Revenues 1.8% 4.0%
-Clear Aligner -1.0% 1.6%
-Imaging Systems and CAD/CAM Services 15.6% 14.9%
Gross profit 2.8% 4.1%
Operating expense 4.6% 11.0%
Operating income (loss) -2.4% -16.0%
Net income (loss) -4.5% -16.3%
Quarter Over Quarter Analysis (Sequential):Clear Aligner shipments change QoQ -4.0% 1.9%
Invisalign doctors cases shipment change QoQ 1.4% -1.9%
Net Revenues -4.9% 1.8%
-Clear Aligner -5.4% 0.9%
-Imaging Systems and CAD/CAM Services -2.9% 5.2%
Gross profit -5.7% 2.2%
Operating expense -9.7% 6.4%
Operating income 10.4% -11.2%
Net income 20.1% -10.5%
73,562 72,565 72,377
73,615 72,593 72,419
69.5% 69.9% 64.2%
70.5% 70.1% 64.9%
64.7% 69.4% 61.3%
45.7% 44.3% 42.0%
9.9% 9.5% 9.4%
0.0% 0.0% 3.2%
0.4% 0.0% 0.0%
13.4% 16.1% 9.7%
9.5% 12.3% 5.7%
6.2% 0.3% 4.9%
2.1% 0.1% 0.9%
-1.8% -1.6% 1.8%
-2.5% -3.3% 2.4%
1.2% 5.6% -0.6%
-2.5% -2.0% -6.2%
1.0% -5.3% 4.5%
-14.9% 10.9% -40.7%
-11.2% 29.0% -51.1%
2.2% 0.3% 0.5%
-0.5% 1.1% 2.2%
-1.6% 3.4% -1.7%
0.3% 1.0% 0.1%
-9.2% 13.9% -8.6%
-2.4% 4.1% -9.7%
-0.7% -0.7% -0.4%
-9.1% 24.4% -40.9%
-10.2% 33.7% -54.5%
71,425 71,495 70,993
71,614 71,520 71,015
70.8% 71.7% 68.7%
71.6% 71.4% 69.3%
67.2% 73.3% 66.2%
44.7% 43.8% 40.5%
9.5% 9.7% 9.3%
0.0% 0.0% 1.7%
2.9% 3.7% 0.7%
13.6% 14.6% 16.7%
10.8% 10.3% 13.3%
6.7% 7.4% 6.6%
3.3% 3.4% 3.1%
6.2% 4.3% 1.9%
7.4% 8.2% 4.2%
0.9% -10.8% -7.6%
8.3% 7.0% 9.1%
8.3% 10.7% -2.7%
8.3% -5.5% 75.7%
21.0% -13.1% 138.0%
1.3% 0.9% -0.2%
0.4% 1.3% 1.9%
-0.7% 1.5% -3.9%
2.1% 1.7% -3.6%
-12.1% 0.7% -5.3%
7.8% 2.8% -7.9%
12.6% 1.5% -12.4%
-8.6% 8.5% 109.8%
-16.9% -4.0% 24.7%
Americas region includes North America and LATAM. International region includes EMEA and APAC.
Non -case net revenues include retention products, Invisalign training, adjusting tools used by dental professionals during the course of treatment and ancillary consumer products and other oral health products. We also offer in the U.S., Canada and Iberia, a Doctor Subscription Program which is a monthly subscription program based on the doctor's monthly need for retention or limited treatment.
