As of March 31, 2026, the Align Technology, Inc. 2005 Incentive Plan, as amended, has a total reserve of 34,668,895 shares, of which 2,815,995 shares are available for issuance.

Stock-based compensation related to our stock-based awards and employee stock purchase plan for the three months ended March 31, 2026 and 2025 is as follows (in thousands):


	Three Months Ended March 31,
	2026		2025
Cost of net revenues	$	1,620	$	1,538
Selling, general and administrative	28,992		30,866
Research and development	10,312		12,593
Total stock-based compensation	$	40,924	$	44,997

The fair value of RSUs is based on the closing price of our stock on the date of grant. Generally, RSUs vest over a period of four years.


	Number of Shares Underlying RSUs (in thousands)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2025	1,250	$	256.80
Granted	770	189.99
Vested and released	(430)	287.72
Forfeited	(33)	235.20
Unvested as of March 31, 2026	1,557	$	215.68	1.98	$	266,886

As of March 31, 2026, we expect to recognize $286.3 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 3.1 years.

We grant MSUs to members of senior management. Each MSU represents the right to one share of our common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of our stock price relative to the performance of a stock market index over the vesting period. MSUs vest over a period of three years and the maximum number of shares eligible to vest is 250% of the MSUs initially granted.

The following table summarizes the MSU performance activity for the three months ended March 31, 2026:


	Number of Shares Underlying MSUs (in thousands)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2025	263	$	507.88
Granted	149	378.44
Vested and released1	(59)	629.53
Forfeited	(28)	559.27
Unvested as of March 31, 2026	325	$	421.83	2.14	$	55,691

1 Includes MSUs vested during the period below 100% of the original grant as actual shares released are based on our stock performance relative to a market index over the vesting period.

As of March 31, 2026, we expect to recognize $78.4 million of total unamortized compensation costs, net of estimated forfeitures, related to MSUs over a weighted average period of 2.14 years.

Our PSUs typically include a service and performance condition. We recognize share-based compensation expense for PSUs if it is probable that the performance condition will be achieved. As of March 31, 2026, the service and performance condition was not met, and there are no outstanding performance shares and no remaining unrecognized stock based compensation to record.

As of March 31, 2026, we have 1,626,275 shares available for future issuance under the Align Technology, Inc. 2010 Employee Stock Purchase Plan (as amended and restated, the “2010 Purchase Plan”).

The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:


	Three Months Ended March 31,
	2026			2025
Expected term (in years)	1.0			1.1
Expected volatility	44.3		%	40.9		%
Risk-free interest rate	3.6		%	4.2		%
Expected dividends	—			—
Weighted average fair value at grant date	$	55.37		$	70.62

As of March 31, 2026, we expect to recognize $9.0 million of total unamortized compensation costs related to future employee stock purchases over a weighted average period of 0.9 years.