Q3 2025 Align Technology Inc Earnings Call

October 29, 2025

Please note this conference is being recorded.

I'll 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 join.

Joining me for today's call is Joe Hogan, President and CEO and John Morici CFO, We issued third quarter 2025 financial results today via business wire, which is available on our investor website at Investor data line Tech Dot Com Today's conference call is being audio webcast and will be archived on our website for approximately one month as a reminder.

The information provided and discussed today will include forward looking statements, including statements about aligns future events and product outlook. These forward looking statements are only predictions and involve risks and uncertainties that are described in more detail in our most recent periodic reports filed with the Securities and Exchange Commission available on our website and at SEC Gov.

Speaker #1: Vice president of corporate communications and investor relations . Joining me for today's call is Joe Hogan , president and CEO and John Morici CFO .

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 third quarter 2025 financial results today via Business Wire, which is available on our investor website at investor.aligntech.com. Today's conference call is being audio webcast and will be archived on our website for approximately one month. As a reminder, the information provided in discussion today will include forward-looking statements, including statements about Align's future events and product outlook. These forward-looking statements are only predictions and involve risks and uncertainties that are described in more detail in our most recent periodic reports filed with the Securities and Exchange Commission, available on our website and at sec.gov. Actual results may vary significantly, and Align expressly assumes no obligation to update any forward-looking statement.

Speaker #1: We issued third quarter 2020 financial results today via Business Wire , which is available on our investor website at investor . Com . Today's conference call is being audio webcast and will be archived on our website for approximately one month .

Actual results may vary significantly and align expressly assumes no obligation to update any forward looking statement, we have posted historical financial statements with corresponding reconciliations, including our GAAP to non-GAAP reconciliation, if applicable and our third quarter 2025 conference call slides on our website under quarterly results. Please refer to these files for.

Speaker #1: As a reminder , the information provided and discuss today will include forward looking statements , including statements about Align's future events and product outlook .

For more detailed information with that I'll turn the call over to align technology's President and CEO, Joe Hogan Joe.

Thanks, Shirley good afternoon, and thanks for joining us today on our call today I'll provide an overview of our third quarter results and discuss performance from our two operating segments systems and services and clear liners, John will provide more detail on our Q3 financial performance and comment on our views for the remainder of the year following that I'll come back and summarize a few key points.

Shirley Stacy: We have posted historical financial statements with corresponding reconciliations, including our GAAP to non-GAAP reconciliation, if applicable, and our third quarter 2025 conference call slides on our website under Quarterly Results. Please refer to these files for more detailed information. With that, I'll turn the call over to Align Technology Inc.'s President and CEO, Joe Hogan. Joe?

And open the call for questions.

I'm pleased to report third quarter revenues clear aligner volumes and non-GAAP operating margins are all above our outlook.

John Morici: Thanks, Shirley. Good afternoon, and thanks for joining us today. On our call today, I'll provide an overview of our third quarter results and discuss performance from our two operating segments, Systems and Services, and Clear Aligners. John will provide more detail on our Q3 financial performance and comment on our views for the remainder of the year. Following that, I'll come back and summarize a few key points and open the call with questions. I'm pleased to report third quarter revenues, Clear Aligner volumes, and non-GAAP operating margins are all above our outlook. Our Q3 results reflect year-over-year growth in Clear Aligner volumes, driven primarily by EMEA and APAC and Latin American regions, as well as strong sequential growth from APAC and Latin American regions.

Our Q3 results reflect year over year growth in clear aligner volumes, driven primarily by EMEA, and APAC and Latin American regions as well as strong sequential growth from APAC and Latin American regions.

Driven primarily by teens and kids category, our Q3 systems and services revenues were down year over year and sequentially as expected.

Q3 capital equipment seasonality Q3, non-GAAP operating margin of 23, 9% was above our outlook of approximately 22%.

While activity in the orthodontic and dental markets remains mixed, especially in North America. The initiatives, we're taking to drive consumer demand and patient conversion, including working with our DSO partners are delivering results and we continue to focus on execution of these go to market programs.

John Morici: Driven primarily by Teens and Kids category, our Q3 Systems and Services revenues were down year-over-year and sequentially as expected, given Q3 capital equipment seasonality. Q3 non-GAAP operating margin of 23.9% was above our outlook of approximately 22%. While activity in the orthodontic and dental markets remains mixed, especially in North America, the initiatives we're taking to drive consumer demand and patient conversion, including working with our DSO partners, are delivering results, and we continue to focus on execution of these go-to-market programs. In addition to the breadth and depth of our global business and product portfolio and consumer preferences for the Align brand, our unique advantages that provide balance in a dynamic global market. In fact, the year-over-year Clear Aligner volume growth rate improved from Q2 to Q3 for our top 10 country markets, except for Canada.

In addition to the breadth and depth of our global business and product portfolio and consumer preferences for the in line brand our unique advantages that provide balanced in a dynamic global market in.

In fact, a year over year clear aligner volume growth rate improved from Q2 to Q3 for our top 10 country markets, except for Canada.

For Q3 total revenues of 996 million increased one 8% year over year and decreased one 7% sequentially.

Q3 clear aligner revenues of 806 million <unk>.

<unk>, two 4% year over year and were up slightly sequentially Q3 clear aligner volume of 648000 cases increased roughly 5% year over year was up slightly sequentially Q3 imaging systems and <unk> services revenues of $190 million decreased slightly year over year and was down eight.

John Morici: For Q3, total revenues of $996 million increased 1.8% year-over-year and decreased 1.7% sequentially. Q3 Clear Aligner revenues of $806 million increased 2.4% year-over-year and were up slightly sequentially. Q3 Clear Aligner volume of 648,000 cases increased roughly 5% year-over-year and was up slightly sequentially. Q3 Imaging Systems and CAD/CAM Services revenues of $190 million decreased slightly year-over-year and was down 8.6% sequentially. For Q3 Systems and Services revenues decreased sequentially as expected, primarily due to seasonality. On a year-over-year basis, Q3 Systems and Services revenues decreased slightly, primarily due to lower volumes offset somewhat by increased scanner services and exocad CAD/CAM sales. Q3 revenues also reflect strong growth from the iTero scanner leases, an important option for doctors that enables greater access to our advanced digital technology.

6% sequentially.

For Q3 systems and services revenues decreased sequentially as expected primarily due to seasonality.

On a year over year basis, Q3 system. The services revenues decreased slightly primarily due to lower volumes offset somewhat by increased scanner services and XO CAD Cadcam sales Q3 revenues also reflect strong growth from the <unk> scanner leases an important option for doctors that enables greater access to our advanced digital technology.

At the end of Q3, the installation of active Vitaros systems, which include sales and leasing continues to expand and there are over 120000 units globally, a 12% year over year increase.

From a regional perspective, Q3 scanner sales increased sequentially in North America, among G piece as well in Latin America, and APAC regions on a year over year basis, Q3, scanner sales increased in EMEA and Latin American regions.

Tara alumina with Vitaros multi direct capture technology sets, a new standard with effortless scanning and superior Visualizations, helping doctors transitioned to our advanced imaging systems for Q3, <unk> alumina represented over 90% of our full system units and we're still driving adoption and utilization through wind upgrades as well as new.

At the end of Q3, the installation of active Vitaros systems, which include sales and leasing continues to expand and there are over 120000 units globally.

John Morici: At the end of Q3, the installation of active iTero systems, which includes sales and leasing, continues to expand, and there are over 120,000 units globally, a 12% year-over-year increase. From a regional perspective, Q3 scanner sales increased sequentially in North America among GPs, as well as in Latin America and APAC regions. On a year-over-year basis, Q3 scanner sales increased in EMEA and Latin American regions. iTero Lumina, with iTero Multi-Direct Capture Technology, sets a new standard with effortless scanning and superior visualizations, helping doctors transition to our advanced imaging systems. For Q3, iTero Lumina represented over 90% of our full system units, and we're still driving adoption and utilization through wand upgrades, as well as new full systems installations.

12% year over year increase.

From a regional perspective, Q3 scanner sales increased sequentially in North America, among GPS as well in Latin America, and APAC regions on a year over year basis, Q3, scatter sales increased in EMEA and Latin American regions.

Full systems installations.

Today, we announced a series of new product innovations for Ontario Digital solutions, a comprehensive ecosystem that includes <unk> scanners integrated software tools designed to transform dental consultations into a modern multimodal oral health assessment that helps doctors and their teams deliver exceptional chair side experiences supporting invisalign treatment conversion.

Hi, Tara alumina with Vitaros multi direct capture technology sets, a new standard with effortless scanning and superior Visualizations, helping doctors transitioned to our advanced imaging systems.

For Q3, <unk> alumina represented over 90% of our full system units and we're still driving adoption and utilization through wind upgrades as well as new full systems installations.

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These new capabilities span key practice workflows that underlying the aligned digital workflow.

From AI enabled X-ray assessment to dynamic personalized visualization and patient engagement tools at chair side to expand compatibility with three D printers and milling machines. These new innovations simplify workflows improve doctor to patient communications increased patient acceptance and drive practice growth.

John Morici: Today, we announced a series of new product innovations for iTero Digital Solutions, a comprehensive ecosystem that includes intraoral scanners, integrated software tools designed to transform dental consultations into a modern multimodal oral health assessment that helps doctors and their teams deliver exceptional chairside experiences, supporting Invisalign treatment conversion. These new capabilities span key practice workflows that underline the Align Digital workflow. From AI-enabled X-ray assessment to dynamic personalized visualization and patient engagement tools at chairside to expand compatibility with 3D printers and milling machines, these new innovations simplify workflows, improve doctor-to-patient communications, increase patient acceptance, and drive practice growth. More information on these innovations is available in today's press release and our webcast slides. For exocad, Q3 revenues increased sequentially and year-over-year. During Q3, we began piloting exocad Art in several countries in Europe, and based on the initial learnings, we're expecting to expand to more countries in 2026.

Today, we announced a series of new product innovations for our Taro digital solutions, a comprehensive ecosystem that includes integral scanners integrated software tools designed to transform dental consultations into a modern multimodal oral health assessment that helps doctors and their teams deliver exceptional chair side experiences supporting invisalign treatment conversion.

More information on these innovations is available in today's press release in our webcast slides.

These new capabilities spanning key practice workflows that underlying the aligned digital workflow.

For <unk> Q3 revenues increased sequentially and year over year. During Q3, we began piloting XO cat art and several countries in Europe and based on the initial learnings we're expecting to expand to more countries in 2026 ex cat Orange stands for advanced restored of treatment.

Our module with XO CAD dental cat software that bridges, orthodontics, and restorative dentistry and enables orthodontists dentist and dental labs to integrate to the alignment with restorative procedures and deliver better function less invasive restorations and longer lasting and esthetically superior treatment outcomes XO Cat art further extends the valley.

More information on these innovations is available in today's press release in our webcast slides.

<unk> Q3 revenues increased sequentially and year over year. During Q3, we began piloting XO cat art and several countries in Europe and based on the initial learnings we're expecting to expand to more countries in 2026 ex cat art stands for advanced restored a treatment.

You have the aligned digital platform with comprehensive digital workflows and integrated solutions from Invisalign <unk> and <unk>.

John Morici: exocad Art stands for Advanced Restorative Treatment, a module with exocad DentalCAD software that bridges orthodontics and restorative dentistry and enables orthodontists, dentists, and dental labs to integrate tooth alignment with restorative procedures and deliver better function, less invasive restorations, and longer-lasting and aesthetically superior treatment outcomes. exocad Art further extends the value of the Align Digital Platform with comprehensive digital workflows and integrated solutions from Invisalign, iTero, and exocad. For clear aligners, Q3 worldwide volumes were up 0.5% sequentially and up 4.9% year-over-year. For Q3, 88,000 doctors globally submitted Invisalign cases, an all-time record driven primarily by the GP channel. In addition, Q3 reflects a new all-time high for the number of doctors submitting Invisalign case starts for teens and kids.

Our module with <unk> dental cat software that bridges, orthodontics, and restorative dentistry and enables orthodontists dentist and dental labs to integrate to the alignment with their store to procedures and deliver better function less invasive restorations and longer lasting and esthetically superior treatment outcomes ex cat art further extends the value.

For clear <unk> Q3 worldwide volumes were up 5% sequentially and up four 9% year over year for Q3.

88000 doctors globally submitted Invisalign cases, an all time record driven primarily by the GP channel and.

In addition, Q3 reflects a new all time high for the number of doctors submitting Invisalign case starts for teens and kids.

The align digital platform with comprehensive digital workflows and integrated solutions from Invisalign <unk> and <unk>.

On a sequential basis Q3 clear aligner volumes reflect strength from the international adult <unk> patients as well as North American DSO adult patients, partially offset by the North American retail Dr. Jim.

For clear liners Q3 worldwide volumes were up 5% sequentially and up four 9% year over year for Q3.

88000 doctors globally submitted Invisalign cases, an all time record driven primarily by the GP channel and.

Year over year, Q3, clear aligner volume reflect strong growth across the APAC and EMEA regions offset somewhat by North America Q3, clear aligner volumes increased year over year for both orthodontists and GPS.

In addition in Q3 reflects a new all time high for the number of doctors submitting Invisalign case starts for teens and kids.

Driven by growth across adults teas in kids and continued strength by Dsos.

