Align Technology Sees Invisalign Growth Runway Despite Consumer Headwinds
Fri, September 18, 2026 at 12:02 PM GMT+3 6 min read
Key Points
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Align Technology sees a substantial growth runway for Invisalign, with roughly 75% of teen and adult orthodontic cases in North America still using traditional wires and brackets. Consumer inflation and treatment hesitation remain headwinds, but the company is targeting conversion from conventional orthodontics.
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Lower-cost, limited-refinement products, consumer financing and visualization tools are intended to improve Invisalign adoption. Align said these offerings may reduce upfront revenue per case but can encourage doctors to perform more Invisalign treatments.
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International markets, which represent 55% of Align's business, are growing at double-digit rates, while China's volume-based procurement program could expand access to public hospitals despite potential pricing pressure. The company is also targeting at least 100 basis points of operating-margin improvement in each of the current and following years.
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Align Technology (NASDAQ:ALGN) sees continued growth potential for Invisalign clear aligners in the United States and internationally despite a challenging consumer environment, Chief Financial Officer John Morici said during a Baird investor conference.
Morici said inflation and patient reluctance to begin treatment have weighed on the orthodontics market over roughly the past 18 months. Those pressures can influence how orthodontists and general practitioners invest in their practices and whether patients move forward with treatment.
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Still, he said the company sees substantial room to replace traditional wires-and-brackets treatments with clear aligners. Morici said approximately 75% of combined teen and adult orthodontic cases in North America are still performed using wires and brackets.
"We have a huge opportunity to grow in U.S., just like the rest of the world, to get clear aligners, to have Invisalign," Morici said.
Product and Financing Efforts Target Conversion
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Morici said Align is seeking to help doctors compete with the upfront economics of traditional orthodontic treatment by offering products with fewer included refinements. Those offerings can lower initial costs for practices compared with more comprehensive products, while giving doctors the option to pay for refinements later if needed.
The company is also emphasizing consumer financing options, which Morici described as increasingly important in converting potential patients. Align has worked with Healthcare Finance Direct and other lenders, he said, while also seeing financing become a larger consideration in Europe and other international markets.
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In addition to financing, Morici said visualization tools that show prospective patients what their teeth may look like after treatment can support conversion at orthodontic and general-practice offices.
Align's no-AA, or no-refinement, product initially launched with certain dental service organizations, or DSOs, in the U.S. and is being introduced to retail doctors. Morici said adoption has been favorable, although doctors must plan cases carefully when using products designed for limited or no refinements.
He said the strategy is intended to expand utilization by helping doctors choose Invisalign in situations where they might otherwise use wires and brackets because of a lower lab bill. While the company may collect less cash upfront on some cases, Morici said doctors using the products have tended to perform more Invisalign cases.
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Align said no-refinement products can support gross-margin improvement by reducing the number of refinements in the product mix.
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The company is also offering touch-up and lower-stage products intended to meet different clinical and pricing needs.
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Morici said Align's focus is primarily on converting wires-and-brackets cases rather than simply taking share from other clear-aligner providers.
International Growth and New Product Rollouts
Morici said international markets remain underpenetrated and have responded well to newer products, including Invisalign Personalization Experience, or IPE, and touch-up offerings. Align has expanded certain products into Europe and Asia-Pacific, including DSP in Asia during the second half of the year, he said.
He noted that 55% of Align's business is outside North America and said that business has been growing at double-digit rates. India, Southeast Asia and Brazil have shown strong growth following investments in sales and marketing resources, according to Morici.
Within North America, he said DSOs account for about one-third of the company's regional business and have also been growing at double-digit rates. The company's key area of focus is North American retail business, which Morici characterized as roughly 30% of Align's overall operations.
When discussing the company's outlook, Morici said Align bases its guidance on recent business trends, current market conditions and product introductions rather than solely on year-over-year comparisons. He said Align's first-half case volume rose about 7% on average, while its second-half guidance implied approximately 5% to 6% year-over-year volume growth.
China Volume-Based Procurement Could Expand Access
Morici also addressed China's orthodontic volume-based procurement, or VBP, process. Align currently operates predominantly in China's private market, but Morici said the company expects the effects of VBP on public providers to extend to private pricing over time.
He said about 90% of orthodontic cases in China are performed with wires and brackets, while clear aligners remain a relatively small part of the market. Align expects its portfolio, ranging from comprehensive to more moderate and lower-stage cases, to allow it to compete in the VBP environment.
While pricing pressure could emerge, Morici said Align could gain volume by reaching doctors who previously did not use its products. He also pointed to the company's manufacturing and treatment-planning operations in China as potential cost offsets.
The VBP process could create opportunities for Align to participate in public hospitals where it has had less exposure, he said. The company would evaluate tenders based on whether pricing, incremental revenue and costs make economic sense.
Margin Framework and Research Spending
Morici said Align is pursuing productivity initiatives alongside volume growth, including shifting some manufacturing closer to regional markets to reduce freight costs and delivery times. He also cited a planned India facility focused on serving the Indian market, which he said could improve cycle times while reducing customs and duty costs.
He reiterated the company's focus on structural profitability improvements, including product mix and operational programs. Morici said Align has discussed about 100 basis points of operating-margin improvement for the current year and at least 100 basis points for the following year.
On research and development, Morici said spending should gain leverage as products move from research into development and commercialization. He said investments in direct fabrication, resin technology and the iTero Lumina platform have increasingly shifted toward development, though the company intends to continue investing in technology and innovation.
About Align Technology (NASDAQ:ALGN)
Align Technology, Inc (NASDAQ: ALGN) is a global medical device company that designs, manufactures and markets products used in orthodontics and digital dentistry. Its best-known product is the Invisalign system, a series of clear, removable aligners intended to gradually straighten teeth and address certain orthodontic conditions under the supervision of dental professionals.
The company also develops digital dentistry technologies, including iTero intraoral scanners and related software, which create digital impressions and support orthodontic, restorative and implant treatment planning.
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The article "Align Technology Sees Invisalign Growth Runway Despite Consumer Headwinds" was originally published by MarketBeat.
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