Align Technology, Inc.

are in a listen-only mode. A question and answer session will follow the formal presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Shirley Stacy, with Align Technology you may begin.

Good afternoon and thank you for joining us. I'm Shirley Stacy, Vice President of Corporate Communications and Investor Relations. Joining me for today's call is Joe Hogan, President and CEO, and John Marie G. CFO. We issued second quarter 2025 financial results today via Business Wire, which is available on our website at .aligntech.com. Today's conference call is being audio webcast and will be archived on our website for approximately one month. As a reminder, the information provided and discussed today will include forward-looking statements, including statements about Align's future events and product outlook. These forward-looking statements are only predictions and involve risks and uncertainties that are described in more detail in our most recent periodic reports filed with the Securities and Exchange Commission, available on our website and at sec.gov. Actual results may vary significantly, and Align expressly assumes no obligation to update any forward-looking statement. We have posted historical financial statements with corresponding reconciliations, including our -non-gap reconciliation, if applicable, and our second quarter 2025 conference call slides on our website under quarterly results. Please refer to these files for more detailed information. With that, I'll turn the call over to Align Technologies President and CEO, Joe Hogan. Joe?

Thanks, Shirley. Good afternoon, and thanks for joining us today. On our call today, I'll provide an overview of our second quarter results and discuss performance from our two operating segments, system services and clear aligners. John will provide more detail on our Q2 financial performance and comment on our views for the remainder of the year. Following that, I'll come back and summarize a few key points and open the call to questions. On our second quarter results were mixed. Total Q2 revenues at 1 billion, 12 million reflect a solid -over-year revenue growth for systems and services, driven primarily by stronger than expected sales of ITERA Luminous Scanner Wand upgrades, offset by lower than expected sales of full ITERA Luminous systems, and a slight -over-year decrease in clear aligner revenues, driven primarily by lower than expected volumes in Europe and North America. As a result, Q2 worldwide revenues and operating margins were below our Q2 outlook. During Q2, we continue to see strong consumer interest in Invisalign treatment, as reflected by ITERA scans and Invisalign doctor case submissions. However, we experienced uneven patient case conversion, which led to a lower than typical seasonal uptick in case starts, which historically occurred late in the quarter. As we assessed our Q2 results and the activity in our customer's offices, we believe it was impacted in part by US tariff turmoil in and outside the United States and less affordable financing options for orthodontic treatment, as well as for capital equipment purchases. Recent dental industry surveys for the second quarter suggest that there was less overall patient traffic, fewer orthodontic case starts, and patient hesitation toward elective procedures. 2025 marks the fourth consecutive year of orthodontic starts being down. And third-party research reports indicate that practices that use both wires and brackets and clear aligners may often have shifted more of their case starts to metal braces and Q2. Uncertainly, not only impacts the consumer purchasing decisions, but also the decisions that doctors make, especially practices who still use wires and brackets and weigh the sunk cost of their inventory and their available time over investing in digital solutions during times of financial uncertainty. As we begin the third quarter and plan for the remainder of the year, our outlook anticipates the potential continued economic uncertainty and spending hesitancy that impacted demand for our clear aligners and new ITERO scanning systems in the second quarter. Even though we know consumer interest in Invisalign treatment remains strong, we're continuing to drive engagement and effectiveness of commercial marketing programs that leverage our innovation and new product cycle across our clear aligners and scanners, especially those for teens and kids. And at the same time, we're evaluating actions to reduce costs and thoughtfully manage our investments. For Q2, total revenues were $1 billion, $12.4 million, up 3.4 sequentially, and down 1.6 year over year. In our systems and services segment, Q2-25 revenues were $207.8 million and increased .9% sequentially and increased .6% year over year, primarily reflecting solid revenue driven by ITERO Lumina. Wound upgrades and increased services as more doctors transitioned to ITERO Element 5D Plus to the advanced ITERO Lumina. The ITERO Lumina scanner makes up a majority of ITERO scanner systems mix. For clear aligners, Q2-25 worldwide volumes were up slightly sequentially in year over year. Year over year Q2 clear aligner volumes reflect growth across the APAC and the mayor regions, offset somewhat by the Americas regions. From a product perspective, Q2, we had a strong year over year growth from Invisalign First, DSP touch-up cases, Invisalign Palette Expander and retention, including DSP, as well as continued mix shift to non-comprehensive clear aligner products. From a channel perspective, Q2 clear aligner volumes increased slightly year over year in both orthodontist and general practitioner or GP dentist channels, with strong year over year growth from dental service providers. Growth in total submitters are primarily driven by strength in the orthodontic channel, while increased utilization was led by the GP channel. Notably, we also achieved a record number of doctors shipped to for the second quarter. For the Americas, Q2 aligner volumes were down slightly year over year and reflect solid growth in Latin America teen segment, offset by lower volumes in North America. Despite lower volumes, adoptions increased across several key product offerings, including Invisalign First for teens and kids, Invisalign DSP touch-up cases, and Invisalign Palette Expander system. In the MA region, Q2 clear aligner volume grew year over year driven by increased utilization across both orthodontist and GP dentist channels, with strength in the adult segment. This performance reflects continued adoption of non-comprehensive Invisalign offerings, particularly moderate and DSP touch-up cases, including retention, as well as Invisalign Comprehensive -in-3 and Invisalign First within our comprehensive portfolio. For the APAC region, Q2 clear aligner volume grew year over year, reflecting increased submitters across both orthodontist and GP channels, across teens and kid patients led by China. From a product standpoint, Invisalign First was a key contributor to year over year growth, reflecting rising demand for early intervention solutions. In Q2, over 223,000 teens and growing kids started treatment with Invisalign clear aligners. This number represents a .1% sequential decline, primarily due to softer performance in EMEA and APAC, despite the continued strength in the Americas. On a year over year basis, case starts increased 3%, driven by growth in APAC and EMEA and Latin America, partially offset by North America. From a product standpoint, Invisalign First was a key year over year growth driver across all regions. Additionally, the Invisalign Pallet Expander system contributed to year over year growth in North America. During the quarter, we achieved a record number of teen cases for a second quarter. Additionally, we've surpassed a significant milestone. Over 6 million teens and kids have now been treated with the Invisalign system globally. For Q2, the number of doctors submitting case starts for teens and kids was up .5% year over year, led by continued strength from doctors treating young kids and growing patients with Invisalign First and Invisalign Pallet Expander. With that, I'll now turn the call over to John.