ALIGN TECHNOLOGY INC — Call Transcript 2026

Greetings. Welcome to the Align First Quarter 2026 earnings call. At this time, all participants are in 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 conference call is Joe Hogan, President and CEO, and John Morici, CFO. We issued first 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 as described in more detail in our more 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 GAAP to non-GAAP reconciliation, if applicable, and our first 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 Technology's President and CEO, Joe Hogan. Joe? Thanks, Shirley. Good afternoon, and thanks for joining us today. On today's call, I'll start with an overview of our first quarter 2026 results and discuss performance across our two operating segments, Clear Aligners and Systems and Services. John will walk us through our financial results and outlook for Q2 2026. After that, I'll come back to highlight a few key takeaways before we open the call for questions. We're pleased to report another better-than-expected quarter in Q1. Clear Aligner volumes from both the GAAP and non-GAAP operating margins exceeded our outlook. These results reflect continued execution against our strategic priorities and the resilience across our global business. We delivered first quarter revenues of $1.04 billion, up 6.2% year-over-year, driven primarily by high Clear Aligner volumes and increased ASPs. Clear aligner shipments reached a record 686,000 cases, increasing 6.7% year-over-year, reflecting double-digit growth across our international businesses and continued stability in North America. Growth was broad-based across customer channels, with shipments to orthodontists up 7.4% and GPs up 5.6% year-over-year, along with solid momentum across adult, teen, and growing kid patient categories. Dental and orthodontic service organizations continue to be force multipliers in every region, driving global double-digit clear aligner volume growth during the quarter. We remain encouraged by how naturally our digital platform fits with DSO operating models and how it continues to benefit customers and patients and support both Invisalign adoption and increased iTero scanner utilization. Q1 highlights the continued strength in Invisalign demand across age groups and geographies, even amid varying macro conditions. For Q1, 449,000 adults were treated with Invisalign, up 7.8% year-over-year, reflecting strong growth across both orthodontist and GP channels in all regions, led by EMEA, APAC, and Latin America. Teens and growing kids continue to represent the largest orthodontic patient opportunity globally. In Q1, 237,000 teens and kids started Invisalign, up 4.8% year-over-year, led by China and Latin America. Growth was supported by continued adoption of Invisalign First, the Invisalign Palatal Expander, and Mandibular Advancement with Occlusal Blocks, reflecting broader use across growing patient indications. A clinical study by researchers at the University of Insubria in Italy found that Invisalign Palatal Expander, or what we call IPE, was shown to effectively widen the upper jaw by opening a natural growth seam in the palate, achieving bone and bite changes similar to traditional metal Hyrax expander. IPE also delivered more controlled and predictable results than Hyrax. When further considering the greater ability to maintain hygiene and the simplicity many parents desire compared to a Hyrax device, these findings supported the use of IPE as a reliable option for growing patients and highlights its role as an important step toward fully digital orthodontic care. For imaging systems and CAD/CAM services, including iTero, exocad, and X-ray Insights software, Q1 revenues totaled $184 million, up 1% year-over-year and declined sequentially, reflecting expected first quarter capital equipment seasonality. Q1 systems and services year-over-year revenue growth reflects continued adoption of iTero Lumina full systems, service revenues and CPO sales, along with a continued mix shift toward lower-priced scanner offerings, including PC-based configurations, leasing, and rental units. These offerings provide greater affordability and flexibility to doctors in certain markets and practice models. In addition, the number of scanners sold to new doctors increased double-digits year-over-year. For Q1, the total installed base of active scanners exceeded 125,000 globally. In addition, during the quarter, over 12 million iTero digital scans were performed supporting Invisalign, restorative wellness, and numerous other digital workflows and applications. Exocad delivered double-digit year-over-year revenue growth, reinforcing our strategy to integrate orthodontics and restorative dentistry within a customer and patient-centric digital platform. Following the success of our inaugural Invisalign Advanced Restorative Treatment or ART pilot in EMEA, we recently began an Invisalign ART pilot in the U.S., with labs and doctors beginning training in several markets. Invisalign ART integrates with exocad, enabling clinicians and labs to plan tooth alignment ahead of restorative work within the exocad environment without changing the tools doctors and labs already use. We're very excited about this opportunity to enhance the goal of preserving patients' natural dentition as much as possible. ART allows us this by incorporating the prior alignment of teeth into the overall restorative treatment plan, as opposed to the removal or grinding them down before minimally invasive restorative work. It allows us to further expand our reach and offer existing and new products to the large and growing restorative market through lab-based channels. Clear aligner revenue in Q1 was $856 million, increasing 7.4% year-over-year and 2.1% sequentially. Q1 clear aligner volume reached a record 686,000 cases, up 6.7% year-over-year and 1.3% sequentially. On a year-over-year basis, our clear aligners revenues reflect a double-digit volume growth in EMEA, APAC, and Latin America, along with overall stability in North America. Importantly, growth was primarily driven by both submitter expansion and higher utilization across the orthodontist and GP channels and across adult, teen, and growing kid categories. During the quarter, more than 88,000 doctors submitted Invisalign cases globally, a year-over-year increase of 3% or an additional 3,000 orthodontists and GP, driven primarily by increases in APAC and the Americas, led by Latin America. Doctor utilization also increased year-over-year by 3.4%, led by EMEA, Latin America, and APAC. These metrics illustrate the continued adoption and penetration of the Invisalign system through our strategic geographic growth efforts, as well as the meaningful addition opportunities in the large untapped demand for digital orthodontics, both in gaining share in the existing 22 million annual orthodontic case starts and expanding access to care to the more than 600 million potential patients that our digital technology can serve through GP dentists globally. Our DSO channel continued to be meaningful growth driver. In Q1, DSO clear aligner volumes grew double-digit across all regions and represented approximately a quarter of total global volumes. The retail channel continued to be mixed, particularly in the U.S., where our doctor customers reported less patient traffic during the quarter. To drive adoption and utilization across channels, we expect to continue to expanding targeted initiatives focused on affordability, patient conversion, clinical confidence, and practice efficiency. These initiatives are beginning to show traction with GPs, dentists, orthodontists, and DSOs, helping to drive increased engagement and directional growth in case volumes. These initiatives include the Doctor Subscription Program or DSP. We continue to see strong growth from our DSP program, which includes retention and touch-up or relapse cases. DSP touch-up cases continue to grow double-digit year-over-year across regions. DSP was originally launched in the United States in 2023, expanded into EMEA in 2025, and is expected to launch in APAC in Q2 of this year. North America DSP is also supporting early momentum with orthodontic groups and DSOs, helping drive re-engagement among competitive and historically lower-utilizing doctors as pricing simplicity and bundled value resonate across accounts. Patient financing in the United States Healthcare Finance Direct or HFD is now live in over 4,000 offices, enabling patients to pre-qualify for financing before their first appointment and allowing doctors to see these patients directly within our Invisalign doctor site. We saw particularly strong adoption in Q1 among the American Academy of Clear Aligners, or AACA, member practices, where we expanded access to patient financing is helping improve affordability, increase patient conversion, and drive meaningful directional growth in case starts. Beyond AACA, adoption continues to expand across independent practices, multi-site groups, and DSOs. Practices report that HFD simplifies the front office workflows, reduces complexity in payment discussions, and increases staff confidence when offering financing during consultations and special patient events. Prequalification and flexible monthly payment options are helping practices broaden access to care, in many cases, providing affordable options to patients to increase scope and types of treatment, including Invisalign clear aligners. Feedback we've received from offices highlights that the speed of approvals, clarity of options, and prompt funding are shifting conversations away from price and back toward delivering treatment options that match patient needs, while also easing administrative burdens for staff and operating teams. These benefits are proving particularly impactful in multi-practice environments where consistency, simplicity, and scalability are critical. Invisalign Pay, which is available in Brazil with further expansion planned across Latin America, continues to improve affordability and treatment conversion and serves as a proof point for how patient-centric embedded financing can complement our clinical and digital workflows. In Brazil, Invisalign Pay is now used in a majority of Invisalign cases, reflecting strong doctor endorsement and patient adoption. Providers report that financing helps optimize cash flow, reduce friction for patients, and supports reactivation of lower-utilizing providers, reinforcing financing as a meaningful lever for sustained growth across the region. Peer-to-peer mentoring on the clinician-to-clinician mentoring programs connect doctors over a structured 12-month period to build clinical confidence and drive engagement in treatment conversion. These programs are especially effective for accelerating adoption of new technologies and increasing confidence treating kids, teens, and more complex cases. Peer-to-peer programs are active across all regions, and we expect to expand them over the year. These efforts complement our broader engagement strategy, particularly with GPs and competitive orthodontic accounts that benefit from hands-on clinical support and shared best practices. Treatment planning services or TPS. TPS addresses one of the largest barriers to adoption, low clinical confidence and uncertainty around treatment planning, particularly among GP dentists. TPS provides case assessment and treatment planning support through a combination of internal TPS and external TPS partners, enabling doctors to submit cases with confidence. TPS has emerged as a direct go-to-market engine with materially higher utilization among TPS users versus non-users and strong adoption across regions in markets such as Canada. TPS adoption among participating GPs continues to increase, with TPS users consistently outperforming non-users and contributing to low double-digit year-over-year growth in case starts. From a regional standpoint, America's Q1 clear aligner volumes increased year-over-year, reflecting very strong double-digit growth in Latin America, partially offset by a modest but stable year-over-year decline in North America. Latin America delivered record first quarter shipments driven by increased submitters, higher utilization across both orthodontist and GP channels, along with strength across adult, teen, and growing kid categories. In EMEA, Q1 clear aligner volumes grew double digits year-over-year, reaching record first quarter levels led by increases in Iberia, Italy, Nordics, U.K., and also Turkey. Growth was driven primarily by utilization gains across both GP and orthodontic channels and continued strength from adult and growing kid patients. In APAC, Q1 clear aligner volumes also grew double digits year-over-year, with record first quarter shipments for APAC led by China, India, Korea, and Japan. In addition, eight APAC markets had record first quarters, including China, Japan, Korea, India, and Taiwan. Growth was broad-based with the teen and growing kid patients, growing double digits alongside continued growth among adult patients. Overall, while the operating environment remains uneven in some markets, our Q1 results illustrate the resilience of our global business, and we continue to see orthodontics and oral health and digital dentistry as durable long-term growth categories. With that, I'll turn it over to John. Thanks, Joe. Now for our Q1 financial results. Total revenues for the first quarter were $1,040.1 million, up 6.2% from the corresponding quarter a year ago. On a constant currency basis, Q1 revenues were favorably impacted by approximately $44.9 million year-over-year, or approximately 4.5%, in line with our Q1 expectations. Q1 clear aligner revenues were $856 million, up 7.4% year-over-year, primarily due to higher volume, favorable foreign exchange, price increases, and lower net deferrals, partially offset by higher discounts and a mix shift to lower-price countries and products. Favorable foreign exchange impacted Q1 clear aligner revenues by approximately $38.2 million or approximately 4.7% year-over-year. Q1 clear aligner average per case shipment price of $1,250 increased 1% or $10 per case on a year-over-year basis, primarily due to favorable foreign exchange, price increases, and lower net deferrals, partially offset by higher discounts and mix shift to lower price countries and products mentioned previously. Clear aligner deferred revenues on the balance sheet as of March 31, 2026, decreased $77.2 million or 6.4% year-over-year and will be recognized as revenue as additional aligners, also known as refinements, are shipped. As we continue to scale our zero additional aligner configuration and introduce other streamlined configurations with limited or no additional aligners, which do not require revenue deferral because there are no future performance obligations, we expect the overall clear aligner deferred revenue balance to decrease over time. This reflects earlier revenue recognition and cash conversion rather than any changes in free cash flow economics. Q1 systems and services revenues of $184.1 million were up 0.9% year-over-year, primarily due to favorable foreign exchange, higher scanner systems and sales, and non-system sales, partially offset by lower scanner wand sales. Foreign exchange favorably impacted Q1 systems and services revenues by approximately $6.7 million year-over-year or approximately 3.8%. Systems and services deferred revenues decreased $22.4 million or 10.8% year-over-year, due in part to the shorter duration of service contracts selected by customers on initial scanner system purchases. Moving on to gross margin. First quarter overall gross margin was 70.8%, up 1.4 points year-over-year, primarily due to operational efficiencies and higher clear aligner ASP. Q1 overall gross margin was unfavorably impacted by foreign exchange of 0.4 points year-over-year. On a non-GAAP basis, which excludes stock-based compensation, amortization of intangibles related to certain acquisitions, depreciation expense on assets disposed of other than by sale, gain on assets held for sale and restructuring, and other non-GAAP charges, gross margin for the first quarter was 71.8%, up 1.6 points year-over-year. Clear aligner gross margin for the first quarter was 71.6%, up 1.1 points year-over-year, primarily due to higher ASP and operational efficiencies. Q1 clear aligner gross margin was impacted by unfavorable foreign exchange of approximately 0.5 points year-over-year. Beyond mix and cost actions, margin expansion is increasingly driven by lower refinement rates, improved treatment predictability, and higher manufacturing throughput, benefits that scale with volume and data over time. Many of our lower-priced product configurations, such as Comp 3in3 and DSP Touch-Up, include fewer or no additional aligners and require less manufacturing production, which supports gross margins and improves cash conversion despite lower upfront pricing. Because of the clinical capability of the Invisalign system, we are able to offer configurations such as zero AA products that give doctors the ability to use and scale with the Invisalign system and deliver on patient expectations and enable us to more effectively compete with traditional wires and brackets and clear aligner suppliers that we believe primarily compete based on price. Over a year ago, we expanded the Invisalign portfolio to include Comp zero AA configuration, primarily with U.S. DSOs that began piloting in the retail channel in Q1. It's still early, but given results from DSO partners showing Comp zero AA drives adoption by supporting improved efficiency, utilization, and overall practice economics for doctors, we see interest and momentum building around this offering and anticipate expanding it over the year. Systems and services gross margin for the first quarter was 67.2%, up 2.5 points year-over-year, primarily due to operational efficiencies, partially offset by lower ASP. On a year-over-year basis, foreign exchange had no significant impact on Q1 systems and services gross margin. Q1 operating expenses were $594.6 million, up 8.3% year-over-year. Year-over-year, operating expenses increased by $45.6 million, primarily due to legal settlement costs and higher employee compensation. On a non-GAAP basis, excluding stock-based compensation, restructuring, and other charges, amortization of acquired intangibles related to certain acquisitions, and legal settlement costs, Q1 2026 non-GAAP operating expenses were $523.1 million, up 4.5% year-over-year. Our first quarter operating income of $142 million resulted in an operating margin of 13.6%, up approximately 0.3 points year-over-year. Operating margin was unfavorably impacted from foreign exchange by approximately 0.1 points year-over-year. On a non-GAAP basis, which excludes stock-based compensation, restructuring, and other non-GAAP charges, amortization of acquired intangibles related to certain acquisitions, legal settlement costs, gain on assets held for sale, and depreciation of assets disposed of other than by sale, operating margin for the first quarter was 21.5%, up 2.5 points year-over-year. The Q1 2026 GAAP effective tax rate was 24.3% compared to 33.6% in the first quarter of 2025. The first quarter GAAP effective tax rate was lower than the first quarter effective tax rate of the prior year, primarily due to change in our jurisdictional mix of income, lower tax expense related to uncertain tax provisions, lower tax expense recognized related to stock-based compensation, and a decrease in U.S. taxes on foreign earnings. Our Q1 2026 non-GAAP effective tax rate was 20%, which reflects our long-term projected tax rate. First quarter net income per diluted share was $1.57, up $0.31 compared to the prior year. Our EPS was favorably impacted by $0.01 on a year-over-year basis due to foreign exchange. On a non-GAAP basis, net income per diluted share was $2.58 for the first quarter, up 21% year-over-year. Moving on to the balance sheet. As of March 31, 2026, cash and cash equivalents were $1,059.8 million, up $186.8 million year-over-year. Of the $1,059.8 million balance, $206.6 million was held in the U.S., and $853.2 million was held by our international entities. Align maintains a disciplined capital return program. In August 2025, we announced our intention to repurchase $200 million of our common stock under our previously authorized $1 billion stock repurchase program from April 2025. Between August 2025 and January 2026, we repurchased approximately 1.4 million shares at an average price per share of $143.85, completing the $200 million repurchase plan. As of March 31st, 2026, $800 million remains available for repurchase of common stock under our repurchase program. Today, we announced that we expect to repurchase up to an additional $200 million of our common stock over a six-month period beginning on or about May 1, 2026. We believe this action reflects our conviction that Align shares remain attractively valued, supported by improving underlying business fundamentals. Q1 accounts receivable balance was $1,125.1 million. Our overall days sales outstanding was 97 days, flat as compared to Q1 of 2025. Cash flow from operations for the first quarter was $151 million. Capital expenditures for the first quarter were $30.8 million, primarily related to investments in our manufacturing capacity and facilities. Free cash flow, defined as cash flow from operations minus capital expenditures, amounted to $120.3 million. Our financial priorities are centered on disciplined execution and long-term value creation. Through restructuring actions and ongoing efficiency initiatives, we believe we are strengthening Align's cost structure and positioning the business for improved operating leverage as we grow returns. We remain focused on managing input cost pressures, investing for long-term returns, and maintaining balance sheet flexibility to support sustainable margin expansion over time. We also continued to return capital to shareholders in Q1 through disciplined share repurchases, supported by our strong balance sheet and cash flow generation. With Q1 2026 results as a backdrop, we remain focused on executing our strategic growth initiatives and building on the recent quarterly results. At the same time, there is uncertainty and the potential for adverse impacts on patient traffic, consumer demand, and shipping and freight resulting from ongoing military action in the Middle East. With respect to the Middle East, we continue to monitor developments closely. While our doctor customers in MEA have noted some impact on patient traffic and conversion, the overall effect on our EMEA results was immaterial in the first quarter. Given the ongoing uncertainty, we have taken a prudent approach in our second quarter outlook by assuming some impact on both clear aligner and scanner demand. Beyond the second quarter, it becomes increasingly difficult to predict how the conflict in the Middle East will affect our business, particularly in the event of further escalation, sustained constraints on oil and gas supplies, or broader softening in consumer and patient sentiment. As we look to Q2 and the remainder of 2026, assuming no circumstances occur beyond our control, such as additional ramifications as a result of the aforementioned military action in the Middle East, beyond what we have already assumed, adverse foreign exchange fluctuation, changes to currently applicable duties, including tariffs or other fees that could impact our business, our outlook is as follows. We expect Q2 2026 worldwide revenues to be in the range of $1.04 billion-$1.06 billion, up approximately 3%-5% year-over-year. We expect Q2 2026 clear aligner volume to be up sequentially and year-over-year, and clear aligner average selling price to be flat sequentially and year-over-year. We expect systems and services revenues to be up sequentially. We expect our Q2 2026 GAAP operating margin to be approximately 16.4% and non-GAAP operating margin to be approximately 21.5%. For fiscal 2026, we remain confident in our outlook that we provided previously and reaffirm our full year fiscal 2026 guidance as follows. We expect 2026 worldwide revenue growth to be up 3%-4% year-over-year. Our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook. We expect the impact of foreign exchange to moderate in remaining quarters, trending toward the full year assumption of approximately 100 basis points. We expect 2026 clear aligner volume growth to be up mid-single digits year-over-year. We expect 2026 GAAP operating margin to be slightly below 18% and approximately 400 basis point improvement over 2025, and non-GAAP operating margin to be approximately 23.7%, a 100 basis point improvement year-over-year, consistent with our previous guidance. We expect our investments in capital expenditures for fiscal 2026 to be $125 million-$150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity, as well as maintenance. As we consider our full year 2026 guidance, we want to be clear about our approach. While we are encouraged by our first quarter performance and the outlook for the second quarter, we are maintaining a prudent stance with respect to the full year. The macroeconomic environment remains uncertain. We believe it's appropriate to maintain the guidance framework established at the beginning of the year. We remain focused on disciplined execution in a dynamic environment, and we will provide updates as visibility improves over the course of the year. As mentioned, we expect to repurchase an additional $200 million of our common stock over a six-month period commencing on or about May first. With that, now I'll turn it back to Joe for final comments. Joe? Thanks, John. Stepping back, we're pleased with our Q1 performance and consistency of execution we're seeing across the business. Growth this quarter was broad-based across region, patient segments, and channels, supported by record submitters for our first quarter and a higher utilization within our existing customer base. We also continue to see strong momentum from our Doctor Subscription Program, with Invisalign touch-up and retention products growing double-digits year-over-year. We continue to observe the dental needs we address, such as orthodontics, restorative diagnostics, oral health, and digital dentistry, and durable consumer demand, which we expect will continue to drive our long-term growth expectations. Importantly, teens and growing kids remain a central driver of Invisalign demand and long-term opportunity. In Q1, we saw continued strength in teens, kids across key international markets, supported by adoption of Invisalign First, palate expansion, and mandibular advancement. These products are helping doctors treat a broader range of growing patients with Invisalign aligners and allowing us to compete more effectively against traditional wires and braces at earlier stages of treatment. We have moved forward in 2026, our focus is on maintaining discipline as we invest strategically in innovation and growth opportunities. That includes advancing digital dentistry through the Align Digital Platform, scaling our iTero Lumina ecosystem, expanding internationally with localized strategies, and continuing to build differentiated portfolio for teens and growing kids. While macroeconomic conditions remain dynamic, we continue to benefit from long-term investments in AI-enabled treatment planning and integrated digital workflows that improve predictability, efficiency, and scalability across the business. These capabilities are designed to increase planning consistency and throughput and support more predictable outcomes for doctors, helping us operate more efficiently across volume environments. A key part of strategy is expanding the role Align plays in oral health and restorative dentistry. Increasingly, doctors are using our platform not just to align teeth, but to identify oral health issues earlier and integrate orthodontics into comprehensive treatment plans. By connecting iTero, exocad, and Invisalign through digital workflows, we're helping doctors deliver better long-term oral healthcare outcomes for patients, especially as they transition from orthodontic to restorative care. Our vision is to make tooth alignment using clear aligner therapy the standard of care by revolutionizing traditional treatment modalities, appliances, tools, practice workflows, and businesses, and go-to-market models across the dental industry. By focusing on oral health and the benefits of tooth alignment as part of orthodontic restorative treatment, we're developing products and technologies that are helping doctors deliver the best treatment experiences and clinical outcomes for their patients. To date, nearly 23 million patients worldwide have been treated with the Invisalign system, including approximately 7 million teens and kids. Every case adds to our proprietary clinical dataset generated within our integrated Align Digital Platform. This dataset continues to fuel our innovation and ability to scale across orthodontics, oral health, and change lives for our doctors, customers, and their patients. Innovation remains central to our strategy, but always with a clear purpose, helping doctors deliver better outcomes, improving efficiency, and enhancing the patient experience. Looking forward, that includes continued progress in direct fabrication, which we are advancing deliberately and in phases with quality and reliability as our guiding principles. While still early, direct printing unlocks new design flexibility, strengthens our long-term cost structure, and allows us to operate more cost-effectively. We begin initial limited market releases of direct 3D-printed attachments and retainer products in Q1 and look forward to updating you further as direct printing programs progress. Our objectives are straightforward: to keep earning trust through clinical leadership, thoughtful innovation, and consistent execution quarter after quarter. With that, I thank you for your time today, and now I'll turn it over to the operator. Operator? Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star one one if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Daniel Grosslight with Citi. Your line is open. Hi, guys. Hi, Daniel. Thanks for taking the question in. Hi, congrats on another strong quarter here. Thank you. I wanted to focus on the cadence of profitability for the remainder of the year. Obviously a very strong beat this quarter. 