Align Technology (NASDAQ:ALGN) Chief Financial Officer John Morici said the company continues to see a large growth opportunity in orthodontics, citing low penetration of clear aligners relative to traditional wires and brackets, international expansion and growth among dental service organizations.
Speaking at the 2026 Goldman Sachs Healthcare Conference, Morici addressed the company’s longer-range growth outlook of 5% to 15%, saying Align’s view is grounded in the fact that the “vast majority” of orthodontic cases globally are still treated with wires and brackets. He said the company is focused on training more doctors, increasing utilization of its products and expanding digital orthodontic treatment capabilities.
Product Pipeline Focuses on Flexibility and Direct Fabrication
Morici highlighted several products discussed during Align’s recent technology day, including a comprehensive Invisalign product without refinements. He said the product gives doctors more flexibility because they do not have to pay upfront for refinements they may not need, while Align can receive additional revenue if refinements are later purchased.
He said the product had seen “good uptake” not only in the U.S., but also in Europe and Asia-Pacific. Morici also pointed to Phase I treatment for young children who need upper-palate expansion, describing that product as an area of encouraging adoption.
Another major focus was direct-fabricated products, which Morici said would allow Align to make products without a mold and enable more design flexibility. He said direct fabrication could allow orthodontists and dentists to add material in certain areas, make products thinner or thicker, and customize them more extensively.
Morici said Align has developed resin and manufacturing processes to support the technology and is beginning with products such as direct-fabricated attachments. He said retainers are currently being tested, and aligners are the ultimate target for the direct-fabricated capability.
General Dentists Seen as a Larger Opportunity
Morici also discussed Align’s efforts to expand its reach among general dentists through labs and digital workflows. He said the company’s exocad ART, or Invisalign ART, technology is intended to help general dentists incorporate orthodontic movement before restorative work.
He said there are about 2 million general dentists globally, while Align sells to roughly 100,000 of them. Morici said many restorative cases currently do not include orthodontics, and Align is trying to bring more digital visualization, treatment planning and manufacturing capabilities into that market.
Consumer Sentiment Remains a Headwind in North America
Morici said North American consumer sentiment has remained in the 40s to low 50s for several quarters, calling that “not a good consumer sentiment” backdrop. Still, he said Align has been able to operate within that environment by focusing on product mix, financing options and patient conversion.
He said consumer financing has become an important tool, particularly for general dentists. According to Morici, 50% or more of some patients going through general dentists may want external financing. He cited partners such as HFD as helping patients enter treatment with low money down, lower FICO score requirements in some cases and no interest for a period of time.
Morici said consumer financing is also an opportunity outside the U.S., though not every market is as developed. Align is working with local banks and other organizations in individual countries, he said, adding that the company is acting as a facilitator rather than putting financing on its own balance sheet.
Second-Quarter Guidance Reflects Uncertainty
Asked about near-term trends, Morici said Align typically sees revenue increase about 3% or more sequentially from the first quarter to the second quarter, helped by iTero seasonality and the beginning of the orthodontic season, especially in the U.S. and parts of Western Europe.
For the second quarter, however, the company guided to about 1% sequential growth at the midpoint. Morici said the company took a “prudent” approach due to uncertainty in the market, including developments in the Middle East. He also said Align guided to roughly flat non-GAAP operating margin sequentially, despite typical improvement, because of uncertainty around oil prices, logistics costs and related factors.
Morici said the company is focused on expanding margins through product mix and cost initiatives. He said products with fewer refinements tend to carry better gross margin rates. Align has also retired or upgraded equipment, reduced material and labor costs, and moved closer to customers to reduce freight costs. Morici said first-quarter gross margin rose 200 basis points excluding foreign exchange.
Buybacks Remain a Capital Allocation Priority
Morici said Align remains debt-free and generates healthy free cash flow. He said much of the company’s cash is outside the U.S., and Align is working on the right allocation to bring cash back where possible.
He said the company is using excess cash for share repurchases and currently has an open-market repurchase program. Morici said Align’s share count has declined from about 82 million when he joined nearly 10 years ago to under 72 million today, a reduction of roughly 15% over that period.
Morici said Align remains focused on using capital to grow the business, while returning excess cash to shareholders through buybacks.
About Align Technology (NASDAQ:ALGN)
Align Technology, Inc (NASDAQ: ALGN) pioneered the use of digital technology in orthodontics through the development of the Invisalign system, a series of clear, removable aligners that provide an alternative to traditional metal braces. Since its founding in 1997 by Zia Chishti and Kelsey Wirth, the Tempe, Arizona–based company has expanded its focus to include intraoral scanners, CAD/CAM software for dental laboratories and comprehensive digital dentistry solutions.
The company’s signature Invisalign system leverages 3D imaging and computer-aided design (CAD) to create customized aligners that gradually reposition teeth, improving patient comfort and treatment predictability.
