Align Technology, Inc.

Greetings. Welcome to the Align second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I'll 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 Morici, CFO. We issued second quarter 2026 financial results today via Business Wire, which is available on our website at investor.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, product outlook, and financial expectations. 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 statements. We've posted historical financial statements with corresponding reconciliations, including our GAAP to non-GAAP reconciliation, if applicable, and our second quarter 2026 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 thank you for joining us today. On today's call, I'll start with an overview of our second quarter 2026 results. discuss performance across our two operating segments, clear liners and systems and services. John will then walk you through our financial results and outlook for Q3 and 2026. And after that, I'll come back highlight a few key takeaways before we open the call for questions. We delivered a solid second quarter with record revenues of 1.06 billion of 4.3% year over year, driven by record clear liner volumes of 692,000 cases and 8.2% ClearLiner revenue growth. 2226 revenues and ClearLiner volumes were in line with our outlook, while ClearLiner ASBs and non-GAAP operating margin of 22.9% exceeded our expectations. 2226 year-over-year ClearLiner volume growth of 7.4% was driven by continued double-digit expansion across APAC, EMEA, and Latin America, together with stable performance in North America. Growth reflected continuing adoption across orthodontists and GP-dentist channels and across adult, teen, and growing patient segments, as well as continued double-digit growth from our DSOs. Investments in patient financing, clinical support programs, doctor subscription offerings, and practice productivity solutions supported adoption and utilization across our global Invisalign business. Insistence in services, Q226. Revenue performance reflected persistent softness in the capital equipment market, as well as a shift toward lower-priced scanners and flexible acquisition models are acquisition models, including leasing and rental programs, which generate lower upfront revenue than traditional scanner purchases. Overall, second quarter results reflect continued execution against a volatile macroeconomic backdrop. While the environment created some noise in the quarter, the underlying momentum in business driven by ongoing investments in innovation, customer engagement, and digital workflows continues to support improvements in practice productivity, patient conversion, and Treatment Adoption. For imaging systems and CAD CAM systems and services, including iTero, ExoCAD and X-Ray Insight software, Q2 revenue of $185.3 million was down 11% year-over-year as a result of lower scanner ASPs partially offset by double-digit growth in unit placements, driven by continued challenges in the capital equipment market with higher interest rates and increased macro uncertainty. We continue to lower the total acquisition cost of and expand access to inter-oral scanning by offering doctors a range of purchasing options for our Itero Lumina scanner that best fits the needs, budgets, and cash flows of our customers, including low-cost configurations such as Itero Lumina PC and certified pre-owned scanners and rental and lease programs. Importantly, while growing adoption of these purchasing options creates a near-term headwind to reported revenue and profitability, This is an intentionally and strategically attractive evolution of the business. By lowering the upfront cost of adoption, we can expand access to care, grow recurring revenue, and strengthen the aligned digital platform. We're already seeing the benefits of this strategy. During Q2, scanner placements to new doctors reached a record level and increased double digits year-over-year, driven by continued adoption of Biterra Illumina. Active scanner units also grew double digits year-over-year, while more than 12.4 million restorative wellness and orthodontic scans were performed during the quarter, an increase of 16% year-over-year. Healthy scanner placements, growth in active units, and increasing digital workflow utilization support communications between doctors and patients to improve patient oral health and aesthetics and strengthen the connection between diagnostics, treatment planning, restorative workflows, orthodontic treatments, including clear aligner adoption. Our ExoCAD CAD-CAM business delivered double-digit year-over-year revenue growth in Q2, reinforcing our strategy to expand access to care by seamlessly integrating orthodontics and restorative dentistry across the Align Digital platform. During the quarter, ExoCAD hosted its flagship Insights 2026 event, bringing together more than 850 dental professionals from over 44 countries and launched ExoCAD ART, which means Advanced Restorative Treatment which combines tooth alignment and restorative treatments within the ExoCAD software to offer more doctors and patients more comprehensive treatment options. 