v3.26.1
Balance Sheet Components
 6 Months Ended
Jun. 30, 2026
Notes To Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Inventories consist of the following (in thousands):
June 30,
2026		December 31,
2025
Raw materials$92,010 $107,296 
Work in process64,677 65,679 
Finished goods55,553 53,368 
Total inventories$212,240 $226,343 

Prepaid expenses and other current assets consist of the following (in thousands):
June 30,
2026		December 31,
2025
Value added tax receivables1
$46,541 $55,819 
Prepaid expenses101,098 62,478 
Other current assets52,187 47,274 
Total prepaid expenses and other current assets$199,826 $165,571 
1 Refer to Note 7 "Commitments and Contingencies" of the Notes to Condensed Consolidated Financial Statements for discussion of tax matter.

Accrued liabilities consist of the following (in thousands): 
June 30,
2026		December 31,
2025
Accrued payroll and benefits$245,230 $226,149 
Accrued expenses62,882 61,049 
Accrued professional fees51,174 12,245 
Accrued income taxes39,509 44,049 
UK VAT settlement1
37,514 — 
Accrued sales and marketing expenses36,759 29,941 
Current operating lease liabilities34,224 31,939 
Accrued property, plant and equipment9,236 10,469 
Other accrued liabilities95,040 120,908 
Total accrued liabilities$611,568 $536,749 
1 Refer to Note 7 "Commitments and Contingencies" of the Notes to Condensed Consolidated Financial Statements for discussion of tax matter.

Accrued warranty, which is included in the “Other accrued liabilities” category of the Total accrued liabilities table above, consists of the following activity (in thousands):
Six Months Ended
June 30,
20262025
Balance at beginning of period$24,411 $31,211 
Charge (credit) to cost of net revenues(8,633)12,688 
Actual warranty expenditures(3,554)(6,251)
Balance at end of period$12,224 $37,648 

Deferred revenues consist of the following (in thousands):
June 30,
2026		December 31,
2025
Deferred revenues - current$1,187,188 $1,261,816 
Deferred revenues - long-term 1
90,458 85,543 
Total deferred revenues
$1,277,646 $1,347,359 
1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheets.

During the three months ended June 30, 2026 and 2025, we recognized $1,056.2 million and $1,012.4 million of net revenues, respectively, of which $234.3 million and $229.4 million was included in the deferred revenues balance at December 31, 2025 and 2024, respectively.

During the six months ended June 30, 2026 and 2025, we recognized $2,096.3 million and $1,991.7 million of net revenues, respectively of which $480.7 million and $475.4 million was included in the deferred revenues balance at December 31, 2025 and 2024, respectively.

Our unfulfilled performance obligations, including deferred revenues and backlog, as of June 30, 2026 were $1,277.9 million. These performance obligations are expected to be fulfilled over a period of up to five years. Substantially all remaining performance obligations relate to clear aligner contracts and system and services arrangements, with the associated transaction price largely reflected in deferred revenue balances.