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v3.25.2

Segments and Geographical Information (Tables) | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Schedule of Summarized Financial Information and Non-Cash Expenses by Reportable Segment | Summarized financial information by reportable segment is as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Net revenues |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 804,617 |  |  | $ | 831,738 |  |  | $ | 1,601,460 |  |  | $ | 1,648,989 |
Systems and Services |  | 207,832 |  |  | 196,752 |  |  | 390,251 |  |  | 376,932 |
Total net revenues |  | $ | 1,012,449 |  |  | $ | 1,028,490 |  |  | $ | 1,991,711 |  |  | $ | 2,025,921 |
Cost of net revenues 1 |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 240,811 |  |  | $ | 243,201 |  |  | $ | 475,565 |  |  | $ | 481,306 |
Systems and Services |  | 63,521 |  |  | 62,661 |  |  | 127,921 |  |  | 124,171 |
Total cost of goods sold |  | $ | 304,332 |  |  | $ | 305,862 |  |  | $ | 603,486 |  |  | $ | 605,477 |
Gross profit |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 563,806 |  |  | $ | 588,537 |  |  | $ | 1,125,895 |  |  | $ | 1,167,683 |
Systems and Services |  | 144,311 |  |  | 134,091 |  |  | 262,330 |  |  | 252,761 |
Total gross profit |  | $ | 708,117 |  |  | $ | 722,628 |  |  | $ | 1,388,225 |  |  | $ | 1,420,444 |
Other Segment expenses |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 296,795 |  |  | $ | 288,911 |  |  | $ | 598,660 |  |  | $ | 581,819 |
Systems and Services |  | 58,574 |  |  | 63,301 |  |  | 118,130 |  |  | 132,278 |
Unallocated corporate expenses |  | 189,715 |  |  | 223,370 |  |  | 377,302 |  |  | 405,166 |
Total operating expenses |  | $ | 545,084 |  |  | $ | 575,582 |  |  | $ | 1,094,092 |  |  | $ | 1,119,263 |
Segment income from operations |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 267,011 |  |  | $ | 299,626 |  |  | $ | 527,235 |  |  | $ | 585,864 |
Systems and Services |  | 85,737 |  |  | 70,790 |  |  | 144,200 |  |  | 120,483 |
Total segment income from operations |  | $ | 352,748 |  |  | $ | 370,416 |  |  | $ | 671,435 |  |  | $ | 706,347 |
1 Management has identified cost of net revenues as a significant expense for our Clear Aligner and Systems and Services reportable segments. The following table includes certain non-cash expenses for each reportable segment (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Stock-based compensation |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 6,065 |  |  | $ | 8,619 |  |  | $ | 11,883 |  |  | $ | 12,383 |
Systems and Services |  | 403 |  |  | 421 |  |  | 806 |  |  | 780 |
Unallocated corporate expenses |  | 41,740 |  |  | 37,988 |  |  | 80,516 |  |  | 72,653 |
Total stock-based compensation |  | $ | 48,208 |  |  | $ | 47,028 |  |  | $ | 93,205 |  |  | $ | 85,816 |
Depreciation and amortization |  |  |  |  |  |  |  |
Clear Aligner |  | $ | 19,495 |  |  | $ | 16,623 |  |  | $ | 38,399 |  |  | $ | 31,056 |
Systems and Services |  | 9,302 |  |  | 8,070 |  |  | 17,771 |  |  | 14,908 |
Unallocated corporate expenses |  | 11,779 |  |  | 11,473 |  |  | 23,554 |  |  | 23,148 |
Total depreciation and amortization |  | $ | 40,576 |  |  | $ | 36,166 |  |  | $ | 79,724 |  |  | $ | 69,112 |
Reconciliation of Segment Income from Operations to Net Income Before Income Taxes | The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Total segment income from operations |  | $ | 352,748 |  |  | $ | 370,416 |  |  | $ | 671,435 |  |  | $ | 706,347 |
Unallocated corporate expenses |  | (189,715) |  |  | (223,370) |  |  | (377,302) |  |  | (405,166) |
Total income from operations |  | 163,033 |  |  | 147,046 |  |  | 294,133 |  |  | 301,181 |
Interest income |  | 2,859 |  |  | 3,301 |  |  | 8,175 |  |  | 7,693 |
Other income (expense), net |  | 7,624 |  |  | (6,481) |  |  | 11,650 |  |  | (6,622) |
Net income before provision for income taxes |  | $ | 173,516 |  |  | $ | 143,866 |  |  | $ | 313,958 |  |  | $ | 302,252 |
Schedule of Net Revenues and Long-Lived Assets by Geographic Area | Net revenues are presented below by geographic area (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Net revenues 1: |  |  |  |  |  |  |  |
U.S. |  | $ | 422,801 |  |  | $ | 438,533 |  |  | $ | 846,119 |  |  | $ | 870,634 |
Switzerland |  | 235,247 |  |  | 270,946 |  |  | 459,379 |  |  | 522,704 |
Other International |  | 354,401 |  |  | 319,011 |  |  | 686,213 |  |  | 632,583 |
Total net revenues |  | $ | 1,012,449 |  |  | $ | 1,028,490 |  |  | $ | 1,991,711 |  |  | $ | 2,025,921 |
1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Long-lived assets, which includes Property, plant and equipment, net and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands):
|  | June 30, 2025 |  | December 31, 2024
Long-lived assets 1: |  |  |  |
Switzerland |  | $ | 562,566 |  |  | $ | 571,628 |
U.S. |  | 204,559 |  |  | 207,689 |
Other International |  | 610,458 |  |  | 605,193 |
Total long-lived assets |  | $ | 1,377,583 |  |  | $ | 1,384,510 |
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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- Definition Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 220 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03(1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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