2Q looks about flattish sequentially, which implies a fairly significant step up in the second half. Can you just comment on the underlying assumptions for the cadence of profitability this year? Particularly, I know there's a lot of uncertainty around the Middle East, but how much impact around the conflict are you assuming in 2Q? Kind of what are the assumptions around the second half? Thanks. Yeah, Daniel, this is John. We're pleased with our profitability and what we saw in the first quarter. It's really a reflection of what we've been able to do with a lot of the restructuring and other changes that we made last year. Both from a COGS standpoint and an OpEx standpoint really starting to take hold in the first quarter. We're pleased with that. We expect that profitability and the productivity to continue as we go through the year. That's typically the cadence that we have as we go quarter-over-quarter. We see that profitability and especially as volume increases as well, we see that profitability come through as well. Good start to the year, and we look forward to the rest of the year playing out as expected. Thank you. Thank you. Our next question comes from Glen Santangelo with Barclays. Your line is open. Yeah, thanks for taking my question. Just two quick ones from me. Hey, Joe, I want to touch on this Middle East situation. I know you guys don't break it out specifically, but we sort of place it in the mid to high single digit, you know, range with respect to revenues. Can you confirm, is that in the right zip code? I'm just kind of curious, you know, if there's been any impact on the iTero manufacturing facility there, and if you have any insight, you know, on how that business trended in April, because I think that would be helpful for us sort of assessing the balance of the year. Then I just have a follow-up on share repurchase. It's kind of interesting to me, you know, that you completed the $200 million in January, and you said you're gonna start on the next $200 million over the, over the next six months. I'm kinda curious, given the transient nature of the conflict, like why would it make more sense to kind of lean in here more heavily through that $800 million in, you know, in 1Q, for example? You know, given you have over $1 billion in cash on the balance sheet. Any, any thoughts on the timing of your share repurchases would be helpful. Thanks so much. Glen, I can start with answering some of these questions. This is John. Middle East, you're right, it's in the Middle East part of our numbers, to the company is in the single digits. There's some impact that we saw, but it's pretty minimal in March, and our reflection is in the second quarter and kind of beyond based on that. In terms of iTero, Joe, you wanna- On the iTero side, you know, Glen, honestly, we didn't have any disruption from a product production or shipment standpoint. That team is very rigorous over there. We understand when to move equipment well and whatever. I'm not saying that's always perfect, but the team has responded well, and we didn't have any really impact on the business in the first quarter. On the share repurchase, you're right. We saw the $200 million that we just completed and now an additional $200 million. Remember, it comes down to U.S. cash and, you know, about 20% of our cash is in the U.S. versus out of the U.S., so we have that constraint as well. It's part of our overall plan that we have. We wanna grow the business as fast as we can, use our cash to be able to help do that. We have a good business model that generates a lot of cash. You saw that reflection in the first quarter. We do the buybacks to be able to put cash back to our shareholders. That's been the plan that we have and it's a disciplined approach that we've taken and we've seen that investments made back in the business that way. Okay, thank you. Thanks, Glen. Thank you. Our next question comes from Brandon Vasquez with William Blair. Your line is open. Hey, everyone. Thanks for taking my call. Hi, guys. Thanks for taking the question and congrats on a quarter here, good quarter here in an uncertain macro. I wanna follow on the Middle East question, but actually not like the specific exposure to the Middle East, but you guys had kinda called out, you know, some prudence around the guidance just for the uncertainty around the Middle East situation. I assume you guys are talking about potential, like, impacts to consumers, things like that. Maybe just talk us through what are the potential risks, what is the prudence that's being baked into the guidance, just so we understand, if we do have a prolonged situation in Middle East, what's the wiggle room within guidance and where you guys would expect across the P&L there could be an impact, right? It could be in revenue. Then maybe the other one I'll ask on margins related to this is like, are you guys exposed to resin costs that we keep seeing headlines about, rising from the Middle East? Thanks. Brandon, this is John. There's a minimal direct impact. Like I said, the Middle East part of our business is actually relatively, you know, small in the single digits as a comparison to the rest of the business. It's really just the higher fuel prices that you see that every country is seeing now as a result of this and what it means for their inflation and what they have to be able to, you know, purchase other products, including ours. We've done a lot to be able to help drive the conversion. Much of what we talked about was, you know, helping potential patients with financing and helping doctors to be able to provide financing and so on, we'll continue those efforts. It's really more around something that's prolonged with higher inflation and higher share of wallet that goes other places that puts us from a forecast standpoint, just trying to be as prudent as possible. Good? Yep. Next question, please. Thank you. Our next question comes from Jon Block with Stifel. Your line is open. Hey, guys. Good afternoon. Jon. Two for me, maybe I'll break them up, but just on the first one, you know, Joe. Hey, Jon? Hey, Jon, you sound really low. Can you speak up? Okay, that's better. Is that better? All right. Sorry about that. Two questions, I'll try to break them up and I'll yell on top of that. You know, Joe, trends are always really important, but certainly top of mind with investors with, call it, the current state of the globe and what's going on. I'm wondering if you can give us any color just on how things trended or call it like closed in the first quarter, you know, call it more the month of March, and then any early 2Q trends to call out, you know, for the first month that you experienced in the month of April. Hey, Jon. Look, I mean, overall, when I look at the quarter, I look at it, you know, globally and all. It's pretty consistent across the board when we look month-to-month. You know, obviously iTero is, you know, kind of back-end loaded obviously in the way capital equipment purchases go. But when we looked at Invisalign, we felt good about Invisalign all country and country and the consistency of what we saw. And no, I would say overall pockets of weakness that was, you know, different than what we experienced in the fourth quarter. Overall, we felt good about that, you know, and we felt good is how we enter the second quarter too. John, anything to add? Well, I mean, there's gonna be puts and takes as you go through any quarter. On balance, you know, we kind of take a balanced view of that from a guidance standpoint and reflect that. Yeah. Okay. John, maybe the second one, hopefully you can hear me okay, just to follow up. You mentioned zero refinement or no AA, it seems like that rollout's gonna broaden. You talked about, you know, seeing some good proof points with some of the accounts that had it, like notably the DSOs. What's the assumption in 2026 guidance? Have you built out any, call it, like, incremental contribution from zero refinement as that rolls out more broadly for the balance of the year? The tack on to that, certainly related is, in the wording on the 2Q guidance, you mentioned prudence, you know, due to what's going on in the Middle East for 2Q. To be clear, have you seen it yet as in the month of April, or are you building that in in case it's on the come? Thanks for your time. Yeah. When we see the zero refinement, it really not in a big way in our forecast for the year. We're very pleased with what's happening and how this rollout happens. Again, doctors have to get comfortable with these products. They wanna see results for themselves. They wanna get that clinical confidence so that they can increase adoption. It's a rollout, but what we do see is doctors started to utilize it more and more. We're pleased with that, but we're not expecting much just because of the time nature of the rollout for this year. When we look at, you know, the overall that we see, we're pleased with that. I think from a guidance standpoint, we, you know, we've been able to see the puts and takes of the first quarter, you factor that into April, and that's what's gone into our guidance. I would say, you know, it's a balanced view of all those puts and takes. I wouldn't say it's overly cautious. It's just a reflective of what we expect and from a guidance standpoint for Q2 and then the reflection of maintaining our overall for the year. Perfect. Thanks, guys. Yeah. Thanks, Jon. Thank you. Our next question comes from Elizabeth Anderson with Evercore ISI. Your line is open. Elizabeth- Hi, guys. Good afternoon, and thanks so much for the question. Maybe a two-parter from me. One, can you go into a little bit more detail about your sort of, like, change in ASP view? It just seems a little bit more positive than what you're saying. Just wanted to, like, parse through that in a little bit more detail in terms of, like, mix or, or FX and that kind of thing. Two, as you think about the margin opportunities in 2026, do you see any changes in those buckets versus sort of what you were thinking about later last year? Are there any incremental opportunities? Any more details on that would also be helpful. Thank you. Elizabeth, on the ASP, you're right. You know, there are moving pieces, certainly with that we called out, foreign exchange, and we talk a lot about country mix and product mix, and certainly those play through our ASPs. On an overall basis, you know, when we look year-over-year, it's a $10 increase, which was good. It was as expected. Even on a quarter-over-quarter basis, $10. That's kinda how, you know, when we look forward, you're still gonna have that country mix and product mix, but, you know, a lot of times things are offsetting, and we see that as a result. ASPs stable. It is when we see some of those lower stage products, like we talked about with the no AA or some of the moderate products, they come at a higher gross margin. We see that coming through. First quarter is a good example of that. As you increase your no AA products, as you increase your moderates with no AAs, the cost to serve is just less. We end up with being able to see improvements in gross margin. As we go through the year, we should expect to see that in terms of our product mix. Improvements in gross margin, we should continue to see productivity. We made a lot of cost actions at the end of last year. We're seeing good effects of those cost changes, whether it's getting closer to our customers. In some cases it's just equipment that's more efficient, drives productivity. Certainly as we have more volume, we get that leverage as we go through. That's how we expect things to play out this year. So far in the first quarter was a good start. Next question, please. Thank you. Our next question comes from Jeff Johnson with Baird. Your line is open. Hey, Jeff. Hey, guys. Hey, Joe. Hey, John. Good afternoon, everyone. Joe, I wanted to start maybe two questions, but let me start just on kinda your North American case growth. I think you've mentioned it was down a little bit year-over-year. Every other market, I think up double digits, although correct me if I'm wrong on the every other market comment part of that. What do you think the difference is in the U.S. or North America versus rest of world? Is it just all consumer? Is it, is it competition? What is driving such a stark contrast? I know that's not really different over the last several quarters or handful of quarters. Just what's your updated thought on how we get that kind of North American number back to, you know, something that can be contributing at least to the double-digit elsewhere? Yeah, that's a good question, Jeff. You know, first of all, I'd say the competition aspect hasn't changed. Just to take off on Jon's question a second ago, you know, that no AA allows us to play offense out there, and we're playing more offense in that sense, and we feel good about it overall. I'd say, you know, broadly, I was actually anticipating this question, Jeff, is that it's broadly a macro, the way I look at it, versus here in the rest of the world. It's almost like you'd put the macro in Asia being the best. Secondly, Europe's spotty. You know, Europe's a lot of different countries, but you can see the, you know, the countries we highlighted like Iberia, U.K., and different parts of EMEA is growing pretty well. When you look at the Americas, you know, which includes Latin America, did extremely well. We're seeing some improvement in Canada right now and some improvement in the U.S. You know, overall I feel, you know, good overall, but that variable you're looking for, Jeff, has been U.S. macro as far as I can tell. All right. Fair enough. Maybe just a two-parter on no AA. One, you know, I think last quarter you had talked about, you know, going into 2Q being pretty complete with the rollout of zero AA across most markets. It sounds like maybe that has a little extended launch timeline now. Just wondering if anything has changed there. On some of the LMR, the limited market release you did of no AA last year, any early evidence of, you know, whether these docs who are using no AA are still doing one or two refinements in an a la carte way? Are they using DSP to pay for it? Just how to think about kind of years, you know, six months through year two of those no AA cases. Do additional revenues come in over time, or not on that product? Thanks. Yeah. John, what do you see on that? On the no AA, when we look at it's being available to many doctors, it's just a question of do doctors wanna utilize it and start to utilize it right away. There's a roll-up based on the doctor's preference in terms of how much they wanna utilize and that ramps up. In success, when doctors start to see the benefits of it, their clinical confidence and that they can treat patients even on complicated cases with no refinements or maybe one refinement, then they continue to do more and more. That's what we've seen in our data as we've gone. Now, as it's been out for over a year in many markets, now you see doctors saying, "Okay, they need to purchase a refinement," or they might be, they might have something that they need to add to the case to make sure it can finish properly. You start to see some of the refinements come later. That was our expectation when we started this, that there would be an adoption and those doctors then start to use it. They wanna see what refinements they need, and now we're starting to see some refinements. It really helps doctors be able to keep that initial case cost lower for them so that they can fit that into their practice and, you know, see those patients as they would want. Good adoption that we've seen across the globe. You're starting to see refinements come in, but it's pretty much as expected. We just wanna keep rolling this out and getting doctors more and more options. You know, Jeff, I think just to add something to what John said. I think one is over the years, the doctors have gotten more and more confidence in our product lines. I talked about TPS and MyScript and different things that we do to train doctors. I think it gives them much more confidence to go out there with no AAs. Secondly is it aligns doctors' economics along with our economics too, and so it helps to bring the two of us together in a much better way. Understood. Thank you. Thanks, Jeff. Next question. Thank you. Our next question comes from Michael Cherny with Leerink Partners. Your line is open. Good evening. Thanks for taking the question. I know we've been talking a lot about macro, obviously not something you can control, but you can control some of the reaction to macro. As we sit here wondering what's gonna happen with the Middle East, I appreciate all the color in terms of what's baked into the guidance on the top line as well as the COGS side. How are you thinking about the OpEx spend and the push and pull to make sure that the appropriate level of demand is being stimulated and especially in a world where you do have a broader product portfolio? Is there any color you can give us in terms of the scenario analysis that could lead to ongoing margin upside Michael, this is John. We're constantly looking at the understanding the macro and then our investments into that macro. It's not one size fits all. Some countries there's maybe not as much awareness, and we're at different points in the overall journey of Invisalign there. You make different investments compared to maybe the bigger markets like you see within the U.S. We're very attuned to making changes and being able to re-reflect what's working and what might not be working, what macro is happening in certain markets versus not, and we'll make adjustments to that, ultimately wanting to get the best return on investment. When we take that approach, we can manage that in the short term to be able to hit the expectations we have. Of course, we want to be able to drive the category and grow and that's something that we make maybe on a more longer term basis. We're really looking at what's happening kind of market by market and even within the markets, whether you advertise at the high level or more at the customer level. We're making those trade-offs and doing this active conversion that we've talked about to really help doctors. Thank you. Our next question comes from Jason Bednar with Piper Sandler. Your line is open. Hi, Jason. Hey, good afternoon. Hey, thanks for the questions. Nice start to the year here. Wanted to follow up, I think on Jeff's question earlier on, you know, focusing on here on the U.S. You know, good to see a lot of the record quarters in the international side. The U.S. market seems like maybe it's had some green shoots, at least in some of the data that we look at, maybe more focused on the orthodontic channel. Is that consistent with what you're seeing too? Just sorry if I missed it. Are you seeing any differences in your business when you look across that team-focused U.S. ortho channel relative to more of the retail adult-oriented U.S. GP segment? You know, just deciphering your question, Jason, I'd say when you look at like a DSO approach versus a retail approach, we obviously get a broader signal on a DSO because we're looking at a lot more, you know, patients and doctors. The DSOs traditionally have, you know, they have really good skills to go out and recruit, finance in different areas. On the retail doctor side, you know, when I talk about HFD and those different things, those are types of systems that we're bringing together to address things that we feel hurt, you know, our retail doctors at times, inability to be able to finance or to make quick decisions in financing with patients in different areas, how we go about that as a business overall. I'd say the macro is there, but I feel good about what we've been offering from a product standpoint, we do from a financing standpoint and delivering it. You know, we changed our organization to move to call on both orthodontists and GPs going forward. That's given us more coverage out there to be able to deliver this kind of message and support to our doctors too. All right, got it. Just as a follow-up, shifting over to the different side of the globe. China to us is a bit of a surprise, a good surprise. Double-digit growth, record first quarter you referenced. Are you comfortable saying demand is returning to normal across China? Can you remind us what's embedded in your full year guide for China volumes and revenue this year? I think anybody in business has to be careful of using the word normal in China, okay? It's just, I think you take that business almost on a year to year, sometimes quarter to quarter basis. We have a great team there, Jason. They execute well. Julie Tay, that ran that business has been moved, and he runs all of Asia right now. We have a great team there that helps to drive that. It's a very dynamic marketplace. We're well-positioned with our manufacturing, well-positioned with what we offer over there. I would never say it's always business as usual in China. It's the most competitive market in the world. All right. Thank you. Thank you. Our next question comes from Steven Valiquette with Mizuho Securities. Your line is open. Yeah, thanks. Good afternoon. Hey, guys. Hey, everybody. This question has been, I guess sort of half-assed so far. Just wanted to get a little more color around this 2Q guidance. It seems probably stronger than what probably most people were expecting, which is certainly positive. As far as just kind of the geographic mix across that, should we assume generally the same trends, you know, stronger in international than maybe, you know, America is a little more, you know, I guess you're characterizing as stable in particular. Also, I think, you know, for just North America in particular, last year you talked about this ratio of patients, you know, getting scans versus patients starting treatment kind of being off a little bit. Have you been able to at least close the gap on that, across, you know, a lot of geographies, especially on the back of some of the patient financing programs you have in place? Thanks. Yeah, Steve. When we think about Q2, I think the growth that we've seen is pretty consistent or our expectation is pretty consistent to what we've seen. We would expect international to grow faster for many of the reasons that we spoke about. We've seen that for a number of quarters now compared to North America. That would be our expectation for Q2. I would say just on the conversion piece of it, that dislocation we saw, you know, in the second quarter of last year, you know, and some of that as it played out, went through the quarter, we saw that dislocation. It really has more or less returned to normal, really since that second quarter. We haven't seen some of that dislocation as we've gone through, which is, which is good. We want to be able to drive, you know, drive our volume, sell to more and more doctors and increase the utilization, and we want that conversion to be as active as possible. We're trying to make that happen and therefore more as predictable as possible. You know, we've been able to see that and the expectation is it continues. Okay, that's perfect. Thanks. Thanks, Steve. Thank you. Our next question comes from Erin Wright with Morgan Stanley. Your line is open. Great, thanks. Another question on sort of the North America or U.S. market, what are you seeing in terms of the gauge data, like when it comes to the broader growth trends, and then what you're seeing in terms of growth across brackets and wires versus clear aligners in the market, just more broadly? A follow-up on zero or no AA. I guess when could this move the needle for you? It sounds like you're not expecting much this year, or maybe you're just leaving that for upside in the guide. I guess, can you remind us the economics for you and can you quantify also that relative margin profile for the offering? Thanks. Maybe I can start with the AA, or the zero product, zero AA product. It continues to ramp, as we said. It started more on the DSO side. Now it's getting more and more retail doctors, we'll play that out. Look, as that adoption happens and it drives incremental cases, that would be upside compared to what we've expected for the year because, again, it's a slow gradual adoption. If doctors adopt faster and that's what they want to use, then great. In terms of the revenue recognition. We don't have to defer revenue on that, it's basically revenue neutral kind of in that current period. Of course, there's additional refinements that come later that we'll get that revenue as that comes later. You know, when we think of those lower or no AA product, the gross margin is excellent for us. It's accretive for us as a business. We're starting to see that in more and more of our results. You know, if you look back the last couple quarters, including this first quarter, you start to see some of the benefits in there, and it's very efficient for us 'cause it's one, you know, set of treatment planning, one manufacturing, one shipment, and you're kinda done with it unless there's a refinement that's needed. And then the most important part of it is it fits with how a doctor might wanna practice, where they don't wanna pay as much upfront. They wanna look at it maybe paying as you go and the no AA product gets to that. Back to your question, Joe, on the U.S. marketplace, particularly wires and brackets and, you know, ratios with clear aligners. I tell you gotta be careful with the data that you gather out there today and where it's coming from. We find there's a pretty big delta in that data overall. What I'd say is I feel good about our team play overall because with Mandibular Advancement with Occlusal Blocks, Invisalign First that I referenced in my script, and also IPE, we're doing better and better on that preteen area because, you know, what we're offering is so much better than what the traditional kind of appliances were to be able to do that, and we see good progress in that area. Overall, I wouldn't say a whole lot of change, over the quarters in the U.S. orthodontic market, wires and brackets versus aligners, except for what we're seeing in the preteen side. It's been pretty substantial. Thanks, Erin. Next question, please. Thank you. Our next question comes from Kevin Caliendo with UBS. Your line is open. Hey, guys. Thanks for getting me in. I appreciate it. I have two, if I can. First one is with all the questions around resin and oil, can you just remind us, you know, what percentage of your COGS are resin, and what would be the impact, you know, on direct fab in terms of reducing those costs, like the potential opportunity there? Just trying to think about this as an overhang. Then the second question is more I just wanna make sure I understand the commentary broadly about your guidance. In essence, what you're doing is you're taking the trends that you've seen in 1Q and into April. You're sort of running those for the full year, adding on some kind of undisclosed amount of prudence with regards to the macro and the war and everything else. Is that fair way to describe it? Thanks, guys. That's a fair way to describe it, Kevin. In terms of the guidance, it's, you know, like, you're gonna have puts and takes as you go through the quarter. We net those together, put that into a Q2 and total year. That's an accurate way to view that. In terms of oil prices, there's really two effects that can affect our business, you know, from that standpoint on a direct basis. One is the actual material costs. Say about 25% of our COGS is kind of the resin plastics. There's a lot of contracts that we have where we have, you know, fixed amounts, that there's not a lot of room for negotiation in terms of inflationary effects that we, that we take. We feel we're pretty protected on that. The other piece might be on freight and logistics, and again, we're pretty controlled on that as well. Not to say that there's not some impact that we've seen from higher costs related to some inputs, but it's been manageable, and we managed it in the first quarter, and I expect to be able to manage it going forward. Hey, Kevin. Joe on the direct fab side. I mean, you called out, there's an obvious aspect when you direct print. You don't have the 95% kinda scrap base that you use on our current vacuum forming piece. That's always there. You know, our feed stream is more of a natural feed stream. There's not really a feed stream from a petrochemical standpoint, it helps isolate you overall. Remember, I mean, that play, it's a great thing about that on direct fab, is it will help us significantly in the sense of efficiency in that way. How you can make an aligner and the flexibility to make it and variable wall thickness and being able to be able to design aligners to each individual cases to an extreme we could never do before is still the primary driver. You do have these auxiliary areas that really help in the sense of how the resin's obtained and how it's used. Great. Thanks, Kevin. Next question. Thank you. Our final question comes from Michael Ryskin with Bank of America. Your line is open. Hey. Thanks, guys. Thanks for squeezing me in. I'll try to be quick. One is, just following up on, I think, Elizabeth's question on ASPs. In the past, I think you talked about a 1% to 2% decline in ASPs for the year. You know, your $12.50 in one Q, I think you pointed to around $12.50 two Q, implies still a little bit of a step down three Q, four Q. Is that still in the guide? I think it is, I just wanna confirm you didn't call out the full year ASP dynamic. Yeah, Michael, the 1%-2% decrease on a year-over-year basis is our expectation. You are going to have that mix that we talk about, whether it is product or country mix, that plays out to each quarter and throughout the year. Okay. Then quick follow-up if I, if I may. You know, another question earlier asked sort of about U.S. versus OUS and some of the, you know, why is U.S. just not quite at the same level as the others. You talked about the macro. I'm gonna ask it a different way. You know, the DSO versus retail channel, is that some of the same dynamics? I know, you know, retail's obviously been weaker. DSO's been a strong point for a while, so it's nothing new. Just is that sort of the same answer of macro and just harder to push that through, or is there anything new that's impacting that channel? Thanks. Yeah, no change to what we've seen, Michael. We're very pleased with the DSO growth, it continues to be, in many places, double-digit growth. That's a reflection of really those groups taking a lot of the tools that we offer and bring together, whether it's the scale, the technology, and the brand. They do a great job of bringing it all together and really being much more active to try to drive that conversion with their potential patients. That plays out, and that's the force multiplier that we talk about. You just don't see that as much, at least on a consistent basis, on the retail side. We're working to try to get those retail doctors to operate more like some of the DSOs, broadly, it plays out as we've seen. It's up to us to try to get after those retail doctors with our sales force, with the technology, with the marketing and so on, to try to get them more active. Awesome. Makes sense. Thanks a lot. Thanks, Mike. Thanks, Mike. Thank you. We have reached the end of our question and answer session. I will now turn the call back over to Shirley Stacy for closing remarks. Great. Thank you everyone for joining us today. We look forward to meeting you at upcoming conferences and industry meetings, including the AAO meeting in Orlando this Friday. If you have any follow-up questions, please contact investor relations. Have a great day. Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participating.