Align-9 quarter Financial Model - ending Q3 2026
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands except per share data)
Three Months Ended Nine Months EndedSeptember 30, September 30,
2026 | 2025 | 2026 | 2025 | ||
GAAP gross profit | $ 697,471 | $ 639,201 | $ 2,191,488 | $ 2,027,426 | |
Stock-based compensation | 1,819 | 1,540 | 5,285 | 4,714 | |
Amortization of intangibles (1) | 3,559 | 3,837 | 11,282 | 11,138 | |
Restructuring and other charges (2) | 11,230 | 4,792 | 11,308 | 7,045 | |
Impairment loss on Assets held for sale(3) | - | 23,142 | - | 23,142 | |
Gain on Assets held for sale(3) | - | - | (11,699) | - | |
Depreciation on assets disposed of other than by sale(4) | - | 13,663 | 15,599 | 13,663 | |
Impairment loss on inventory(5) | - | 14,924 | - | 14,924 | |
Other Non-GAAP items (6) - - 841 - | |||||
Non-GAAP gross profit | $ 714,079 | $ 701,099 | 2,224,104 | $ 2,102,052 | |
GAAP gross margin | 68.7% | 64.2% | 70.4% | 67.9% | |
Non-GAAP gross margin | 70.4% | 70.4% | 71.5% | 70.4% | |
GAAP total operating expenses | $ 528,307 | $ 542,903 | $ 1,726,356 | $ 1,636,995 | |
Stock-based compensation | (37,208) | (46,837) | (120,226) | (136,868) | |
Amortization of intangibles (1) | (930) | (939) | (2,827) | (2,684) | |
Restructuring and other charges (2) | (17,231) | (31,827) | (16,476) | (31,630) | |
Legal settlements and contingencies (7) | (6,649) | - (75,995) | (4,178) | ||
Non-GAAP total operating expenses | $ 466,289 | $ 463,300 | $ 1,510,832 | $ 1,461,635 | |
GAAP income from operations | $ 169,164 | $ 96,298 | $ 465,132 | $ 390,431 | |
Stock-based compensation | 39,027 | 48,377 | 125,511 | 141,582 | |
Amortization of intangibles (1) | 4,489 | 4,776 | 14,109 | 13,822 | |
Restructuring and other charges (2) | 28,461 | 36,619 | 27,784 | 38,675 | |
Legal settlements and contingencies (7) | 6,649 | - | 75,995 | 4,178 | |
Impairment loss on Assets held for sale(3) | - | 23,142 | - | 23,142 | |
Gain on Assets held for sale(3) | - | - | (11,699) | - | |
Depreciation on assets disposed of other than by sale(4) | - | 13,663 | 15,599 | 13,663 | |
Impairment loss on inventory(5) Other Non-GAAP items (6) | - - | 14,924 - | - 841 | 14,924 - | |
Non-GAAP income from operations | 247,790 | 237,799 | 713,272 | 640,417 | |
GAAP operating margin | 16.7% | 9.7% | 15.0% | 13.1% | |
Non-GAAP operating margin | 24.4% | 23.9% | 22.9% | 21.4% | |
GAAP net income before provision for income taxes | $ 170,074 | $ 94,734 | $ 467,653 | $ 408,692 | |
Stock-based compensation | 39,027 | 48,377 | 125,511 | 141,582 | |
Amortization of intangibles (1) | 4,489 | 4,776 | 14,109 | 13,822 | |
Restructuring and other charges (2) | 28,461 | 36,619 | 27,784 | 38,675 | |
Legal settlements and contingencies (6) | 6,649 | - | 75,995 | 4,178 | |
Impairment loss on Assets held for sale(3) | - | 23,142 | - | 23,142 | |
Gain on Assets held for sale(3) | - | - | (11,699) | - | |
Depreciation on assets disposed of other than by sale(4) | - | 13,663 | 15,599 | 13,663 | |
Impairment loss on inventory(5) Other Non-GAAP items (5) | - - | 14,924 - | - 841 | 14,924 - | |
Non-GAAP net income before provision for income taxes | $ 248,700 $ | 236,235 | $ 715,793 $ | 658,678 | |
GAAP provision for income taxes | $ 35,030 $ | 37,981 | $ 111,544 $ | 134,101 | |
Tax impact on non-GAAP adjustments 14,763 9,266 31,614 (2,365) | |||||
Non-GAAP provision for income taxes | $ 49,793 | $ 47,247 | $ 143,158 | $ 131,736 | |
GAAP effective tax rate | 20.6% | 40.1% | 23.9% | 32.8% | |
Non-GAAP effective tax rate | 20.0% | 20.0% | 20.0% | 20.0% | |
GAAP net income | $ 135,044 | $ 56,753 | $ 356,109 | $ 274,591 | |
Stock-based compensation | 39,027 | 48,377 | 125,511 | 141,582 | |
Amortization of intangibles (1) | 4,489 | 4,776 | 14,109 | 13,822 | |
Restructuring and other charges (2) | 28,461 | 36,619 | 27,784 | 38,675 | |
Legal settlements and contingencies (6) | 6,649 | - | 75,995 | 4,178 | |
Impairment loss on Assets held for sale(3) | - | 23,142 | - | 23,142 | |
Gain on Assets held for sale(3) | - | - | (11,699) | - | |
Depreciation on assets disposed of other than by sale(4) | - | 13,663 | 15,599 | 13,663 | |
Impairment loss on inventory(5) | - | 14,924 | - | 14,924 | |
Other Non-GAAP items (5) | - | - | 841 | - | |
Tax impact on non-GAAP adjustments | (14,763) | (9,266) | (31,614) | 2,365 | |
Non-GAAP net income | 198,907 | 188,988 | 572,635 | 526,942 | |
GAAP diluted net income per share | $ 1.90 $ 0.78 $ 4.98 $ 3.77 | ||||
Non-GAAP diluted net income per share | $ 2.80 $ 2.61 $ 8.01 $ 7.23 | ||||
Shares used in computing diluted net income per share | 71,015 72,419 71,473 72,880 | ||||
(1) Amortization of intangible assets.
