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Segments and Geographical Information
 9 Months Ended
Sep. 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 segment's performance, by reviewing each measure against internal forecasts and historical performance. Our CODM may also benchmark each segment's performance against our competitors and external expectations.

Summarized financial information by reportable segment is as follows (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Net revenues
Clear Aligner$805,799 $786,844 $2,407,259 $2,435,833 
Systems and Services189,893 191,028 580,144 567,960 
Total net revenues$995,692 $977,872 $2,987,403 $3,003,793 
Cost of net revenues1
Clear Aligner
$282,941 $234,003 $758,506 $715,309 
Systems and Services
73,550 62,095 201,471 186,266 
Total cost of goods sold
$356,491 $296,098 $959,977 $901,575 
Gross profit
Clear Aligner$522,858 $552,841 $1,648,753 $1,720,524 
Systems and Services116,343 128,933 378,673 381,694 
Total gross profit$639,201 $681,774 $2,027,426 $2,102,218 
Other Segment expenses
Clear Aligner
$272,150 $276,522 $870,810 $858,341 
Systems and Services
56,502 60,189 174,632 192,467 
Unallocated corporate expenses
214,251 182,765 591,553 587,931 
Total operating expenses
$542,903 $519,476 $1,636,995 $1,638,739 
Segment income from operations
Clear Aligner$250,708 $276,319 $777,943 $862,183 
Systems and Services59,841 68,744 204,041 189,227 
Total segment income from operations
$310,549 $345,063 $981,984 $1,051,410 
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
September 30,		Nine Months Ended
September 30,
2025202420252024
Total segment income from operations$310,549 $345,063 $981,984 $1,051,410 
Unallocated corporate expenses(214,251)(182,765)(591,553)(587,931)
Total income from operations96,298 162,298 390,431 463,479 
Interest income3,249 4,003 11,424 11,696 
Other income (expense), net(4,813)(371)6,837 (6,993)
Net income before provision for income taxes$94,734 $165,930 $408,692 $468,182 

The following table includes certain non-cash expenses for each reportable segment (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Stock-based compensation
Clear Aligner$6,069 $7,648 $17,952 $20,031 
Systems and Services419 427 1,225 1,207 
Unallocated corporate expenses41,889 40,964 122,405 113,617 
Total stock-based compensation$48,377 $49,039 $141,582 $134,855 
Depreciation and amortization
Clear Aligner
$32,976 $17,971 $71,375 $49,027 
Systems and Services
11,160 8,099 28,931 23,007 
Unallocated corporate expenses
11,581 11,723 35,135 34,871 
Total depreciation and amortization$55,717 $37,793 $135,441 $106,905 

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
September 30,		Nine Months Ended
September 30,
 2025202420252024
Net revenues 1:
U.S. $410,560 $421,204 $1,256,679 $1,291,838 
Switzerland210,844 216,638 670,223 739,342 
Other International 374,288 340,030 1,060,501 972,613 
Total net revenues$995,692 $977,872 $2,987,403 $3,003,793 
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):
 September 30,
2025		December 31,
2024
Long-lived assets 1:
Switzerland$543,669 $571,628 
U.S. 200,478 207,689 
Other International555,445 605,193 
Total long-lived assets$1,299,592 $1,384,510 
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.