Speaker 14: Greetings. Welcome to the Align First Quarter 2026 earnings call. At this time, all participants are in 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. Greetings. greetings Welcome to the Align First Quarter 2026 earnings call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation . Please note this conference is being recorded. welcome to the align first quarter 2026 earnings call. at this time, all participants are in 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. i will now turn the conference over to your host shirley stacy with align technology You may begin. you may begin

Speaker 15: 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 conference call is Joe Hogan, President and CEO, and John Morici, CFO. We issued first 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. Good afternoon, and thank you for joining us. good afternoon and thank you for joining us I'm Shirley Stacy, Vice President of Corporate Communications and Investor Relations. i'm shirley stacy vice president of corporate communications and investor relations Joining me for today's conference call is Joe Hogan, President and CEO, and John Morici, CFO. joining me for today's conference call is joe hogan president and ceo and john morici cfo We issued first quarter 2026 financial results today via Business Wire, which is available on our website at investor.aligntech.com. we issued first 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. 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 as described in more detail in our more 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. 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. 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 as described in more detail in our more recent periodic reports filed with the Securities and Exchange Commission, available on our website and at sec.gov. these forward-looking statements are only predictions and involve risks and uncertainties as described in more detail in our more 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. 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 GAAP to non-GAAP reconciliation, if applicable, and our first 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 Technology's President and CEO, Joe Hogan. Joe? We have posted historical financial statements with corresponding reconciliations, including our GAAP to non-GAAP reconciliation, if applicable, and our first quarter 2026 conference call slides on our website under quarterly results. we have posted historical financial statements with corresponding reconciliations including our gaap to non-gaap reconciliation if applicable and our first quarter 2026 conference call slides on our website under quarterly results Please refer to these files for more detailed information. please refer to these files for more detailed information With that, I'll turn the call over to Align Technology's President and CEO, Joe Hogan. with that i'll turn the call over to align technology's president and ceo joe hogan Joe? joe

Speaker 8: Thanks, Shirley. Good afternoon, and thanks for joining us today. On today's call, I'll start with an overview of our first quarter 2026 results and discuss performance across our two operating segments, Clear Aligners and Systems and Services. John will walk us through our financial results and outlook for Q2 2026. After that, I'll come back to highlight a few key takeaways before we open the call for questions. Thanks, Shirley. thanks shirley Good afternoon, and thanks for joining us today. good afternoon and thanks for joining us today On today's call, I'll start with an overview of our first quarter 2026 results and discuss performance across our two operating segments, Clear Aligners and Systems and Services. on today's call i'll start with an overview of our first quarter 2026 results and discuss performance across our two operating segments clear aligners and systems and services John will walk us through our financial results and outlook for Q2 2026. john will walk us through our financial results and outlook for q2 2026 After that, I'll come back to highlight a few key takeaways before we open the call for questions. after that i'll come back to highlight a few key takeaways before we open the call for questions We're pleased to report another better-than-expected quarter in Q1. Clear Aligner volumes from both the GAAP and non-GAAP operating margins exceeded our outlook. These results reflect continued execution against our strategic priorities and the resilience across our global business. We delivered first quarter revenues of $1.04 billion, up 6.2% year-over-year, driven primarily by high Clear Aligner volumes and increased ASPs. We're pleased to report another better-than-expected quarter in Q1. we're pleased to report another better-than-expected quarter in q1 Clear Aligner volumes from both the GAAP and non-GAAP operating margins exceeded our outlook. clear aligner volumes from both the gaap and non-gaap operating margins exceeded our outlook These results reflect continued execution against our strategic priorities and the resilience across our global business. these results reflect continued execution against our strategic priorities and the resilience across our global business We delivered first quarter revenues of $1.04 billion, up 6.2% year-over-year, driven primarily by high Clear Aligner volumes and increased ASPs. we delivered first quarter revenues of $1.04 billion up 6.2% year-over-year driven primarily by high clear aligner volumes and increased asps Clear aligner shipments reached a record 686,000 cases, increasing 6.7% year-over-year, reflecting double-digit growth across our international businesses and continued stability in North America. Growth was broad-based across customer channels, with shipments to orthodontists up 7.4% and GPs up 5.6% year-over-year, along with solid momentum across adult, teen, and growing kid patient categories. Dental and orthodontic service organizations continue to be force multipliers in every region, driving global double-digit clear aligner volume growth during the quarter. Clear aligner shipments reached a record 686,000 cases, increasing 6.7% year-over-year, reflecting double-digit growth across our international businesses and continued stability in North America. clear aligner shipments reached a record 686,000 cases increasing 6.7% year-over-year reflecting double-digit growth across our international businesses and continued stability in north america Growth was broad-based across customer channels, with shipments to orthodontists up 7.4% and GPs up 5.6% year-over-year, along with solid momentum across adult, teen, and growing kid patient categories. growth was broad-based across customer channels with shipments to orthodontists up 7.4% and gps up 5.6% year-over-year along with solid momentum across adult teen and growing kid patient categories Dental and orthodontic service organizations continue to be force multipliers in every region, driving global double-digit clear aligner volume growth during the quarter. dental and orthodontic service organizations continue to be force multipliers in every region driving global double-digit clear aligner volume growth during the quarter We remain encouraged by how naturally our digital platform fits with DSO operating models and how it continues to benefit customers and patients and support both Invisalign adoption and increased iTero scanner utilization. Q1 highlights the continued strength in Invisalign demand across age groups and geographies, even amid varying macro conditions. We remain encouraged by how naturally our digital platform fits with DSO operating models and how it continues to benefit customers and patients and support both Invisalign adoption and increased iTero scanner utilization. we remain encouraged by how naturally our digital platform fits with dso operating models and how it continues to benefit customers and patients and support both invisalign adoption and increased itero scanner utilization Q1 highlights the continued strength in Invisalign demand across age groups and geographies, even amid varying macro conditions. q1 highlights the continued strength in invisalign demand across age groups and geographies even amid varying macro conditions For Q1, 449,000 adults were treated with Invisalign, up 7.8% year-over-year, reflecting strong growth across both orthodontist and GP channels in all regions, led by EMEA, APAC, and Latin America. Teens and growing kids continue to represent the largest orthodontic patient opportunity globally. In Q1, 237,000 teens and kids started Invisalign, up 4.8% year-over-year, led by China and Latin America. Growth was supported by continued adoption of Invisalign First, the Invisalign Palatal Expander, and Mandibular Advancement with Occlusal Blocks, reflecting broader use across growing patient indications. For Q1, 449,000 adults were treated with Invisalign, up 7.8% year-over-year, reflecting strong growth across both orthodontist and GP channels in all regions, led by EMEA, APAC, and Latin America. for q1 449,000 adults were treated with invisalign up 7.8% year-over-year reflecting strong growth across both orthodontist and gp channels in all regions led by emea apac and latin america Teens and growing kids continue to represent the largest orthodontic patient opportunity globally. teens and growing kids continue to represent the largest orthodontic patient opportunity globally In Q1, 237,000 teens and kids started Invisalign, up 4.8% year-over-year, led by China and Latin America. in q1 237,000 teens and kids started invisalign up 4.8% year-over-year led by china and latin america Growth was supported by continued adoption of Invisalign First, the Invisalign Palatal Expander, and Mandibular Advancement with Occlusal Blocks, reflecting broader use across growing patient indications. growth was supported by continued adoption of invisalign first the invisalign palatal expander and mandibular advancement with occlusal blocks reflecting broader use across growing patient indications A clinical study by researchers at the University of Insubria in Italy found that Invisalign Palatal Expander, or what we call IPE, was shown to effectively widen the upper jaw by opening a natural growth seam in the palate, achieving bone and bite changes similar to traditional metal Hyrax expander. IPE also delivered more controlled and predictable results than Hyrax. A clinical study by researchers at the University of Insubria in Italy found that Invisalign Palatal Expander, or what we call IPE, was shown to effectively widen the upper jaw by opening a natural growth seam in the palate, achieving bone and bite changes similar to traditional metal Hyrax expander. a clinical study by researchers at the university of insubria in italy found that invisalign palatal expander or what we call ipe was shown to effectively widen the upper jaw by opening a natural growth seam in the palate achieving bone and bite changes similar to traditional metal hyrax expander IPE also delivered more controlled and predictable results than Hyrax. ipe also delivered more controlled and predictable results than hyrax When further considering the greater ability to maintain hygiene and the simplicity many parents desire compared to a Hyrax device, these findings supported the use of IPE as a reliable option for growing patients and highlights its role as an important step toward fully digital orthodontic care. For imaging systems and CAD/CAM services, including iTero, exocad, and X-ray Insights software, Q1 revenues totaled $184 million, up 1% year-over-year and declined sequentially, reflecting expected first quarter capital equipment seasonality. When further considering the greater ability to maintain hygiene and the simplicity many parents desire compared to a Hyrax device, these findings supported the use of IPE as a reliable option for growing patients and highlights its role as an important step toward fully digital orthodontic care. when further considering the greater ability to maintain hygiene and the simplicity many parents desire compared to a hyrax device these findings supported the use of ipe as a reliable option for growing patients and highlights its role as an important step toward fully digital orthodontic care For imaging systems and CAD/CAM services, including iTero, exocad, and X-ray Insights software, Q1 revenues totaled $184 million, up 1% year-over-year and declined sequentially, reflecting expected first quarter capital equipment seasonality. for imaging systems and cad/cam services including itero exocad and x-ray insights software q1 revenues totaled $184 million up 1% year-over-year and declined sequentially reflecting expected first quarter capital equipment seasonality Q1 systems and services year-over-year revenue growth reflects continued adoption of iTero Lumina full systems, service revenues and CPO sales, along with a continued mix shift toward lower-priced scanner offerings, including PC-based configurations, leasing, and rental units. These offerings provide greater affordability and flexibility to doctors in certain markets and practice models. Q1 systems and services year-over-year revenue growth reflects continued adoption of iTero Lumina full systems, service revenues and CPO sales, along with a continued mix shift toward lower-priced scanner offerings, including PC-based configurations, leasing, and rental units. q1 systems and services year-over-year revenue growth reflects continued adoption of itero lumina full systems service revenues and cpo sales along with a continued mix shift toward lower-priced scanner offerings including pc-based configurations leasing and rental units These offerings provide greater affordability and flexibility to doctors in certain markets and practice models. these offerings provide greater affordability and flexibility to doctors in certain markets and practice models In addition, the number of scanners sold to new doctors increased double-digits year-over-year. For Q1, the total installed base of active scanners exceeded 125,000 globally. In addition, during the quarter, over 12 million iTero digital scans were performed supporting Invisalign, restorative wellness, and numerous other digital workflows and applications. In addition, the number of scanners sold to new doctors increased double-digits year-over-year. in addition the number of scanners sold to new doctors increased double-digits year-over-year For Q1, the total installed base of active scanners exceeded 125,000 globally. for q1 the total installed base of active scanners exceeded 125,000 globally In addition, during the quarter, over 12 million iTero digital scans were performed supporting Invisalign, restorative wellness, and numerous other digital workflows and applications. in addition during the quarter over 12 million itero digital scans were performed supporting invisalign restorative wellness and numerous other digital workflows and applications Exocad delivered double-digit year-over-year revenue growth, reinforcing our strategy to integrate orthodontics and restorative dentistry within a customer and patient-centric digital platform. Following the success of our inaugural Invisalign Advanced Restorative Treatment or ART pilot in EMEA, we recently began an Invisalign ART pilot in the U.S., with labs and doctors beginning training in several markets. Exocad delivered double-digit year-over-year revenue growth, reinforcing our strategy to integrate orthodontics and restorative dentistry within a customer and patient-centric digital platform. Following the success of our inaugural Invisalign Advanced Restorative Treatment or ART pilot in EMEA, we recently began an Invisalign ART pilot in the U.S., with labs and doctors beginning training in several markets. exocad delivered double-digit year-over-year revenue growth reinforcing our strategy to integrate orthodontics and restorative dentistry within a customer and patient-centric digital platform. following the success of our inaugural invisalign advanced restorative treatment or art pilot in emea we recently began an invisalign art pilot in the u.s with labs and doctors beginning training in several markets Invisalign ART integrates with exocad, enabling clinicians and labs to plan tooth alignment ahead of restorative work within the exocad environment without changing the tools doctors and labs already use. We're very excited about this opportunity to enhance the goal of preserving patients' natural dentition as much as possible. ART allows us this by incorporating the prior alignment of teeth into the overall restorative treatment plan, as opposed to the removal or grinding them down before minimally invasive restorative work. Invisalign ART integrates with exocad, enabling clinicians and labs to plan tooth alignment ahead of restorative work within the exocad environment without changing the tools doctors and labs already use. invisalign art integrates with exocad enabling clinicians and labs to plan tooth alignment ahead of restorative work within the exocad environment without changing the tools doctors and labs already use We're very excited about this opportunity to enhance the goal of preserving patients' natural dentition as much as possible. we're very excited about this opportunity to enhance the goal of preserving patients' natural dentition as much as possible ART allows us this by incorporating the prior alignment of teeth into the overall restorative treatment plan, as opposed to the removal or grinding them down before minimally invasive restorative work. art allows us this by incorporating the prior alignment of teeth into the overall restorative treatment plan as opposed to the removal or grinding them down before minimally invasive restorative work It allows us to further expand our reach and offer existing and new products to the large and growing restorative market through lab-based channels. Clear aligner revenue in Q1 was $856 million, increasing 7.4% year-over-year and 2.1% sequentially. Q1 clear aligner volume reached a record 686,000 cases, up 6.7% year-over-year and 1.3% sequentially. It allows us to further expand our reach and offer existing and new products to the large and growing restorative market through lab-based channels. it allows us to further expand our reach and offer existing and new products to the large and growing restorative market through lab-based channels Clear aligner revenue in Q1 was $856 million, increasing 7.4% year-over-year and 2.1% sequentially. clear aligner revenue in q1 was $856 million increasing 7.4% year-over-year and 2.1% sequentially Q1 clear aligner volume reached a record 686,000 cases, up 6.7% year-over-year and 1.3% sequentially. q1 clear aligner volume reached a record 686,000 cases up 6.7% year-over-year and 1.3% sequentially On a year-over-year basis, our clear aligners revenues reflect a double-digit volume growth in EMEA, APAC, and Latin America, along with overall stability in North America. Importantly, growth was primarily driven by both submitter expansion and higher utilization across the orthodontist and GP channels and across adult, teen, and growing kid categories. On a year-over-year basis, our clear aligners revenues reflect a double-digit volume growth in EMEA, APAC, and Latin America, along with overall stability in North America. on a year-over-year basis our clear aligners revenues reflect a double-digit volume growth in emea apac and latin america along with overall stability in north america Importantly, growth was primarily driven by both submitter expansion and higher utilization across the orthodontist and GP channels and across adult, teen, and growing kid categories. importantly growth was primarily driven by both submitter expansion and higher utilization across the orthodontist and gp channels and across adult teen and growing kid categories During the quarter, more than 88,000 doctors submitted Invisalign cases globally, a year-over-year increase of 3% or an additional 3,000 orthodontists and GP, driven primarily by increases in APAC and the Americas, led by Latin America. Doctor utilization also increased year-over-year by 3.4%, led by EMEA, Latin America, and APAC. During the quarter, more than 88,000 doctors submitted Invisalign cases globally, a year-over-year increase of 3% or an additional 3,000 orthodontists and GP, driven primarily by increases in APAC and the Americas, led by Latin America. during the quarter more than 88,000 doctors submitted invisalign cases globally a year-over-year increase of 3% or an additional 3,000 orthodontists and gp driven primarily by increases in apac and the americas led by latin america Doctor utilization also increased year-over-year by 3.4%, led by EMEA, Latin America, and APAC. doctor utilization also increased year-over-year by 3.4% led by emea latin america and apac These metrics illustrate the continued adoption and penetration of the Invisalign system through our strategic geographic growth efforts, as well as the meaningful addition opportunities in the large untapped demand for digital orthodontics, both in gaining share in the existing 22 million annual orthodontic case starts and expanding access to care to the more than 600 million potential patients that our digital technology can serve through GP dentists globally. Our DSO channel continued to be meaningful growth driver. These metrics illustrate the continued adoption and penetration of the Invisalign system through our strategic geographic growth efforts, as well as the meaningful addition opportunities in the large untapped demand for digital orthodontics, both in gaining share in the existing 22 million annual orthodontic case starts and expanding access to care to the more than 600 million potential patients that our digital technology can serve through GP dentists globally. these metrics illustrate the continued adoption and penetration of the invisalign system through our strategic geographic growth efforts as well as the meaningful addition opportunities in the large untapped demand for digital orthodontics both in gaining share in the existing 22 million annual orthodontic case starts and expanding access to care to the more than 600 million potential patients that our digital technology can serve through gp dentists globally Our DSO channel continued to be meaningful growth driver. our dso channel continued to be meaningful growth driver In Q1, DSO clear aligner volumes grew double-digit across all regions and represented approximately a quarter of total global volumes. The retail channel continued to be mixed, particularly in the U.S., where our doctor customers reported less patient traffic during the quarter. To drive adoption and utilization across channels, we expect to continue to expanding targeted initiatives focused on affordability, patient conversion, clinical confidence, and practice efficiency. In Q1, DSO clear aligner volumes grew double-digit across all regions and represented approximately a quarter of total global volumes. in q1 dso clear aligner volumes grew double-digit across all regions and represented approximately a quarter of total global volumes The retail channel continued to be mixed, particularly in the U.S., where our doctor customers reported less patient traffic during the quarter. the retail channel continued to be mixed particularly in the u.s where our doctor customers reported less patient traffic during the quarter To drive adoption and utilization across channels, we expect to continue to expanding targeted initiatives focused on affordability, patient conversion, clinical confidence, and practice efficiency. to drive adoption and utilization across channels we expect to continue to expanding targeted initiatives focused on affordability patient conversion clinical confidence and practice efficiency These initiatives are beginning to show traction with GPs, dentists, orthodontists, and DSOs, helping to drive increased engagement and directional growth in case volumes. These initiatives include the Doctor Subscription Program or DSP. We continue to see strong growth from our DSP program, which includes retention and touch-up or relapse cases. DSP touch-up cases continue to grow double-digit year-over-year across regions. These initiatives are beginning to show traction with GPs, dentists, orthodontists, and DSOs, helping to drive increased engagement and directional growth in case volumes. these initiatives are beginning to show traction with gps dentists orthodontists and dsos helping to drive increased engagement and directional growth in case volumes These initiatives include the Doctor Subscription Program or DSP. these initiatives include the doctor subscription program or dsp We continue to see strong growth from our DSP program, which includes retention and touch-up or relapse cases. we continue to see strong growth from our dsp program which includes retention and touch-up or relapse cases DSP touch-up cases continue to grow double-digit year-over-year across regions. dsp touch-up cases continue to grow double-digit year-over-year across regions DSP was originally launched in the United States in 2023, expanded into EMEA in 2025, and is expected to launch in APAC in Q2 of this year. North America DSP is also supporting early momentum with orthodontic groups and DSOs, helping drive re-engagement among competitive and historically lower-utilizing doctors as pricing simplicity and bundled value resonate across accounts. DSP was originally launched in the United States in 2023, expanded into EMEA in 2025, and is expected to launch in APAC in Q2 of this year. dsp was originally launched in the united states in 2023 expanded into emea in 2025 and is expected to launch in apac in q2 of this year North America DSP is also supporting early momentum with orthodontic groups and DSOs, helping drive re-engagement among competitive and historically lower-utilizing doctors as pricing simplicity and bundled value resonate across accounts. north america dsp is also supporting early momentum with orthodontic groups and dsos helping drive re-engagement among competitive and historically lower-utilizing doctors as pricing simplicity and bundled value resonate across accounts Patient financing in the United States Healthcare Finance Direct or HFD is now live in over 4,000 offices, enabling patients to pre-qualify for financing before their first appointment and allowing doctors to see these patients directly within our Invisalign doctor site. We saw particularly strong adoption in Q1 among the American Academy of Clear Aligners, or AACA, member practices, where we expanded access to patient financing is helping improve affordability, increase patient conversion, and drive meaningful directional growth in case starts. Patient financing in the United States Healthcare Finance Direct or HFD is now live in over 4,000 offices, enabling patients to pre-qualify for financing before their first appointment and allowing doctors to see these patients directly within our Invisalign doctor site. patient financing in the united states healthcare finance direct or hfd is now live in over 4,000 offices enabling patients to pre-qualify for financing before their first appointment and allowing doctors to see these patients directly within our invisalign doctor site We saw particularly strong adoption in Q1 among the American Academy of Clear Aligners, or AACA, member practices, where we expanded access to patient financing is helping improve affordability, increase patient conversion, and drive meaningful directional growth in case starts. we saw particularly strong adoption in q1 among the american academy of clear aligners or aaca member practices where we expanded access to patient financing is helping improve affordability increase patient conversion and drive meaningful directional growth in case starts Beyond AACA, adoption continues to expand across independent practices, multi-site groups, and DSOs. Practices report that HFD simplifies the front office workflows, reduces complexity in payment discussions, and increases staff confidence when offering financing during consultations and special patient events. Prequalification and flexible monthly payment options are helping practices broaden access to care, in many cases, providing affordable options to patients to increase scope and types of treatment, including Invisalign clear aligners. Beyond AACA, adoption continues to expand across independent practices, multi-site groups, and DSOs. beyond aaca adoption continues to expand across independent practices multi-site groups and dsos Practices report that HFD simplifies the front office workflows, reduces complexity in payment discussions, and increases staff confidence when offering financing during consultations and special patient events. practices report that hfd simplifies the front office workflows reduces complexity in payment discussions and increases staff confidence when offering financing during consultations and special patient events Prequalification and flexible monthly payment options are helping practices broaden access to care, in many cases, providing affordable options to patients to increase scope and types of treatment, including Invisalign clear aligners. prequalification and flexible monthly payment options are helping practices broaden access to care in many cases providing affordable options to patients to increase scope and types of treatment including invisalign clear aligners Feedback we've received from offices highlights that the speed of approvals, clarity of options, and prompt funding are shifting conversations away from price and back toward delivering treatment options that match patient needs, while also easing administrative burdens for staff and operating teams. These benefits are proving particularly impactful in multi-practice environments where consistency, simplicity, and scalability are critical. Feedback we've received from offices highlights that the speed of approvals, clarity of options, and prompt funding are shifting conversations away from price and back toward delivering treatment options that match patient needs, while also easing administrative burdens for staff and operating teams. feedback we've received from offices highlights that the speed of approvals clarity of options and prompt funding are shifting conversations away from price and back toward delivering treatment options that match patient needs while also easing administrative burdens for staff and operating teams These benefits are proving particularly impactful in multi-practice environments where consistency, simplicity, and scalability are critical. these benefits are proving particularly impactful in multi-practice environments where consistency simplicity and scalability are critical Invisalign Pay, which is available in Brazil with further expansion planned across Latin America, continues to improve affordability and treatment conversion and serves as a proof point for how patient-centric embedded financing can complement our clinical and digital workflows. In Brazil, Invisalign Pay is now used in a majority of Invisalign cases, reflecting strong doctor endorsement and patient adoption. Invisalign Pay, which is available in Brazil with further expansion planned across Latin America, continues to improve affordability and treatment conversion and serves as a proof point for how patient-centric embedded financing can complement our clinical and digital workflows. invisalign pay which is available in brazil with further expansion planned across latin america continues to improve affordability and treatment conversion and serves as a proof point for how patient-centric embedded financing can complement our clinical and digital workflows In Brazil, Invisalign Pay is now used in a majority of Invisalign cases, reflecting strong doctor endorsement and patient adoption. in brazil invisalign pay is now used in a majority of invisalign cases reflecting strong doctor endorsement and patient adoption Providers report that financing helps optimize cash flow, reduce friction for patients, and supports reactivation of lower-utilizing providers, reinforcing financing as a meaningful lever for sustained growth across the region. Peer-to-peer mentoring on the clinician-to-clinician mentoring programs connect doctors over a structured 12-month period to build clinical confidence and drive engagement in treatment conversion. These programs are especially effective for accelerating adoption of new technologies and increasing confidence treating kids, teens, and more complex cases. Peer-to-peer programs are active across all regions, and we expect to expand them over the year. Providers report that financing helps optimize cash flow, reduce friction for patients, and supports reactivation of lower-utilizing providers, reinforcing financing as a meaningful lever for sustained growth across the region. Peer-to-peer mentoring on the clinician-to-clinician mentoring programs connect doctors over a structured 12-month period to build clinical confidence and drive engagement in treatment conversion. providers report that financing helps optimize cash flow reduce friction for patients and supports reactivation of lower-utilizing providers reinforcing financing as a meaningful lever for sustained growth across the region. peer-to-peer mentoring on the clinician-to-clinician mentoring programs connect doctors over a structured 12-month period to build clinical confidence and drive engagement in treatment conversion These programs are especially effective for accelerating adoption of new technologies and increasing confidence treating kids, teens, and more complex cases. these programs are especially effective for accelerating adoption of new technologies and increasing confidence treating kids teens and more complex cases Peer-to-peer programs are active across all regions, and we expect to expand them over the year. peer-to-peer programs are active across all regions and we expect to expand them over the year These efforts complement our broader engagement strategy, particularly with GPs and competitive orthodontic accounts that benefit from hands-on clinical support and shared best practices. Treatment planning services or TPS. TPS addresses one of the largest barriers to adoption, low clinical confidence and uncertainty around treatment planning, particularly among GP dentists. These efforts complement our broader engagement strategy, particularly with GPs and competitive orthodontic accounts that benefit from hands-on clinical support and shared best practices. these efforts complement our broader engagement strategy particularly with gps and competitive orthodontic accounts that benefit from hands-on clinical support and shared best practices Treatment planning services or TPS. treatment planning services or tps TPS addresses one of the largest barriers to adoption, low clinical confidence and uncertainty around treatment planning, particularly among GP dentists. tps addresses one of the largest barriers to adoption low clinical confidence and uncertainty around treatment planning particularly among gp dentists TPS provides case assessment and treatment planning support through a combination of internal TPS and external TPS partners, enabling doctors to submit cases with confidence. TPS has emerged as a direct go-to-market engine with materially higher utilization among TPS users versus non-users and strong adoption across regions in markets such as Canada. TPS adoption among participating GPs continues to increase, with TPS users consistently outperforming non-users and contributing to low double-digit year-over-year growth in case starts. TPS provides case assessment and treatment planning support through a combination of internal TPS and external TPS partners, enabling doctors to submit cases with confidence. tps provides case assessment and treatment planning support through a combination of internal tps and external tps partners enabling doctors to submit cases with confidence TPS has emerged as a direct go-to-market engine with materially higher utilization among TPS users versus non-users and strong adoption across regions in markets such as Canada. tps has emerged as a direct go-to-market engine with materially higher utilization among tps users versus non-users and strong adoption across regions in markets such as canada TPS adoption among participating GPs continues to increase, with TPS users consistently outperforming non-users and contributing to low double-digit year-over-year growth in case starts. tps adoption among participating gps continues to increase with tps users consistently outperforming non-users and contributing to low double-digit year-over-year growth in case starts From a regional standpoint, America's Q1 clear aligner volumes increased year-over-year, reflecting very strong double-digit growth in Latin America, partially offset by a modest but stable year-over-year decline in North America. Latin America delivered record first quarter shipments driven by increased submitters, higher utilization across both orthodontist and GP channels, along with strength across adult, teen, and growing kid categories. From a regional standpoint, America's Q1 clear aligner volumes increased year-over-year, reflecting very strong double-digit growth in Latin America, partially offset by a modest but stable year-over-year decline in North America. from a regional standpoint america's q1 clear aligner volumes increased year-over-year reflecting very strong double-digit growth in latin america partially offset by a modest but stable year-over-year decline in north america Latin America delivered record first quarter shipments driven by increased submitters, higher utilization across both orthodontist and GP channels, along with strength across adult, teen, and growing kid categories. latin america delivered record first quarter shipments driven by increased submitters higher utilization across both orthodontist and gp channels along with strength across adult teen and growing kid categories In EMEA, Q1 clear aligner volumes grew double digits year-over-year, reaching record first quarter levels led by increases in Iberia, Italy, Nordics, U.K., and also Turkey. Growth was driven primarily by utilization gains across both GP and orthodontic channels and continued strength from adult and growing kid patients. In APAC, Q1 clear aligner volumes also grew double digits year-over-year, with record first quarter shipments for APAC led by China, India, Korea, and Japan. In EMEA, Q1 clear aligner volumes grew double digits year-over-year, reaching record first quarter levels led by increases in Iberia, Italy, Nordics, U.K., and also Turkey. in emea q1 clear aligner volumes grew double digits year-over-year reaching record first quarter levels led by increases in iberia italy nordics u.k and also turkey Growth was driven primarily by utilization gains across both GP and orthodontic channels and continued strength from adult and growing kid patients. growth was driven primarily by utilization gains across both gp and orthodontic channels and continued strength from adult and growing kid patients In APAC, Q1 clear aligner volumes also grew double digits year-over-year, with record first quarter shipments for APAC led by China, India, Korea, and Japan. in apac q1 clear aligner volumes also grew double digits year-over-year with record first quarter shipments for apac led by china india korea and japan In addition, eight APAC markets had record first quarters, including China, Japan, Korea, India, and Taiwan. Growth was broad-based with the teen and growing kid patients, growing double digits alongside continued growth among adult patients. Overall, while the operating environment remains uneven in some markets, our Q1 results illustrate the resilience of our global business, and we continue to see orthodontics and oral health and digital dentistry as durable long-term growth categories. With that, I'll turn it over to John. In addition, eight APAC markets had record first quarters, including China, Japan, Korea, India, and Taiwan. in addition eight apac markets had record first quarters including china japan korea india and taiwan Growth was broad-based with the teen and growing kid patients, growing double digits alongside continued growth among adult patients. growth was broad-based with the teen and growing kid patients growing double digits alongside continued growth among adult patients Overall, while the operating environment remains uneven in some markets, our Q1 results illustrate the resilience of our global business, and we continue to see orthodontics and oral health and digital dentistry as durable long-term growth categories. overall while the operating environment remains uneven in some markets our q1 results illustrate the resilience of our global business and we continue to see orthodontics and oral health and digital dentistry as durable long-term growth categories With that, I'll turn it over to John. with that i'll turn it over to john

