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Segments and Geographical Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments and Geographical Information Segments and Geographical Information
Segment Information

We report segment information based on the management approach. The management approach designates the internal reporting used by our Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, for decision making and performance assessment as the basis for determining our reportable segments. We group our operations into two reportable segments; Clear Aligner segment and Imaging Systems and CAD/CAM services (“Systems and Services”) segment, which are based on our predominant product lines.

Our CODM uses gross profit and income from operations to assess each reportable segments performance, by reviewing each measure against internal forecasts and historical performance. Our CODM may also benchmark each segments performance against our competitors and external expectations.
Summarized financial information by reportable segment is as follows (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Net revenues
Clear Aligner$804,617 $831,738 $1,601,460 $1,648,989 
Systems and Services207,832 196,752 390,251 376,932 
Total net revenues$1,012,449 $1,028,490 $1,991,711 $2,025,921 
Cost of net revenues1
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 Services144,311 134,091 262,330 252,761 
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 Services85,737 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.

Other segment expenses typically include employee related costs, marketing and advertising costs and depreciation and amortization expense incurred by various functions including selling, marketing, general and administrative and research and development. Our CODM does not regularly receive these operating expenses at the reportable segment level.

Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the reportable segment. Certain operating expenses are not directly attributable to a reportable segment and must be allocated. Each allocation is measured differently based on the nature of the cost being allocated. Certain other operating expense are not specifically allocated to segment income from operations and generally include various corporate expenses such as stock-based compensation and costs related to information technology (“IT”), facilities, human resources, accounting and finance, legal and regulatory, other separately managed general and administrative costs outside the reportable segments and restructuring costs.

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,
2025202420252024
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 operations163,033 147,046 294,133 301,181 
Interest income2,859 3,301 8,175 7,693 
Other income (expense), net7,624 (6,481)11,650 (6,622)
Net income before provision for income taxes$173,516 $143,866 $313,958 $302,252 

The following table includes certain non-cash expenses for each reportable segment (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Stock-based compensation
Clear Aligner$6,065 $8,619 $11,883 $12,383 
Systems and Services403 421 806 780 
Unallocated corporate expenses41,740 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 

Our CODM does not regularly review total assets at the reportable segment level; however, we have provided geographical information related to our long-lived assets below.

Geographical Information

Net revenues are presented below by geographic area (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2025202420252024
Net revenues 1:
U.S. $422,801 $438,533 $846,119 $870,634 
Switzerland235,247 270,946 459,379 522,704 
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 International610,458 605,193 
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.