Align Technology (ALGN), maker of the clear "smile straightener" Invisalign, reported Q2 2025 adjusted earnings per share (EPS) of $2.49, up 3.3% from the year-ago level. But the profit figure missed the Zacks Consensus Estimate by 3.1%.
GAAP EPS for the quarter was $1.72, reflecting a rise of 43.4% from $1.28 in the comparable period of 2024.
The top line also missed expectations by 4.6%, decreasing 1.6% year-over-year to $1.01 billion.
Following the earnings announcement on July 30, ALGN shares imploded 36.6% the next day.
You can find more details on Align Segments and Margins in this article from July 31...
ALGN Stock Falls on Q2 Earnings and Revenue Miss, Margins Down
Based on the company results, analysts have knocked down full-year EPS estimates from $10.33 to $10.10, representing 8.25% annual profit growth.
And the 2025 topline estimate falls to $4 billion for roughly zero growth.
Stock Repurchase Plan and New Insider Moves
During the reported quarter, the company repurchased approximately 585.1 thousand shares of common stock at an average price of $164.14 per share, completing the $225.0 million open market repurchase initiated in the first quarter of 2025. This marked the completion of the $1.0 billion stock repurchase program, approved in January 2023, in its entirety.
In April 2025, its board of directors authorized a plan to repurchase up to $1.0 billion of common stock, expected to be completed over a period of up to three years.
But both the company and the CEO took advantage of the stock drop to accumulate more shares.
On August 1, Align announced in a press release that President and CEO Joe Hogan stepped into the market and "Personally Purchases $1 Million of Align's Common Stock."
Details of the transaction reveal that Hogan purchased 7,576 shares of Common Stock on August 1, 2025, at a price of $131.4851 per share, totaling $996,131. Following this transaction, Hogan directly owns 184,945 shares.
Then on August 8, Align announced a $200 Million Open Market Repurchase of common stock.
Our Take on ALGN
I have been an investor in ALGN for many years because I thought very highly of two aspects of their business model:
(1) Digital services that could economically and efficiently serve remote and poor communities at scale
(2) Aggressive growth push into China and India where many tens of millions of kids need their services
But I have avoided the stock for several quarters now because of uncertainties. Now, with the current de-risking and a 2.5X price-to-sales multiple, I may be taking a closer look as we get more visibility about the growth model in the coming weeks and I dive into company presentation materials.
Until then, here is the Zacks Research summary...
Align Technology exited the second quarter of 2025 with weaker-than-expected results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Also, revenues deteriorated on a year-over-year basis due to a decline in the Clear Aligner segment’s sales. Contraction of both the gross and operating margins is a matter of concern.
On a positive note, Clear Aligner volume grew in APAC and EMEA regions, driven by increased utilization across both orthodontists and general practitioners (GP) dentist channels, with strength in the adult segment. Additionally, ALGN’s Imaging Systems & CAD/CAM Services business segment reported strong growth on a year-over-year basis, primarily due to iTero Lumina wand upgrades and increased services as more doctors transition to iTero Element 5D Plus.
During the quarter, Align Technology achieved a record number of teen cases, with over 6 million teens and kids having been treated with the Invisalign system globally and over 20 million total cases.
Bottom line: The downward estimates revisions were not that bad, so a buying opportunity is close at hand. The Zacks Rank will let you know.
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Align Technology, Inc. (ALGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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