Speaker 9: Thanks, Joe. Now for our Q1 financial results. Total revenues for the first quarter were $1,040.1 million, up 6.2% from the corresponding quarter a year ago. On a constant currency basis, Q1 revenues were favorably impacted by approximately $44.9 million year-over-year, or approximately 4.5%, in line with our Q1 expectations. Thanks, Joe. thanks joe Now for our Q1 financial results. now for our q1 financial results Total revenues for the first quarter were $1,040.1 million, up 6.2% from the corresponding quarter a year ago. total revenues for the first quarter were $1,040.1 million up 6.2% from the corresponding quarter a year ago On a constant currency basis, Q1 revenues were favorably impacted by approximately $44.9 million year-over-year, or approximately 4.5%, in line with our Q1 expectations. on a constant currency basis q1 revenues were favorably impacted by approximately $44.9 million year-over-year or approximately 4.5% in line with our q1 expectations Q1 clear aligner revenues were $856 million, up 7.4% year-over-year, primarily due to higher volume, favorable foreign exchange, price increases, and lower net deferrals, partially offset by higher discounts and a mix shift to lower-price countries and products. Favorable foreign exchange impacted Q1 clear aligner revenues by approximately $38.2 million or approximately 4.7% year-over-year. Q1 clear aligner revenues were $856 million, up 7.4% year-over-year, primarily due to higher volume, favorable foreign exchange, price increases, and lower net deferrals, partially offset by higher discounts and a mix shift to lower-price countries and products. q1 clear aligner revenues were $856 million up 7.4% year-over-year primarily due to higher volume favorable foreign exchange price increases and lower net deferrals partially offset by higher discounts and a mix shift to lower-price countries and products Favorable foreign exchange impacted Q1 clear aligner revenues by approximately $38.2 million or approximately 4.7% year-over-year. favorable foreign exchange impacted q1 clear aligner revenues by approximately $38.2 million or approximately 4.7% year-over-year Q1 clear aligner average per case shipment price of $1,250 increased 1% or $10 per case on a year-over-year basis, primarily due to favorable foreign exchange, price increases, and lower net deferrals, partially offset by higher discounts and mix shift to lower price countries and products mentioned previously. Clear aligner deferred revenues on the balance sheet as of March 31, 2026, decreased $77.2 million or 6.4% year-over-year and will be recognized as revenue as additional aligners, also known as refinements, are shipped. Q1 clear aligner average per case shipment price of $1,250 increased 1% or $10 per case on a year-over-year basis, primarily due to favorable foreign exchange, price increases, and lower net deferrals, partially offset by higher discounts and mix shift to lower price countries and products mentioned previously. q1 clear aligner average per case shipment price of $1,250 increased 1% or $10 per case on a year-over-year basis primarily due to favorable foreign exchange price increases and lower net deferrals partially offset by higher discounts and mix shift to lower price countries and products mentioned previously Clear aligner deferred revenues on the balance sheet as of March 31, 2026, decreased $77.2 million or 6.4% year-over-year and will be recognized as revenue as additional aligners, also known as refinements, are shipped. clear aligner deferred revenues on the balance sheet as of march 31 2026 decreased $77.2 million or 6.4% year-over-year and will be recognized as revenue as additional aligners also known as refinements are shipped As we continue to scale our zero additional aligner configuration and introduce other streamlined configurations with limited or no additional aligners, which do not require revenue deferral because there are no future performance obligations, we expect the overall clear aligner deferred revenue balance to decrease over time. This reflects earlier revenue recognition and cash conversion rather than any changes in free cash flow economics. As we continue to scale our zero additional aligner configuration and introduce other streamlined configurations with limited or no additional aligners, which do not require revenue deferral because there are no future performance obligations, we expect the overall clear aligner deferred revenue balance to decrease over time. as we continue to scale our zero additional aligner configuration and introduce other streamlined configurations with limited or no additional aligners which do not require revenue deferral because there are no future performance obligations we expect the overall clear aligner deferred revenue balance to decrease over time This reflects earlier revenue recognition and cash conversion rather than any changes in free cash flow economics. this reflects earlier revenue recognition and cash conversion rather than any changes in free cash flow economics Q1 systems and services revenues of $184.1 million were up 0.9% year-over-year, primarily due to favorable foreign exchange, higher scanner systems and sales, and non-system sales, partially offset by lower scanner wand sales. Foreign exchange favorably impacted Q1 systems and services revenues by approximately $6.7 million year-over-year or approximately 3.8%. Q1 systems and services revenues of $184.1 million were up 0.9% year-over-year, primarily due to favorable foreign exchange, higher scanner systems and sales, and non-system sales, partially offset by lower scanner wand sales. q1 systems and services revenues of $184.1 million were up 0.9% year-over-year primarily due to favorable foreign exchange higher scanner systems and sales and non-system sales partially offset by lower scanner wand sales Foreign exchange favorably impacted Q1 systems and services revenues by approximately $6.7 million year-over-year or approximately 3.8%. foreign exchange favorably impacted q1 systems and services revenues by approximately $6.7 million year-over-year or approximately 3.8% Systems and services deferred revenues decreased $22.4 million or 10.8% year-over-year, due in part to the shorter duration of service contracts selected by customers on initial scanner system purchases. Moving on to gross margin. First quarter overall gross margin was 70.8%, up 1.4 points year-over-year, primarily due to operational efficiencies and higher clear aligner ASP. Systems and services deferred revenues decreased $22.4 million or 10.8% year-over-year, due in part to the shorter duration of service contracts selected by customers on initial scanner system purchases. systems and services deferred revenues decreased $22.4 million or 10.8% year-over-year due in part to the shorter duration of service contracts selected by customers on initial scanner system purchases Moving on to gross margin. moving on to gross margin First quarter overall gross margin was 70.8%, up 1.4 points year-over-year, primarily due to operational efficiencies and higher clear aligner ASP. first quarter overall gross margin was 70.8% up 1.4 points year-over-year primarily due to operational efficiencies and higher clear aligner asp Q1 overall gross margin was unfavorably impacted by foreign exchange of 0.4 points year-over-year. On a non-GAAP basis, which excludes stock-based compensation, amortization of intangibles related to certain acquisitions, depreciation expense on assets disposed of other than by sale, gain on assets held for sale and restructuring, and other non-GAAP charges, gross margin for the first quarter was 71.8%, up 1.6 points year-over-year. Q1 overall gross margin was unfavorably impacted by foreign exchange of 0.4 points year-over-year. q1 overall gross margin was unfavorably impacted by foreign exchange of 0.4 points year-over-year On a non-GAAP basis, which excludes stock-based compensation, amortization of intangibles related to certain acquisitions, depreciation expense on assets disposed of other than by sale, gain on assets held for sale and restructuring, and other non-GAAP charges, gross margin for the first quarter was 71.8%, up 1.6 points year-over-year. on a non-gaap basis which excludes stock-based compensation amortization of intangibles related to certain acquisitions depreciation expense on assets disposed of other than by sale gain on assets held for sale and restructuring and other non-gaap charges gross margin for the first quarter was 71.8% up 1.6 points year-over-year Clear aligner gross margin for the first quarter was 71.6%, up 1.1 points year-over-year, primarily due to higher ASP and operational efficiencies. Q1 clear aligner gross margin was impacted by unfavorable foreign exchange of approximately 0.5 points year-over-year. Clear aligner gross margin for the first quarter was 71.6%, up 1.1 points year-over-year, primarily due to higher ASP and operational efficiencies. clear aligner gross margin for the first quarter was 71.6% up 1.1 points year-over-year primarily due to higher asp and operational efficiencies Q1 clear aligner gross margin was impacted by unfavorable foreign exchange of approximately 0.5 points year-over-year. q1 clear aligner gross margin was impacted by unfavorable foreign exchange of approximately 0.5 points year-over-year Beyond mix and cost actions, margin expansion is increasingly driven by lower refinement rates, improved treatment predictability, and higher manufacturing throughput, benefits that scale with volume and data over time. Many of our lower-priced product configurations, such as Comp 3in3 and DSP Touch-Up, include fewer or no additional aligners and require less manufacturing production, which supports gross margins and improves cash conversion despite lower upfront pricing. Beyond mix and cost actions, margin expansion is increasingly driven by lower refinement rates, improved treatment predictability, and higher manufacturing throughput, benefits that scale with volume and data over time. beyond mix and cost actions margin expansion is increasingly driven by lower refinement rates improved treatment predictability and higher manufacturing throughput benefits that scale with volume and data over time Many of our lower-priced product configurations, such as Comp 3in 3 and DSP Touch-Up, include fewer or no additional aligners and require less manufacturing production, which supports gross margins and improves cash conversion despite lower upfront pricing. many of our lower-priced product configurations such as comp 3in 3 and dsp touch-up include fewer or no additional aligners and require less manufacturing production which supports gross margins and improves cash conversion despite lower upfront pricing Because of the clinical capability of the Invisalign system, we are able to offer configurations such as zero AA products that give doctors the ability to use and scale with the Invisalign system and deliver on patient expectations and enable us to more effectively compete with traditional wires and brackets and clear aligner suppliers that we believe primarily compete based on price. Because of the clinical capability of the Invisalign system, we are able to offer configurations such as zero AA products that give doctors the ability to use and scale with the Invisalign system and deliver on patient expectations and enable us to more effectively compete with traditional wires and brackets and clear aligner suppliers that we believe primarily compete based on price. because of the clinical capability of the invisalign system we are able to offer configurations such as zero aa products that give doctors the ability to use and scale with the invisalign system and deliver on patient expectations and enable us to more effectively compete with traditional wires and brackets and clear aligner suppliers that we believe primarily compete based on price Over a year ago, we expanded the Invisalign portfolio to include Comp zero AA configuration, primarily with U.S. DSOs that began piloting in the retail channel in Q1. It's still early, but given results from DSO partners showing Comp zero AA drives adoption by supporting improved efficiency, utilization, and overall practice economics for doctors, we see interest and momentum building around this offering and anticipate expanding it over the year. Over a year ago, we expanded the Invisalign portfolio to include Comp zero AA configuration, primarily with U.S. over a year ago we expanded the invisalign portfolio to include comp zero aa configuration primarily with u.s DSOs that began piloting in the retail channel in Q1. dsos that began piloting in the retail channel in q1 It's still early, but given results from DSO partners showing Comp zero AA drives adoption by supporting improved efficiency, utilization, and overall practice economics for doctors, we see interest and momentum building around this offering and anticipate expanding it over the year. it's still early but given results from dso partners showing comp zero aa drives adoption by supporting improved efficiency utilization and overall practice economics for doctors we see interest and momentum building around this offering and anticipate expanding it over the year Systems and services gross margin for the first quarter was 67.2%, up 2.5 points year-over-year, primarily due to operational efficiencies, partially offset by lower ASP. On a year-over-year basis, foreign exchange had no significant impact on Q1 systems and services gross margin. Q1 operating expenses were $594.6 million, up 8.3% year-over-year. Systems and services gross margin for the first quarter was 67.2%, up 2.5 points year-over-year, primarily due to operational efficiencies, partially offset by lower ASP. systems and services gross margin for the first quarter was 67.2% up 2.5 points year-over-year primarily due to operational efficiencies partially offset by lower asp On a year-over-year basis, foreign exchange had no significant impact on Q1 systems and services gross margin. on a year-over-year basis foreign exchange had no significant impact on q1 systems and services gross margin Q1 operating expenses were $594.6 million, up 8.3% year-over-year. q1 operating expenses were $594.6 million up 8.3% year-over-year Year-over-year, operating expenses increased by $45.6 million, primarily due to legal settlement costs and higher employee compensation. On a non-GAAP basis, excluding stock-based compensation, restructuring, and other charges, amortization of acquired intangibles related to certain acquisitions, and legal settlement costs, Q1 2026 non-GAAP operating expenses were $523.1 million, up 4.5% year-over-year. Year-over-year, operating expenses increased by $45.6 million, primarily due to legal settlement costs and higher employee compensation. year-over-year operating expenses increased by $45.6 million primarily due to legal settlement costs and higher employee compensation On a non-GAAP basis, excluding stock-based compensation, restructuring, and other charges, amortization of acquired intangibles related to certain acquisitions, and legal settlement costs, Q1 2026 non-GAAP operating expenses were $523.1 million, up 4.5% year-over-year. on a non-gaap basis excluding stock-based compensation restructuring and other charges amortization of acquired intangibles related to certain acquisitions and legal settlement costs q1 2026 non-gaap operating expenses were $523.1 million up 4.5% year-over-year Our first quarter operating income of $142 million resulted in an operating margin of 13.6%, up approximately 0.3 points year-over-year. Operating margin was unfavorably impacted from foreign exchange by approximately 0.1 points year-over-year. On a non-GAAP basis, which excludes stock-based compensation, restructuring, and other non-GAAP charges, amortization of acquired intangibles related to certain acquisitions, legal settlement costs, gain on assets held for sale, and depreciation of assets disposed of other than by sale, operating margin for the first quarter was 21.5%, up 2.5 points year-over-year. The Q1 2026 GAAP effective tax rate was 24.3% compared to 33.6% in the first quarter of 2025. Our first quarter operating income of $142 million resulted in an operating margin of 13.6%, up approximately 0.3 points year-over-year. our first quarter operating income of $142 million resulted in an operating margin of 13.6% up approximately 0.3 points year-over-year Operating margin was unfavorably impacted from foreign exchange by approximately 0.1 points year-over-year. operating margin was unfavorably impacted from foreign exchange by approximately 0.1 points year-over-year On a non-GAAP basis, which excludes stock-based compensation, restructuring, and other non-GAAP charges, amortization of acquired intangibles related to certain acquisitions, legal settlement costs, gain on assets held for sale, and depreciation of assets disposed of other than by sale, operating margin for the first quarter was 21.5%, up 2.5 points year-over-year. on a non-gaap basis which excludes stock-based compensation restructuring and other non-gaap charges amortization of acquired intangibles related to certain acquisitions legal settlement costs gain on assets held for sale and depreciation of assets disposed of other than by sale operating margin for the first quarter was 21.5% up 2.5 points year-over-year The Q1 2026 GAAP effective tax rate was 24.3% compared to 33.6% in the first quarter of 2025. the q1 2026 gaap effective tax rate was 24.3% compared to 33.6% in the first quarter of 2025 The first quarter GAAP effective tax rate was lower than the first quarter effective tax rate of the prior year, primarily due to change in our jurisdictional mix of income, lower tax expense related to uncertain tax provisions, lower tax expense recognized related to stock-based compensation, and a decrease in U.S. taxes on foreign earnings. The first quarter GAAP effective tax rate was lower than the first quarter effective tax rate of the prior year, primarily due to change in our jurisdictional mix of income, lower tax expense related to uncertain tax provisions, lower tax expense recognized related to stock-based compensation, and a decrease in U.S. taxes on foreign earnings. the first quarter gaap effective tax rate was lower than the first quarter effective tax rate of the prior year primarily due to change in our jurisdictional mix of income lower tax expense related to uncertain tax provisions lower tax expense recognized related to stock-based compensation and a decrease in u.s taxes on foreign earnings Our Q1 2026 non-GAAP effective tax rate was 20%, which reflects our long-term projected tax rate. First quarter net income per diluted share was $1.57, up $0.31 compared to the prior year. Our EPS was favorably impacted by $0.01 on a year-over-year basis due to foreign exchange. On a non-GAAP basis, net income per diluted share was $2.58 for the first quarter, up 21% year-over-year. Moving on to the balance sheet. Our Q1 2026 non-GAAP effective tax rate was 20%, which reflects our long-term projected tax rate. our q1 2026 non-gaap effective tax rate was 20% which reflects our long-term projected tax rate First quarter net income per diluted share was $1.57, up $0.31 compared to the prior year. first quarter net income per diluted share was $1.57 up $0.31 compared to the prior year Our EPS was favorably impacted by $0.01 on a year-over-year basis due to foreign exchange. our eps was favorably impacted by $0.01 on a year-over-year basis due to foreign exchange On a non-GAAP basis, net income per diluted share was $2.58 for the first quarter, up 21% year-over-year. on a non-gaap basis net income per diluted share was $2.58 for the first quarter up 21% year-over-year Moving on to the balance sheet. moving on to the balance sheet As of March 31, 2026, cash and cash equivalents were $1,059.8 million, up $186.8 million year-over-year. Of the $1,059.8 million balance, $206.6 million was held in the U.S., and $853.2 million was held by our international entities. Align maintains a disciplined capital return program. In August 2025, we announced our intention to repurchase $200 million of our common stock under our previously authorized $1 billion stock repurchase program from April 2025. Between August 2025 and January 2026, we repurchased approximately 1.4 million shares at an average price per share of $143.85, completing the $200 million repurchase plan. As of March 31, 2026, cash and cash equivalents were $1,059.8 million, up $186.8 million year-over-year. as of march 31 2026 cash and cash equivalents were $1,059.8 million up $186.8 million year-over-year Of the $1,059.8 million balance, $206.6 million was held in the U.S., and $853.2 million was held by our international entities. of the $1,059.8 million balance $206.6 million was held in the u.s and $853.2 million was held by our international entities Align maintains a disciplined capital return program. align maintains a disciplined capital return program In August 2025, we announced our intention to repurchase $200 million of our common stock under our previously authorized $1 billion stock repurchase program from April 2025. in august 2025 we announced our intention to repurchase $200 million of our common stock under our previously authorized $1 billion stock repurchase program from april 2025 Between August 2025 and January 2026, we repurchased approximately 1.4 million shares at an average price per share of $143.85, completing the $200 million repurchase plan. between august 2025 and january 2026 we repurchased approximately 1.4 million shares at an average price per share of $143.85 completing the $200 million repurchase plan As of March 31st, 2026, $800 million remains available for repurchase of common stock under our repurchase program. Today, we announced that we expect to repurchase up to an additional $200 million of our common stock over a six-month period beginning on or about May 1, 2026. As of March 31st, 2026, $800 million remains available for repurchase of common stock under our repurchase program. as of march 31st 2026 $800 million remains available for repurchase of common stock under our repurchase program Today, we announced that we expect to repurchase up to an additional $200 million of our common stock over a six-month period beginning on or about May 1, 2026. today we announced that we expect to repurchase up to an additional $200 million of our common stock over a six-month period beginning on or about may 1 2026 We believe this action reflects our conviction that Align shares remain attractively valued, supported by improving underlying business fundamentals. Q1 accounts receivable balance was $1,125.1 million. Our overall days sales outstanding was 97 days, flat as compared to Q1 of 2025. Cash flow from operations for the first quarter was $151 million. Capital expenditures for the first quarter were $30.8 million, primarily related to investments in our manufacturing capacity and facilities. We believe this action reflects our conviction that Align shares remain attractively valued, supported by improving underlying business fundamentals. we believe this action reflects our conviction that align shares remain attractively valued supported by improving underlying business fundamentals Q1 accounts receivable balance was $1,125.1 million. q1 accounts receivable balance was $1,125.1 million Our overall days sales outstanding was 97 days, flat as compared to Q1 of 2025. our overall days sales outstanding was 97 days flat as compared to q1 of 2025 Cash flow from operations for the first quarter was $151 million. cash flow from operations for the first quarter was $151 million Capital expenditures for the first quarter were $30.8 million, primarily related to investments in our manufacturing capacity and facilities. capital expenditures for the first quarter were $30.8 million primarily related to investments in our manufacturing capacity and facilities Free cash flow, defined as cash flow from operations minus capital expenditures, amounted to $120.3 million. Our financial priorities are centered on disciplined execution and long-term value creation. Through restructuring actions and ongoing efficiency initiatives, we believe we are strengthening Align's cost structure and positioning the business for improved operating leverage as we grow returns. Free cash flow, defined as cash flow from operations minus capital expenditures, amounted to $120.3 million. free cash flow defined as cash flow from operations minus capital expenditures amounted to $120.3 million Our financial priorities are centered on disciplined execution and long-term value creation. our financial priorities are centered on disciplined execution and long-term value creation Through restructuring actions and ongoing efficiency initiatives, we believe we are strengthening Align's cost structure and positioning the business for improved operating leverage as we grow returns. through restructuring actions and ongoing efficiency initiatives we believe we are strengthening align's cost structure and positioning the business for improved operating leverage as we grow returns We remain focused on managing input cost pressures, investing for long-term returns, and maintaining balance sheet flexibility to support sustainable margin expansion over time. We also continued to return capital to shareholders in Q1 through disciplined share repurchases, supported by our strong balance sheet and cash flow generation. With Q1 2026 results as a backdrop, we remain focused on executing our strategic growth initiatives and building on the recent quarterly results. We remain focused on managing input cost pressures, investing for long-term returns, and maintaining balance sheet flexibility to support sustainable margin expansion over time. we remain focused on managing input cost pressures investing for long-term returns and maintaining balance sheet flexibility to support sustainable margin expansion over time We also continued to return capital to shareholders in Q1 through disciplined share repurchases, supported by our strong balance sheet and cash flow generation. we also continued to return capital to shareholders in q1 through disciplined share repurchases supported by our strong balance sheet and cash flow generation With Q1 2026 results as a backdrop, we remain focused on executing our strategic growth initiatives and building on the recent quarterly results. with q1 2026 results as a backdrop we remain focused on executing our strategic growth initiatives and building on the recent quarterly results At the same time, there is uncertainty and the potential for adverse impacts on patient traffic, consumer demand, and shipping and freight resulting from ongoing military action in the Middle East. With respect to the Middle East, we continue to monitor developments closely. While our doctor customers in MEA have noted some impact on patient traffic and conversion, the overall effect on our EMEA results was immaterial in the first quarter. At the same time, there is uncertainty and the potential for adverse impacts on patient traffic, consumer demand, and shipping and freight resulting from ongoing military action in the Middle East. at the same time there is uncertainty and the potential for adverse impacts on patient traffic consumer demand and shipping and freight resulting from ongoing military action in the middle east With respect to the Middle East, we continue to monitor developments closely. with respect to the middle east we continue to monitor developments closely While our doctor customers in MEA have noted some impact on patient traffic and conversion, the overall effect on our EMEA results was immaterial in the first quarter. while our doctor customers in mea have noted some impact on patient traffic and conversion the overall effect on our emea results was immaterial in the first quarter Given the ongoing uncertainty, we have taken a prudent approach in our second quarter outlook by assuming some impact on both clear aligner and scanner demand. Beyond the second quarter, it becomes increasingly difficult to predict how the conflict in the Middle East will affect our business, particularly in the event of further escalation, sustained constraints on oil and gas supplies, or broader softening in consumer and patient sentiment. Given the ongoing uncertainty, we have taken a prudent approach in our second quarter outlook by assuming some impact on both clear aligner and scanner demand. given the ongoing uncertainty we have taken a prudent approach in our second quarter outlook by assuming some impact on both clear aligner and scanner demand Beyond the second quarter, it becomes increasingly difficult to predict how the conflict in the Middle East will affect our business, particularly in the event of further escalation, sustained constraints on oil and gas supplies, or broader softening in consumer and patient sentiment. beyond the second quarter it becomes increasingly difficult to predict how the conflict in the middle east will affect our business particularly in the event of further escalation sustained constraints on oil and gas supplies or broader softening in consumer and patient sentiment As we look to Q2 and the remainder of 2026, assuming no circumstances occur beyond our control, such as additional ramifications as a result of the aforementioned military action in the Middle East, beyond what we have already assumed, adverse foreign exchange fluctuation, changes to currently applicable duties, including tariffs or other fees that could impact our business, our outlook is as follows. As we look to Q2 and the remainder of 2026, assuming no circumstances occur beyond our control, such as additional ramifications as a result of the aforementioned military action in the Middle East, beyond what we have already assumed, adverse foreign exchange fluctuation, changes to currently applicable duties, including tariffs or other fees that could impact our business, our outlook is as follows. as we look to q2 and the remainder of 2026 assuming no circumstances occur beyond our control such as additional ramifications as a result of the aforementioned military action in the middle east beyond what we have already assumed adverse foreign exchange fluctuation changes to currently applicable duties including tariffs or other fees that could impact our business our outlook is as follows We expect Q2 2026 worldwide revenues to be in the range of $1.04 billion-$1.06 billion, up approximately 3%-5% year-over-year. We expect Q2 2026 clear aligner volume to be up sequentially and year-over-year, and clear aligner average selling price to be flat sequentially and year-over-year. We expect systems and services revenues to be up sequentially. We expect Q2 2026 worldwide revenues to be in the range of $1.04 billion-$1.06 billion, up approximately 3%-5% year-over-year. we expect q2 2026 worldwide revenues to be in the range of $1.04 billion-$1.06 billion up approximately 3%-5% year-over-year We expect Q2 2026 clear aligner volume to be up sequentially and year-over-year, and clear aligner average selling price to be flat sequentially and year-over-year. we expect q2 2026 clear aligner volume to be up sequentially and year-over-year and clear aligner average selling price to be flat sequentially and year-over-year We expect systems and services revenues to be up sequentially. we expect systems and services revenues to be up sequentially We expect our Q2 2026 GAAP operating margin to be approximately 16.4% and non-GAAP operating margin to be approximately 21.5%. For fiscal 2026, we remain confident in our outlook that we provided previously and reaffirm our full year fiscal 2026 guidance as follows. We expect 2026 worldwide revenue growth to be up 3%-4% year-over-year. We expect our Q2 2026 GAAP operating margin to be approximately 16.4% and non-GAAP operating margin to be approximately 21.5%. we expect our q2 2026 gaap operating margin to be approximately 16.4% and non-gaap operating margin to be approximately 21.5% For fiscal 2026, we remain confident in our outlook that we provided previously and reaffirm our full year fiscal 2026 guidance as follows. for fiscal 2026 we remain confident in our outlook that we provided previously and reaffirm our full year fiscal 2026 guidance as follows We expect 2026 worldwide revenue growth to be up 3%-4% year-over-year. we expect 2026 worldwide revenue growth to be up 3%-4% year-over-year Our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook. We expect the impact of foreign exchange to moderate in remaining quarters, trending toward the full year assumption of approximately 100 basis points. We expect 2026 clear aligner volume growth to be up mid-single digits year-over-year. Our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook. our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook We expect the impact of foreign exchange to moderate in remaining quarters, trending toward the full year assumption of approximately 100 basis points. we expect the impact of foreign exchange to moderate in remaining quarters trending toward the full year assumption of approximately 100 basis points We expect 2026 clear aligner volume growth to be up mid-single digits year-over-year. we expect 2026 clear aligner volume growth to be up mid-single digits year-over-year We expect 2026 GAAP operating margin to be slightly below 18% and approximately 400 basis point improvement over 2025, and non-GAAP operating margin to be approximately 23.7%, a 100 basis point improvement year-over-year, consistent with our previous guidance. We expect our investments in capital expenditures for fiscal 2026 to be $125 million-$150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity, as well as maintenance. We expect 2026 GAAP operating margin to be slightly below 18% and approximately 400 basis point improvement over 2025, and non-GAAP operating margin to be approximately 23.7%, a 100 basis point improvement year-over-year, consistent with our previous guidance. we expect 2026 gaap operating margin to be slightly below 18% and approximately 400 basis point improvement over 2025 and non-gaap operating margin to be approximately 23.7% a 100 basis point improvement year-over-year consistent with our previous guidance We expect our investments in capital expenditures for fiscal 2026 to be $125 million-$150 million. we expect our investments in capital expenditures for fiscal 2026 to be $125 million-$150 million Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity, as well as maintenance. capital expenditures primarily relate to technology upgrades additional manufacturing capacity as well as maintenance As we consider our full year 2026 guidance, we want to be clear about our approach. While we are encouraged by our first quarter performance and the outlook for the second quarter, we are maintaining a prudent stance with respect to the full year. The macroeconomic environment remains uncertain. We believe it's appropriate to maintain the guidance framework established at the beginning of the year. As we consider our full year 2026 guidance, we want to be clear about our approach. as we consider our full year 2026 guidance we want to be clear about our approach While we are encouraged by our first quarter performance and the outlook for the second quarter, we are maintaining a prudent stance with respect to the full year. while we are encouraged by our first quarter performance and the outlook for the second quarter we are maintaining a prudent stance with respect to the full year The macroeconomic environment remains uncertain. the macroeconomic environment remains uncertain We believe it's appropriate to maintain the guidance framework established at the beginning of the year. we believe it's appropriate to maintain the guidance framework established at the beginning of the year We remain focused on disciplined execution in a dynamic environment, and we will provide updates as visibility improves over the course of the year. As mentioned, we expect to repurchase an additional $200 million of our common stock over a six-month period commencing on or about May first. With that, now I'll turn it back to Joe for final comments. Joe? We remain focused on disciplined execution in a dynamic environment, and we will provide updates as visibility improves over the course of the year. we remain focused on disciplined execution in a dynamic environment and we will provide updates as visibility improves over the course of the year As mentioned, we expect to repurchase an additional $200 million of our common stock over a six-month period commencing on or about May first. With that, now I'll turn it back to Joe for final comments. as mentioned we expect to repurchase an additional $200 million of our common stock over a six-month period commencing on or about may first. with that now i'll turn it back to joe for final comments Joe? joe