(2) During the third quarter 2026 and third quarter 2025, we initiated restructuring plans to reduce headcount and increase efficiency across the organization and lower the overall cost structure. Restructuring charges are primarily related to involuntary termination benefits, including employee severance and other post-employment benefits.
(3) During the third quarter of 2025, we originally recorded an impairment loss related to a manufacturing facility disposal group that met the criteria to be classified as assets held for sale. During the first quarter of 2026, we recognized a gain of $11.7 million resulting from an increase in fair value less costs to sell related to theses assets held for sale.
(4) During the third quarter of 2025, we initiated the disposal, other than by sale, of certain manufacturing fixed assets. Accordingly, we revised the useful lives of these assets and recorded accelerated depreciation expense.
(5) During the third quarter of 2025, we recorded an impairment loss for obsolete inventory.
(6) During the first quarter of 2026, we recorded other non-recurring charges related to the disposal of certain manufacturing fixed assets.
(7) During the third quarter 2026 and second quarter 2026, we recorded approximately $5.6 million and $37.5 million, respectively related to UK VAT contingency loss, and approximately $1 million and $1.2 million, respectively relate to legal settlements.
(*) Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding. Refer to "About Non-GAAP Financial Measures " section of press release.
Align-9 quarter Financial Model - ending Q3 2026 ]
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands except per share data)
Q3 Q4
2024 2024
Q1 Q2 Q3 Q4
Fiscal 2024 $ 2,799,159 6,995 14,803 3,823 1,410 |
$ 2,826,190 70.0% 70.7% $ 2,191,531 (166,708) (3,497) (32,722) (30,968) (4,676) |
$ 1,952,960 $ 607,628 173,703 18,300 36,545 30,968 6,086 |
$ 873,230 15.2% 21.8% $ 608,959 173,703 18,300 36,545 30,968 6,086 |
$ 874,561 $ 187,597 (12,715) |
$ 174,882 30.8% 20.0% $ 421,362 173,703 18,300 36,545 30,968 6,086 12,715 |
$ 699,679 $ 5.62 |
$ 9.33 |
74,993 |
Q1 Q2 Q3
Fiscal 2025 $ 2,711,013 6,177 14,979 7,763 23,142 76,920 14,924 1,861 |
$ 2,856,779 67.2% 70.8% $ 2,165,258 (179,693) (3,624) (35,181) (4,178) - |
$ 1,942,582 $ 545,755 185,870 18,603 42,944 4,178 23,142 76,920 14,924 1,861 |
$ 914,197 13.5% 22.7% $ 585,287 185,870 18,603 42,944 4,178 23,142 76,920 14,924 1,861 |
$ 953,729 $ 174,936 15,810 |
$ 190,746 29.9% 20.0% $ 410,351 185,870 18,603 42,944 4,178 23,142 76,920 14,924 1,861 (15,810) |
$ 762,983 $ 5.65 |
$ 10.51 |
72,588 |
GAAP gross profit
$ 681,774 $
696,941
$ 680,108 $
708,117 $
639,201 $
683,587
$ 736,587 $
757,430 $
697,471
Stock-based compensation 3,070 (721)
Amortization of intangibles (1) 3,702 3,699
Restructuring and other charges (2) - 3,823 Impairment loss on Assets held for sale(3)
Gain on Assets held for sale(3)
Depreciation on assets disposed of other than by sale(4)
Impairment loss on inventory(5) 1,410
Other Non-GAAP items (6)
1,538 1,636 1,540 1,463
3,549 3,752 3,837 3,841
2,253 - 4,792 718
23,142 -
13,663 63,257
14,924 -
1,861
1,620 1,846 1,819
3,880 3,843 3,559
80 (2) 11,230
- - -
(11,699) - -