John Morici: On a sequential basis, Q3 clear aligner volumes reflect strength from the international adult and teen patients, as well as North American DSO adult patients, partially offset by the North American retail doctor channel. Year-over-year, Q3 clear aligner volume reflects strong growth across the APAC and EMEA regions, offset somewhat by North America. Q3 clear aligner volumes increased year-over-year for both orthodontists and GPs, driven by growth across adults, teens, and kids, and continued strength by DSOs. From a product perspective, for Q3, we had strong year-over-year growth from Invisalign First, Invisalign DSP touch-up cases, Invisalign palate expander, retention including DSP, as well as continued makeshift from non-comprehensive clear aligner products. For the Americas, Q3 clear aligner volumes were down year-over-year, primarily due to North America, partially offset by continued growth in Latin America.

From a product perspective for Q3, we had strong year over year growth from Invisalign first DSP touch-up cases, invisalign palate, expander retention, including DSP as well as continued mix shift from non comprehensive clear aligner products for.

For the Americas, Q3, clear aligner volumes were down year over year, primarily due to North America, partially offset by continued growth in Latin America.

Driven by growth across adults teens in kids and continued strength by Dsos.

Despite lower volumes increased adoption of several products, including Invisalign first for teens and kids.

From a product perspective for Q3, we had strong year over year growth from Invisalign first DSP touch up cases, invisalign palate, expander retention, including DSP as well as continued mix shift from non comprehensive clear aligner products.

Invisalign DSP touch up cases, including retention and the Invisalign palate expander system continued.

We also saw double digit growth year over year from North America, Dsos, given the economies of scales and more effective optimal cost structures inherent in their business model, we anticipate that our DSO partners will continue to grow their invisalign business.

For the Americas, Q3, clear aligner volumes were down year over year, primarily due to North America, partially offset by continued growth in Latin America.

And are one of the best examples of how to incorporate our digital technology and workflows to accelerate practice growth.

John Morici: Despite lower volumes, increased adoption of several products, including Invisalign First for teens and kids, Invisalign DSP touch-up cases, including retention, and the Invisalign palate expander system continued. We also saw double-digit growth year-over-year from North America DSOs. Given the economies of scale and more effective optimal cost structures inherent in their business model, we anticipate that our DSO partners will continue to grow their Invisalign business and are one of the best examples of how to incorporate our digital technology and workflows to accelerate practice growth. To offset a financial barrier for patients interested in Invisalign treatment, Align Technology Inc. and Healthcare Finance Direct, or HFD, are partnering to increase the affordability of treatment. HFD is a preferred patient financing partner and provides our Invisalign-trained doctors with greater options to support their patients and enhance their practices.

Despite lower volumes increased adoption of several products, including Invisalign first for teens and kids.

To offset a financial barrier for patients interested in invisalign treatment align and health care finance direct or HFC.

Invisalign DSP touch up cases, including retention and the Invisalign palate expander system continued.

Our partnering to increase the affordability of treatment HFC as a preferred patient financing partner and provides our invisalign trained doctors with greater options to support their patients and enhance their practices among.

Among dsos and doctors enrollment <unk> enrollment is growing and we have noticed an incremental lift in invisalign treatment that we expect will continue.

At our one of the best examples of how to incorporate our digital technology and workflows to accelerate practice growth.

To offset a financial barrier for patients interested in invisalign treatment align in healthcare finance direct or HFC.

And you May you May have region Q3 clear aligner volumes grew double digits year over year, driven by increased submitters and utilization in the orthodontic channel with strength in teens kids and adult categories. This performance reflects continued adoption of non comprehensive products, including moderate.

S P touch up cases, including retention and Invisalign palate, expander as well as Invisalign comprehensive three and three and Invisalign first within our comprehensive portfolio. During the quarter, we saw strong double digit DSO growth in EMEA on a year over year basis.

John Morici: Among DSOs and doctors enrolled in Healthcare Finance Direct, enrollment is growing, and we have noticed an incremental lift in Invisalign treatment that we expect will continue. In the EMEA region, Q3 Clear Aligner volumes grew double digits year-over-year, driven by increased submitters and utilization in the orthodontic channel, with strength in teens, kids, and adult categories. This performance reflects continued adoption of non-comprehensive products, including moderate Invisalign DSP touch-up cases, including retention, and Invisalign palate expander, as well as Invisalign comprehensive three-and-three and Invisalign First within our comprehensive portfolio. During the quarter, we saw strong double-digit DSO growth in EMEA on a year-over-year basis. For the APAC region, Q3 Clear Aligner volume grew double digit year-over-year, reflecting increased submitters and utilization across both the GP and orthodontist channel, across teens and growing kids, led by China.

Among dsos and doctors enrolled on <unk> enrollment is growing and we have noticed an incremental lift in invisalign treatment that we expect will continue.

For the APAC region, Q3, clear Aligner volume grew double digit year over year, reflecting increased submitters and utilization across both the GP and orthodontic channel across teams and growing kids led by China and <unk>.

<unk> touch up cases, including retention and Invisalign palate, expander as well as Invisalign comprehensive three and three and Invisalign first within our comprehensive portfolio. During the quarter, we saw strong double digit DSO growth in EMEA on a year over year basis.

His line first continues to contribute to year over year growth, where the growing patient portfolio provides a significant opportunity in the region with some of the highest rates of complex malocclusion.

DSO performance has also it was also up double digits on a year over year basis led by China and Japan. In addition, Q3 strong retention performance on a year over year basis reflects increasing submitters and utilization across both the GP and orthodontist Jim.

For the APAC region, Q3, clear Aligner volume grew double digit year over year, reflecting increased submitters and utilization across both the GP and orthodontist channel across teams and growing kids led by China.

John Morici: Invisalign First continues to contribute to year-over-year growth, where the growing patient portfolio provides a significant opportunity in the region with some of the highest rates of complex malocclusion. DSO performance has also up double digits on a year-over-year basis, led by China and Japan. In addition, Q3 strong retention performance on a year-over-year basis reflects increasing submitters and utilization across both the GP and orthodontist channel. In Q3, over 256,000 teens and growing kids started treatment with Invisalign Clear Aligners. This number represents a 14.7% sequential increase, primarily due to strength in APAC, North America, and Latin America, partially offset by softer performance in EMEA due to seasonality. On a year-over-year basis, case starts increased 8.3%, driven by growth in APAC, EMEA, and Latin America, partially offset by North America.

First continues to contribute to year over year growth, where the growing patient portfolio provides a significant opportunity in the region with some of the highest rates of complex malocclusion.

In Q3 over 256000 teens and growing kids started treatment with Invisalign clear liners.

This number represents a 14, 7% sequential increase primarily due to strength in APAC, North America, and Latin America, partially offset by softer performance in EMEA due to the seasonality.

On a year over year basis, K starts increased eight 3% driven by growth in APAC, EMEA and Latin America, partially offset by North America.

In Q3 over 256000 teens and growing kids started treatment with Invisalign clear liners.

From a product standpoint invisalign.

Invisalign first and Invisalign palate expander IP, he continued to drive growth year over year across all regions. During the quarter, we achieved a record number of teen and kids cases shipped in the quarter, representing a record 40% mix of total clear aligner cases ship.

This number represents a 14, 7% sequential increase primarily due to strength in APAC, North America, and Latin America, partially offset by softer performance in EMEA due to seasonality.

On a year over year basis, K starts increased eight 3% driven by growth in APAC, EMEA and Latin America, partially offset by North America.

For Q3, the number of doctors submitting cases starts for teens and kids was up three 8% year over year led by continued strength from doctors treating young kids are growing patients with Invisalign first and liners and Invisalign palate expander.

From a product standpoint.

John Morici: From a product standpoint, Invisalign First and Invisalign palate expander, or IPE, continue to drive growth year-over-year across all regions. During the quarter, we achieved a record number of teen and kids cases shipped in a quarter, representing a record 40% mix of total Clear Aligner cases shipped. For Q3, the number of doctors submitting cases starts for teens and kids was up 3.8% year-over-year, led by continued strength from doctors treating young kids or growing patients with Invisalign First Aligners and Invisalign palate expander. During Q3, we continued to roll out the Invisalign palate expander system and Invisalign System with mandibular advancements featuring occlusal blocks, or what we call MAOB. IPE offers a more hygienic and comfortable alternative to traditional metal expanders that has proven clinically effective at achieving the expansion doctors want for their patients.

Invisalign first and Invisalign palate, expander IP continued to drive growth year over year across all regions. During the quarter, we achieved a record number of teen and kids cases shipped in the quarter, representing a record 40% mix of total clear aligner cases shipped.

During Q3, we continued to rollout the Invisalign palate, expander system, and Invisalign system with Mandibular advancement, featuring occlusal blocks or what we call MYOB.

<unk> offers a more hygienic uncomfortable alternative to traditional metal expanders that is proving clinically effective at achieving the expansion doctors one for their patients.

<unk> is designed to create class II skeletal and dental malocclusion and growing patients ages 10 to 16.

During Q3, we continued to rollout the Invisalign palate, expander system, and Invisalign system with Mandibular advancement, featuring occlusal blocks or what we call MYOB.

By simultaneously advancing the mandible and aligning of teeth by integrating <unk> solid occlusal blocks into clear liners.

<unk> offers greater durability and vertical opening for early Mandibular advancement precision wings that guide the lower jaw forward and smart track material and Smart force features for predictable tooth movement.

He offers a more hygienic uncomfortable alternative to traditional metal expanders that is proving clinically effective at achieving the expansion doctors one for their patients.

John Morici: MAOB is designed to create class II skeletal and dental malocclusions in growing patients ages 10 to 16 by simultaneously advancing the mandible and aligning the teeth. By integrating solid occlusal blocks into clear aligners, MAOB offers greater durability and vertical opening for early mandibular advancement, precision wings that guide the lower jaw forward, and SmartTrack material and SmartForce features for predictable tooth movement. Today, I announced ClinCheck Live Plan. It's a new feature in Invisalign digital treatment planning that automates the generation of initial doctor-ready treatment plans in 15 minutes. This advancement represents a major technical milestone for the Align Digital Platform that can reduce the Invisalign treatment planning cycle from days to minutes. ClinCheck Live Plan is built on Align's proprietary data and algorithms derived from decades of research and development and the experience of doctors who have treated more than 21 million Invisalign patients worldwide.

<unk> is designed to create class II skeletal and dental malocclusion and growing patients ages 10 to 16.

Today announced Clinton check life plan, it's a new feature and Invisalign digital treatment planning that automates the generation of initial doctor ready treatment plans in 15 minutes.

By simultaneously advancing them manageable and aligning the teeth by integrating solid occlusal blocks into clear liners.

This advancement represents a major technical milestone for the align digital platform that can reduce the invisalign treatment planning cycle from days to minutes.

Offers greater durability and vertical opening for early Mandibular advancement precision wings that guide the lower jaw forward and smart track material and Smart force features for predictable tooth movement.

<unk> plan is built on our lines proprietary data and algorithms derived from decades of research and development.

Today announced Clinton check life plan, it's a new feature and Invisalign digital treatment planning that automates the generation of initial doctor ready treatment plans in 15 minutes.

And the experience of doctors, who have treated more than 21 million invisalign patients worldwide with Clinton check live plan doctors have the option to.

The treatment plan in the moment and can receive a fully customized initial quick check treatment plan in about 15 minutes after submitting an eligible case with flex Rx.

This advancement represents a major technical milestone for the aligned digital platform that can reduce the invisalign treatment planning cycle from days to minutes.

<unk> then have the option to review the proposed tooth movements and approve the case, while the patient is still in the office.

<unk> plan is built on our lines proprietary data and algorithms derived from decades of research and development.

This can enable the doctor the receive and approve the treatment plant faster, which can lead to the patient starting invisalign faster ultimately, increasing the office efficiency and improving the patient experience.

And the experience of doctors, who have treated more than 21 million invisalign patients worldwide with quick check live plan doctors have the option to treatment plan in the moment and can receive a fully customized initial quinn check treatment plan in about 15 minutes. After submitting an eligible case with flex Rx doctors then have the option to.

John Morici: With ClinCheck Live Plan, doctors have the option to treatment plan in the moment and can receive a fully customized initial ClinCheck treatment plan in about 15 minutes after submitting an eligible case with FlexRx. Doctors then have the option to review the proposed tooth movements and approve the case while the patient is still in the office. This can enable the doctor to receive and approve the treatment plan faster, which can lead to the patient starting Invisalign faster, ultimately increasing the office efficiency and improving the patient experience. Over the past few years, Align has introduced a range of new treatment planning tools to enhance consistency, doctor control, and speed in treatment planning. I often refer to these innovations as touchless ClinCheck or ClinCheck in minutes to emphasize the potential for the software to totally transform the treatment planning experience for doctors and their patients.

Over the past few years align has introduced a range of new treatment planning tools to enhance consistency doctor control and speed in treatment planning often refer to these innovations as touchless check our clean check in minutes to emphasize the potential for the software to totally transformed the treatment planning experience for doctors and their patients.

Review of the proposed tooth movements and approve the case, while the patient is still in the office.

This can enable the doctor the receive and approve the treatment plant faster, which can lead to the patients starting invisalign faster ultimately increasingly office efficiency and improving the patient experience.

To that end, we continue to make great progress in automation with machine learning and AI powered technologies that are the foundation of our next generation treatment planning offerings I'm excited by our continued progress in a measurable impact we are beginning to see the use of Invisalign Flex Rx has doubled every year and to date over 1 million Invisalign K.

Over the past few years align has introduced a range of new treatment planning tools to enhance consistency Dr control and speed in treatment planning.

