ALGN ALIGN TECHNOLOGY INC

Overview and Growth

ALIGN TECHNOLOGY INC generated $4.03B of revenue in fiscal 2025, with net income of $410.35M and an operating cash inflow of $593.22M. Revenue of $4.03B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 0.9% from $4.00B in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were $5.65, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 0.5% from $5.62 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 0.65x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $2.71B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 67.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $545.75M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 13.5%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $410.35M for the fiscal year. Measured against reported revenue, net income produced a 10.2% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $585.29M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 14.5%, adding a pre-tax profitability layer between revenue and net income. The company recognized $174.94M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 29.9%, quantifying the portion of pre-tax earnings paid in income tax. Net income equaled 10.1% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 6.6%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

Total assets were $6.23B, supported by $2.18B of liabilities and $4.05B of shareholder equity. The near-term balance sheet paired $2.62B of current assets with $1.92B of current liabilities at the reporting date. At 1.36x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $1.09B, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 57.0% of current liabilities, showing how much near-term coverage came from cash alone. The liabilities-to-assets relationship was 35.0%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 17.6% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $6.21B in fiscal 2024, the current asset base moved 0.3% and finished higher.

Cash Flow and Earnings Quality

Cash flow from operations was $593.22M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.45x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $102.44M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 17.3%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $490.78M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 12.2% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 7.9%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.