15,599 - -
- - -
841 - -
Non-GAAP gross profit$ 688,546 $
705,152
$ 687,448 $
713,505 $
701,099 $
754,727
$ 746,908 $
763,117 $
714,079
GAAP gross margin 69.7% 70.0%
Non-GAAP gross margin 70.4% 70.9%
69.5% 69.9% 64.2% 65.3%
70.2% 70.5% 70.4% 72.0%
70.8% 71.7% 68.7%
71.8% 72.3% 70.4%
GAAP total operating expenses$ 519,476 $
552,792
$ 549,008 $
545,084 $
542,903 $
528,263
$ 594,632 $
603,417 $
528,307
Stock-based compensation (45,969) (39,569)
Amortization of intangibles (1) (880) (879)
Restructuring and other charges (2) 89 (33,168)
Legal settlements and contingencies (7) (66) 225
Other Non-GAAP items (6) - (4,676)
(43,459) (46,572) (46,837) (42,825)
(841) (904) (939) (940)
197 - (31,827) (3,551)
(4,178) - - -
- - - -
(39,304) (43,714) (37,208)
(957) (940) (930)
(646) 1,401 (17,231)
(30,632) (38,714) (6,649)
- - -
Non-GAAP total operating expensesGAAP income from operations
$ 472,650 $
$ 162,298 $
474,725
144,149
$ 500,727 $
$ 131,100 $
497,608 $
163,033 $
463,300 $
96,298 $
480,947
155,324
$ 523,093 $
$ 141,955 $
521,450 $
154,013 $
466,289
169,164
Stock-based compensation 49,039 38,848
Amortization of intangibles (1) 4,582 4,578
Restructuring and other charges (2) (89) 36,991
Legal settlements and contingencies (7) 66 (225) Impairment loss on Assets held for sale(3)
Gain on Assets held for sale(3)
Depreciation on assets disposed of other than by sale(4) Impairment loss on inventory(5)
Other Non-GAAP items (6) 6,086
44,997 48,208 48,377 44,288
4,390 4,656 4,776 4,781
2,056 - 36,619 4,269
4,178 - - -
23,142 -
13,663 63,257
14,924 -
1,861
40,924 45,560 39,027
4,837 4,783 4,489
726 (1,403) 28,461
30,632 38,714 6,649
- - -
(11,699) - -
15,599 - -
- - -
841 - -
Non-GAAP income from operations$ 215,896 $
230,427
$ 186,721 $
215,897 $
237,799 $
273,780
$ 223,815 $
241,667 $
247,790
GAAP operating margin 16.6% 14.5%
Non-GAAP operating margin 22.1% 23.2%
13.4% 16.1% 9.7% 14.8%
19.1% 21.3% 23.9% 26.1%
13.6% 14.6% 16.7%
21.5% 22.9% 24.4%
GAAP net income before provision for income taxes$ 165,930 $
140,777
$ 140,442 $
173,516 $
94,734 $
176,595
$ 148,886 $
148,693 $
170,074
Stock-based compensation 49,039 38,848
Amortization of intangibles (1) 4,582 4,578
Restructuring and other charges (2) (89) 36,991
Legal settlements and contingencies (7) 66 (225) Impairment loss on Assets held for sale(3)
Gain on Assets held for sale(3)
Depreciation on assets disposed of other than by sale(4) Impairment loss on inventory(5)
Other Non-GAAP items (6) 6,086
44,997 48,208 48,377 44,288
4,390 4,656 4,776 4,781
2,056 - 36,619 4,269
4,178 - - -
23,142 -
13,663 63,257
14,924 -
1,861
40,924 45,560 39,027
4,837 4,783 4,489
726 (1,403) 28,461
30,632 38,714 6,649
- - -
(11,699) - -
15,599 - -
- - -
841 - -
Non-GAAP net income before provision for income taxesGAAP provision for income taxes
$ 219,528 $
$ 49,967 $
227,055
36,970
$ 196,063 $
$ 47,212 $
226,380 $
48,908 $
236,235 $
37,981 $
295,051
40,835
$ 148,886 $
$ 36,115 $
236,347 $
40,399 $
248,700
35,030
Tax impact on non-GAAP adjustments (6,061) 8,441
(8,000) (3,631) 9,266 18,175
10,034 6,817 14,763
Non-GAAP provision for income taxes$ 43,906 $
45,411
$ 39,212 $
45,277 $
47,247 $
59,010
$ 46,149 $
47,216 $
49,793
GAAP effective tax rate 30.1% 26.3%