Often refer to these innovations as touchless Quinn check our clean check in minutes to emphasize the potential for the software to totally transformed the treatment planning experience for doctors and their patients.

Mrs have been submitted through flex Rx for personalized treatment plans. In addition, we now have over 100 Invisalign palate expander clinical cases published in the aligned Global Gallery, both unprecedented milestones for new product introductions in the orthodontic market with that I'll turn the call over to John.

John Morici: To that end, we continue to make great progress in automation with machine learning and AI-powered technologies that are the foundation of our next-generation treatment planning offerings. I'm excited by our continued progress and the measurable impact we are beginning to see. The use of Invisalign FlexRx has doubled every year, and to date, over a million Invisalign cases have been submitted through FlexRx for personalized treatment plans. In addition, we now have over 100 Invisalign palate expander clinical cases published in the Align Global Gallery, both unprecedented milestones for new product introductions in the orthodontic market. With that, I'll turn the call over to John. Thanks, Joe. Now for our Q3 financial results. Total revenues for the third quarter were $995.7 million, down 1.7% from the prior quarter and up 1.8% from the corresponding quarter a year ago.

That and we continue to make great progress in automation with machine learning and AI power technologies that are the foundation of our next generation treatment planning offerings I'm excited by our continued progress in a measurable impact we are beginning to see the use of Invisalign Flex Rx has doubled every year and to date over 1 million Invisalign cases.

Thanks, Joe now for our Q3 financial results total revenues for the third quarter were $995 $7 million down one 7% from the prior quarter and up one 8% from the corresponding quarter a year ago on a constant currency basis Q3 revenues were favorably impacted by approximately <unk> <unk>.

Have been submitted through flex Rx for personalized treatment plans. In addition, we now have over 100 Invisalign palate expander clinical cases published in the align global gallery, both unprecedented milestones for new product introductions in the orthodontic market with that I'll turn the call over to John.

$7 $7 million or approximately one 2% sequentially and were favorably impacted by approximately $15 $6 million year over year or approximately one 6% Q3 clear aligner revenues were $805 $8 million slightly up primarily due to favorable foreign.

Joe now for our Q3 financial results total revenues for the third quarter were $995 7 million down one 7% from the prior quarter and up one 8% from the corresponding quarter a year ago on a constant currency basis Q3 revenues were favorably impacted by approximately <unk> 11.

Exchange and a price increase in.

John Morici: On a constant currency basis, Q3 revenues were favorably impacted by approximately $11.7 million, or approximately 1.2% sequentially, and were favorably impacted by approximately $15.6 million year-over-year, or approximately 1.6%. Q3 Clear Aligner revenues were $805.8 million, slightly up, primarily due to favorable foreign exchange and a price increase in the UK on August 1, partially offset by product mix shift to lower priced countries and products. Favorable foreign exchange impacted Q3 Clear Aligner revenues by approximately $9.8 million, or approximately 1.2% sequentially. Q3 Clear Aligner average per case shipment price was $1,245, a $5 decrease on a sequential basis, primarily due to slightly more pronounced product mix shift to lower priced countries and products, partially offset by favorable foreign exchange and a price increase in the UK. On a like-for-like basis, Q3 Clear Aligner ASPs for the U.S. and EMEA were up sequentially.

The U K on August one, partially offset by product mix shift to lower prices lower priced countries and products favorable foreign exchange impacted Q3 clear lighter revenues by approximately $9 8 million or approximately one 2% sequentially Q.

$7 million or approximately one 2% sequentially and were favorably impacted by approximately $15 $6 million year over year or approximately one 6% Q3 clear aligner revenues were $805 $8 million slightly up primarily due to favorable foreign exchange.

Q3 clear lighter average per case shipment price was $1245 or $5 decrease on a sequential basis, primarily due to slightly more pronounced product mix shift to lower price countries and products, partially offset by favorable foreign exchange and a price increase in the U K.

Change in a price increase in.

The U K on August one, partially offset by product mix shift to lower prices lower price countries at products favorable foreign exchange impacted Q3 clear aligner revenues by approximately $9 8 million or approximately one 2% sequentially Q.

On a like for like basis, Q3, clear lighter asp's for the U S and EMEA were up sequentially.

Q3 clear Aligner average per case shipment price was $1245 or $5 decrease on a sequential basis, primarily due to slightly more pronounced product mix shift to lower price countries and products.

On a year over year basis, Q3 clear aligner revenues were up two 4% primarily from higher volume price increases and favorable foreign exchange lower net deferrals, partially offset by higher discounts and product mix shift to lower priced countries and products favorable foreign exchange impacted Q3.

We offset by favorable foreign exchange and a price increase in the U K on a like for like basis Q3 clear lighter asp's for the U S and EMEA were up sequentially.

<unk> clear aligner revenues by approximately $13 million or approximately one 6% year over year.

John Morici: On a year-over-year basis, Q3 Clear Aligner revenues were up 2.4%, primarily from higher volume, price increases, and favorable foreign exchange, lower net deferrals, partially offset by higher discounts, and product mix shift to lower priced countries and products. Favorable foreign exchange impacted Q3 Clear Aligner revenues by approximately $13 million, or approximately 1.6% year-over-year. Q3 Clear Aligner average per case shipment price was $1,245, down $30 on a year-over-year basis, primarily due to discounts and product mix shift to lower priced countries and products, partially offset by price increases and favorable foreign exchange. Clear Aligner deferred revenues on the balance sheet as of September 30, 2025, decreased $19.5 million, or 1.6% sequentially, and decreased $78.7 million, or 6.2% year-over-year, and will be recognized as additional aligners are shipped under each sales contract.

Q3 <unk>.

Clear Aligner average per case shipment price was $1245 down $30 on a year over year basis, primarily due to discounts and product mix shift to lower priced countries and products, partially offset by price increases and favorable foreign exchange clear.

<unk> clear aligner revenues by approximately $13 million or approximately one 6% year over year.

Clear aligner deferred revenues on the balance sheet as of September 32025 decreased $19 $5 million or one 6% sequentially and decreased $78 7 million or six 2% year over year and will be recognized as additional liners are shipped under each sales contract.

Q3.

Q3 systems and services revenues of $189 $9 million were down eight 6% sequentially, primarily due to lower scanner, one sales and scanner system sales, partially offset by favorable foreign exchange and higher non system sales.

Q3 systems and services revenues were down <unk>, 6% year over year, primarily due to lower scanner system sales, partially offset by higher skin scanner, one sales higher non system sales and favorable foreign exchange.

John Morici: Q3 Systems and Services revenues of $189.9 million were down 8.6% sequentially, primarily due to lower scanner wand sales and scanner system sales, partially offset by favorable foreign exchange and higher non-system sales. Q3 Systems and Services revenues were down 0.6% year-over-year, primarily due to lower scanner system sales, partially offset by higher scanner wand sales, higher non-system sales, and favorable foreign exchange. Foreign exchange favorably impacted Q3 Systems and Services revenues by approximately $1.8 million sequentially, or approximately 1%. On a year-over-year basis, Systems and Services revenues were favorably impacted by foreign exchange of approximately $2.6 million, or approximately 1.4%. Systems and Services deferred revenues decreased $7.9 million, or 4% sequentially, and decreased $30.9 million, or 13.9% year-over-year, due in part to shorter duration of service contracts selected by customers on initial scanner system purchases.

Foreign exchange favorably impacted Q3 systems and services revenues by approximately $1 $8 million sequentially or approximately 1% on a year over year basis systems and services revenues were favorably impacted by foreign exchange of approximately $2 6 million or approximately one 4%.

Systems and services deferred revenues decreased $7 9 million or 4% sequentially and decreased $39 million or 13, 9% year over year due in part to shorter duration of service contrast contracts selected by customers on initial scanner system purchases.

Oren exchange favorably impacted Q3 systems and services revenues by approximately $1 $8 million sequentially or approximately 1% on a year over year basis systems and services revenues were favorably impacted by foreign exchange of approximately $2 $6 million or approximately one 4%.

Moving on to gross margin third quarter overall gross margin was 64, 2% down five seven points sequentially and down five five points year over year, primarily due to restructuring and other noncash charges impairment on assets held for sale depreciation expense on assets to be.

Disposed of.

Other than the sale other than by sale and excess inventory write offs, partially offset by operational efficiencies overall gross margin was favorably impacted by foreign exchange of 0.4 point sequentially and 0.6 points on a year over year basis on a non-GAAP basis, which excludes the impact of the above mentioned.

John Morici: Moving on to gross margin, third quarter overall gross margin was 64.2%, down 5.7 points sequentially, and down 5.5 points year-over-year, primarily due to restructuring and other non-cash charges, impairments on assets held for sale, depreciation expense on assets to be disposed of other than by sale, and excess inventory write-off, partially offset by operational efficiencies. Overall gross margin was favorably impacted by foreign exchange of 0.4 points sequentially and 0.6 points on a year-over-year basis. On a non-GAAP basis, which excludes the impact of the above-mentioned restructuring and other non-cash charges, gross margin for the third quarter was 70.4%, down 0.1 points sequentially and flat year-over-year. Clear Aligner gross margin for the third quarter was 64.9%, down 5.2 points sequentially, primarily due to restructuring and other non-cash charges. Foreign exchange favorably impacted Clear Aligner gross margin by approximately 0.4 points sequentially.

Restructuring and other noncash charges gross margin for the third quarter was 74% down 0.1 points sequentially and flat year over year.

Disposed of.

Other than the sale other thereby sale and excess inventory write offs, partially offset by operational efficiencies overall gross margin was favorably impacted by foreign exchange of 0.4 points sequentially and <unk> six points on a year over year basis on a non-GAAP basis, which excludes the impact of the above mentioned.

Clear Aligner gross margin for the third quarter was 64, 9% down five two points sequentially, primarily due to restructuring and other noncash charges.

Foreign exchange favorably impacted clear aligner gross margin by approximately 0.4 points sequentially clearer.

Restructuring and other noncash charges gross margin for the third quarter was 74% down <unk>, one points sequentially and flat year over year.

Clear aligner gross margin for the third quarter was down five four points year over year, primarily due to the restructuring and other noncash charges, partially offset by operational efficiencies foreign exchange favorably impacted clear aligner gross margin by approximately <unk> six points year over year.

Clear Aligner gross margin for the third quarter was 64, 9% down five two points sequentially, primarily due to restructuring and other noncash charges.

Systems and services gross margin for the third quarter was 61, 3% down eight two points sequentially, primarily due to excess inventory write off foreign exchange favorably impacted the systems and services gross margin by approximately 0.4 points sequentially.

Foreign exchange favorably impacted clear aligner gross margin by approximately 0.4 points sequentially clearer.

John Morici: Clear Aligner gross margin for the third quarter was down 5.4 points year-over-year, primarily due to the restructuring and other non-cash charges, partially offset by operational efficiencies. Foreign exchange favorably impacted Clear Aligner gross margin by approximately 0.6 points year-over-year. Systems and Services gross margin for the third quarter was 61.3%, down 8.2 points sequentially, primarily due to excess inventory write-off. Foreign exchange favorably impacted the Systems and Services gross margin by approximately 0.4 points sequentially. Systems and Services gross margin for the third quarter was down 6.2 points year-over-year, primarily due to excess inventory write-off. Foreign exchange favorably impacted the Systems and Services gross margin by approximately 0.5 points year-over-year. Q3 operating expenses were $542.9 million, down 0.4% sequentially and up 4.5% year-over-year. On a sequential basis, operating expenses were $2.2 million lower, primarily due to lower consumer marketing spend, partially offset by restructuring costs.

Clear aligner gross margin for the third quarter was down five four points year over year, primarily due to the restructuring and other noncash charges, partially offset by operational efficiencies.

Systems and services gross margin for the third quarter was <unk> <unk>.

Foreign exchange favorably impacted clear aligner gross margin by approximately 0.6 points year over year.

Six two points year over year, primarily due to excess inventory write up foreign exchange favorably impacted the systems and services gross margin by approximately <unk> five points year over year.

Q3, operating expenses were $542 $9 million down.

<unk>, 0.4% sequentially and up four 5% year over year on a sequential basis operating expenses were $2 $2 million lower primarily due to lower consumer marketing spend partially offset by restructuring costs year over year operating expenses increased 20.

Systems and services gross margin for the third quarter was <unk> <unk>.

Six two points year over year, primarily due to excess inventory write up foreign exchange favorably impacted the systems and services gross margin by approximately 0.5 points year over year.

$23 $4 million, primarily due to restructuring costs, and partially offset by lower consumer marketing spend.

Q3, operating expenses were $542 9 million DAU.

<unk>, 4% sequentially and up four 5% year over year on a sequential basis operating expenses were $2 $2 million lower primarily due to lower consumer marketing spend partially offset by restructuring costs year over year operating expenses increased.

On a non-GAAP basis, excluding stock based compensation restructuring and other charges and amortization of it of acquired intangibles related to certain acquisitions operating expenses were $463 3 million down six 9% sequentially and two and 2% year over year.

John Morici: Year-over-year operating expenses increased $23.4 million, primarily due to restructuring costs and partially offset by lower consumer marketing spend. On a non-GAAP basis, excluding stock-based compensation, restructuring, and other charges, and amortization of acquired intangibles related to certain acquisitions, operating expenses were $463.3 million, down 6.9% sequentially and 2% year-over-year. Our third quarter operating income of $96.3 million resulted in an operating margin of 9.7%, down approximately 6.4 points sequentially, and down approximately 6.9 points year-over-year due to Q3 restructuring and other charges of $36.3 million, primarily related to post-employment benefits and other non-cash items, including the impairment of assets held for sale, depreciation expense on assets to be disposed of other than by sale, and impairment loss on inventory for an aggregate of $88.3 million. Operating margin was favorably impacted from foreign exchange by approximately 0.4 points sequentially and 0.5 points year-over-year.

