ALGN · 10-Q · 2026Q2 · Full report

Operating Expense Trends

ALIGN TECHNOLOGY INC · 2026-08-05 · Importance 24 · Surprise 14 · No source text

Selling, general and administrative expense increased $14.0 million, or 3.1%, to $462.7 million in the second quarter and increased $31.7 million, or 3.5%, to $928.0 million for the first six months. SG&A increases reflected higher outside services, employee costs, litigation, equipment and software spending, partially offset by lower advertising, marketing, commissions and stock-based compensation. Research and development expense increased 5.8% to $102.0 million in the quarter and 3.7% to $200.7 million year to date, primarily due to higher employee costs, internal-use software depreciation and cloud-tool spending.

Key facts

• 2025 restructuring: total incurred restructuring charges as of June 30, 2026: approximately $40.2 million, of which $2.5 million remained unpaid; the 2025 restructuring plan has been completed and the company does not expect to incur additional restructuring expenses in connection with it. source
• Income from operations for the three months ended June 30, 2026: $154 million with operating margin of 14.6%. source
• Clear Aligner income from operations for the three months ended June 30, 2026: $325.5 million and operating margin 37.4%. source
• Selling, general and administrative expense for the three months ended June 30, 2026: $462.7 million, increase of $14.0 million versus prior year; 43.8% of net revenues. source
• Systems and Services income from operations for the three months ended June 30, 2026: $77.7 million and operating margin 41.9%. source
• Research and development expense for the three months ended June 30, 2026: $102.0 million, increase of $5.6 million versus prior year; 9.7% of net revenues. source
• Number of employees as of June 30, 2026: 20,435, a decrease of 4.9% year-over-year primarily due to workforce reduction associated with the 2025 restructuring plan. source

Impact estimates