ALGN · 10-Q · 2026Q2 · Full report

Macroeconomic Factors Impact

ALIGN TECHNOLOGY INC · 2026-08-05 · Importance 20 · Surprise 24

Align reports that inflation, elevated interest rates, energy costs, foreign-exchange volatility, and potential economic slowdowns are weakening consumer confidence and discretionary demand for dental services. Patient traffic growth has been uneven, and orthodontic starts have declined for four consecutive years, contributing to a shift toward wires and brackets rather than clear aligners. Military conflicts involving Ukraine, Israel, Iran, the United States, and regional tensions involving Taiwan and the South China Sea could further disrupt operations, logistics, consumer spending, and the company’s Israel-based iTero business. Management expects persistent economic uncertainty to continue dampening consumer sentiment and future sales.

Key facts

• Company stated macroeconomic conditions (tariff volatility, inflation, higher interest rates) adversely impacted sales beginning early Q2 2025 and orthodontic starts have been down for four consecutive years, with an increase in wire and bracket starts more pronounced in Q2 2025. source
• Other income (expense), net for the three months ended June 30, 2026: $(10.0) million compared to $7.6 million prior year, primarily due to an unfavorable impact from foreign exchange rates. source