$23 $4 million, primarily due to restructuring costs.

Year.

Our third quarter operating income of $96 $3 million resulted in an operating margin of nine 7% down approximately six four points sequentially and down approximately six nine points year over year due to Q3 restructuring and other charges of $36 $3 million.

Partially offset by lower consumer marketing spend on a non-GAAP basis, excluding stock based compensation restructuring and other charges and amortization of it of acquired intangibles related to certain acquisitions operating expenses were $463 3 million down six 9%. So.

Primarily related to post employment benefits and other noncash items, including the impairment of assets held for sale depreciation expense on assets to be disposed of other than by sale and impairment loss on inventory for an aggregate of $88 $3 million.

<unk> and two.

And 2% year over year.

Our third quarter operating income of $96 $3 million resulted in an operating margin of nine 7% down approximately six four points sequentially and down approximately $6 nine points year over year due to Q3 restructuring and other charges of $36 $3 million.

Operating margin was favorably impacted from foreign exchange by approximately 0.4 points sequentially and <unk> five points year over year.

Primarily related to post employment benefits and other noncash items, including the impairment of assets held for sale depreciation.

On a non-GAAP basis, which excludes stock based compensation restructuring and other charges impairments on assets held for sale impairment loss on inventory depreciation expense on assets disposed of other than.

<unk> on assets to be disposed of other than by sale and impairment.

On inventory for an aggregate of $88 $3 million operating margin was favorably impacted from foreign exchange by approximately 0.4 points sequentially and <unk> five points year over year on a non-GAAP basis, which excludes stock based compensation restructuring and other charges.

Then sale and amortization of intangibles related to certain acquisitions operating margin for the third quarter was 23, 9% up two six points sequentially and up one eight points year over year.

John Morici: On a non-GAAP basis, which excludes stock-based compensation, restructuring, and other charges, impairments on assets held for sale, impairment loss on inventory, depreciation expense on assets disposed of other than sale, and amortization of intangibles related to certain acquisitions, operating margin for the third quarter was 23.9%, up 2.6 points sequentially, and up 1.8 points year-over-year. Interest in other income and expense net for the third quarter was an expense of $1.6 million compared to an income of $10.5 million in Q2 2025, primarily due to foreign exchange fluctuations on open assets and liabilities. On a year-over-year basis, Q3 interest in other income and expense was unfavorable compared to an income of $3.6 million in Q3 2024, primarily driven by unfavorable foreign exchange movements and lower interest income.

Interest and other income and expense net for the third quarter was an expense of $1 $6 million compared to an income of $10 $5 million in Q2, 25, primarily due to foreign exchange fluctuations on open assets and liabilities on a year over year basis Q3 <unk>.

Impairments on assets held for sale impairment loss on inventory depreciation expense on assets disposed of other than.

Then sale and amortization of intangibles related to certain acquisitions operating margin for the third quarter was 23, 9% up two six points sequentially and up one eight points year over year.

Interest and other income and expense was unfavorable compared to an income of $3 6 million in Q3, 2024, primarily driven by unfavorable foreign exchange movements and lower interest income.

Interest and other income and expense net for the third quarter was an expense of $1 6 million compared to an income of $10 $5 million in Q2, 25%, primarily due to foreign exchange fluctuations on open assets and liabilities on a year over year basis Q3 inter.

The GAAP effective tax rate for the third quarter was 41% compared to 28, 2% in the second quarter and 31% in the quarter of the prior year. The third quarter GAAP effective tax rate was higher than the second quarter effective tax rate in the third quarter effective tax rate of the prior year.

Just in other income and expense was unfavorable compared to an income of $3 6 million in Q3, 2024, primarily driven by unfavorable foreign exchange movements and lower interest income.

Primarily due to the change in our jurisdictional mix of income due to restructuring, partially offset by lower U S minimum tax on foreign earnings and changes in the newly enacted tax law on a non-GAAP basis, our effective tax rate in the third quarter was 20%, which reflects our long term.

John Morici: The GAAP effective tax rate for the third quarter was 40.1% compared to 28.2% in the second quarter and 30.1% in the quarter of the prior year. The third quarter GAAP effective tax rate was higher than the second quarter effective tax rate and the third quarter effective tax rate of the prior year, primarily due to the change in our jurisdictional mix of income due to restructuring, partially offset by lower U.S. minimum tax on foreign earnings and changes in the newly enacted tax law. On a non-GAAP basis, our effective tax rate in the third quarter was 20%, which reflects our long-term projected tax rate. Third quarter net income per share was $0.78, down $0.93 sequentially, and down $0.77 compared to the prior year. Our EPS was favorably impacted by $0.02 on a sequential basis and $0.03 on a year-over-year basis due to foreign exchange.

Our projected tax rate.

Third quarter net income per share was <unk> 78 sets down 93 sequentially and down <unk> 77 compared to the prior year. Our EPS was favorably impacted by two <unk> on a sequential basis and three <unk> on a year over year basis due to foreign exchange on a non-GAAP basis net income per diluted.

<unk>, primarily due to the change in our jurisdictional mix of income due to restructuring, partially offset by lower U S minimum tax on foreign earnings and changes in the newly enacted tax law on a non-GAAP basis, our effective tax rate in the third quarter was 20%, which reflects our law.

There was $2 61 for the third quarter up 11 said sequentially and up 26 year over year.

Long term projected tax rate.

Third quarter net income per share was 78 sets down 93 sequentially and down 77, <unk> compared to the prior year. Our EPS was favorably impacted by <unk> on a sequential basis and three <unk> on a year over year basis due to foreign exchange on a non-GAAP basis net income per diluted share.

Moving onto the balance sheet as of September 32025, cash and cash equivalents were $1 billion $4 $6 million up sequentially, $103 $4 million and down $37 $3 million year over year.

John Morici: On a non-GAAP basis, net income per diluted share was $2.61 for the third quarter, up $0.11 sequentially, and up $0.26 year-over-year. Moving on to the balance sheet. As of September 30, 2025, cash and cash equivalents were $1,004.6 million, up sequentially $103.4 million, and down $37.3 million year-over-year. Of the $1,004.6 million balance, $190.8 million was held in the U.S., and $813.8 million was held by our international entities. During Q3, we repurchased approximately 0.5 million shares of our common stock at an average share price of $136.77. These repurchases were made pursuant to the $200 million open market repurchase plan announced on August 5, 2025, which we expect will be completed in January of 2026. As of September 30, 2025, $928.4 million remains available for repurchase of our common stock under our previously announced April 2025 repurchase program. Q3 accounts receivable balance was $1,099.4 million, down sequentially.

Of the $1 billion $4 $6 million balance $198 million was held in the U S and $813 8 million was held by our international entities.

Was $2 61 for the third quarter up 11% sequentially and up 26 <unk> year over year.

Moving on to the balance sheet as of September 32025, cash and cash equivalents were $1 billion $4 $6 million up sequentially, $103 $4 million and down $37 $3 million year over year.

During Q3, we repurchased approximately <unk> 5 million shares of our common stock at an average share price of $136 77 sets. These repurchases were made pursuant to the $200 million open market repurchase plan announced on August five 2025, which we expect will be.

Of the $1 billion $4 $6 million balance $190 8 million was held in the U S and $813 8 million was held by our international entities. During Q3, we repurchased approximately <unk> 5 million shares of our common stock at an average share pre.

Completed in January of 2026.

As of September 32025, $928 $4 million remains available for repurchase of our common stock under our previously announced April 2025% repurchase program.

<unk> of <unk>.

$136 77 sets. These repurchases were made pursuant to the $200 million open market repurchase plan announced on August five 2025, which we expect will be completed in January of 2026.

Q3 accounts receivable balance was.

1 billion $99 $4 million down sequentially. Our overall days sales outstanding was 101 days up approximately two days sequentially and up approximately eight days as compared to Q3 2024, and primarily reflects flexible payment terms that are part of our ongoing efforts to support.

As of September 32025, $928 $4 million remains available for repurchase of our common stock under our previously announced April 2025 repurchase program.

Invisalign practices cash flow from operations for the third quarter was $188 7 million capital expenditures for the third quarter were $19 8 million primarily related to investments in our manufacturing capacity and facilities free cash flow defined as cash flow from.

Q3 accounts receivable balance was.

John Morici: Our overall day sales outstanding was 101 days, up approximately two days sequentially, and up approximately eight days as compared to Q3 2024, and primarily reflects flexible payment terms that are part of our ongoing efforts to support Invisalign practices. Cash flow from operations for the third quarter was $188.7 million. Capital expenditures for the third quarter were $19.8 million, primarily related to investments in our manufacturing capacity and facilities. Free cash flow, defined as cash flow from operations minus capital expenditures, amounted to $169 million. I'd like to provide the following remarks regarding UK VAT and U.S. tariffs as of September 30. As previously disclosed in our Q3 earnings release and conference call on July 30, 2025, we stopped charging VAT to impacted customers in the UK.

<unk> minus capital expenditures amounted to $169 million.

I'd like to provide the following my remarks regarding UK bat and U S tariffs as of September 30th as previously as previously disclosed in our Q3 earnings release and conference call.

Invisalign practices cash flow from operations for the third quarter was $188 7 million capital expenditures for the third quarter were $19 $8 million.

July 32025, we stopped charging back to impacted customers in the U K as of August one 2025, our invoices no longer include the UK back rate of 20% for all Invisalign treatment packages that we're calling check approved as of August one 2025.

Primarily related to investments in our manufacturing capacity and facilities free cash flow defined as cash flow from operations minus capital expenditures amounted to $169 million.

I'd like to provide the following my remarks regarding UK bat and U S tariffs as of September 30th as previously as previously disclosed in our Q3 earnings release and conference call.

And for refinement and replacement of liners.

Ara retainers pvs processing fees and additional liners placed on or after August one 2025 at the same time, we simultaneously adjusted prices for a clear liners and retainers to keep the overall price consistent.

John Morici: As of August 1, 2025, our invoices no longer include the UK VAT rate of 20% for all Invisalign treatment packages that were ClinCheck approved as of August 1, 2025, and for refinement and replacement aligners, Vivera retainers, PVS processing fees, and additional aligners placed on or after August 1, 2025. At the same time, we simultaneously adjusted prices for our clear aligners and retainers to keep the overall price consistent. Currently, we do not expect a material change to our results of operations as a consequence of the latest U.S. tariff actions, and we refer you to our Q1 2025 press release and earnings materials, as well as our Q2 2025 webcast slides, which include specifics regarding potential impacts of U.S. tariffs.

Currently we do not expect a material change to our result of operations as a consequence as a consequence of the latest U S tariff actions and we refer you to our Q1 2025 press release and earnings materials as well as our Q2 2025 wet webcast slides, which includes specific.

And for refinement and replacement of liners, but there're retainers pvs processing fees and additional liners placed on or after August one 2025 at the same time, we simultaneously adjusted prices for a clear liners and retainers to keep the overall price consistent.

Civics regarding potential tariffs of impacts of U S tariffs, assuming no circumstances occur beyond our control such as foreign exchange.

Currently we do not expect a material change to our result of operations as a consequences.

Macroeconomic conditions and changes to our current.

Consequence of the latest U S tariff actions and we refer you to our Q1 2025 press release and earnings materials as well as our Q2 2025 words webcast slides, which include specifics regarding potential tariffs.

Lickable duties, including tariffs and other fees that could impact our business.

Yeah.

We provide the following business outlook for Q4, we expect Q4 2025 worldwide revenues to be in the range of $1 $25 million to $1.045 billion up sequentially from Q3 of 2025.

The impacts of U S tariffs, assuming no circumstances occur beyond our control such as foreign exchange.

John Morici: Assuming no circumstances occur beyond our control, such as foreign exchange, macroeconomic conditions, and changes to our current applicable duties, including tariffs and other fees that could impact our business, we provide the following business outlook for Q4. We expect Q4 2025 worldwide revenues to be in the range of $1.025 billion to $1.045 billion, up sequentially from Q3 2025. We expect Q4 clear aligner volume and clear aligner average selling price to be up sequentially from favorable geographic mix. We expect Q4 2025 systems and services revenues to be up sequentially consistent with typical Q4 seasonality. We expect Q4 2025 worldwide GAAP gross margins to be 65.5% to 66%, up sequentially from higher revenue, lower restructuring and other charges, non-cash items such as impairment loss on assets held for sale and impairment loss on inventory, partially offset by higher depreciation on assets disposed of other than by sale.

We expect Q4 clear aligner volume and clear aligner average selling price to be up sequentially from favorable geography.

Macroeconomic conditions and changes to our current applicable duties, including tariffs and other fees that could impact our business.

Geographic mix, we expect Q4, 2025 systems and services revenues to be up sequentially consistent with typical Q4 seasonality, we expect Q4.

We provide the following business outlook for Q4, we expect Q4 2025 worldwide revenues to be in the range of $1 $25 million to $1 billion $45 million up sequentially from Q3 of 2025.

2025 worldwide GAAP gross margins to be 65, 5% to 66% up sequentially from higher revenue lower restructuring and other charges noncash items, such as impairment loss on assets held for sale and impairment loss on inventory, partially offset by higher depreciation on assets.

We expect Q4 clear aligner volume and clear a lighter average selling price to be up sequentially from favorable geography.