2226 clear aligner sitments reached a record 692,000 cases, increasing 7.4% year-over-year. Growth was broad-based across customer channels, patient segments, and geographies, reflecting continued adoption of the Invisalign system and benefits of our strategic initiatives to improve affordability, patient conversion, clinical confidence, and practice productivity. Growth was supported by both increased doctor adoption and higher utilization. During the quarter, a record 89.2 thousand doctors submitted Invisalign cases, up globally 3.4% year-over-year, while doctor utilization increased 3.8%, reflecting growth across all regions. Shipments of orthodontists increased 7.8% year-over-year, and shipments to GP dentists increased 6.6%, demonstrating ongoing momentum across both customer channels. Regionally, growth was led by our international markets, and May and APAC both delivered double-digit volume growth driven by increased utilization across doctor channels and patient segments, while Latin America delivered record second-quarter shipments supported by increased submitters and higher utilization. North America remained relatively stable overall with continued strength in orthodontic and DSO Channels helping to offset slower retail demand. Our growth initiatives continue to gain traction across orthodontists, GP dentists and DSO investments in financing, clinical support, workflow solutions and practice productivity tools are helping doctors increase utilization, improve patient conversion and expand access to treatment. Adoption of programs such as DSP, Patient Financing Solutions and Comp Zero AA which are designed to support practice growth while improving affordability and access to patients remain encouraging. For teens and growing patients, treatment starts increased 7.2% year-over-year to 240,000 Invisalign cases led by China, Japan, Turkey, India, and Brazil. Continued adoption of Invisalign First, the Invisalign Pallet Expander, Invisalign MOAB Mandibular Advancement with Occlusal Blocks reflects greater doctor confidence in our growing patient portfolio and reinforces the significant long-term opportunity we see in these categories. We recently introduced two new capabilities across the Align digital platform designed to improve patient engagement, treatment planning and workflow efficiency. Together with the Invisalign Pallet Expander platform, integrated buttons, custom trim lines and specific 3D printed attachments, these capabilities strengthen the connection between imaging, diagnostics, treatment planning and treatment delivery through a more integrated digital workflow. We featured these innovations this past weekend at the 2026 Invisalign Ortho Summit, our premier peer-to-peer clinical education event, where we brought together our innovations to light demonstrating how we leverage software, visualization, digital treatment planning, and 3D printing and workflow connectivity to explain clinical applicability, enhance practice productivity, and strengthen customer engagement. Before turning to John, I'd like to briefly address the strategic initiatives press release we issued today regarding Elliott Management. As we've discussed over the past several quarters, we remain focused on strengthening execution, expanding profitability, advancing innovation, and positioning a line to capitalize on the significant long-term opportunity we see in digital orthodontics and restorative dentistry. The initiatives announced today follow constructive discussions with Elliott, are consistent with our objectives, and build on work underway across the company. First, as part of our ongoing approach to board refreshment and governance, we intend to add three new independent directors whose backgrounds will further strengthen the board's expertise in areas including healthcare technology, innovations, operations, and scaling global businesses. We regularly evaluate these skills and experiences represented on the board to ensure that they align with the evolving needs of our business, and these planned additions reflect that ongoing process. Second, we have initiated a comprehensive strategic and operating model review supported by a leading global consulting firm to help us further enhance commercial execution, organizational effectiveness, scalability, and optimizing resources as we enter our next phase of growth. Importantly, this work is focused on ensuring that we are positioned to capture the significant opportunities ahead while continuing to improve profitability and long-term value creation. Third, we increased our 2026 share repurchase commitment reflecting both the board's and management's confidence and aligns long-term strategy, competitive position, and future cash generating potential. Finally, we appreciate our discussions with Elliott and look forward to continuing our productive dialogue as we execute the initiatives outlined in this separate press release. The board and management team remain fully aligned around our strategy, our growth opportunities, and our commitment to creating long-term value for shareholders. Our strategy remains focused on digital orthodontics and restorative dentistry. We're excited for the opportunity to sharpen execution, improve operating leverage, and enhance governance as we continue to pursue the significant growth opportunities. With that, I'll now turn it over to Joe.