Summary: Align Technology reported financial performance for Q4’24 and FY2024, with total revenues reaching $4.0 billion, a planned 3% price increase for clear aligners in March 2025, and a cautious outlook on potential U.S. tariffs on Mexico.

Key Takeaways:

  • Align Technology’s Q4’24 revenue increased by 4.0% year-over-year to $995.2 million, while full-year 2024 revenue reached $4.0 billion, up 3.5% year-over-year.
  • A 3% list price increase for clear aligners will take effect on March 1, 2025, in the Americas and EMEA, but the removal of certain processing fees is expected to neutralize the overall pricing impact.
  • While potential U.S. tariffs on Mexico remain uncertain, Align Technology indicated that even with a 25% tariff, manufacturing in Mexico remains more cost-effective than alternative locations.

Align Technology reported financial results for fourth quarter 2024 (Q4’24) and year ending December 31, 2024. In the report, the company also announced a March list price increase on clear aligners and outlined potential impact of U.S. tariffs on Mexico should they go into effect.

The company reported Q4’24 total revenues of $995.2 million and FY2024 total revenues of $4.0 billion, showing total revenues up 4.0% year-over-year and up 3.5% year-over-year, respectively. In addition, Q4 clear aligner volumes were up 1.9% sequentially, and up 6.1% year-over year. Meanwhile, Q4 Systems and Services revenues were up 5.2% sequentially, and up 14.9% year-over year.

Clear Aligner List Price Increase

In Align’s financial results release, they announced that the company will raise the list price of clear aligners by approximately 3% on average in the Americas and EMEA regions on March 1, 2025. At the same time, the company will remove the $10-$15 per order processing fee for new clear aligner orders, clear aligner refinement orders, and non-DSP Vivera cases ordered. In the press release, the company says, “We expect the net effect from these two actions on ASPs to be zero for 2025.”

Potential Impact of Tariffs

Align currently manufactures clear aligners in Mexico and ships them to the U.S. primarily for its U.S. customers with the remainder eventually shipping to other international locations. In the same press release, the company stated, “The U.S./Mexico tariff situation remains very fluid, and we are unable to predict whether new tariffs will go into effect in the future. We are monitoring events closely. Our clear aligner COGS include material, labor, overhead, and freight costs. We expect an incremental tariff, if implemented, to be applied to transfer prices from Mexico. These transfer prices would not include treatment planning costs, freight, other overhead, etc. Align’s global operations have evolved significantly over the past several years and we have greater flexibility to support our global business. However, assuming a 25% tariff on goods originating in Mexico, it is still more economical to ship clear aligners to the U.S. from Mexico, due to a variety of factors including the incremental additional freight costs incurred were we to ship from our Polish facility.”

With regard to tariffs on China, the company stated, “Regarding China, “We currently manufacture our products in China for the benefit of our customers in China.”

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2024 Financial Results Details

According to the company, foreign exchange positively impacted Q4’24 total revenues—approximately $0.8 million or 0.1% sequentially—and negatively impacted year-over-year by approximately $0.9 million or 0.1%. Q4’24 clear aligner revenues were favorably impacted by foreign exchange of approximately $0.7 million or 0.1% sequentially and unfavorably impacted by approximately $0.7 million or 0.1% year-over-year. 

Imaging systems and CAD/CAM services revenues for Q4’24 were $200.9 million, up 5.2% sequentially and up 14.9% year-over-year. Q4’24 imaging systems and CAD/CAM services revenues were favorably impacted by foreign exchange of approximately $0.1 million or flat sequentially and unfavorably impacted by approximately $0.2 million or 0.1% year-over-year.

According to the company, 2024 total revenues of $4.0 billion were unfavorably impacted by foreign exchange of approximately $38.5 million or 1.0% compared to 2023. Clear aligner 2024 revenues of $3.2 billion were unfavorably impacted by foreign exchange of approximately $31.0 million or 1.0% compared to 2023. Imaging systems and CAD/CAM services 2024 revenues of $768.9 million were unfavorably impacted by foreign exchange of approximately $7.5 million
 or 1.0% compared to 2023.

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President and CEO Joe Hogan’s Statement

Align Technology President and CEO Joe Hogan, commenting on Align’s Q4’24 and 2024 results, said, “I am pleased to report that Q4 total revenues, clear aligner volumes, and Systems and Services revenues were in line with our Q4 outlook and both GAAP and non-GAAP operating margins were better than our Q4 outlook. Q4 clear aligner ASPs were lower than our Q4 outlook due primarily to the impact from unfavorable foreign exchange from the strengthening U.S. dollar against major currencies from late October through December. On a year-over-year basis, fourth quarter revenues of $995.2 million increased 4.0%, reflecting 14.9% growth from Systems and Services revenues and 1.6% growth from clear aligner revenues. On a year-over-year basis, alear aligner volumes grew 6.1%, driven by increased shipments across all regions—with strength in the EMEA, APAC, and LATAM regions, and stability in North America. From a channel perspective, clear aligner volumes in the ortho and general practitioner dentist (“GP”) channels were up on a year-over-year basis with the number of submitters and utilization amongst the highest in the past few years. On a sequential basis, fourth quarter revenue growth of 1.8% reflects continued momentum from sales of our iTero Lumina scanners and increased Invisalign Clear Aligner volumes in the EMEA region, especially from teens and growing patients, as well as growth from the LATAM region—across orthodontists and GP dentists, offset by clear aligner seasonality in APAC, mostly in China, which had a strong teen quarter in Q3. For Americas, Q4 clear aligner volumes reflect a seasonally soft orthodontic channel, offset somewhat by strength in the GP channel in the adult segment. For the full year fiscal 2024, total revenues of $4.0 billion and clear aligner volumes of 2.5 million cases were both up 3.5% year-over-year. As of Q4’24, we achieved several cumulative milestones including 271.6 thousand active Invisalign trained practitioners, 19.5 million Invisalign patients—including over 5.6 million teens and kids, and over 2 billion clear aligners manufactured worldwide.”

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