Geographic mix, we expect Q4, 2025 systems and services revenues to be up sequentially consistent with typical Q4 seasonality, we expect Q4.

Disposed of other than by sale, we expect non-GAAP gross margin to be approximately 71%.

We expect our Q4 2025, GAAP operating margin to be 15, 3% to 15, 8% up sequentially, primarily from lower restructuring and other charges noncash items, such as impairment loss on assets held for sale and impairment loss on inventory, partially offset by higher.

Disposed of other than by sale, we expect non-GAAP gross margin to be approximately 71%.

<unk> on assets disposed of other than by sale, we expect Q4, non-GAAP operating margin to be approximately 26%.

John Morici: We expect non-GAAP gross margin to be approximately 71%. We expect our Q4 2025 GAAP operating margin to be 15.3% to 15.8%, up sequentially primarily from lower restructuring and other charges, non-cash items such as impairment loss on assets held for sale and impairment loss on inventory, partially offset by higher depreciation on assets disposed of other than by sale. We expect Q4 non-GAAP operating margin to be approximately 26%. For fiscal 2025, we expect 2025 clear aligner volume growth to be mid-single digits and revenue growth to be flat to slightly up from 2024, assuming foreign exchange at current spot rates.

Yeah.

For fiscal 2025, we expect 2025 clear aligner volume growth to be mid single digits and revenue growth to be flat to slightly up from 2024, assuming foreign exchange at current spot rates, we expect fiscal 2025, GAAP operating margin to be around $13 six to <unk>.

<unk> on assets disposed of other than by sale, we expect Q4, non-GAAP operating margin to be approximately 26%.

13, 8% down year over year, due to higher restructuring and other charges and the incurrence of noncash charges expected.

To be approximately $145 million to $155 million, primarily for the impairment loss on assets held for sale depreciation on assets disposed of other than by sale and impairment loss on inventory, partially offset by lower legal settlement loss most of the onetime charges will be noncash.

John Morici: We expect fiscal 2025 GAAP operating margin to be around 13.6% to 13.8%, down year-over-year due to higher restructuring and other charges and the incurrence of non-cash charges expected to be approximately $145 million to $155 million, primarily for the impairment loss on assets held for sale, depreciation on assets disposed of other than by sale, and impairment loss on inventory, partially offset by lower legal settlement loss. Most of the one-time charges will be non-cash, with the expected cash outlay for 2025 estimated to be around $45 million. We expect the 2025 non-GAAP operating margin to be slightly above 22.5%. We expect our investments in capital expenditures for fiscal 2025 to be approximately $100 million. Capital expenditures primarily relate to technology upgrades. We are nearing completion of the restructuring actions that are intended to sharpen operational focus, reduce ongoing costs, and enhance capital efficiency.

To be around $13 six to 13, 8% down year over year due to higher restructuring and other charges and the incurrence of noncash charges expected.

With the expected cash outlay for 2025 estimate to be around $45 million. We expect that 2025, non-GAAP operating margin to be slightly above 22, 5%, we expect our capital investments in capital expenditures for fiscal 2025 to be.

To be approximately $145 to $155 million, primarily for the impairment loss on assets held for sale depreciation on assets disposed of other than by sale and impairment loss on inventory, partially offset by lower legal settlement loss most of the onetime charges will be noncash.

Approximately $100 million.

Capital expenditures, primarily relate to technology upgrades, we are nearing completion of the restructuring actions that are intended to sharpen operational focus reduce ongoing costs and enhanced capital efficiency for fiscal 2026, we expect these restructuring actions as well as other initiatives to improve.

With the expected cash outlay for 2025 estimate to be around $45 million. We expect that 2025, non-GAAP operating margin to be slightly above 22, 5%, we expect our capital in that.

Our GAAP and non-GAAP operating margin by at least 100 basis points year over year.

Alright investments in capital expenditures for fiscal 2025 to be approximately $100 million.

With that I'll turn it back over to Joe for final comments Joe.

Thanks, John in summary, I am pleased with our third quarter results and encouraged by the sequential and year over year growth in the clear Aligner segment as well as the continued expansion of our digital scanning solutions and footprint.

John Morici: For fiscal 2026, we expect these restructuring actions, as well as other initiatives, to improve our GAAP and non-GAAP operating margins by at least 100 basis points year-over-year. With that, I'll turn it back over to Joe for final comments. Joe. Thanks, John. In summary, I'm pleased with our third quarter results and encouraged by the sequential and year-over-year growth in the clear aligner segment, as well as the continued expansion of our digital scanning solutions and footprint. While the North American retail doctor channel remains mixed, we continue to see strength in our other key geographies and areas of our portfolio, including teens and kids and digital workflow innovation, as demonstrated by continued strong double-digit year-over-year growth by our DSOs.

While the North American retail Doctor Channel remains mixed we continue to see strength in our other key geographies in areas of our portfolio, including teens and kids and digital workflow innovation as demonstrated by continued strong double digit year over year growth by our Dsos are investment in AI powered treatment planning software direct <unk>.

Our GAAP and non-GAAP operating margin by at least 100 basis points year over year.

With that I'll turn it back over to Joe for final comments Joe.

Thanks, John in summary, I'm pleased with our third quarter results and encouraged by the sequential and year over year growth in the clear Aligner segment as well as the continued expansion of our digital scanning solutions and footprint.

<unk> printing of our liners and next generation <unk> alumina scanning technology are key to helping doctors deliver better outcomes more effectively and efficiently while enhancing the patient experience. Looking ahead, we intend to remain flexible and navigating headwinds in the U S dental market and are committed to supporting our doctor customers with low.

<unk> marketing education, and clinical support across all regions, we're making good progress against our strategic initiatives to drive long term growth across our business and we're excited about the opportunities to further expand our reach deepen engagement with consumers and providers and deliver value to our shareholders.

John Morici: Our investment in AI-powered treatment planning software, direct 3D printing of aligners, and next-generation iTero Lumina scanning technology are key to helping doctors deliver better outcomes more effectively and efficiently while enhancing the patient experience. Looking ahead, we intend to remain flexible in navigating headwinds in the U.S. dental market and are committed to supporting our doctor customers with localized marketing, education, and clinical support across all regions. We're making good progress against our strategic initiatives to drive long-term growth across our business, and we're excited about the opportunities to further expand our reach, deepen engagement with consumers and providers, and deliver value to our shareholders. Before we wrap up, I want to take a moment to express my sincere gratitude to the doctors around the world who continue to trust the Align team and our technology to transform smiles and change lives.

<unk> printing of a liners and next generation <unk> alumina scanning technology are key to helping doctors deliver better outcomes more effectively and efficiently while enhancing the patient experience. Looking ahead, we intend to remain flexible and navigating headwinds in the U S dental market and are committed to supporting our doctor customers with low.

Before I wrap up I want to take a moment to express my sincere gratitude to the doctors around the world who continue to trust the align team and our technology to transform smiles and change lives your partnership and commitment to patient care inspire us every day. We appreciate your continued support and confidence I also want to thank our employees, who continue to demonstrate agility.

<unk> innovation and resilience and everything they do to deliver and extend our leadership in digital orthodontics and restorative dentistry.

With that I. Thank you for your time today, and I'll turn it over to the operator operator.

Thank you at this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is as it is in the question queue. You May Press Star one one if you would like to remove your question from the queue for participants using speaker.

John Morici: Your partnership and commitment to patient care inspire us every day. We appreciate your continued support and confidence. I also want to thank our employees who continue to demonstrate agility, innovation, and resilience in everything they do to deliver and extend our leadership in digital orthodontics and restorative dentistry. With that, I thank you for your time today, and I'll turn it over to the operator.

<unk> innovation and resilience and everything they do to deliver and extend our leadership in digital orthodontics and restorative dentistry.

Clinton and it may be necessary to pick up your handset before pressing the star keys, one moment, please while we pull for questions.

With that I. Thank you for your time today, and I'll turn it over to the operator operator.

Shirley Stacy: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one-one on your telephone keypad. A confirmation tool will indicate your line is in the question queue. You may press star one-one if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Our first question comes from the line of Elizabeth Anderson at Evercore ISI.

Okay.

Our first question comes from the line of Elizabeth Anderson Evercore ISI.

Hi, guys. Good afternoon, and thanks, so much for the question and congrats on a nice quarter.

Our question queue, you May press Star one one if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we pull for questions.

It was really nice to see the acceleration and cases in the quarter I was wondering if you wouldnt mind, commenting on any early <unk> comments they are.

Color that you've seen in terms of the end markets.

And also just if you could comment a little bit further about the new Klimczak launch and what you think the expected impact on the gross margins will be thank you.

Our first question comes from the line of Elizabeth Anderson Evercore ISI.

Hi, guys. Good afternoon, and thanks, so much for the question and congrats on a nice quarter.

[Analyst 1]: Hi, guys. Good afternoon, and thanks so much for the question. Congrats on a nice quarter. It was really nice to see the acceleration in cases in the quarter. I was wondering if you would mind commenting on any early forward-view comments or color that you've seen in terms of the end markets, and also just if you could comment a little bit further about the new ClinCheck launch and what you think the expected impact on the gross margins will be. Thank you.

Yeah, Hi, this is Luke.

Look we obviously, we felt good about third quarter and overall, we just looking forward to.

Hi.

It was really nice to see the acceleration and cases in the quarter I was wondering if you wouldnt mind, commenting on any early <unk> comments.

So moving forward.

The technology, we're talking about incorporating overall.

It is a comprehensive type of solution, we've been developing over a series of years.

Color that you've seen in terms of the end markets and also just if you could comment a little bit further about the <unk> launch and what you think the expected impact on the gross margins will be thank you.

You can see it too.

Two critical targets here is one that make it much more efficient for our doctors to be able to convert cases and understand the difficulty of cases and get the proper type of a of a structure for that case and secondly, it helps us from an efficiency standpoint also in a sense of we can take our time with customers on other things that are maybe more difficult. So it's.

Joe Hogan: Hi, Elizabeth. We obviously felt good about third quarter overall. We're just looking forward to moving forward. The technology we're talking about incorporating overall is just a comprehensive type of solution we've been developing over a series of years. I could see two critical targets here. One is to make it much more efficient for our doctors to be able to convert cases and understand the difficulty of cases and get the proper type of a structure for that case. Secondly, it helps us from an efficiency standpoint also in the sense that we can take our time with customers on other things that are maybe more difficult. It's great to see these things coming together. It's not just a productivity tool for those doctors also. It also helps them in their communications. We talked about the 15-minute, the live update piece.

Yeah, Hi, this is <unk>.

Look we obviously, we felt good about the quarter overall, we just looking forward to.

So moving forward.

The technology, we're talking about incorporating overall.

It's great to see these things coming together.

It's a comprehensive type of solution, we've been developing over a series of years I can see it.

It's not just a productivity tool for those doctors also it also helps them in their communications, we talked about the 15 minute. The live update piece as you can be able to address that patient in that chair in 15 minutes you have a much better chance of closing the case, because you know what the extent of the case will be and how long it will be so we're excited about that.

Awesome. Thank you.

It's great to see these things coming together.

Our next question comes from Jon Block at Stifel.

Thanks, guys good afternoon.

Uh huh.

Hey, there look nominee blemishes, but I'll try to find one so <unk> was supposed to be up a smidge Q over Q. It was down a bit John I think I heard you right you mentioned country mix. So I think like for like was still maybe.

Joe Hogan: You can be able to address that patient in that chair in 15 minutes. You have a much better chance of closing the case because you know what the extent of the case will be and how long it will be. We're excited about that, Elizabeth.

Awesome. Thank you.

[Analyst 1]: Awesome. Thank you.

What do you expect the but for <unk> you do expect it to be up sequentially. Just help me out with that so im guessing a full quarter of that probably helps with that what else gets it up sequentially and then just more big picture.

Our next question comes from Jon Block Stifel.

Shirley Stacy: Our next question comes from John Block at Stifel.

Thanks, guys good afternoon.

[Analyst 2]: Thanks, guys. Good afternoon. Hey there. Look, not many blemishes, but I'll try to find one. ASP was supposed to be up a smidge Q over Q. It was down a bit. John, I think I heard you right. You mentioned country mix. I think like for like was still maybe what you expected. For forward view, you do expect it to be up sequentially. Just help me out with that. I'm guessing a full quarter of VAT probably helps with that. What else gets it up sequentially? Just more big picture, Joe, for you, if you want to comment on the pricing environment and really any thoughts on the timing about the potential rollout of what we're at least referring to as no refinement plan. I'll ask the follow-up.

Uh huh.

Hey, there look nominee blemishes, but I'll try to find one so ASP was supposed to be up a smidge Q over Q. It was down a bit as John I think I heard you right you mentioned country mix. So I think like for like was still maybe.

Joe for you if you want to comment on the pricing environment. It really any thoughts on the timing about the potential rollout of what we're at least referring to is no refinement plan and then ill ask the follow up.

What you expected, but <unk> you do expect it to be up sequentially. Just help me out with that so I am guessing a full quarter of that probably helps with that what else gets it up sequentially and then just more big picture.

Yes, John I'll take the first one on on the ASP. It was really just the growth that we saw in some of the markets like China that has a lower ASP.

Compared to Europe. So the opposite of that happens in Q4, Europe becomes bigger as a percentage of our total they come out of their holiday season, and that shows up in Q4 in China as a percentage comes down in Q4. So you really those two geographies drive up.

