1) Q2 2026 Performance Overview
- Align Technology reported record revenues of $1.06 billion, up 4.3% YoY.
- Clear Aligner volumes reached 692,000 cases, with revenue growth of 8.2% YoY.
- Non-GAAP operating margin was 22.9%, exceeding expectations.
- Strong performance driven by growth in APAC, EMEA, and Latin America, with stable North American results.

2) Segment Results: Clear Aligners vs. Systems and Services
- Clear Aligners: Revenue of $870.9 million, driven by higher volumes and ASPs. Average shipment price increased to $1,260.
- Systems and Services: Revenue of $185.3 million, down 10.8% YoY due to lower scanner ASPs and a shift towards leasing and rental models.
- Scanner placements increased double digits YoY, indicating strong adoption despite revenue decline.

3) Strategic Initiatives and Governance
- Align announced plans to add three new independent directors to enhance board expertise.
- A comprehensive strategic and operating model review is underway to improve execution and profitability.
- Increased share repurchase commitment to $400 million to $500 million for 2026, reflecting confidence in long-term strategy.

4) Challenges and Market Headwinds
- Continued softness in the capital equipment market and macroeconomic uncertainties impacting Systems and Services revenue.
- The U.K. VAT ruling resulted in a $37.5 million liability, with VAT reintroduced on applicable products.
- North American retail demand remains stable but is a focus area for growth initiatives.

5) Guidance and Outlook
- Q3 2026 revenue expected between $1 billion and $1.020 billion, with mid-single-digit growth in Clear Aligner volumes.
- Full-year 2026 revenue growth projected at 3% to 4% YoY, with Systems and Services revenue expected to decline 6% to 8% YoY.
- The company anticipates continued growth in iTero scanner shipments and Clear Aligner volumes, supported by strategic initiatives.

Bottom line: Align Technology is positioned for continued growth in Clear Aligners, driven by strong international performance and strategic initiatives, despite facing challenges in the Systems and Services segment and macroeconomic headwinds. Shareholders can expect a focus on innovation and governance improvements to enhance long-term value.