Speaker 8: Thanks, John. Stepping back, we're pleased with our Q1 performance and consistency of execution we're seeing across the business. Growth this quarter was broad-based across region, patient segments, and channels, supported by record submitters for our first quarter and a higher utilization within our existing customer base. We also continue to see strong momentum from our Doctor Subscription Program, with Invisalign touch-up and retention products growing double-digits year-over-year. Thanks, John. thanks john Stepping back, we're pleased with our Q1 performance and consistency of execution we're seeing across the business. stepping back we're pleased with our q1 performance and consistency of execution we're seeing across the business Growth this quarter was broad-based across region, patient segments, and channels, supported by record submitters for our first quarter and a higher utilization within our existing customer base. growth this quarter was broad-based across region patient segments and channels supported by record submitters for our first quarter and a higher utilization within our existing customer base We also continue to see strong momentum from our Doctor Subscription Program, with Invisalign touch-up and retention products growing double-digits year-over-year. we also continue to see strong momentum from our doctor subscription program with invisalign touch-up and retention products growing double-digits year-over-year We continue to observe the dental needs we address, such as orthodontics, restorative diagnostics, oral health, and digital dentistry, and durable consumer demand, which we expect will continue to drive our long-term growth expectations. Importantly, teens and growing kids remain a central driver of Invisalign demand and long-term opportunity. In Q1, we saw continued strength in teens, kids across key international markets, supported by adoption of Invisalign First, palate expansion, and mandibular advancement. We continue to observe the dental needs we address, such as orthodontics, restorative diagnostics, oral health, and digital dentistry, and durable consumer demand, which we expect will continue to drive our long-term growth expectations. we continue to observe the dental needs we address such as orthodontics restorative diagnostics oral health and digital dentistry and durable consumer demand which we expect will continue to drive our long-term growth expectations Importantly, teens and growing kids remain a central driver of Invisalign demand and long-term opportunity. importantly teens and growing kids remain a central driver of invisalign demand and long-term opportunity In Q1, we saw continued strength in teens, kids across key international markets, supported by adoption of Invisalign First, palate expansion, and mandibular advancement. in q1 we saw continued strength in teens kids across key international markets supported by adoption of invisalign first palate expansion and mandibular advancement These products are helping doctors treat a broader range of growing patients with Invisalign aligners and allowing us to compete more effectively against traditional wires and braces at earlier stages of treatment. We have moved forward in 2026, our focus is on maintaining discipline as we invest strategically in innovation and growth opportunities. That includes advancing digital dentistry through the Align Digital Platform, scaling our iTero Lumina ecosystem, expanding internationally with localized strategies, and continuing to build differentiated portfolio for teens and growing kids. These products are helping doctors treat a broader range of growing patients with Invisalign aligners and allowing us to compete more effectively against traditional wires and braces at earlier stages of treatment. these products are helping doctors treat a broader range of growing patients with invisalign aligners and allowing us to compete more effectively against traditional wires and braces at earlier stages of treatment We have moved forward in 2026, our focus is on maintaining discipline as we invest strategically in innovation and growth opportunities. we have moved forward in 2026 our focus is on maintaining discipline as we invest strategically in innovation and growth opportunities That includes advancing digital dentistry through the Align Digital Platform, scaling our iTero Lumina ecosystem, expanding internationally with localized strategies, and continuing to build differentiated portfolio for teens and growing kids. that includes advancing digital dentistry through the align digital platform scaling our itero lumina ecosystem expanding internationally with localized strategies and continuing to build differentiated portfolio for teens and growing kids While macroeconomic conditions remain dynamic, we continue to benefit from long-term investments in AI-enabled treatment planning and integrated digital workflows that improve predictability, efficiency, and scalability across the business. These capabilities are designed to increase planning consistency and throughput and support more predictable outcomes for doctors, helping us operate more efficiently across volume environments. While macroeconomic conditions remain dynamic, we continue to benefit from long-term investments in AI-enabled treatment planning and integrated digital workflows that improve predictability, efficiency, and scalability across the business. while macroeconomic conditions remain dynamic we continue to benefit from long-term investments in ai-enabled treatment planning and integrated digital workflows that improve predictability efficiency and scalability across the business These capabilities are designed to increase planning consistency and throughput and support more predictable outcomes for doctors, helping us operate more efficiently across volume environments. these capabilities are designed to increase planning consistency and throughput and support more predictable outcomes for doctors helping us operate more efficiently across volume environments A key part of strategy is expanding the role Align plays in oral health and restorative dentistry. Increasingly, doctors are using our platform not just to align teeth, but to identify oral health issues earlier and integrate orthodontics into comprehensive treatment plans. By connecting iTero, exocad, and Invisalign through digital workflows, we're helping doctors deliver better long-term oral healthcare outcomes for patients, especially as they transition from orthodontic to restorative care. Our vision is to make tooth alignment using clear aligner therapy the standard of care by revolutionizing traditional treatment modalities, appliances, tools, practice workflows, and businesses, and go-to-market models across the dental industry. By focusing on oral health and the benefits of tooth alignment as part of orthodontic restorative treatment, we're developing products and technologies that are helping doctors deliver the best treatment experiences and clinical outcomes for their patients. A key part of strategy is expanding the role Align plays in oral health and restorative dentistry. a key part of strategy is expanding the role align plays in oral health and restorative dentistry Increasingly, doctors are using our platform not just to align teeth, but to identify oral health issues earlier and integrate orthodontics into comprehensive treatment plans. increasingly doctors are using our platform not just to align teeth but to identify oral health issues earlier and integrate orthodontics into comprehensive treatment plans By connecting iTero, exocad, and Invisalign through digital workflows, we're helping doctors deliver better long-term oral healthcare outcomes for patients, especially as they transition from orthodontic to restorative care. by connecting itero exocad and invisalign through digital workflows we're helping doctors deliver better long-term oral healthcare outcomes for patients especially as they transition from orthodontic to restorative care Our vision is to make tooth alignment using clear aligner therapy the standard of care by revolutionizing traditional treatment modalities, appliances, tools, practice workflows, and businesses, and go-to-market models across the dental industry. our vision is to make tooth alignment using clear aligner therapy the standard of care by revolutionizing traditional treatment modalities appliances tools practice workflows and businesses and go-to-market models across the dental industry By focusing on oral health and the benefits of tooth alignment as part of orthodontic restorative treatment, we're developing products and technologies that are helping doctors deliver the best treatment experiences and clinical outcomes for their patients. by focusing on oral health and the benefits of tooth alignment as part of orthodontic restorative treatment we're developing products and technologies that are helping doctors deliver the best treatment experiences and clinical outcomes for their patients To date, nearly 23 million patients worldwide have been treated with the Invisalign system, including approximately 7 million teens and kids. Every case adds to our proprietary clinical dataset generated within our integrated Align Digital Platform. This dataset continues to fuel our innovation and ability to scale across orthodontics, oral health, and change lives for our doctors, customers, and their patients. To date, nearly 23 million patients worldwide have been treated with the Invisalign system, including approximately 7 million teens and kids. to date nearly 23 million patients worldwide have been treated with the invisalign system including approximately 7 million teens and kids Every case adds to our proprietary clinical dataset generated within our integrated Align Digital Platform. every case adds to our proprietary clinical dataset generated within our integrated align digital platform This dataset continues to fuel our innovation and ability to scale across orthodontics, oral health, and change lives for our doctors, customers, and their patients. this dataset continues to fuel our innovation and ability to scale across orthodontics oral health and change lives for our doctors customers and their patients Innovation remains central to our strategy, but always with a clear purpose, helping doctors deliver better outcomes, improving efficiency, and enhancing the patient experience. Looking forward, that includes continued progress in direct fabrication, which we are advancing deliberately and in phases with quality and reliability as our guiding principles. While still early, direct printing unlocks new design flexibility, strengthens our long-term cost structure, and allows us to operate more cost-effectively. Innovation remains central to our strategy, but always with a clear purpose, helping doctors deliver better outcomes, improving efficiency, and enhancing the patient experience. innovation remains central to our strategy but always with a clear purpose helping doctors deliver better outcomes improving efficiency and enhancing the patient experience Looking forward, that includes continued progress in direct fabrication, which we are advancing deliberately and in phases with quality and reliability as our guiding principles. looking forward that includes continued progress in direct fabrication which we are advancing deliberately and in phases with quality and reliability as our guiding principles While still early, direct printing unlocks new design flexibility, strengthens our long-term cost structure, and allows us to operate more cost-effectively. while still early direct printing unlocks new design flexibility strengthens our long-term cost structure and allows us to operate more cost-effectively We begin initial limited market releases of direct 3D-printed attachments and retainer products in Q1 and look forward to updating you further as direct printing programs progress. Our objectives are straightforward: to keep earning trust through clinical leadership, thoughtful innovation, and consistent execution quarter after quarter. With that, I thank you for your time today, and now I'll turn it over to the operator. Operator? We begin initial limited market releases of direct 3D-printed attachments and retainer products in Q1 and look forward to updating you further as direct printing programs progress. we begin initial limited market releases of direct 3d-printed attachments and retainer products in q1 and look forward to updating you further as direct printing programs progress Our objectives are straightforward: to keep earning trust through clinical leadership, thoughtful innovation, and consistent execution quarter after quarter. our objectives are straightforward to keep earning trust through clinical leadership thoughtful innovation and consistent execution quarter after quarter With that, I thank you for your time today, and now I'll turn it over to the operator. with that i thank you for your time today and now i'll turn it over to the operator Operator? operator

Speaker 14: Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star one one if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Daniel Grosslight with Citi. Your line is open. Thank you. thank you At this time, we'll be conducting a question-and-answer session. at this time we'll be conducting a question-and-answer session If you would like to ask a question, please press star one one on your telephone keypad. if you would like to ask a question please press star one one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star one one if you would like to remove your question from the queue. you may press star one one if you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys One moment, please, while we poll for questions. one moment please while we poll for questions Our first question comes from Daniel Grosslight with Citi. our first question comes from daniel grosslight with citi Your line is open. your line is open

Speaker 2: Hi, guys. Hi, guys. hi guys

Speaker 8: Hi, Daniel. Hi, Daniel. hi daniel

Speaker 2: Thanks for taking the question in. Hi, congrats on another strong quarter here. Thanks for taking the question in. thanks for taking the question in Hi, congrats on another strong quarter here. hi congrats on another strong quarter here