<unk> for you if you want to comment on the pricing environment. It really any thoughts on the timing about the potential rollout of what we're at least referring to is no refinement plan and then ill ask the follow up.

John Morici: John, I'll take the first one on the ASP. It was really just the growth that we saw in some of the markets like China that has a lower ASP compared to Europe. The opposite of that happens in Q4. Europe becomes bigger as a percentage of our total. They come out of their holiday season, and that shows up in Q4. China as a percentage comes down in Q4. Those two geographies drive a fair amount of ASP impact.

Yes, John I'll take the first one on the ASP. It was really just the growth that we saw in some of the markets like China that has a lower ASP.

Fair amount of ASP impact.

And John your bigger picture on the no refinement plan.

You can see we've been evolving on that route for a while John I mean, obviously, we went from a five by five two a three by three or moderate products and those kinds of things normally didn't have any more than one aligner associated with it. So I look at this is not like a phased transformation and I look at this as a continued evolution and then.

A serving our doctors the way they want to be served and you think about it too John I think what we've done with <unk>.

Fair amount of ASP impact.

[Analyst 2]: John, your bigger picture on the no refinement plan. You can see we've been evolving on that route for a while, John. Obviously, we went from a 5 by 5 to a 3 by 3. Our moderate products and those kinds of things normally didn't have any more than one aligner associated with it. I look at this as not like a phase transformation. I look at this as a continual evolution in the sense of serving our doctors the way they want to be served. You think about it too, John. I think what we've done is developed a technology over the years in a sense that doctors understand these malocclusions. They don't need five additional aligners in most cases to be able to address things. They want that optionality to say, "I know this case.

Hey, John your bigger picture on the no refinement plan.

Developed a technology over the years in a sense that doctors understand these mount inclusions.

You can see we've been evolving on that route for a while John I mean, obviously, we went from a five by five two a three by three or moderate products and those kinds of things normally didn't have any more than one a lighter associated with it. So I look at this is not like a phased transformation and I look at this as a continued evolution and <unk>.

Don't need five additional liners in most cases to be able to address things and they want that optionality to say I know this case I think I can get it done without refinements or I can buy one if I do get in trouble or all by an insurance policy because I'm not sure. So it's just it's an improvement in technology, but it's also an improvement in confidence in the sense that we have in developing our cases in a.

A serving our doctors the way they want to be served and you think about it too John I think what we've done with <unk>.

Doctors do too.

Develop a technology over the years in a sense of doctors understand these now inclusions.

Okay that was helpful. Thank you and I'll pivot for the second one maybe this fall to both of you guys again, you've surely given some 2026 margin bullets in the 100 bps is good to see.

Don't need five additional liners in most cases to be able to address things and they want that optionality to say I know this case I think I can get it done without refinements or I could buy one if I do get in trouble or all by an insurance policy because I'm not sure. So it's just it's an improvement in technology, but it's also an improvement in confidence in the sense that we have in developing our cases in a.

[Analyst 2]: I think I can get it done without refinements, or I can buy one if I do get in trouble, or I'll buy an insurance policy because I'm not sure." It's an improvement in technology, but it's also an improvement in confidence in the sense that we have in developing our cases and the doctors do too. That was helpful. Thank you. I'll pivot for the second one. Maybe this falls to both of you guys again. You've certainly given some 2026 margin thoughts in the 100 bps. It's good to see just any high-level discussion of the top line next year. It seems like, Joe, like half the clear aligner business is growing double digit. The other half is flat to down, being North America. Systems and Services, at least in my view, is maybe a little bit longer in the tooth regarding the Lumina product cycle.

Just any high level discussion with topline next year. It seems like generally have the clear aligner business is growing double digit the other half is flat to down being North America systems.

Systems and services at least in my view is maybe a little bit longer in the tooth regarding the aluminum product cycle.

Doctors do too.

Okay that was helpful. Thank you and I'll pivot for the second one maybe this falls to both of you guys again, you've surely given some 2026 margin bullets in the 100 bps is good to see.

John you've talked about Asp's being down low single digits like when I roll that all I land up LSD. When you think about all those moving parts, but anything directionally for us to think about the sort of payer with the margin commentary. Thank you.

Just any high level discussions with topline next year. It seems like generally have the clear aligner business is growing double digit the other half is flat to down being North America.

Hey, John I'll take a shot at that one that's a big question right. So I mean, obviously, we gave you a fourth quarter and we feel good about those projections that we have in the fourth quarter overall.

Systems and services at least in my view is maybe a little bit longer in the tooth regarding the aluminum product cycle.

[Analyst 2]: John, you've talked about ASPs being down most single digits. When I roll all that up, I land up LSD when you think about all those moving parts. Anything directionally for us to think about to sort of pair with the margin commentary? Thank you.

John you've talked about Asp's being down low single digits like what I will let al I land LSD. When you think about all those moving parts, but I think directionally for us to think about the sort of payer with the margin commentary. Thank you.

Obviously.

But if you look at in my in my script, John We talked about third quarter versus second quarter. We have nine of our top 10 countries were up and so we're seeing good robust growth.

Our biggest issue is actually North America retail and obviously in North America DSO, we talk about it a lot of that growth as you know over 20% in some areas and so.

Yeah.

Hey, John I'll take a shot at that one and that's a big question right. So I mean, obviously, we gave you a fourth quarter and we feel good about those projections that we have in the fourth quarter overall.

Joe Hogan: Hey, John, I'll take a shot at that one. That's a big question, right? Obviously, we gave you a fourth quarter, and you know we feel good about those projections that we have in the fourth quarter overall. Obviously, if you look at, you know, in my script, John, we talked about, you know, third quarter versus second quarter. We had nine of our top 10 countries were up, and we're seeing good, robust growth. Our biggest issue is actually North America retail. Obviously, North America DSO, we talk about it a lot. That growth is over 20% in some areas, and we look to help to solidify that as we go into the fourth quarter. We think we'll continue with a strong global type of presence that we have. Right now, I'm not making any predictions for 2026.

We look to you know help us solidify that as we go into the fourth quarter.

Obviously.

We think we will continue with a strong global type of presence that we have right now I'm not making any predictions for 2026.

If you look at it.

In my script, John we talked about third quarter versus second quarter, we have nine of our top 10 countries were up and so we're seeing good robust growth. Our biggest issue is actually North America retail and obviously in North America DSO, we talk about it a lot of that growth is over 20% in some areas and so.

Fair enough. Thank you guys.

Thanks, John.

Okay.

Our next question comes from Michael Cherny at Leerink partners.

Afternoon. Thanks for taking the question maybe Joe if I can just follow up on that last comment you made in terms of the markets in North America as you think about the retail customer.

We look to.

Help us solidify that as we go into the fourth quarter.

We think we will continue with a strong global type of presence that we have right now I'm not making any predictions for 2026.

No.

Congrats on a lot of commentary, but what do you think is the biggest gating factor do you think gets them back to some level of.

Fair enough. Thank you guys.

[Analyst 2]: Fair enough. Thank you, guys.

Joe Hogan: Okay, thanks, John.

Thanks, John.

Don't want to call it normalized demand new normal demand whatever it might be and what can align proactively do relative to waiting out the macro in order to help them get there. Thank you.

Yeah.

Our next question comes from Michael Cherny at Leerink partners.

Shirley Stacy: Our next question comes from Michael Cherney at Leerink Partners.

Sure.

Afternoon. Thanks for taking the question maybe Joe if I can just follow up on that last comment you made in terms of the markets in North America as you think about the retail customer.

[Analyst 3]: Afternoon. Thanks for taking the question. Maybe Joe, if I can just follow up on that last comment you made, at least in terms of the markets in North America. As you think about that retail customer, I'm trying to wrap in a lot of comments we already had, but what do you think is the biggest gating factor that you think gets them back to some level of, I don't want to call it normalized demand, new normal demand, whatever it might be, and what can Align proactively do relative to waiting out the macro in order to help them get there? Thank you.

Yeah, Michael It's a good question, let's say you breakdown again, North America retail side, Canada, we've had more pressure in Canada and are reported in the United States, but overall I think we continue to push hard on the DSO side, because we know that that works both on the GP side and on orthodontics side.

I'm trying to wrap in a lot of commentary, but what do you think is the biggest gating factor do you think gets them back to some level of I don't want to call. It normalized demand new normal demand whatever it might be and what can align proactively do relative to waiting out the macro in order to help them get there. Thank you.

Secondly is we feel like moving downstream from a marketing standpoint, getting close to our customers our advertising more around zip codes and all that can direct those those patients to those doctors because still lean into these are economic issues that I think that the retail customers feel more than what I call. The business oriented dsos that we have out there.

Yeah, Michael It's a good question, let's say you breakdown again, North America retail side, Canada, we'd have more pressure in Canada and our reach.

Joe Hogan: Yeah, Michael, it's a good question. I'd say if you break down, again, North America retail side, Canada, we've had more pressure in Canada than I reported and we, you know, had in the United States. Overall, I think we continue to push hard on the DSO side because we know that that works both on the GP side and all on the orthodontic side. Secondly, we feel like moving downstream from a marketing standpoint, getting closer to our customers, advertising more around zip codes and all that can direct those patients to those doctors. I still lean into these are economic issues that I think that the retail customers feel more than what I call the business-oriented DSOs that we have out there.

Sorted.

The United States, but overall I think we continue to push hard on the DSO side, because we know that that works both on the GP side and on the orthodontic side.

And as much as we can leverage our brand and the strength of our portfolio that helped to drive that I think will help to drive our marketplace too. So I mean ultimately what addresses. This I think is a much more confident U S consumer, but we can't wait for that so we're going to use our brand where we use our technology youll see us use our seal field force to get closer to our retail customers and doctors.

Still lean into these are economic issues that I think that the retail customers feel more than what I call. The business oriented dsos that we have out there and as much as we can leverage our brand and the strength of our portfolio that helped to drive that I think will help to drive our marketplace too. So I mean ultimately what addresses. This I think is a much more confident U S consumer, but we can't wait for.

And try to help them out as much as we possibly can.

[laughter].

Joe Hogan: As much as we can leverage our brand and the strength of our portfolio to help to drive that, I think we'll help to drive the marketplace too. Ultimately, what addresses this, I think, is a much more confident U.S. consumer, but we can't wait for that. We're going to use our brand. We're going to use our technology. You'll see us use our field force to get closer to our retail customers and doctors and try to help them out as much as we possibly can.

Thanks, Mike next question please.

Our next question comes from Jeff Johnson at Baird.

Thank you good afternoon guys.

Hey, Joe just I promise you when I met when I saw you last time in Vegas that I was going to try to.

That so we're going to use our brand where we use our technology youll see us use our seal field force to get closer to our retail customers and doctors and try to help them out as much as we possibly can.

Maybe give us a little more detail by geography than you do on these high level comments, so on EMEA and APAC I think I heard you say up double digits year over year in both markets on clear aligner volumes just want to confirm that was the case on a year over year basis, and two are we talking kind of 10, 11%. There just trying to kind of use those numbers to back into how.

[laughter].

Thanks, Mike next question please.

Shirley Stacy: Thanks, Mike. Next question, please. Our next question comes from Jeff Johnson at Baird.

Our next question comes from Jeff Johnson Baird.

Thank you good afternoon guys.

[Analyst 4]: Thank you. Good afternoon, guys. Hey, Joe, I promised you when I met you or when I saw you last time in Vegas that I was going to try to maybe get you to give us a little more detail by geography than you do on these high-level comments. On EMEA and APAC, I think I heard you say up double digits year-over-year in both markets on clear aligner volumes. I just want to confirm that was the case on a year-over-year basis. Are we talking kind of 10%, 11% there? I'm just trying to kind of use those numbers to back into how much if North America would have been down a few points or down more than kind of that low single digits, more in the mid-single digit range from a North American case volume standpoint.

Much if north America would have been down a few points are down more than kind of that low single digits more in the mid single digit range from a north American case volume standpoint.

Hey, Joe just I promise you when I met when I saw you last time in Vegas that I was going to try to.

Maybe give us a little more detail by geography than you do on these high level comments on EMEA and APAC I think I heard you say up double digits year over year in both markets unclear aligner volumes just want to confirm that was the case on a year over year basis, and two are we talking kind of 10, 11%. There just trying to kind of use those numbers to back into how much.

Yeah.

Hey, Jeff.

Overall.

From that double digit year over year growth that we talked about.

And again, it's it was widespread we talked about our top 10 countries.

India being one that's growing well Turkey in different areas.

Really strong performance in EMEA overall, so Jeff I'm, not ready to give out any kind of broad specific numbers on the double digit piece, but it's robust and a lot of different parts of the world, which gives us a lot of confidence in the sense that we can keep keep that kind of momentum, but also make sure from a resource standpoint to focus standpoint, we start to move our <unk>.

If north America would have been down a few points are down more than kind of that low single digits more in the mid single digit range from a north American case volume standpoint.

Hey, Jeff.

Joe Hogan: Hey, Jeff. Overall, to confirm that double-digit year-over-year growth that we talked about, it was widespread. We talked about our top 10 countries, India being one that's growing well, Turkey in different areas, really strong performance in EMEA overall. Jeff, I'm not ready to give any kind of broad specific numbers on that double-digit piece, but it's robust in a lot of different parts of the world, which gives us a lot of confidence in the sense that we can keep that kind of momentum, but also make sure from a resource standpoint and a focus standpoint, we start to move our retail doctors in the United States more toward positive growth.

Overall that confirm that double digit year over year growth that we talked about.

