Q2 2026 Align Technology Inc Earnings Call Transcript
Key Points
- Record Q2 2026 revenue of $1.06 billion, up 4.3% year-over-year, driven by record Clear Aligner volumes of 692,000 cases.
- Clear Aligner revenue grew 8.2% year-over-year, with double-digit volume growth in APAC, EMEA, and Latin America.
- Non-GAAP operating margin of 22.9% exceeded expectations, up 1.6 points year-over-year, driven by operational efficiencies and higher ASPs.
- Record scanner placements to new doctors, with active scanner units up double digits year-over-year, expanding the digital platform.
- Strong international momentum with double-digit growth in key regions, supported by initiatives like DSP, patient financing, and no AA products.
- Systems and Services revenue fell 10.8% year-over-year due to a shift to lower-priced scanners and flexible acquisition models like leasing.
- North America retail demand remained sluggish, with stable but not improving performance, offset by DSO channel strength.
- UK VAT ruling reversal creates uncertainty, with a $37.5 million liability recorded and potential volume impacts from the 20% tax pass-through.
- Q3 2026 revenue guidance of $1.0-$1.02 billion is down sequentially, with Clear Aligner ASPs expected to decline due to geographic mix and FX.
- Full-year 2026 Systems and Services revenue guidance revised down to a 6%-8% decline, reflecting persistent capital equipment market softness.
Greetings. Welcome to the Align second quarter 2026 earnings call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Shirley Stacy with Align Technology. You may begin.
Good afternoon and thank you for joining us. I'm Shirley Stacy, Vice President of Corporate Communications and Investor Relations. Joining me for today's call is Joe Hogan, President and CEO; and John Morici, CFO. We issued second quarter 2026 financial results today via Business Wire, which is available on our website at investor.aligntech.com. Today's conference call is being audio webcast and will be archived on our website for approximately 1 month.
As a reminder, the information provided and discussed today will include forward-looking statements, including statements about Align's future events, product outlook and financial expectations. These forward-looking statements are only predictions and involve risks
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