Speaker 8: Thank you. Thank you. thank you

Speaker 2: I wanted to focus on the cadence of profitability for the remainder of the year. Obviously a very strong beat this quarter. 2Q looks about flattish sequentially, which implies a fairly significant step up in the second half. Can you just comment on the underlying assumptions for the cadence of profitability this year? Particularly, I know there's a lot of uncertainty around the Middle East, but how much impact around the conflict are you assuming in 2Q? Kind of what are the assumptions around the second half? Thanks. I wanted to focus on the cadence of profitability for the remainder of the year. i wanted to focus on the cadence of profitability for the remainder of the year Obviously a very strong beat this quarter. 2Q looks about flattish sequentially, which implies a fairly significant step up in the second half. obviously a very strong beat this quarter 2q looks about flattish sequentially which implies a fairly significant step up in the second half Can you just comment on the underlying assumptions for the cadence of profitability this year? can you just comment on the underlying assumptions for the cadence of profitability this year Particularly, I know there's a lot of uncertainty around the Middle East, but how much impact around the conflict are you assuming in 2Q? particularly i know there's a lot of uncertainty around the middle east but how much impact around the conflict are you assuming in 2q Kind of what are the assumptions around the second half? kind of what are the assumptions around the second half Thanks. thanks

Speaker 9: Yeah, Daniel, this is John. We're pleased with our profitability and what we saw in the first quarter. It's really a reflection of what we've been able to do with a lot of the restructuring and other changes that we made last year. Yeah, Daniel, this is John. yeah daniel this is john We're pleased with our profitability and what we saw in the first quarter. we're pleased with our profitability and what we saw in the first quarter It's really a reflection of what we've been able to do with a lot of the restructuring and other changes that we made last year. it's really a reflection of what we've been able to do with a lot of the restructuring and other changes that we made last year Both from a COGS standpoint and an OpEx standpoint really starting to take hold in the first quarter. We're pleased with that. We expect that profitability and the productivity to continue as we go through the year. That's typically the cadence that we have as we go quarter-over-quarter. We see that profitability and especially as volume increases as well, we see that profitability come through as well. Good start to the year, and we look forward to the rest of the year playing out as expected. Both from a COGS standpoint and an OpEx standpoint really starting to take hold in the first quarter. both from a cogs standpoint and an opex standpoint really starting to take hold in the first quarter We're pleased with that. we're pleased with that We expect that profitability and the productivity to continue as we go through the year. we expect that profitability and the productivity to continue as we go through the year That's typically the cadence that we have as we go quarter-over-quarter. that's typically the cadence that we have as we go quarter-over-quarter We see that profitability and especially as volume increases as well, we see that profitability come through as well. we see that profitability and especially as volume increases as well we see that profitability come through as well Good start to the year, and we look forward to the rest of the year playing out as expected. good start to the year and we look forward to the rest of the year playing out as expected

Speaker 2: Thank you. Thank you. thank you

Speaker 14: Thank you. Our next question comes from Glen Santangelo with Barclays. Your line is open. Thank you. thank you Our next question comes from Glen Santangelo with Barclays. our next question comes from glen santangelo with barclays Your line is open. your line is open

Speaker 5: Yeah, thanks for taking my question. Just two quick ones from me. Hey, Joe, I want to touch on this Middle East situation. I know you guys don't break it out specifically, but we sort of place it in the mid to high single digit, you know, range with respect to revenues. Can you confirm, is that in the right zip code? I'm just kind of curious, you know, if there's been any impact on the iTero manufacturing facility there, and if you have any insight, you know, on how that business trended in April, because I think that would be helpful for us sort of assessing the balance of the year. Then I just have a follow-up on share repurchase. Yeah, thanks for taking my question. yeah thanks for taking my question Just two quick ones from me. just two quick ones from me Hey, Joe, I want to touch on this Middle East situation. hey joe i want to touch on this middle east situation I know you guys don't break it out specifically, but we sort of place it in the mid to high single digit, you know, range with respect to revenues. i know you guys don't break it out specifically but we sort of place it in the mid to high single digit you know range with respect to revenues Can you confirm, is that in the right zip code? can you confirm is that in the right zip code I'm just kind of curious, you know, if there's been any impact on the iTero manufacturing facility there, and if you have any insight, you know, on how that business trended in April, because I think that would be helpful for us sort of assessing the balance of the year. i'm just kind of curious you know if there's been any impact on the itero manufacturing facility there and if you have any insight you know on how that business trended in april because i think that would be helpful for us sort of assessing the balance of the year Then I just have a follow-up on share repurchase. then i just have a follow-up on share repurchase It's kind of interesting to me, you know, that you completed the $200 million in January, and you said you're gonna start on the next $200 million over the, over the next six months. I'm kinda curious, given the transient nature of the conflict, like why would it make more sense to kind of lean in here more heavily through that $800 million in, you know, in 1Q, for example? You know, given you have over $1 billion in cash on the balance sheet. Any, any thoughts on the timing of your share repurchases would be helpful. Thanks so much. It's kind of interesting to me, you know, that you completed the $200 million in January, and you said you're gonna start on the next $200 million over the, over the next six months. it's kind of interesting to me you know that you completed the $200 million in january and you said you're gonna start on the next $200 million over the over the next six months I'm kinda curious, given the transient nature of the conflict, like why would it make more sense to kind of lean in here more heavily through that $800 million in, you know, in 1Q, for example? i'm kinda curious given the transient nature of the conflict like why would it make more sense to kind of lean in here more heavily through that $800 million in you know in 1q for example You know, given you have over $1 billion in cash on the balance sheet. you know given you have over $1 billion in cash on the balance sheet Any, any thoughts on the timing of your share repurchases would be helpful. any any thoughts on the timing of your share repurchases would be helpful Thanks so much. thanks so much

Speaker 9: Glen, I can start with answering some of these questions. This is John. Middle East, you're right, it's in the Middle East part of our numbers, to the company is in the single digits. There's some impact that we saw, but it's pretty minimal in March, and our reflection is in the second quarter and kind of beyond based on that. In terms of iTero, Joe, you wanna- Glen, I can start with answering some of these questions. glen i can start with answering some of these questions This is John. this is john Middle East, you're right, it's in the Middle East part of our numbers, to the company is in the single digits. middle east you're right it's in the middle east part of our numbers to the company is in the single digits There's some impact that we saw, but it's pretty minimal in March, and our reflection is in the second quarter and kind of beyond based on that. there's some impact that we saw but it's pretty minimal in march and our reflection is in the second quarter and kind of beyond based on that In terms of iTero, Joe, you wanna- in terms of itero joe you wanna-

Speaker 8: On the iTero side, you know, Glen, honestly, we didn't have any disruption from a product production or shipment standpoint. That team is very rigorous over there. We understand when to move equipment well and whatever. I'm not saying that's always perfect, but the team has responded well, and we didn't have any really impact on the business in the first quarter. On the iTero side, you know, Glen, honestly, we didn't have any disruption from a product production or shipment standpoint. on the itero side you know glen honestly we didn't have any disruption from a product production or shipment standpoint That team is very rigorous over there. that team is very rigorous over there We understand when to move equipment well and whatever. we understand when to move equipment well and whatever I'm not saying that's always perfect, but the team has responded well, and we didn't have any really impact on the business in the first quarter. i'm not saying that's always perfect but the team has responded well and we didn't have any really impact on the business in the first quarter

Speaker 9: On the share repurchase, you're right. We saw the $200 million that we just completed and now an additional $200 million. Remember, it comes down to U.S. cash and, you know, about 20% of our cash is in the U.S. versus out of the U.S., so we have that constraint as well. It's part of our overall plan that we have. We wanna grow the business as fast as we can, use our cash to be able to help do that. We have a good business model that generates a lot of cash. You saw that reflection in the first quarter. We do the buybacks to be able to put cash back to our shareholders. That's been the plan that we have and it's a disciplined approach that we've taken and we've seen that investments made back in the business that way. On the share repurchase, you're right. on the share repurchase you're right We saw the $200 million that we just completed and now an additional $200 million. we saw the $200 million that we just completed and now an additional $200 million Remember, it comes down to U.S. cash and, you know, about 20% of our cash is in the U.S. versus out of the U.S., so we have that constraint as well. remember it comes down to u.s cash and you know about 20% of our cash is in the u.s versus out of the u.s so we have that constraint as well It's part of our overall plan that we have. it's part of our overall plan that we have We wanna grow the business as fast as we can, use our cash to be able to help do that. we wanna grow the business as fast as we can use our cash to be able to help do that We have a good business model that generates a lot of cash. we have a good business model that generates a lot of cash You saw that reflection in the first quarter. you saw that reflection in the first quarter We do the buybacks to be able to put cash back to our shareholders. we do the buybacks to be able to put cash back to our shareholders That's been the plan that we have and it's a disciplined approach that we've taken and we've seen that investments made back in the business that way. that's been the plan that we have and it's a disciplined approach that we've taken and we've seen that investments made back in the business that way

Speaker 5: Okay, thank you. Okay, thank you. okay thank you

Speaker 15: Thanks, Glen. Thanks, Glen. thanks glen

Speaker 14: Thank you. Our next question comes from Brandon Vasquez with William Blair. Your line is open. Thank you. thank you Our next question comes from Brandon Vasquez with William Blair. our next question comes from brandon vasquez with william blair Your line is open. your line is open

Speaker 1: Hey, everyone. Thanks for taking my call. Hi, guys. Thanks for taking the question and congrats on a quarter here, good quarter here in an uncertain macro. I wanna follow on the Middle East question, but actually not like the specific exposure to the Middle East, but you guys had kinda called out, you know, some prudence around the guidance just for the uncertainty around the Middle East situation. I assume you guys are talking about potential, like, impacts to consumers, things like that. Hey, everyone. hey everyone Thanks for taking my call. thanks for taking my call Hi, guys. hi guys Thanks for taking the question and congrats on a quarter here, good quarter here in an uncertain macro. thanks for taking the question and congrats on a quarter here good quarter here in an uncertain macro I wanna follow on the Middle East question, but actually not like the specific exposure to the Middle East, but you guys had kinda called out, you know, some prudence around the guidance just for the uncertainty around the Middle East situation. i wanna follow on the middle east question but actually not like the specific exposure to the middle east but you guys had kinda called out you know some prudence around the guidance just for the uncertainty around the middle east situation I assume you guys are talking about potential, like, impacts to consumers, things like that. i assume you guys are talking about potential like impacts to consumers things like that Maybe just talk us through what are the potential risks, what is the prudence that's being baked into the guidance, just so we understand, if we do have a prolonged situation in Middle East, what's the wiggle room within guidance and where you guys would expect across the P&L there could be an impact, right? It could be in revenue. Then maybe the other one I'll ask on margins related to this is like, are you guys exposed to resin costs that we keep seeing headlines about, rising from the Middle East? Thanks. Maybe just talk us through what are the potential risks, what is the prudence that's being baked into the guidance, just so we understand, if we do have a prolonged situation in Middle East, what's the wiggle room within guidance and where you guys would expect across the P&L there could be an impact, right? maybe just talk us through what are the potential risks what is the prudence that's being baked into the guidance just so we understand if we do have a prolonged situation in middle east what's the wiggle room within guidance and where you guys would expect across the p&l there could be an impact right It could be in revenue. it could be in revenue Then maybe the other one I'll ask on margins related to this is like, are you guys exposed to resin costs that we keep seeing headlines about, rising from the Middle East? then maybe the other one i'll ask on margins related to this is like are you guys exposed to resin costs that we keep seeing headlines about rising from the middle east Thanks. thanks

Speaker 9: Brandon, this is John. There's a minimal direct impact. Like I said, the Middle East part of our business is actually relatively, you know, small in the single digits as a comparison to the rest of the business. It's really just the higher fuel prices that you see that every country is seeing now as a result of this and what it means for their inflation and what they have to be able to, you know, purchase other products, including ours. We've done a lot to be able to help drive the conversion. Brandon, this is John. brandon this is john There's a minimal direct impact. there's a minimal direct impact Like I said, the Middle East part of our business is actually relatively, you know, small in the single digits as a comparison to the rest of the business. like i said the middle east part of our business is actually relatively you know small in the single digits as a comparison to the rest of the business It's really just the higher fuel prices that you see that every country is seeing now as a result of this and what it means for their inflation and what they have to be able to, you know, purchase other products, including ours. it's really just the higher fuel prices that you see that every country is seeing now as a result of this and what it means for their inflation and what they have to be able to you know purchase other products including ours We've done a lot to be able to help drive the conversion. we've done a lot to be able to help drive the conversion Much of what we talked about was, you know, helping potential patients with financing and helping doctors to be able to provide financing and so on, we'll continue those efforts. It's really more around something that's prolonged with higher inflation and higher share of wallet that goes other places that puts us from a forecast standpoint, just trying to be as prudent as possible. Much of what we talked about was, you know, helping potential patients with financing and helping doctors to be able to provide financing and so on, we'll continue those efforts. much of what we talked about was you know helping potential patients with financing and helping doctors to be able to provide financing and so on we'll continue those efforts It's really more around something that's prolonged with higher inflation and higher share of wallet that goes other places that puts us from a forecast standpoint, just trying to be as prudent as possible. it's really more around something that's prolonged with higher inflation and higher share of wallet that goes other places that puts us from a forecast standpoint just trying to be as prudent as possible

Speaker 8: Good? Good? good

Speaker 15: Yep. Next question, please. Yep. yep Next question, please. next question please

Speaker 14: Thank you. Our next question comes from Jon Block with Stifel. Your line is open. Thank you. thank you Our next question comes from Jon Block with Stifel. our next question comes from jon block with stifel Your line is open. your line is open

Speaker 10: Hey, guys. Good afternoon. Hey, guys. hey guys Good afternoon. good afternoon

Speaker 8: Jon. Jon. jon

Speaker 10: Two for me, maybe I'll break them up, but just on the first one, you know, Joe. Two for me, maybe I'll break them up, but just on the first one, you know, Joe. two for me maybe i'll break them up but just on the first one you know joe

Speaker 15: Hey, Jon? Hey, Jon, you sound really low. Can you speak up? Okay, that's better. Hey, Jon? hey jon Hey, Jon, you sound really low. hey jon you sound really low Can you speak up? can you speak up Okay, that's better. okay that's better

Speaker 10: Is that better? All right. Sorry about that. Two questions, I'll try to break them up and I'll yell on top of that. You know, Joe, trends are always really important, but certainly top of mind with investors with, call it, the current state of the globe and what's going on. I'm wondering if you can give us any color just on how things trended or call it like closed in the first quarter, you know, call it more the month of March, and then any early 2Q trends to call out, you know, for the first month that you experienced in the month of April. Is that better? is that better All right. all right Sorry about that. sorry about that Two questions, I'll try to break them up and I'll yell on top of that. two questions i'll try to break them up and i'll yell on top of that You know, Joe, trends are always really important, but certainly top of mind with investors with, call it, the current state of the globe and what's going on. you know joe trends are always really important but certainly top of mind with investors with call it the current state of the globe and what's going on I'm wondering if you can give us any color just on how things trended or call it like closed in the first quarter, you know, call it more the month of March, and then any early 2Q trends to call out, you know, for the first month that you experienced in the month of April. i'm wondering if you can give us any color just on how things trended or call it like closed in the first quarter you know call it more the month of march and then any early 2q trends to call out you know for the first month that you experienced in the month of april

Speaker 8: Hey, Jon. Look, I mean, overall, when I look at the quarter, I look at it, you know, globally and all. It's pretty consistent across the board when we look month-to-month. You know, obviously iTero is, you know, kind of back-end loaded obviously in the way capital equipment purchases go. But when we looked at Invisalign, we felt good about Invisalign all country and country and the consistency of what we saw. And no, I would say overall pockets of weakness that was, you know, different than what we experienced in the fourth quarter. Overall, we felt good about that, you know, and we felt good is how we enter the second quarter too. John, anything to add? Hey, Jon. hey jon Look, I mean, overall, when I look at the quarter, I look at it, you know, globally and all. look i mean overall when i look at the quarter i look at it you know globally and all It's pretty consistent across the board when we look month-to-month. it's pretty consistent across the board when we look month-to-month You know, obviously iTero is, you know, kind of back-end loaded obviously in the way capital equipment purchases go. you know obviously itero is you know kind of back-end loaded obviously in the way capital equipment purchases go But when we looked at Invisalign, we felt good about Invisalign all country and country and the consistency of what we saw. but when we looked at invisalign we felt good about invisalign all country and country and the consistency of what we saw And no, I would say overall pockets of weakness that was, you know, different than what we experienced in the fourth quarter. and no i would say overall pockets of weakness that was you know different than what we experienced in the fourth quarter Overall, we felt good about that, you know, and we felt good is how we enter the second quarter too. overall we felt good about that you know and we felt good is how we enter the second quarter too John, anything to add? john anything to add

Speaker 9: Well, I mean, there's gonna be puts and takes as you go through any quarter. On balance, you know, we kind of take a balanced view of that from a guidance standpoint and reflect that. Yeah. Well, I mean, there's gonna be puts and takes as you go through any quarter. well i mean there's gonna be puts and takes as you go through any quarter On balance, you know, we kind of take a balanced view of that from a guidance standpoint and reflect that. on balance you know we kind of take a balanced view of that from a guidance standpoint and reflect that Yeah. yeah

Speaker 10: Okay. John, maybe the second one, hopefully you can hear me okay, just to follow up. You mentioned zero refinement or no AA, it seems like that rollout's gonna broaden. You talked about, you know, seeing some good proof points with some of the accounts that had it, like notably the DSOs. What's the assumption in 2026 guidance? Have you built out any, call it, like, incremental contribution from zero refinement as that rolls out more broadly for the balance of the year? The tack on to that, certainly related is, in the wording on the 2Q guidance, you mentioned prudence, you know, due to what's going on in the Middle East for 2Q. To be clear, have you seen it yet as in the month of April, or are you building that in in case it's on the come? Thanks for your time. Okay. okay John, maybe the second one, hopefully you can hear me okay, just to follow up. john maybe the second one hopefully you can hear me okay just to follow up You mentioned zero refinement or no AA, it seems like that rollout's gonna broaden. you mentioned zero refinement or no aa it seems like that rollout's gonna broaden You talked about, you know, seeing some good proof points with some of the accounts that had it, like notably the DSOs. you talked about you know seeing some good proof points with some of the accounts that had it like notably the dsos What's the assumption in 2026 guidance? what's the assumption in 2026 guidance Have you built out any, call it, like, incremental contribution from zero refinement as that rolls out more broadly for the balance of the year? have you built out any call it like incremental contribution from zero refinement as that rolls out more broadly for the balance of the year The tack on to that, certainly related is, in the wording on the 2Q guidance, you mentioned prudence, you know, due to what's going on in the Middle East for 2Q. the tack on to that certainly related is in the wording on the 2q guidance you mentioned prudence you know due to what's going on in the middle east for 2q To be clear, have you seen it yet as in the month of April, or are you building that in in case it's on the come? to be clear have you seen it yet as in the month of april or are you building that in in case it's on the come Thanks for your time. thanks for your time

Speaker 9: Yeah. When we see the zero refinement, it really not in a big way in our forecast for the year. We're very pleased with what's happening and how this rollout happens. Again, doctors have to get comfortable with these products. They wanna see results for themselves. They wanna get that clinical confidence so that they can increase adoption. It's a rollout, but what we do see is doctors started to utilize it more and more. We're pleased with that, but we're not expecting much just because of the time nature of the rollout for this year. When we look at, you know, the overall that we see, we're pleased with that. Yeah. yeah When we see the zero refinement, it really not in a big way in our forecast for the year. when we see the zero refinement it really not in a big way in our forecast for the year We're very pleased with what's happening and how this rollout happens. we're very pleased with what's happening and how this rollout happens Again, doctors have to get comfortable with these products. again doctors have to get comfortable with these products They wanna see results for themselves. they wanna see results for themselves They wanna get that clinical confidence so that they can increase adoption. they wanna get that clinical confidence so that they can increase adoption It's a rollout, but what we do see is doctors started to utilize it more and more. it's a rollout but what we do see is doctors started to utilize it more and more We're pleased with that, but we're not expecting much just because of the time nature of the rollout for this year. we're pleased with that but we're not expecting much just because of the time nature of the rollout for this year When we look at, you know, the overall that we see, we're pleased with that. when we look at you know the overall that we see we're pleased with that I think from a guidance standpoint, we, you know, we've been able to see the puts and takes of the first quarter, you factor that into April, and that's what's gone into our guidance. I would say, you know, it's a balanced view of all those puts and takes. I wouldn't say it's overly cautious. It's just a reflective of what we expect and from a guidance standpoint for Q2 and then the reflection of maintaining our overall for the year. I think from a guidance standpoint, we, you know, we've been able to see the puts and takes of the first quarter, you factor that into April, and that's what's gone into our guidance. i think from a guidance standpoint we you know we've been able to see the puts and takes of the first quarter you factor that into april and that's what's gone into our guidance I would say, you know, it's a balanced view of all those puts and takes. i would say you know it's a balanced view of all those puts and takes I wouldn't say it's overly cautious. i wouldn't say it's overly cautious It's just a reflective of what we expect and from a guidance standpoint for Q2 and then the reflection of maintaining our overall for the year. it's just a reflective of what we expect and from a guidance standpoint for q2 and then the reflection of maintaining our overall for the year

Speaker 10: Perfect. Thanks, guys. Perfect. perfect Thanks, guys. thanks guys

Speaker 8: Yeah. Thanks, Jon. Yeah. yeah Thanks, Jon. thanks jon

Speaker 14: Thank you. Our next question comes from Elizabeth Anderson with Evercore ISI. Your line is open. Thank you. thank you Our next question comes from Elizabeth Anderson with Evercore ISI. our next question comes from elizabeth anderson with evercore isi Your line is open. your line is open

Speaker 9: Elizabeth- Elizabeth- elizabeth-

Speaker 3: Hi, guys. Good afternoon, and thanks so much for the question. Maybe a two-parter from me. One, can you go into a little bit more detail about your sort of, like, change in ASP view? It just seems a little bit more positive than what you're saying. Just wanted to, like, parse through that in a little bit more detail in terms of, like, mix or, or FX and that kind of thing. Two, as you think about the margin opportunities in 2026, do you see any changes in those buckets versus sort of what you were thinking about later last year? Are there any incremental opportunities? Any more details on that would also be helpful. Thank you. Hi, guys. hi guys Good afternoon, and thanks so much for the question. good afternoon and thanks so much for the question Maybe a two-parter from me. maybe a two-parter from me One, can you go into a little bit more detail about your sort of, like, change in ASP view? one can you go into a little bit more detail about your sort of like change in asp view It just seems a little bit more positive than what you're saying. it just seems a little bit more positive than what you're saying Just wanted to, like, parse through that in a little bit more detail in terms of, like, mix or, or FX and that kind of thing. just wanted to like parse through that in a little bit more detail in terms of like mix or or fx and that kind of thing Two, as you think about the margin opportunities in 2026, do you see any changes in those buckets versus sort of what you were thinking about later last year? two as you think about the margin opportunities in 2026 do you see any changes in those buckets versus sort of what you were thinking about later last year Are there any incremental opportunities? are there any incremental opportunities Any more details on that would also be helpful. any more details on that would also be helpful Thank you. thank you