And again, it's it was widespread we talked about our top 10 countries.

Retail doctors in the United States more towards positive growth.

India being one that's growing well Turkey in different areas.

Alright, and then just on the U S side, I mean, obviously that that's where the biggest headwind remains.

Talked last quarter about kind of the gross receipts looking good but then the cases not closing any change in behavior did any of that clear itself up a little bit did it get a little worse.

And I think more importantly on on that front just as three Q itself played out in that retail channel just again any kind of incrementally.

Retail doctors in the United States more towards positive growth.

[Analyst 4]: All right. Just on the U.S. side, obviously, that's where the biggest headwind remains. You talked last quarter about the gross receipts looking good, but then the cases not closing. Any change in behavior? Did any of that clear itself up a little bit? Did it get a little worse? I think more importantly on that front, just as Q3 itself played out in that retail channel, any kind of incremental improvements or degradations throughout the period? We did see consumer confidence come off in September and then again in October. We'd just love to hear what the exit rate might have looked like on Q3 as we head into Q4 here as well from a U.S. standpoint. Thanks.

Incremental improvement or degradation throughout the period, we did see consumer confidence come off in September and then again in October So would just love to hear kind of what the exit rate might have looked like on <unk> as we head into <unk> here as well from a U S standpoint. Thanks.

Alright, and then just on the U S side, I mean, obviously that that's where the biggest headwind remains.

Talked last quarter about kind of the grocery seats looking good but then the cases not closing any change in behavior did any of that clear itself up a little bit did it get a little worse.

Yes.

I'd say, we did dig down into grocery seats and Ccas last quarter as I tried to explain what it occurred I can tell you. There is no no primary change or any kind of material change in that data at all it differs all over the world. We watch each one of those countries. There is really nothing to report on in that sense I think what you just mentioned it.

And I think more importantly on that front.

Just as three Q itself played out in that retail channel just again any kind of incrementally.

And to your question is obviously youre walking watching the north American marketplace pretty closely and what you see consumer confidence and different things, but again nothing has really changed in the sense of how from a overall sales standpoint, how our dsos continue to grow and how our retail accounts continued to be challenged.

Joe Hogan: Yeah. Jeff, I'd say we did dig down into gross receipts and CCAs last quarter to try to explain what had occurred. I could tell you there's no primary change or any kind of material change in that data at all. It differs all over the world. We watch each one of those countries. There's really nothing to report on in that sense. I think what you just mentioned at the end of your question is, obviously, you're watching the North American marketplace pretty closely and what you see consumer confidence in different things. Again, nothing's really changed in the sense of how, from an overall sales standpoint, how our DSOs continue to grow and how our retail accounts continue to be challenged. I guess I'd overemphasize it didn't get any worse. It's consistent.

Yes.

Okay.

I guess I'd overemphasize it didn't get any worse, it's consistent.

Thanks, Jeff next question. Please our next question comes from Brendan <unk> at William Blair.

Hey, everyone. Thanks for taking the question.

Sure.

Can I first start on the orthodontic side or more specifically the teams now seem to be a nice highlight of the quarter last quarter. We were talking about this kind of shift back towards wires and brackets and kind of difficult macro times I didn't hear any of that this quarter encouragingly. So maybe just spend a minute on teens, what was driving kind of the growth there and do you think we're.

Okay.

I guess I'd overemphasize it didn't get any worse, it's consistent.

Thanks, Jeff next question. Please our next question comes from Brendan <unk> at William Blair.

Shirley Stacy: Thanks, Jeff. Next question, please. Our next question comes from Brendan Vasquez at William Blair.

<unk> patch.

Shifts back to wires and brackets again, and we're a little bit back on the offensive there.

Hi, Brian Thanks for taking my question.

[Analyst 5]: Hey, everyone. Thanks for taking the question.

Joe Hogan: Sure.

Sure.

[Analyst 5]: Can I first start on the orthodontic side, or more specifically, the teens? That seemed to be a nice highlight of the quarter. Last quarter, we were talking about this kind of shift back towards wires and brackets and kind of difficult macro times. I didn't hear any of that this quarter, encouragingly. Maybe just spend a minute on teens, what was driving kind of the growth there, and do you think we're moving past this kind of shift back to wires and brackets again and we're a little bit back on the offensive there?

Yes, I think.

Can I first start on the orthodontic side or more specifically the teams seem to be a nice highlight of the quarter last quarter. We were talking about this kind of shift back towards wires and brackets and kind of difficult macro times I didn't hear any of that this quarter encouragingly. So maybe just spend a minute on teens, what was driving kind of the growth there and do you think were.

But overall when you look at that teen increase I mean, it was pretty phenomenal when you look at the growth.

Remember, it's a big China growth period for us from a teen standpoint, that's their season.

We saw really substantial growth there was tremendous.

What's helping to drive the growth also are our new products like <unk> and Ninja warrior advancement with our perusal blocks. It just gives us more leverage to be able to start those patients earlier and often as we mentioned before Brendan as Invisalign first goes along with those products one way or another.

Moving past.

Shifts back to wires and brackets again, and we're a little bit back on the offensive there.

Yes, I think.

Joe Hogan: Yeah, I think, you know, but overall, when you look at that teen increase, I mean, it was pretty phenomenal when you look at the growth. Remember, it's a big China growth period for us from a teen standpoint. That's their season, and we saw really substantial growth there, which is tremendous. What's helping to drive the growth also are new products like IPE and mandibular advancement with occlusal blocks. It just, you know, gives us more leverage to be able to start those patients earlier. Often, as we mentioned before, you know, Brendan, is Invisalign First goes along with those products one way or another to be able to address, you know, different types of expansions or different kinds of malocclusions. What I like about the teens is it had good breadth to it all over the world.

But overall when you look at that teen increase I mean, it was pretty phenomenal when you look at the growth.

To be able to address different types of expansions or different kinds of malocclusion. So what I like about the teams. It had good breadth to it all over the world. We saw the same thing in Europe also and in some of the emerging economies that were doing again I think it's it's the penetration that we're getting in those areas, but also our technology that breadth of our technology.

Remember, it's a big China growth period for us from a teen standpoint, that's their season.

We saw really substantial growth there was tremendous.

What is helping to drive the growth also our new products like <unk> in India believe advancement with our perusal blocks. It just gives us more leverage to be able to start those patients earlier and often as we mentioned before Brendan as Invisalign first goes along with those products one way or another.

Typically for early interventions and kids.

Okay, and maybe as a follow up here switching gears a little bit.

To be able to address different types of expansions or different kinds of malocclusion. So what I like about the teams that had good breadth to it all over the world. We saw the same thing in Europe also and in some of the emerging economies that were doing again I think it's it's.

One of the common themes that ive been hearing among many of the dental space, including yourselves as the Dsos seem to have some kind of algorithm working correctly here driving growth in some different segments within dental.

Joe Hogan: We saw the same thing in Europe also and in some of the emerging economies that we're doing. Again, I think it's, you know, the penetration that we're getting in those areas, but also our technology, the breadth of our technology, particularly for early interventions in kids.

No. If you guys will give this number but just out of curiosity, if you will what.

The penetration that we're getting in those areas, but also our technology that breadth of our technology, particularly for early interventions and kits.

What percent of your business as Dsos at this point roughly speaking.

Maybe spend a minute or two on why they specifically are doing better and if that should be durable as we head into next year. Thanks for taking my question.

Okay, and maybe as a follow up here switching gears a little bit.

[Analyst 5]: Okay. Maybe as a follow-up here, switching gears a little bit, one of the common themes that I've been hearing among many in the dental space, including yourselves, is that DSOs seem to have some kind of algorithm working correctly here, driving growth in some different segments within dental. I don't know if you guys will give this number, but just out of curiosity, if you will, what % of your business is DSOs at this point, roughly speaking? Can maybe spend a minute too on why they specifically are doing better and if that should be durable as we head into next year. Thanks for taking the question.

Yeah, Yeah overall branded it it's in the 25% or so it varies by country as you know, but that's probably a good ballpark to be in.

No. If you guys will give this number but just out of curiosity if you will.

Thanks, Brian next question please.

What percent of your business as Dsos at this point roughly speaking.

Our next question comes from Steven Valiquette, and Missoula Securities.

Maybe spend a minute or two on why they specifically are doing better and if that should be durable as we head into next year. Thanks for taking my question.

Hi, Thanks, Good afternoon, Joe.

Joe and Jonathan Thanks for taking the question. So I guess from my son, and I was just curious to hear more color on the evolution of the H F. D patient financing partnership I'm just curious if that helped in any notable way to help get patients across the finish line in the third quarter or is that still maybe you're going to be just a bigger factor for the fourth quarter and into 2026, where that stands.

Joe Hogan: Yeah, overall, Brendan, it's about in the 25% or so. It varies by country, as you know, but that's probably a good ballpark to be in.

Yeah overall branded it's in the 25% or so it varies by country as you know but.

That's probably a good ballpark to be in.

Thanks, Brian next question please.

Shirley Stacy: Thanks, Brendan. Next question, please. Our next question comes from Steven Valiquette at Mizuho Securities.

Our next question comes from Steven Valiquette at Mizuho Securities.

Now thanks.

Hey, Steve This is John Yeah, I would say it is helping us and we're seeing more and more doctors use it you see it across some of the dsos they've taken advantage of that as well but.

[Analyst 6]: Thanks. Good afternoon, Joe and John. Thanks for taking the question. Just from my side, I was curious to hear more color around the evolution of the Healthcare Finance Direct patient financing partnership. Just curious if that helped in any notable way to help get patients across the finish line in the third quarter, or is that still maybe going to be just a bigger factor for the fourth quarter and into 2026 the way that stands right now? Thanks.

Thanks, Good afternoon, Joe and John Yes, Thanks for taking the question. So I guess from my side I was just curious to hear more color on the evolution of the H F. D patient financing partnership I'm just curious if that helped in any notable way to help get patients across the finish line in the third quarter or is that still maybe you're going to be just a bigger factor for the fourth quarter.

When patients or potential patients are deciding whether they want to go into treatment.

It usually comes down to some type of pricing, what's the overall price and in all cases, it gets down to how much how much is it per month, if I can if I don't pay it outright so <unk> becomes more critical with that wed like the partnership that we're seeing.

And into 2026, where that stands right now.

Hey, Steve This is John Yeah, I would say, it's helping and we're seeing more and more doctors use it you see it across some of the dsos they've taken advantage of that as well but.

John Morici: Hey, Steve. This is John. Yeah, I would say it's helping. We're seeing more and more doctors use it. You see it across some of the DSOs. They've taken advantage of that as well. When patients are, you know, potential patients are deciding whether they want to go into treatment, it usually comes down to some type of pricing, what's the overall price, and then in all cases, it gets down to how much is it per month if I don't pay it outright. HFD becomes more critical with that. We like the partnership that we're seeing, and more and more doctors are using it. I would say it's playing out how we wanted it to in the third quarter. I would expect that we'd see more of that in Q4 and beyond.

And more and more doctors are using it so I would say, it's it's it's playing out how we wanted it to in the third quarter and I would expect that we'd see more of that in Q4 and beyond.

When patients or potential patients are deciding whether they want to go into treatment in.

Okay. Thanks.

Thanks, Steve next question please.

Our next question comes from Jason Bednar at Piper Sandler.

Hi, Jason.

Hey, good afternoon, I wanted to start on the China market. It sounds like a pretty good third quarter you had there.

And more and more doctors are using it so I would say, it's playing out how we wanted it to in the third quarter and I would expect that we'd see more of that in Q4 and beyond.

Wondering any updated perspective on the competitive landscape and anticipated pvp in that market.

As well as how or whether you plan to adjust your go to market and pricing strategy in light of in light of Edp.

Okay. Thanks.

[Analyst 6]: Okay. Thanks.

[Analyst 5]: Thanks, Steve.

Thanks, Steve next question please.

Shirley Stacy: Next question, please. Our next question comes from Jason Bednar at Piper Sandler.

Yeah, Jason I mean, we're aware of what's going on from a BD standpoint, it's still not clear exactly what provinces and all will be included in that and exactly when it will be implemented.

Our next question comes from Jason Bednar at Piper Sandler.

Hi, Jason.

[Analyst 5]: Hi, Jason.

Joe Hogan: Hey there. Good afternoon. Wanted to start on the China market. Sounds like a pretty good third quarter you had there. Just wondering any updated perspective on the competitive landscape and anticipated VBP in that market, as well as how or whether you plan to adjust your go-to-market and pricing strategy in light of VBP. Yeah, Jason, I mean, we're aware of what's going on from the VBP standpoint. It's still not clear exactly what provinces will be included in that and exactly when it will be implemented. We're positioning ourselves because we know ultimately that's probably going to happen in one way or another. I don't have any new news to report, you know, versus what we had in the second quarter.

Hey, good afternoon, I wanted to start on the China market. It sounds like a pretty good third quarter you had there.

But we're positioning ourselves because we know ultimately that's probably going to happen in one way or another but I don't have any new news to report.

Just wondering any updated perspective on the competitive landscape and anticipated pvp in that market as well as how or whether you plan to adjust your go to market and pricing strategy in light of in light of Edp.

Versus what we had in the second quarter.

Okay, Joe when you say, you're positioning yourself, maybe what exactly do you mean by that and then.

I'll just ask my follow up now I.

Yeah, Jason I mean, we're aware of what's going on from a BD standpoint, it's still not clear exactly what provinces and all will be included in that and exactly when it will be implemented but.

I wanted to drill down on the topic Du jour here that U S. Retail commentary you were giving.

