"Our commitment to advancing orthodontic care continues to fuel our strong results, even while we navigate a complex cost environment."
— Joseph Hogan, CEO
03Detailed Report
0HCK.L
Align Technology Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
Align Technology Inc reported a strong revenue of $995.2 million in Q4 2024, marking a year-over-year growth of 4.02% and a quarter-over-quarter increase of 1.77%. Despite this robust top-line growth, the company faced challenges in profitability, with net income dropping 16.29% year-over-year to $103.8 million. Cost pressures led to a decline in operating income, down 15.97% YoY. Management highlighted the ongoing investment in innovation and marketing expenditures, which they believe will drive long-term growth. CEO Joseph Hogan emphasized the strategic focus on expanding their product offerings and market share, noting, 'Our commitment to advancing orthodontic care continues to fuel our strong results, even while we navigate a complex cost environment.'
Key Performance Indicators
Revenue
Increasing
995.22M
QoQ: 1.77% | YoY: 4.02%
Gross Profit
Increasing
696.94M
70.03% margin
QoQ: 2.22% | YoY: 3.56%
Operating Income
Decreasing
144.15M
QoQ: -11.18% | YoY: -15.97%
Net Income
Decreasing
103.81M
QoQ: -10.48% | YoY: -16.29%
EPS
Decreasing
1.39
QoQ: -10.32% | YoY: -15.24%
Revenue Trend
Margin Analysis
Financial Highlights
### Revenue Analysis
- Total Revenue: $995.2 million, up 1.77% QoQ and 4.02% YoY
- Gross Profit: $696.9 million, with a gross profit margin of 70.03%
### Profitability Metrics
- Operating Income: $144.1 million, a decrease of 15.97% YoY
- Net Income: $103.8 million, down 16.29% YoY
- EPS: $1.39, a decline of 15.24% compared to Q4 2023.
### Balance Sheet Strength
- Total Assets: $6.21 billion
- Total Liabilities: $2.36 billion
- Cash and Cash Equivalents: $1.04 billion
- Debt (Total Debt): $119.3 million, indicating a low debt-to-equity ratio of 0.0310, presenting a strong balance sheet position.
### Cash Flow
- Operating Cash Flow: $286.1 million
- Free Cash Flow: $263.1 million
The financial metrics indicate a solid performance, yet cautious management of costs and investments is crucial for sustaining profitability in the upcoming quarters.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
995.22M
4.02%
1.77%
Gross Profit
696.94M
3.56%
2.22%
Operating Income
144.15M
-15.97%
-11.18%
Net Income
103.81M
-16.29%
-10.48%
EPS
1.39
-15.24%
-10.32%
Key Financial Ratios
Gross Profit Margin
Excellent
70.80%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
17.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
10.40%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.67%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.69%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.22
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.03
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
37.15x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Premium
4.00x
Trading at premium to book value, reflects strong intangibles or growth
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