Speaker 9: Elizabeth, on the ASP, you're right. You know, there are moving pieces, certainly with that we called out, foreign exchange, and we talk a lot about country mix and product mix, and certainly those play through our ASPs. On an overall basis, you know, when we look year-over-year, it's a $10 increase, which was good. It was as expected. Even on a quarter-over-quarter basis, $10. That's kinda how, you know, when we look forward, you're still gonna have that country mix and product mix, but, you know, a lot of times things are offsetting, and we see that as a result. ASPs stable. Elizabeth, on the ASP, you're right. elizabeth on the asp you're right You know, there are moving pieces, certainly with that we called out, foreign exchange, and we talk a lot about country mix and product mix, and certainly those play through our ASPs. you know there are moving pieces certainly with that we called out foreign exchange and we talk a lot about country mix and product mix and certainly those play through our asps On an overall basis, you know, when we look year-over-year, it's a $10 increase, which was good. on an overall basis you know when we look year-over-year it's a $10 increase which was good It was as expected. it was as expected Even on a quarter-over-quarter basis, $10. even on a quarter-over-quarter basis $10 That's kinda how, you know, when we look forward, you're still gonna have that country mix and product mix, but, you know, a lot of times things are offsetting, and we see that as a result. that's kinda how you know when we look forward you're still gonna have that country mix and product mix but you know a lot of times things are offsetting and we see that as a result ASPs stable. asps stable It is when we see some of those lower stage products, like we talked about with the no AA or some of the moderate products, they come at a higher gross margin. We see that coming through. First quarter is a good example of that. As you increase your no AA products, as you increase your moderates with no AAs, the cost to serve is just less. We end up with being able to see improvements in gross margin. It is when we see some of those lower stage products, like we talked about with the no AA or some of the moderate products, they come at a higher gross margin. it is when we see some of those lower stage products like we talked about with the no aa or some of the moderate products they come at a higher gross margin We see that coming through. we see that coming through First quarter is a good example of that. first quarter is a good example of that As you increase your no AA products, as you increase your moderates with no AAs, the cost to serve is just less. as you increase your no aa products as you increase your moderates with no aas the cost to serve is just less We end up with being able to see improvements in gross margin. we end up with being able to see improvements in gross margin As we go through the year, we should expect to see that in terms of our product mix. Improvements in gross margin, we should continue to see productivity. We made a lot of cost actions at the end of last year. We're seeing good effects of those cost changes, whether it's getting closer to our customers. As we go through the year, we should expect to see that in terms of our product mix. as we go through the year we should expect to see that in terms of our product mix Improvements in gross margin, we should continue to see productivity. improvements in gross margin we should continue to see productivity We made a lot of cost actions at the end of last year. we made a lot of cost actions at the end of last year We're seeing good effects of those cost changes, whether it's getting closer to our customers. we're seeing good effects of those cost changes whether it's getting closer to our customers In some cases it's just equipment that's more efficient, drives productivity. Certainly as we have more volume, we get that leverage as we go through. That's how we expect things to play out this year. So far in the first quarter was a good start. In some cases it's just equipment that's more efficient, drives productivity. in some cases it's just equipment that's more efficient drives productivity Certainly as we have more volume, we get that leverage as we go through. certainly as we have more volume we get that leverage as we go through That's how we expect things to play out this year. that's how we expect things to play out this year So far in the first quarter was a good start. so far in the first quarter was a good start

Speaker 15: Next question, please. Next question, please. next question please

Speaker 14: Thank you. Our next question comes from Jeff Johnson with Baird. Your line is open. Thank you. thank you Our next question comes from Jeff Johnson with Baird. our next question comes from jeff johnson with baird Your line is open. your line is open

Speaker 8: Hey, Jeff. Hey, Jeff. hey jeff

Speaker 7: Hey, guys. Hey, Joe. Hey, John. Good afternoon, everyone. Joe, I wanted to start maybe two questions, but let me start just on kinda your North American case growth. I think you've mentioned it was down a little bit year-over-year. Every other market, I think up double digits, although correct me if I'm wrong on the every other market comment part of that. What do you think the difference is in the U.S. or North America versus rest of world? Hey, guys. hey guys Hey, Joe. hey joe Hey, John. hey john Good afternoon, everyone. good afternoon everyone Joe, I wanted to start maybe two questions, but let me start just on kinda your North American case growth. joe i wanted to start maybe two questions but let me start just on kinda your north american case growth I think you've mentioned it was down a little bit year-over-year. i think you've mentioned it was down a little bit year-over-year Every other market, I think up double digits, although correct me if I'm wrong on the every other market comment part of that. every other market i think up double digits although correct me if i'm wrong on the every other market comment part of that What do you think the difference is in the U.S. or North America versus rest of world? what do you think the difference is in the u.s or north america versus rest of world Is it just all consumer? Is it, is it competition? What is driving such a stark contrast? I know that's not really different over the last several quarters or handful of quarters. Just what's your updated thought on how we get that kind of North American number back to, you know, something that can be contributing at least to the double-digit elsewhere? Is it just all consumer? is it just all consumer Is it, is it competition? is it is it competition What is driving such a stark contrast? what is driving such a stark contrast I know that's not really different over the last several quarters or handful of quarters. i know that's not really different over the last several quarters or handful of quarters Just what's your updated thought on how we get that kind of North American number back to, you know, something that can be contributing at least to the double-digit elsewhere? just what's your updated thought on how we get that kind of north american number back to you know something that can be contributing at least to the double-digit elsewhere

Speaker 8: Yeah, that's a good question, Jeff. You know, first of all, I'd say the competition aspect hasn't changed. Just to take off on Jon's question a second ago, you know, that no AA allows us to play offense out there, and we're playing more offense in that sense, and we feel good about it overall. I'd say, you know, broadly, I was actually anticipating this question, Jeff, is that it's broadly a macro, the way I look at it, versus here in the rest of the world. It's almost like you'd put the macro in Asia being the best. Secondly, Europe's spotty. You know, Europe's a lot of different countries, but you can see the, you know, the countries we highlighted like Iberia, U.K., and different parts of EMEA is growing pretty well. Yeah, that's a good question, Jeff. yeah that's a good question jeff You know, first of all, I'd say the competition aspect hasn't changed. you know first of all i'd say the competition aspect hasn't changed Just to take off on Jon's question a second ago, you know, that no AA allows us to play offense out there, and we're playing more offense in that sense, and we feel good about it overall. just to take off on jon's question a second ago you know that no aa allows us to play offense out there and we're playing more offense in that sense and we feel good about it overall I'd say, you know, broadly, I was actually anticipating this question, Jeff, is that it's broadly a macro, the way I look at it, versus here in the rest of the world. i'd say you know broadly i was actually anticipating this question jeff is that it's broadly a macro the way i look at it versus here in the rest of the world It's almost like you'd put the macro in Asia being the best. it's almost like you'd put the macro in asia being the best Secondly, Europe's spotty. secondly europe's spotty You know, Europe's a lot of different countries, but you can see the, you know, the countries we highlighted like Iberia, U.K., and different parts of EMEA is growing pretty well. you know europe's a lot of different countries but you can see the you know the countries we highlighted like iberia u.k and different parts of emea is growing pretty well When you look at the Americas, you know, which includes Latin America, did extremely well. We're seeing some improvement in Canada right now and some improvement in the U.S. You know, overall I feel, you know, good overall, but that variable you're looking for, Jeff, has been U.S. macro as far as I can tell. When you look at the Americas, you know, which includes Latin America, did extremely well. when you look at the americas you know which includes latin america did extremely well We're seeing some improvement in Canada right now and some improvement in the U.S. we're seeing some improvement in canada right now and some improvement in the u.s You know, overall I feel, you know, good overall, but that variable you're looking for, Jeff, has been U.S. macro as far as I can tell. you know overall i feel you know good overall but that variable you're looking for jeff has been u.s macro as far as i can tell

Speaker 7: All right. Fair enough. Maybe just a two-parter on no AA. One, you know, I think last quarter you had talked about, you know, going into 2Q being pretty complete with the rollout of zero AA across most markets. It sounds like maybe that has a little extended launch timeline now. Just wondering if anything has changed there. All right. all right Fair enough. fair enough Maybe just a two-parter on no AA. maybe just a two-parter on no aa One, you know, I think last quarter you had talked about, you know, going into 2Q being pretty complete with the rollout of zero AA across most markets. one you know i think last quarter you had talked about you know going into 2q being pretty complete with the rollout of zero aa across most markets It sounds like maybe that has a little extended launch timeline now. it sounds like maybe that has a little extended launch timeline now Just wondering if anything has changed there. just wondering if anything has changed there On some of the LMR, the limited market release you did of no AA last year, any early evidence of, you know, whether these docs who are using no AA are still doing one or two refinements in an a la carte way? Are they using DSP to pay for it? Just how to think about kind of years, you know, six months through year two of those no AA cases. Do additional revenues come in over time, or not on that product? Thanks. On some of the LMR, the limited market release you did of no AA last year, any early evidence of, you know, whether these docs who are using no AA are still doing one or two refinements in an a la carte way? on some of the lmr the limited market release you did of no aa last year any early evidence of you know whether these docs who are using no aa are still doing one or two refinements in an a la carte way Are they using DSP to pay for it? are they using dsp to pay for it Just how to think about kind of years, you know, six months through year two of those no AA cases. just how to think about kind of years you know six months through year two of those no aa cases Do additional revenues come in over time, or not on that product? do additional revenues come in over time or not on that product Thanks. thanks

Speaker 8: Yeah. John, what do you see on that? Yeah. yeah John, what do you see on that? john what do you see on that

Speaker 9: On the no AA, when we look at it's being available to many doctors, it's just a question of do doctors wanna utilize it and start to utilize it right away. There's a roll-up based on the doctor's preference in terms of how much they wanna utilize and that ramps up. In success, when doctors start to see the benefits of it, their clinical confidence and that they can treat patients even on complicated cases with no refinements or maybe one refinement, then they continue to do more and more. That's what we've seen in our data as we've gone. On the no AA, when we look at it's being available to many doctors, it's just a question of do doctors wanna utilize it and start to utilize it right away. on the no aa when we look at it's being available to many doctors it's just a question of do doctors wanna utilize it and start to utilize it right away There's a roll-up based on the doctor's preference in terms of how much they wanna utilize and that ramps up. there's a roll-up based on the doctor's preference in terms of how much they wanna utilize and that ramps up In success, when doctors start to see the benefits of it, their clinical confidence and that they can treat patients even on complicated cases with no refinements or maybe one refinement, then they continue to do more and more. in success when doctors start to see the benefits of it their clinical confidence and that they can treat patients even on complicated cases with no refinements or maybe one refinement then they continue to do more and more That's what we've seen in our data as we've gone. that's what we've seen in our data as we've gone Now, as it's been out for over a year in many markets, now you see doctors saying, "Okay, they need to purchase a refinement," or they might be, they might have something that they need to add to the case to make sure it can finish properly. You start to see some of the refinements come later. That was our expectation when we started this, that there would be an adoption and those doctors then start to use it. Now, as it's been out for over a year in many markets, now you see doctors saying, "Okay, they need to purchase a refinement," or they might be, they might have something that they need to add to the case to make sure it can finish properly. now as it's been out for over a year in many markets now you see doctors saying "okay they need to purchase a refinement," or they might be they might have something that they need to add to the case to make sure it can finish properly You start to see some of the refinements come later. you start to see some of the refinements come later That was our expectation when we started this, that there would be an adoption and those doctors then start to use it. that was our expectation when we started this that there would be an adoption and those doctors then start to use it They wanna see what refinements they need, and now we're starting to see some refinements. It really helps doctors be able to keep that initial case cost lower for them so that they can fit that into their practice and, you know, see those patients as they would want. Good adoption that we've seen across the globe. You're starting to see refinements come in, but it's pretty much as expected. We just wanna keep rolling this out and getting doctors more and more options. They wanna see what refinements they need, and now we're starting to see some refinements. they wanna see what refinements they need and now we're starting to see some refinements It really helps doctors be able to keep that initial case cost lower for them so that they can fit that into their practice and, you know, see those patients as they would want. it really helps doctors be able to keep that initial case cost lower for them so that they can fit that into their practice and you know see those patients as they would want Good adoption that we've seen across the globe. good adoption that we've seen across the globe You're starting to see refinements come in, but it's pretty much as expected. you're starting to see refinements come in but it's pretty much as expected We just wanna keep rolling this out and getting doctors more and more options. we just wanna keep rolling this out and getting doctors more and more options

Speaker 8: You know, Jeff, I think just to add something to what John said. I think one is over the years, the doctors have gotten more and more confidence in our product lines. I talked about TPS and MyScript and different things that we do to train doctors. I think it gives them much more confidence to go out there with no AAs. Secondly is it aligns doctors' economics along with our economics too, and so it helps to bring the two of us together in a much better way. You know, Jeff, I think just to add something to what John said. you know jeff i think just to add something to what john said I think one is over the years, the doctors have gotten more and more confidence in our product lines. i think one is over the years the doctors have gotten more and more confidence in our product lines I talked about TPS and MyScript and different things that we do to train doctors. i talked about tps and myscript and different things that we do to train doctors I think it gives them much more confidence to go out there with no AAs. i think it gives them much more confidence to go out there with no aas Secondly is it aligns doctors' economics along with our economics too, and so it helps to bring the two of us together in a much better way. secondly is it aligns doctors' economics along with our economics too and so it helps to bring the two of us together in a much better way

Speaker 7: Understood. Thank you. Understood. understood Thank you. thank you

Speaker 15: Thanks, Jeff. Next question. Thanks, Jeff. thanks jeff Next question. next question

Speaker 14: Thank you. Our next question comes from Michael Cherny with Leerink Partners. Your line is open. Thank you. thank you Our next question comes from Michael Cherny with Leerink Partners. our next question comes from michael cherny with leerink partners Your line is open. your line is open

Speaker 12: Good evening. Thanks for taking the question. I know we've been talking a lot about macro, obviously not something you can control, but you can control some of the reaction to macro. As we sit here wondering what's gonna happen with the Middle East, I appreciate all the color in terms of what's baked into the guidance on the top line as well as the COGS side. How are you thinking about the OpEx spend and the push and pull to make sure that the appropriate level of demand is being stimulated and especially in a world where you do have a broader product portfolio? Is there any color you can give us in terms of the scenario analysis that could lead to ongoing margin upside Good evening. good evening Thanks for taking the question. thanks for taking the question I know we've been talking a lot about macro, obviously not something you can control, but you can control some of the reaction to macro. i know we've been talking a lot about macro obviously not something you can control but you can control some of the reaction to macro As we sit here wondering what's gonna happen with the Middle East, I appreciate all the color in terms of what's baked into the guidance on the top line as well as the COGS side. as we sit here wondering what's gonna happen with the middle east i appreciate all the color in terms of what's baked into the guidance on the top line as well as the cogs side How are you thinking about the OpEx spend and the push and pull to make sure that the appropriate level of demand is being stimulated and especially in a world where you do have a broader product portfolio? how are you thinking about the opex spend and the push and pull to make sure that the appropriate level of demand is being stimulated and especially in a world where you do have a broader product portfolio Is there any color you can give us in terms of the scenario analysis that could lead to ongoing margin upside is there any color you can give us in terms of the scenario analysis that could lead to ongoing margin upside

Speaker 9: Michael, this is John. We're constantly looking at the understanding the macro and then our investments into that macro. It's not one size fits all. Some countries there's maybe not as much awareness, and we're at different points in the overall journey of Invisalign there. You make different investments compared to maybe the bigger markets like you see within the U.S. We're very attuned to making changes and being able to re-reflect what's working and what might not be working, what macro is happening in certain markets versus not, and we'll make adjustments to that, ultimately wanting to get the best return on investment. When we take that approach, we can manage that in the short term to be able to hit the expectations we have. Michael, this is John. michael this is john We're constantly looking at the understanding the macro and then our investments into that macro. we're constantly looking at the understanding the macro and then our investments into that macro It's not one size fits all. it's not one size fits all Some countries there's maybe not as much awareness, and we're at different points in the overall journey of Invisalign there. some countries there's maybe not as much awareness and we're at different points in the overall journey of invisalign there You make different investments compared to maybe the bigger markets like you see within the U.S. you make different investments compared to maybe the bigger markets like you see within the u.s We're very attuned to making changes and being able to re-reflect what's working and what might not be working, what macro is happening in certain markets versus not, and we'll make adjustments to that, ultimately wanting to get the best return on investment. we're very attuned to making changes and being able to re-reflect what's working and what might not be working what macro is happening in certain markets versus not and we'll make adjustments to that ultimately wanting to get the best return on investment When we take that approach, we can manage that in the short term to be able to hit the expectations we have. when we take that approach we can manage that in the short term to be able to hit the expectations we have Of course, we want to be able to drive the category and grow and that's something that we make maybe on a more longer term basis. We're really looking at what's happening kind of market by market and even within the markets, whether you advertise at the high level or more at the customer level. We're making those trade-offs and doing this active conversion that we've talked about to really help doctors. Of course, we want to be able to drive the category and grow and that's something that we make maybe on a more longer term basis. of course we want to be able to drive the category and grow and that's something that we make maybe on a more longer term basis We're really looking at what's happening kind of market by market and even within the markets, whether you advertise at the high level or more at the customer level. we're really looking at what's happening kind of market by market and even within the markets whether you advertise at the high level or more at the customer level We're making those trade-offs and doing this active conversion that we've talked about to really help doctors. we're making those trade-offs and doing this active conversion that we've talked about to really help doctors

Speaker 14: Thank you. Our next question comes from Jason Bednar with Piper Sandler. Your line is open. Thank you. thank you Our next question comes from Jason Bednar with Piper Sandler. our next question comes from jason bednar with piper sandler Your line is open. your line is open

Speaker 9: Hi, Jason. Hi, Jason. hi jason

Speaker 6: Hey, good afternoon. Hey, thanks for the questions. Nice start to the year here. Wanted to follow up, I think on Jeff's question earlier on, you know, focusing on here on the U.S. You know, good to see a lot of the record quarters in the international side. The U.S. market seems like maybe it's had some green shoots, at least in some of the data that we look at, maybe more focused on the orthodontic channel. Is that consistent with what you're seeing too? Just sorry if I missed it. Are you seeing any differences in your business when you look across that team-focused U.S. ortho channel relative to more of the retail adult-oriented U.S. GP segment? Hey, good afternoon. hey good afternoon Hey, thanks for the questions. hey thanks for the questions Nice start to the year here. nice start to the year here Wanted to follow up, I think on Jeff's question earlier on, you know, focusing on here on the U.S. wanted to follow up i think on jeff's question earlier on you know focusing on here on the u.s You know, good to see a lot of the record quarters in the international side. you know good to see a lot of the record quarters in the international side The U.S. market seems like maybe it's had some green shoots, at least in some of the data that we look at, maybe more focused on the orthodontic channel. the u.s market seems like maybe it's had some green shoots at least in some of the data that we look at maybe more focused on the orthodontic channel Is that consistent with what you're seeing too? is that consistent with what you're seeing too Just sorry if I missed it. just sorry if i missed it Are you seeing any differences in your business when you look across that team-focused U.S. ortho channel relative to more of the retail adult-oriented U.S. are you seeing any differences in your business when you look across that team-focused u.s ortho channel relative to more of the retail adult-oriented u.s GP segment? gp segment

Speaker 8: You know, just deciphering your question, Jason, I'd say when you look at like a DSO approach versus a retail approach, we obviously get a broader signal on a DSO because we're looking at a lot more, you know, patients and doctors. The DSOs traditionally have, you know, they have really good skills to go out and recruit, finance in different areas. On the retail doctor side, you know, when I talk about HFD and those different things, those are types of systems that we're bringing together to address things that we feel hurt, you know, our retail doctors at times, inability to be able to finance or to make quick decisions in financing with patients in different areas, how we go about that as a business overall. You know, just deciphering your question, Jason, I'd say when you look at like a DSO approach versus a retail approach, we obviously get a broader signal on a DSO because we're looking at a lot more, you know, patients and doctors. you know just deciphering your question jason i'd say when you look at like a dso approach versus a retail approach we obviously get a broader signal on a dso because we're looking at a lot more you know patients and doctors The DSOs traditionally have, you know, they have really good skills to go out and recruit, finance in different areas. the dsos traditionally have you know they have really good skills to go out and recruit finance in different areas On the retail doctor side, you know, when I talk about HFD and those different things, those are types of systems that we're bringing together to address things that we feel hurt, you know, our retail doctors at times, inability to be able to finance or to make quick decisions in financing with patients in different areas, how we go about that as a business overall. on the retail doctor side you know when i talk about hfd and those different things those are types of systems that we're bringing together to address things that we feel hurt you know our retail doctors at times inability to be able to finance or to make quick decisions in financing with patients in different areas how we go about that as a business overall I'd say the macro is there, but I feel good about what we've been offering from a product standpoint, we do from a financing standpoint and delivering it. You know, we changed our organization to move to call on both orthodontists and GPs going forward. That's given us more coverage out there to be able to deliver this kind of message and support to our doctors too. I'd say the macro is there, but I feel good about what we've been offering from a product standpoint, we do from a financing standpoint and delivering it. i'd say the macro is there but i feel good about what we've been offering from a product standpoint we do from a financing standpoint and delivering it You know, we changed our organization to move to call on both orthodontists and GPs going forward. you know we changed our organization to move to call on both orthodontists and gps going forward That's given us more coverage out there to be able to deliver this kind of message and support to our doctors too. that's given us more coverage out there to be able to deliver this kind of message and support to our doctors too

Speaker 6: All right, got it. Just as a follow-up, shifting over to the different side of the globe. China to us is a bit of a surprise, a good surprise. Double-digit growth, record first quarter you referenced. Are you comfortable saying demand is returning to normal across China? Can you remind us what's embedded in your full year guide for China volumes and revenue this year? All right, got it. all right got it Just as a follow-up, shifting over to the different side of the globe. just as a follow-up shifting over to the different side of the globe China to us is a bit of a surprise, a good surprise. china to us is a bit of a surprise a good surprise Double-digit growth, record first quarter you referenced. double-digit growth record first quarter you referenced Are you comfortable saying demand is returning to normal across China? are you comfortable saying demand is returning to normal across china Can you remind us what's embedded in your full year guide for China volumes and revenue this year? can you remind us what's embedded in your full year guide for china volumes and revenue this year

Speaker 8: I think anybody in business has to be careful of using the word normal in China, okay? It's just, I think you take that business almost on a year to year, sometimes quarter to quarter basis. We have a great team there, Jason. They execute well. Julie Tay, that ran that business has been moved, and he runs all of Asia right now. We have a great team there that helps to drive that. It's a very dynamic marketplace. We're well-positioned with our manufacturing, well-positioned with what we offer over there. I would never say it's always business as usual in China. It's the most competitive market in the world. I think anybody in business has to be careful of using the word normal in China, okay? i think anybody in business has to be careful of using the word normal in china okay It's just, I think you take that business almost on a year to year, sometimes quarter to quarter basis. it's just i think you take that business almost on a year to year sometimes quarter to quarter basis We have a great team there, Jason. we have a great team there jason They execute well. they execute well Julie Tay, that ran that business has been moved, and he runs all of Asia right now. julie tay that ran that business has been moved and he runs all of asia right now We have a great team there that helps to drive that. we have a great team there that helps to drive that It's a very dynamic marketplace. it's a very dynamic marketplace We're well-positioned with our manufacturing, well-positioned with what we offer over there. we're well-positioned with our manufacturing well-positioned with what we offer over there I would never say it's always business as usual in China. i would never say it's always business as usual in china It's the most competitive market in the world. it's the most competitive market in the world

Speaker 6: All right. Thank you. All right. all right Thank you. thank you

Speaker 14: Thank you. Our next question comes from Steven Valiquette with Mizuho Securities. Your line is open. Thank you. thank you Our next question comes from Steven Valiquette with Mizuho Securities. our next question comes from steven valiquette with mizuho securities Your line is open. your line is open