The dsos doing well they are up strong double digits sure theyre more sophisticated but it's also evidenced this isn't necessarily just the consumer spending problem in the U S. So I guess I'm wondering out loud, if it's not an economic or consumer spending problem and it may be the business that you're that's more sensitive here some maybe lower volume.

But we're positioning ourselves because we know ultimately that's probably going to happen in one way or another but I don't have any new news to report.

Versus what we had in the second quarter.

Okay, Joe when you say Youre positioning yourself, maybe what exactly do you mean by that and then.

[Analyst 6]: Okay. Joe, when you say you're positioning yourself, what exactly do you mean by that? I'll just ask my follow-up now. I wanted to drill down on the topic to hear that U.S. retail commentary you're giving. The DSOs are doing well. They're up strong double digits. Sure, they're more sophisticated, but it's also evidence this isn't necessarily just a consumer spending problem in the U.S. I guess I'm wondering out loud if it's not an economic or consumer spending problem and maybe the business that's more sensitive here is some lower volume, maybe lower ROI business for you and accounts that have more economic incentive to switch or convert to a cheaper alternative. How much effort do you put behind defending that business, especially at a time when you're really committed to delivering on margin expansion targets next year? Thanks.

I'll just ask my follow up now I.

Maybe lower ROI business for you in accounts that have more economic incentive to switch or convert to a cheaper alternative I guess, how much effort you put behind defending that business, especially at a time. When you are really committed to delivering on margin expansion targets next year.

I wanted to drill down on the topic Du jour here that U S. Retail commentary you were giving.

The dsos doing well they are up strong double digits sure theyre more sophisticated but it's also evidence this isn't necessarily just the consumer spending problem in the U S. So I guess I'm wondering out loud, if it's not an economic or consumer spending problem and it may be the business that youre, that's more sensitive here, some maybe lower volume.

Okay.

Yes, I guess the first part of your second question was about China again.

Remember these are a lot of tier three and tier four cities. So we didn't have to make sure that our portfolio is structured properly to be able to get at those types of patients because primarily we've been structured around part private patients and in the larger areas of China.

You know overall when you say defending things I think I'd like to think that we'd expand markets with our new technology in what we do and I mean, obviously we have.

Yes.

Yes, I guess the first part of your second question was about China again.

Joe Hogan: Yeah, I guess the first part of your second question was about China again. Remember, these are a lot of Tier III and Tier IV cities. We did have to make sure that our portfolio is structured properly to be able to get at those types of patients because primarily we've been structured around private patients in the larger areas of China. Overall, when you say defending things, I think I like to think that we expand markets with our new technology and what we do. I mean, obviously, we have to defend certain territories in certain areas, but I look at this market as a market that we can expand. Obviously, we've had a difficult second quarter and whatever. As we continue to develop technology, remember, 75% of the people out there still have a malocclusion, and there's a lot that we can address by this overall.

We have to defend certain territories in certain areas, but I look at this market is a market that we can expand and obviously, we've had a difficult second quarter and whatever but as we continue to develop technology remember 75% of the people out there still have a mountain inclusion and Theres a lot that we can address by this overall so part of this is I'm not just playing defense.

Remember these are a lot of tier three and tier four cities. So we just have to make sure that our portfolio is structured properly to be able to get at those types of patients because primarily we've been structured around part private patients and the larger areas of China.

Overall, when you say defending things I think I'd like to think that we can expand markets with our new technology in what we do and I mean, obviously we have.

Often so I hope, we'll grow that marketplace and so that's not just in the United States or different parts of North America. That's all over the world and you can see that strengthen the businesses are reported the third quarter and I would say just to close on your DSO comment I think that some dsos are doing a really good job there recognizing what's happening in the marketplace and they are seeing that.

We have to defend certain territories in certain areas, but I look at this market is a market that we can expand and obviously, we've had a difficult second quarter and whatever but as we continue to develop technology remember 75% of the people out there still have amount inclusion and theres a lot that we can address by this over also part of this is I'm not just playing defense.

Maybe consumers that they are out they are coming in for cleaning what are those dsos do there their scanning most patients, they're giving them a lot of visualization kind of before after many of them are competitive from a price standpoint, and overall price standpoint, and almost all of them are doing external internal and external fine.

Joe Hogan: Part of this is I'm not just playing defense. It's playing offense to help grow that marketplace. That's not just in the United States or different parts of North America. That's all over the world. You can see that strength in the business as a report of the third quarter.

Often so I hope to grow that marketplace and so that's not just in the United States or different parts of North America. That's all over the world and you can see that strengthen the businesses reported a third quarter and I would say just to close on your DSO comment I think that some DSO is they're doing a really good job there recognizing what's happening in the marketplace and they are seeing that.

John Morici: I would say just to close on your DSO comment, I think that some DSOs are doing a really good job. They're recognizing what's happening in the marketplace, and they're seeing that maybe consumers that they're out, maybe they're coming in for a cleaning. What do those DSOs do? They're scanning most patients. They're giving them a lot of visualization, kind of before and after. Many of them are competitive from a price standpoint, an overall price standpoint, and almost all of them are doing internal and external financing like an HFD. They're really working. It's not to say everybody's on the same page, and some retail doctors are doing this as well, but DSOs kind of en masse are taking that digital orthodontic approach and then being very patient-sensitive in terms of how do they get that patient into treatment.

Nancy and I can <unk>, so they're really work, it's not to say everybody is that everybody's on the same page and some retail doctors are doing this as well, but dsos kind of en masse are taking that digital orthodontic approach and then being very.

Amy consumers that they are out they are coming in for cleaning what are those dsos do there theyre scanning most patients, they're giving them a lot of visualization kind of before after many of them are competitive from a price standpoint, and overall price standpoint, and almost all of them are doing external internal and external fine.

Patient sensitive in terms of how do they get that patient did to treatment and that's just a great example of the market opportunities that's there, but doing it in a way that really tries to get those potential patients excited about treatment.

Nancy like in <unk>, so they're really work, it's not to say everybody is that everybody's on the same page and some retail doctors are doing this as well, but dsos kind of en masse are taking that digital orthodontic approach and then being very.

Thanks, Jason next question please.

Our next question comes from Nick Chilled Brent at Wells Fargo.

Hey, good afternoon, thanks for taking the question.

Nice quarter.

I just want to confirm that you're still confident in your 5% to 15% growth targets that you laid out your MLP and if so is mid single digit top line growth next year. Thank you.

John Morici: That's just a great example of the market opportunities that's there, but doing it in a way that really tries to get those potential patients excited about treatment.

Shirley Stacy: Yeah. Thanks, Jason. Next question, please. Our next question comes from Vic Chopra at Wells Fargo.

Thanks, Jason next question please.

I bet, we're sticking with our 5% to 15 planned for the future and that Hasnt changed and we really believe the business can do it.

Our next question comes from Nick Chilled Brent at Wells Fargo.

Hey, good afternoon, thanks for taking the question.

[Analyst 7]: Hey, good afternoon. Thanks for taking the question. Congrats on a nice quarter. I just want to confirm that you're still confident in your 5% to 15% growth targets that you laid out in your LRP. If so, is mid-single digit top line growth on the table for next year? Thank you.

Nice quarter.

I just want to confirm that you're still confident in your 5% to 15% growth targets that you laid out your MLP and if so is mid single digit top line growth into next year. Thank you.

Thanks.

And our next question or.

Our next question comes from Michael Rice scan at Bank of America.

Great. Thanks for taking the question.

I'll ask one.

You called out some of the geographic mix shifted in terms of how that impact.

Joe Hogan: Hey, Vic. We're sticking with our 5 to 15 plan for the future. That hasn't changed, and we really believe the business can do it.

We're sticking with our 5% to 15 planned for the future and that Hasnt changed and we really believe the business can do it.

As you went through the year.

Mark.

China.

You also had an FX tailwind I think I mean actually it started as a headwind and once you kind of was essentially neutral. Thank you and I became more of a tailwind.

Thanks, Yes.

Shirley Stacy: Thanks.

Joe Hogan: Yeah.

Our next question.

Shirley Stacy: Our next question comes from Michael Ryskin at Bank of America.

Our next question comes from Michael Rice scan at Bank of America.

Right.

We will be.

Great. Thanks for taking the question I'll just ask one.

[Analyst 3]: Great. Thanks for taking the question. I'll just ask one. You called out some of the geographic mix shifts in terms of how that impacts ASP as you went through the year between Americas and China and EMEA. You also had an FX tailwind. I think it started as a headwind in Q1, was essentially neutral in Q2, and it became more of a tailwind in Q3. Yet I look at the sort of like list or reported ASPs, it's been a relatively consistent $1,240, $1,250 range. If you adjust for something on FX becoming more and more favorable as we go through the year, it does look like the underlying ASPs are a little bit weaker. Is that purely just attributed to the geo mix and maybe product mix, or is there anything else going on there you can point to? Thanks.

We reported.

Robert.

444, 50 range so.

You called out some of the geographic mix shift in terms of how that impact.

Jonathan.

It's become a normal people will begin.

Don't look at the underlying its people a little bit weaker.

As you went through the year.

Eric.

Purely attributed to the Geo mix.

China and India.

Hum.

Product mix something else going on that you can point to.

I mean actually it started as a headwind and once you kind of was essentially neutral. Thank you and I'll be doing more of them.

Yes.

Yes, Michael this is John so when you when you look at our like for like.

Right.

We will continue.

On say Europe or like for like within the U S. Actually asps are up on a quarter over quarter basis. We just have as such we were very pleased with the volumes that we saw in some of these emerging markets like China and so for US. It's just that the ASP is lower and Thats and Thats the effect that we saw so despite the FX.

We reported.

Hello.

40 to 50 range. So if you would.

Jonathan Thanks for coming.

Normal people.

Doug looking at the underlying its people a little bit weaker than.

Purely attributed to the Geo mix.

And maybe product mix something else going on there.

And everything else, it's it's that country mix that drives that asps lower.

Thanks.

John Morici: Yeah, Michael. This is John. When you look at a like for like, on say Europe or a like for like within the U.S., actually, ASPs are up on a quarter-over-quarter basis. We are very pleased with the volumes that we saw in some of these emerging markets like China and so on for us. It's just that the ASP is lower, and that's the effect that we saw. Despite the FX and everything else, it's that country mix that drives that ASP lower. If you took China out, our ASPs would have been up significantly or pretty well from Q2 to Q3. It's just that you've got that country mix piece of it that comes in. You see the converse of that in Q4, where you have less China in Q4, more Europe as an example.

Yes, Michael this is John so when you when you look at our like for like.

Had we not if he took China out our asp's would've been up significantly are pretty pretty well from Q2 to Q3, it's just that you've got that country.

The mix piece of it that comes in and then you see the converse of that in Q4, where you have less China in Q4 more Europe as an example.

Just the difference in ASP.

Despite the FX and everything else, it's it's that country mix that drives that asps lower.

And you will see an ASP improvement as we go from <unk> to <unk>.

Alright fair enough. Thanks.

Had we not if he took China out our asp's would've been up significantly are pretty pretty well from Q2 to Q3. It's just that you have got that country.

Thanks, Michael.

Our last question comes from Erin Wright at Morgan Stanley.

Yeah.

Mixed piece of it that comes in and then you see the converse of that in Q4, where you have less China in Q4 more Europe. As an example, there is just a difference in ASP.

Okay.

Aaron Your line is open.

John Morici: There's just a difference in ASP, and you will see an ASP improvement as we go from Q3 to Q4.

And you will see an ASP improvement as we go from <unk> to <unk>.

Aaron Your line is open.

Alright fair enough. Thanks.

[Analyst 3]: All right. Fair enough. Thanks.

Thanks, Michael.

John Morici: Thanks, Michael.

Our last question comes from Erin Wright at Morgan Stanley.

Shirley Stacy: Our last question comes from Aaron Wright at Morgan Stanley. Aaron, your line is open.

Hey, Aaron sorry, we can't we can't hear anything.

Happy to circle back.

Yeah.

He has left.

Okay.

Okay. Okay. Thank you operator, okay.

Aaron Your line is open.

Well, we have I'm going to go.

I think we'll go ahead and close off the conference call.

So thank.

Thank you everyone for joining us today, we appreciate it and look forward to the opportunity to meet with you at upcoming Investor conferences and industry events. If you have any follow up questions. Please contact align investor relations and I Hope you have a great day.

Aaron Your line is open.

Hey, Aaron sorry, we can't we can't hear anything.

Joe Hogan: Hey, Aaron. Sorry, we can't hear anything.

Shirley Stacy: Yeah, we're happy to circle back. He has left.

Happy to circle back.

He has left.

Joe Hogan: Okay.

Okay. Thank you operator.

Shirley Stacy: Thank you, operator. I think we'll go ahead and close off the conference call. Thank you, everyone, for joining us today. We appreciate it and look forward to the opportunity to meet with you at upcoming investor conferences and industry events. If you have any follow-up questions, please contact Align Investor Relations, and I hope you have a great day. Thank you. This concludes today's conference, and you may now disconnect your lines at this time. Thank you for your participation.

Thank you. This concludes today's conference and you May now disconnect. Your lines at this time. Thank you for your participation.

Hey.

Well I'm going to go.

I think we'll go ahead and close off the conference call.

So thanks.

Thank you. This concludes today's conference and you May now disconnect. Your lines at this time. Thank you for your participation.

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Yeah.

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Yes.

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Hum.

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Okay.

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Sure.

Yes.

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