About Non-GAAP Gross Margin and Non-GAAP Operating Margin
As part of our Investor Day on Tuesday, May 6, 2025 we provided a financial model that included our outlook for non-GAAP gross margin and non-GAAP operating margin. These non-GAAP financial measures exclude the effects of stock-based compensation and the amortization of intangibles related to certain acquisitions that are included in the most directly comparable GAAP financial measure as these items may not be indicative of our fundamental operating performance.
ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
GROSS MARGIN OUTLOOK
| | | | | | | | | | | |
| | 2026 - 2028 | 2029+ |
GAAP gross margin | | 70.5-72.5% | >72.5% |
Stock-based compensation | | ~0.2% | ~0.2% |
Amortization of intangibles (1) | | ~0.3% | ~0.3% |
Non-GAAP gross margin | | 71.0-73.0% | >73% |
OPERATING MARGIN OUTLOOK
| | | | | | | | | | | | | | |
| | 2025 | 2026 - 2028 | 2029+ |
GAAP operating margin | | 17.0% | 17.5-19.5% | >19.5% |
Stock-based compensation | | ~5.0% | ~5.0% | ~5.0% |
Amortization of intangibles (1) | | ~0.5% | ~0.5% | ~0.5% |
Non-GAAP operating margin | | ~22.5% | 23.0-25.0% | >25.0% |
(1) Amortization of intangible assets related to certain acquisitions.