- Q3 revenue of $995.7 million beat Align’s own forecast range of $965 million to $985 million, fueled by strong growth in clear aligners for teens and kids.
- Non-GAAP earnings rose to $2.61 per share, with operating margins improving despite restructuring and impairment charges.
- Retail traders on Stocktwits turned bullish, setting upside targets between $170 and $200 for the stock.
Shares of Align Technology rose about 16% in after-hours trading on Wednesday after the Invisalign maker reported third-quarter (Q3) revenue above its own forecast and showed improving momentum in clear aligners for teens and kids.
Results Beat Company Outlook
Align reported Q3 revenue of $995.7 million, up 1.8% year over year and above its guidance range of $965 million to $985 million, though down 1.7% from the prior quarter as the company had flagged. Currency helped, adding about $15.6 million year on year.
Clear Aligner revenue was $805.8 million, up 2.4% from a year earlier and flat sequentially. Total clear aligner volume rose 4.9% to 647,800 cases, with the biggest tailwind from younger patients.
Treatments for teens and kids jumped 8.3% year over year and 14.7% from Q2 to 256,000 cases, helped by more doctors submitting cases and continued adoption of Invisalign First.
The Imaging Systems and CAD/CAM business, which includes iTero scanners, brought in $189.9 million, down 0.6% year over year and 8.6% sequentially, which the company said was normal Q3 capital-equipment seasonality.
Profitability
GAAP operating income was $96.3 million for an operating margin of 9.7%, lower than last year, mainly because the quarter included $88.3 million of restructuring, impairment and accelerated depreciation charges. On a non-GAAP basis, operating margin improved to 23.9%.
Net income fell to $56.8 million, or $0.78 per share, from $1.55 a year earlier, largely because of those one-time charges. Non-GAAP EPS was $2.61, up from $2.35.
Align ended the quarter with $1 billion in cash and cash equivalents, up from $901 million in the second quarter (Q2).
Outlook
For the fourth quarter (Q4), Align expects revenue of $1.025 billion to $1.045 billion, with clear aligner volume, ASP and systems revenue all seen improving sequentially, and non-GAAP operating margin around 26%.
For full-year 2025, the company still expects clear aligner volume to grow in the mid-single digits and revenue to be flat to slightly higher than 2024, reflecting a mixed dental market, especially in North America.
Stocktwits Users Cheer Align’s Strong Quarter
On Stocktwits, retail sentiment for Align was ‘bullish’ amid ‘extremely high’ message volume.
One user said Align remains the clear market leader after the quarter and that they were bullish on the stock getting back above $170 by year-end, with a price target of $200 by the first quarter of 2026.
Another user said the print was a big beat and flagged $155 as the level to watch on the upside, noting there were still higher gaps to be filled.
Align’s stock has declined 37% so far in 2025.
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