Speaker 16: Yeah, thanks. Good afternoon. Hey, guys. Hey, everybody. This question has been, I guess sort of half-assed so far. Just wanted to get a little more color around this 2Q guidance. It seems probably stronger than what probably most people were expecting, which is certainly positive. As far as just kind of the geographic mix across that, should we assume generally the same trends, you know, stronger in international than maybe, you know, America is a little more, you know, I guess you're characterizing as stable in particular. Yeah, thanks. yeah thanks Good afternoon. good afternoon Hey, guys. hey guys Hey, everybody. hey everybody This question has been, I guess sort of half-assed so far. this question has been i guess sort of half-assed so far Just wanted to get a little more color around this 2Q guidance. just wanted to get a little more color around this 2q guidance It seems probably stronger than what probably most people were expecting, which is certainly positive. it seems probably stronger than what probably most people were expecting which is certainly positive As far as just kind of the geographic mix across that, should we assume generally the same trends, you know, stronger in international than maybe, you know, America is a little more, you know, I guess you're characterizing as stable in particular. as far as just kind of the geographic mix across that should we assume generally the same trends you know stronger in international than maybe you know america is a little more you know i guess you're characterizing as stable in particular Also, I think, you know, for just North America in particular, last year you talked about this ratio of patients, you know, getting scans versus patients starting treatment kind of being off a little bit. Have you been able to at least close the gap on that, across, you know, a lot of geographies, especially on the back of some of the patient financing programs you have in place? Thanks. Also, I think, you know, for just North America in particular, last year you talked about this ratio of patients, you know, getting scans versus patients starting treatment kind of being off a little bit. also i think you know for just north america in particular last year you talked about this ratio of patients you know getting scans versus patients starting treatment kind of being off a little bit Have you been able to at least close the gap on that, across, you know, a lot of geographies, especially on the back of some of the patient financing programs you have in place? have you been able to at least close the gap on that across you know a lot of geographies especially on the back of some of the patient financing programs you have in place Thanks. thanks

Speaker 9: Yeah, Steve. When we think about Q2, I think the growth that we've seen is pretty consistent or our expectation is pretty consistent to what we've seen. We would expect international to grow faster for many of the reasons that we spoke about. We've seen that for a number of quarters now compared to North America. That would be our expectation for Q2. I would say just on the conversion piece of it, that dislocation we saw, you know, in the second quarter of last year, you know, and some of that as it played out, went through the quarter, we saw that dislocation. It really has more or less returned to normal, really since that second quarter. Yeah, Steve. yeah steve When we think about Q2, I think the growth that we've seen is pretty consistent or our expectation is pretty consistent to what we've seen. when we think about q2 i think the growth that we've seen is pretty consistent or our expectation is pretty consistent to what we've seen We would expect international to grow faster for many of the reasons that we spoke about. we would expect international to grow faster for many of the reasons that we spoke about We've seen that for a number of quarters now compared to North America. we've seen that for a number of quarters now compared to north america That would be our expectation for Q2. that would be our expectation for q2 I would say just on the conversion piece of it, that dislocation we saw, you know, in the second quarter of last year, you know, and some of that as it played out, went through the quarter, we saw that dislocation. i would say just on the conversion piece of it that dislocation we saw you know in the second quarter of last year you know and some of that as it played out went through the quarter we saw that dislocation It really has more or less returned to normal, really since that second quarter. it really has more or less returned to normal really since that second quarter We haven't seen some of that dislocation as we've gone through, which is, which is good. We want to be able to drive, you know, drive our volume, sell to more and more doctors and increase the utilization, and we want that conversion to be as active as possible. We're trying to make that happen and therefore more as predictable as possible. You know, we've been able to see that and the expectation is it continues. We haven't seen some of that dislocation as we've gone through, which is, which is good. we haven't seen some of that dislocation as we've gone through which is which is good We want to be able to drive, you know, drive our volume, sell to more and more doctors and increase the utilization, and we want that conversion to be as active as possible. we want to be able to drive you know drive our volume sell to more and more doctors and increase the utilization and we want that conversion to be as active as possible We're trying to make that happen and therefore more as predictable as possible. we're trying to make that happen and therefore more as predictable as possible You know, we've been able to see that and the expectation is it continues. you know we've been able to see that and the expectation is it continues

Speaker 16: Okay, that's perfect. Thanks. Okay, that's perfect. okay that's perfect Thanks. thanks

Speaker 9: Thanks, Steve. Thanks, Steve. thanks steve

Speaker 14: Thank you. Our next question comes from Erin Wright with Morgan Stanley. Your line is open. Thank you. thank you Our next question comes from Erin Wright with Morgan Stanley. our next question comes from erin wright with morgan stanley Your line is open. your line is open

Speaker 4: Great, thanks. Another question on sort of the North America or U.S. market, what are you seeing in terms of the gauge data, like when it comes to the broader growth trends, and then what you're seeing in terms of growth across brackets and wires versus clear aligners in the market, just more broadly? A follow-up on zero or no AA. I guess when could this move the needle for you? It sounds like you're not expecting much this year, or maybe you're just leaving that for upside in the guide. I guess, can you remind us the economics for you and can you quantify also that relative margin profile for the offering? Thanks. Great, thanks. great thanks Another question on sort of the North America or U.S. market, what are you seeing in terms of the gauge data, like when it comes to the broader growth trends, and then what you're seeing in terms of growth across brackets and wires versus clear aligners in the market, just more broadly? another question on sort of the north america or u.s market what are you seeing in terms of the gauge data like when it comes to the broader growth trends and then what you're seeing in terms of growth across brackets and wires versus clear aligners in the market just more broadly A follow-up on zero or no AA. a follow-up on zero or no aa I guess when could this move the needle for you? i guess when could this move the needle for you It sounds like you're not expecting much this year, or maybe you're just leaving that for upside in the guide. it sounds like you're not expecting much this year or maybe you're just leaving that for upside in the guide I guess, can you remind us the economics for you and can you quantify also that relative margin profile for the offering? i guess can you remind us the economics for you and can you quantify also that relative margin profile for the offering Thanks. thanks

Speaker 9: Maybe I can start with the AA, or the zero product, zero AA product. It continues to ramp, as we said. It started more on the DSO side. Now it's getting more and more retail doctors, we'll play that out. Look, as that adoption happens and it drives incremental cases, that would be upside compared to what we've expected for the year because, again, it's a slow gradual adoption. If doctors adopt faster and that's what they want to use, then great. In terms of the revenue recognition. We don't have to defer revenue on that, it's basically revenue neutral kind of in that current period. Of course, there's additional refinements that come later that we'll get that revenue as that comes later. Maybe I can start with the AA, or the zero product, zero AA product. maybe i can start with the aa or the zero product zero aa product It continues to ramp, as we said. it continues to ramp as we said It started more on the DSO side. it started more on the dso side Now it's getting more and more retail doctors, we'll play that out. now it's getting more and more retail doctors we'll play that out Look, as that adoption happens and it drives incremental cases, that would be upside compared to what we've expected for the year because, again, it's a slow gradual adoption. look as that adoption happens and it drives incremental cases that would be upside compared to what we've expected for the year because again it's a slow gradual adoption If doctors adopt faster and that's what they want to use, then great. if doctors adopt faster and that's what they want to use then great In terms of the revenue recognition. We don't have to defer revenue on that, it's basically revenue neutral kind of in that current period. in terms of the revenue recognition. we don't have to defer revenue on that it's basically revenue neutral kind of in that current period Of course, there's additional refinements that come later that we'll get that revenue as that comes later. of course there's additional refinements that come later that we'll get that revenue as that comes later You know, when we think of those lower or no AA product, the gross margin is excellent for us. It's accretive for us as a business. We're starting to see that in more and more of our results. You know, if you look back the last couple quarters, including this first quarter, you start to see some of the benefits in there, and it's very efficient for us 'cause it's one, you know, set of treatment planning, one manufacturing, one shipment, and you're kinda done with it unless there's a refinement that's needed. And then the most important part of it is it fits with how a doctor might wanna practice, where they don't wanna pay as much upfront. They wanna look at it maybe paying as you go and the no AA product gets to that. You know, when we think of those lower or no AA product, the gross margin is excellent for us. you know when we think of those lower or no aa product the gross margin is excellent for us It's accretive for us as a business. it's accretive for us as a business We're starting to see that in more and more of our results. we're starting to see that in more and more of our results You know, if you look back the last couple quarters, including this first quarter, you start to see some of the benefits in there, and it's very efficient for us 'cause it's one, you know, set of treatment planning, one manufacturing, one shipment, and you're kinda done with it unless there's a refinement that's needed. you know if you look back the last couple quarters including this first quarter you start to see some of the benefits in there and it's very efficient for us 'cause it's one you know set of treatment planning one manufacturing one shipment and you're kinda done with it unless there's a refinement that's needed And then the most important part of it is it fits with how a doctor might wanna practice, where they don't wanna pay as much upfront. and then the most important part of it is it fits with how a doctor might wanna practice where they don't wanna pay as much upfront They wanna look at it maybe paying as you go and the no AA product gets to that. they wanna look at it maybe paying as you go and the no aa product gets to that Back to your question, Joe, on the U.S. marketplace, particularly wires and brackets and, you know, ratios with clear aligners. I tell you gotta be careful with the data that you gather out there today and where it's coming from. We find there's a pretty big delta in that data overall. What I'd say is I feel good about our team play overall because with Mandibular Advancement with Occlusal Blocks, Invisalign First that I referenced in my script, and also IPE, we're doing better and better on that preteen area because, you know, what we're offering is so much better than what the traditional kind of appliances were to be able to do that, and we see good progress in that area. Back to your question, Joe, on the U.S. marketplace, particularly wires and brackets and, you know, ratios with clear aligners. back to your question joe on the u.s marketplace particularly wires and brackets and you know ratios with clear aligners I tell you gotta be careful with the data that you gather out there today and where it's coming from. i tell you gotta be careful with the data that you gather out there today and where it's coming from We find there's a pretty big delta in that data overall. we find there's a pretty big delta in that data overall What I'd say is I feel good about our team play overall because with Mandibular Advancement with Occlusal Blocks, Invisalign First that I referenced in my script, and also IPE, we're doing better and better on that preteen area because, you know, what we're offering is so much better than what the traditional kind of appliances were to be able to do that, and we see good progress in that area. what i'd say is i feel good about our team play overall because with mandibular advancement with occlusal blocks invisalign first that i referenced in my script and also ipe we're doing better and better on that preteen area because you know what we're offering is so much better than what the traditional kind of appliances were to be able to do that and we see good progress in that area Overall, I wouldn't say a whole lot of change, over the quarters in the U.S. orthodontic market, wires and brackets versus aligners, except for what we're seeing in the preteen side. It's been pretty substantial. Overall, I wouldn't say a whole lot of change, over the quarters in the U.S. orthodontic market, wires and brackets versus aligners, except for what we're seeing in the preteen side. overall i wouldn't say a whole lot of change over the quarters in the u.s orthodontic market wires and brackets versus aligners except for what we're seeing in the preteen side It's been pretty substantial. it's been pretty substantial

Speaker 15: Thanks, Erin. Next question, please. Thanks, Erin. thanks erin Next question, please. next question please

Speaker 14: Thank you. Our next question comes from Kevin Caliendo with UBS. Your line is open. Thank you. thank you Our next question comes from Kevin Caliendo with UBS. our next question comes from kevin caliendo with ubs Your line is open. your line is open

Speaker 11: Hey, guys. Thanks for getting me in. I appreciate it. I have two, if I can. First one is with all the questions around resin and oil, can you just remind us, you know, what percentage of your COGS are resin, and what would be the impact, you know, on direct fab in terms of reducing those costs, like the potential opportunity there? Just trying to think about this as an overhang. Then the second question is more I just wanna make sure I understand the commentary broadly about your guidance. In essence, what you're doing is you're taking the trends that you've seen in 1Q and into April. Hey, guys. hey guys Thanks for getting me in. thanks for getting me in I appreciate it. i appreciate it I have two, if I can. i have two if i can First one is with all the questions around resin and oil, can you just remind us, you know, what percentage of your COGS are resin, and what would be the impact, you know, on direct fab in terms of reducing those costs, like the potential opportunity there? first one is with all the questions around resin and oil can you just remind us you know what percentage of your cogs are resin and what would be the impact you know on direct fab in terms of reducing those costs like the potential opportunity there Just trying to think about this as an overhang. just trying to think about this as an overhang Then the second question is more I just wanna make sure I understand the commentary broadly about your guidance. then the second question is more i just wanna make sure i understand the commentary broadly about your guidance In essence, what you're doing is you're taking the trends that you've seen in 1Q and into April. in essence what you're doing is you're taking the trends that you've seen in 1q and into april You're sort of running those for the full year, adding on some kind of undisclosed amount of prudence with regards to the macro and the war and everything else. Is that fair way to describe it? Thanks, guys. You're sort of running those for the full year, adding on some kind of undisclosed amount of prudence with regards to the macro and the war and everything else. you're sort of running those for the full year adding on some kind of undisclosed amount of prudence with regards to the macro and the war and everything else Is that fair way to describe it? is that fair way to describe it Thanks, guys. thanks guys

Speaker 9: That's a fair way to describe it, Kevin. In terms of the guidance, it's, you know, like, you're gonna have puts and takes as you go through the quarter. We net those together, put that into a Q2 and total year. That's an accurate way to view that. In terms of oil prices, there's really two effects that can affect our business, you know, from that standpoint on a direct basis. One is the actual material costs. Say about 25% of our COGS is kind of the resin plastics. There's a lot of contracts that we have where we have, you know, fixed amounts, that there's not a lot of room for negotiation in terms of inflationary effects that we, that we take. We feel we're pretty protected on that. That's a fair way to describe it, Kevin. that's a fair way to describe it kevin In terms of the guidance, it's, you know, like, you're gonna have puts and takes as you go through the quarter. in terms of the guidance it's you know like you're gonna have puts and takes as you go through the quarter We net those together, put that into a Q2 and total year. we net those together put that into a q2 and total year That's an accurate way to view that. that's an accurate way to view that In terms of oil prices, there's really two effects that can affect our business, you know, from that standpoint on a direct basis. in terms of oil prices there's really two effects that can affect our business you know from that standpoint on a direct basis One is the actual material costs. one is the actual material costs Say about 25% of our COGS is kind of the resin plastics. say about 25% of our cogs is kind of the resin plastics There's a lot of contracts that we have where we have, you know, fixed amounts, that there's not a lot of room for negotiation in terms of inflationary effects that we, that we take. there's a lot of contracts that we have where we have you know fixed amounts that there's not a lot of room for negotiation in terms of inflationary effects that we that we take We feel we're pretty protected on that. we feel we're pretty protected on that The other piece might be on freight and logistics, and again, we're pretty controlled on that as well. Not to say that there's not some impact that we've seen from higher costs related to some inputs, but it's been manageable, and we managed it in the first quarter, and I expect to be able to manage it going forward. The other piece might be on freight and logistics, and again, we're pretty controlled on that as well. the other piece might be on freight and logistics and again we're pretty controlled on that as well Not to say that there's not some impact that we've seen from higher costs related to some inputs, but it's been manageable, and we managed it in the first quarter, and I expect to be able to manage it going forward. not to say that there's not some impact that we've seen from higher costs related to some inputs but it's been manageable and we managed it in the first quarter and i expect to be able to manage it going forward

Speaker 8: Hey, Kevin. Joe on the direct fab side. I mean, you called out, there's an obvious aspect when you direct print. You don't have the 95% kinda scrap base that you use on our current vacuum forming piece. That's always there. You know, our feed stream is more of a natural feed stream. There's not really a feed stream from a petrochemical standpoint, it helps isolate you overall. Remember, I mean, that play, it's a great thing about that on direct fab, is it will help us significantly in the sense of efficiency in that way. Hey, Kevin. hey kevin Joe on the direct fab side. joe on the direct fab side I mean, you called out, there's an obvious aspect when you direct print. i mean you called out there's an obvious aspect when you direct print You don't have the 95% kinda scrap base that you use on our current vacuum forming piece. you don't have the 95% kinda scrap base that you use on our current vacuum forming piece That's always there. that's always there You know, our feed stream is more of a natural feed stream. you know our feed stream is more of a natural feed stream There's not really a feed stream from a petrochemical standpoint, it helps isolate you overall. there's not really a feed stream from a petrochemical standpoint it helps isolate you overall Remember, I mean, that play, it's a great thing about that on direct fab, is it will help us significantly in the sense of efficiency in that way. remember i mean that play it's a great thing about that on direct fab is it will help us significantly in the sense of efficiency in that way How you can make an aligner and the flexibility to make it and variable wall thickness and being able to be able to design aligners to each individual cases to an extreme we could never do before is still the primary driver. You do have these auxiliary areas that really help in the sense of how the resin's obtained and how it's used. How you can make an aligner and the flexibility to make it and variable wall thickness and being able to be able to design aligners to each individual cases to an extreme we could never do before is still the primary driver. how you can make an aligner and the flexibility to make it and variable wall thickness and being able to be able to design aligners to each individual cases to an extreme we could never do before is still the primary driver You do have these auxiliary areas that really help in the sense of how the resin's obtained and how it's used. you do have these auxiliary areas that really help in the sense of how the resin's obtained and how it's used

Speaker 15: Great. Thanks, Kevin. Next question. Great. great Thanks, Kevin. thanks kevin Next question. next question

Speaker 14: Thank you. Our final question comes from Michael Ryskin with Bank of America. Your line is open. Thank you. thank you Our final question comes from Michael Ryskin with Bank of America. our final question comes from michael ryskin with bank of america Your line is open. your line is open

Speaker 13: Hey. Thanks, guys. Thanks for squeezing me in. I'll try to be quick. One is, just following up on, I think, Elizabeth's question on ASPs. In the past, I think you talked about a 1% to 2% decline in ASPs for the year. You know, your $12.50 in one Q, I think you pointed to around $12.50 two Q, implies still a little bit of a step down three Q, four Q. Is that still in the guide? I think it is, I just wanna confirm you didn't call out the full year ASP dynamic. Hey. hey Thanks, guys. thanks guys Thanks for squeezing me in. thanks for squeezing me in I'll try to be quick. i'll try to be quick One is, just following up on, I think, Elizabeth's question on ASPs. one is just following up on i think elizabeth's question on asps In the past, I think you talked about a 1% to 2% decline in ASPs for the year. in the past i think you talked about a 1% to 2% decline in asps for the year You know, your $12.50 in one Q, I think you pointed to around $12.50 two Q, implies still a little bit of a step down three Q, four Q. you know your $12.50 in one q i think you pointed to around $12.50 two q implies still a little bit of a step down three q four q Is that still in the guide? is that still in the guide I think it is, I just wanna confirm you didn't call out the full year ASP dynamic. i think it is i just wanna confirm you didn't call out the full year asp dynamic

Speaker 9: Yeah, Michael, the 1%-2% decrease on a year-over-year basis is our expectation. You are going to have that mix that we talk about, whether it is product or country mix, that plays out to each quarter and throughout the year. Yeah, Michael, the 1%-2% decrease on a year-over-year basis is our expectation. yeah michael the 1%-2% decrease on a year-over-year basis is our expectation You are going to have that mix that we talk about, whether it is product or country mix, that plays out to each quarter and throughout the year. you are going to have that mix that we talk about whether it is product or country mix that plays out to each quarter and throughout the year

Speaker 13: Okay. Then quick follow-up if I, if I may. You know, another question earlier asked sort of about U.S. versus OUS and some of the, you know, why is U.S. just not quite at the same level as the others. You talked about the macro. I'm gonna ask it a different way. You know, the DSO versus retail channel, is that some of the same dynamics? I know, you know, retail's obviously been weaker. DSO's been a strong point for a while, so it's nothing new. Just is that sort of the same answer of macro and just harder to push that through, or is there anything new that's impacting that channel? Thanks. Okay. okay Then quick follow-up if I, if I may. then quick follow-up if i if i may You know, another question earlier asked sort of about U.S. versus OUS and some of the, you know, why is U.S. just not quite at the same level as the others. you know another question earlier asked sort of about u.s versus ous and some of the you know why is u.s just not quite at the same level as the others You talked about the macro. you talked about the macro I'm gonna ask it a different way. i'm gonna ask it a different way You know, the DSO versus retail channel, is that some of the same dynamics? you know the dso versus retail channel is that some of the same dynamics I know, you know, retail's obviously been weaker. i know you know retail's obviously been weaker DSO's been a strong point for a while, so it's nothing new. dso's been a strong point for a while so it's nothing new Just is that sort of the same answer of macro and just harder to push that through, or is there anything new that's impacting that channel? just is that sort of the same answer of macro and just harder to push that through or is there anything new that's impacting that channel Thanks. thanks

Speaker 9: Yeah, no change to what we've seen, Michael. We're very pleased with the DSO growth, it continues to be, in many places, double-digit growth. That's a reflection of really those groups taking a lot of the tools that we offer and bring together, whether it's the scale, the technology, and the brand. They do a great job of bringing it all together and really being much more active to try to drive that conversion with their potential patients. That plays out, and that's the force multiplier that we talk about. Yeah, no change to what we've seen, Michael. yeah no change to what we've seen michael We're very pleased with the DSO growth, it continues to be, in many places, double-digit growth. we're very pleased with the dso growth it continues to be in many places double-digit growth That's a reflection of really those groups taking a lot of the tools that we offer and bring together, whether it's the scale, the technology, and the brand. that's a reflection of really those groups taking a lot of the tools that we offer and bring together whether it's the scale the technology and the brand They do a great job of bringing it all together and really being much more active to try to drive that conversion with their potential patients. they do a great job of bringing it all together and really being much more active to try to drive that conversion with their potential patients That plays out, and that's the force multiplier that we talk about. that plays out and that's the force multiplier that we talk about You just don't see that as much, at least on a consistent basis, on the retail side. We're working to try to get those retail doctors to operate more like some of the DSOs, broadly, it plays out as we've seen. It's up to us to try to get after those retail doctors with our sales force, with the technology, with the marketing and so on, to try to get them more active. You just don't see that as much, at least on a consistent basis, on the retail side. you just don't see that as much at least on a consistent basis on the retail side We're working to try to get those retail doctors to operate more like some of the DSOs, broadly, it plays out as we've seen. we're working to try to get those retail doctors to operate more like some of the dsos broadly it plays out as we've seen It's up to us to try to get after those retail doctors with our sales force, with the technology, with the marketing and so on, to try to get them more active. it's up to us to try to get after those retail doctors with our sales force with the technology with the marketing and so on to try to get them more active

Speaker 13: Awesome. Makes sense. Thanks a lot. Awesome. awesome Makes sense. makes sense Thanks a lot. thanks a lot

Speaker 8: Thanks, Mike. Thanks, Mike. thanks mike

Speaker 15: Thanks, Mike. Thanks, Mike. thanks mike

Speaker 14: Thank you. We have reached the end of our question and answer session. I will now turn the call back over to Shirley Stacy for closing remarks. Thank you. thank you We have reached the end of our question and answer session. we have reached the end of our question and answer session I will now turn the call back over to Shirley Stacy for closing remarks. i will now turn the call back over to shirley stacy for closing remarks

Speaker 15: Great. Thank you everyone for joining us today. We look forward to meeting you at upcoming conferences and industry meetings, including the AAO meeting in Orlando this Friday. If you have any follow-up questions, please contact investor relations. Have a great day. Great. great Thank you everyone for joining us today. thank you everyone for joining us today We look forward to meeting you at upcoming conferences and industry meetings, including the AAO meeting in Orlando this Friday. we look forward to meeting you at upcoming conferences and industry meetings including the aao meeting in orlando this friday If you have any follow-up questions, please contact investor relations. if you have any follow-up questions please contact investor relations Have a great day. have a great day

Speaker 14: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participating. Thank you. thank you This concludes today's conference, and you may disconnect your lines at this time. this concludes today's conference and you may disconnect your lines at this time Thank you for your participating. thank you for your participating