Non-GAAP effective tax rate 20.0% 20.0%
33.6% 28.2% 40.1% 23.1%
20.0% 20.0% 20.0% 20.0%
24.3% 27.2% 20.6%
31.0% 20.0% 20.0%
GAAP net income$ 115,963 $
103,807
$ 93,230 $
124,608 $
56,753 $
135,760
$ 112,771 $
108,294 $
135,044
Stock-based compensation 49,039 38,848
Amortization of intangibles (1) 4,582 4,578
Restructuring and other charges (2) (89) 36,991
Legal settlements and contingencies (7) 66 (225) Impairment loss on Assets held for sale(3)
Gain on Assets held for sale(3)
Depreciation on assets disposed of other than by sale(4) Impairment loss on inventory(5)
Other Non-GAAP items (6) 6,086
Tax impact on non-GAAP adjustments 6,061 (8,441)
44,997 48,208 48,377 44,288
4,390 4,656 4,776 4,781
2,056 - 36,619 4,269
4,178 - - -
23,142 -
13,663 63,257
14,924 -
1,861
8,000 3,631 (9,266) (18,175)
40,924 45,560 39,027
4,837 4,783 28,461
726 (1,403) 28,461
30,632 38,714 -
- - -
(11,699) - -
15,599 - -
- - -
841 - -
(10,034) (6,817) (14,763)
Non-GAAP net income$ 175,622 $
181,644
$ 156,851 $
181,103 $
188,988 $
236,041
$ 184,597 $
189,131 $
198,907
GAAP diluted net income per shareNon-GAAP diluted net income per share
$ 1.55 $ 1.39
$ 2.35 $ 2.44
$ 1.27 $ 1.72 $ 0.78 $ 1.89
$ 2.13 $ 2.49 $ 2.61 $ 3.29
$ 1.57 $ 1.51 $ 1.90
$ 2.58 $ 2.64 $ 2.80
Shares used in computing diluted net income per share 74,757 74,465
73,615 72,593 72,419 71,757
71,614 71,520 71,015
Notes:(1) Amortization of intangible assets.
(2) During the fourth quarter 2024 and third quarters 2025 and third quarter 2026, we initiated restructuring plans to reduce headcount and increase efficiencies across the organization and lower the overall cost structure. Restructuring charges are primarily related to involuntary termination benefits, including employee severance and other post-employment benefits.
(3) During the third quarter of 2025, we recorded an impairment loss related to a manufacturing facility that met the criteria to be classified as assets held for sale during the quarter. During the first quarter of 2026, we recognized a gain of $11.7 million resulting from an increase in fair value less costs to sell related to these assets held for sale.
(4) During the third quarter of 2025, we initiated the disposal, other than by sale, of certain manufacturing fixed assets. Accordingly, we revised the useful lives of these assets and recorded accelerated depreciation expense.
(5) During the third quarter of 2025, we recorded an impairment loss for obsolete inventory.
(6) During the fourth quarter of 2025 and the first quarter of 2026, we recorded other non-recurring charges related to dispose of certain manufacturing fixed assets. Other Non-GAAP items from the fourth quarter of 2024 primarily include settlements of various indirect tax obligations related to prior years.
(7) During the third quarter 2026 and second quarter 2026, we recorded approximately $5.6 million and $37.5 million, respectively, related to UK VAT contingency loss, and approximately $1.0 million and $1.2 million, respectively, related to legal settlements.
(*) Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding. Refer to "About Non-GAAP Financial Measures " section of press release
Align-9 quarter Financial Model - ending Q3 2026 ]