v3.26.1
Segments and Geographical Information
 6 Months Ended
Jun. 30, 2026
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
June 30,		Six Months Ended
June 30,
2026202520262025
Net revenues
Clear Aligner$870,874 $804,617 $1,726,898 $1,601,460 
Systems and Services185,318 207,832 369,381 390,251 
Total net revenues$1,056,192 $1,012,449 $2,096,279 $1,991,711 
Cost of net revenues1
Clear Aligner
$249,370 $240,811 $492,525 $475,565 
Systems and Services
49,392 63,521 109,737 127,921 
Total cost of net revenues
$298,762 $304,332 $602,262 $603,486 
Gross profit
Clear Aligner$621,504 $563,806 $1,234,373 $1,125,895 
Systems and Services135,926 144,311 259,644 262,330 
Total gross profit$757,430 $708,117 $1,494,017 $1,388,225 
Other Segment expenses
Clear Aligner
$296,031 $296,795 $601,101 $598,660 
Systems and Services
58,274 58,574 115,916 118,130 
Unallocated corporate expenses
249,112 189,715 481,032 377,302 
Total operating expenses
$603,417 $545,084 $1,198,049 $1,094,092 
Segment income from operations
Clear Aligner$325,473 $267,011 $633,272 $527,235 
Systems and Services77,652 85,737 143,728 144,200 
Total segment income from operations
$403,125 $352,748 $777,000 $671,435 
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.

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 expenses 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 income taxes (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Total segment income from operations$403,125 $352,748 $777,000 $671,435 
Unallocated corporate expenses(249,112)(189,715)(481,032)(377,302)
Total income from operations154,013 163,033 295,968 294,133 
Interest income4,636 2,859 8,547 8,175 
Other income (expense), net(9,956)7,624 (6,936)11,650 
Net income before provision for income taxes$148,693 $173,516 $297,579 $313,958 

The following table includes certain non-cash expenses for each reportable segment (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Stock-based compensation
Clear Aligner$6,387 $6,065 $12,336 $11,883 
Systems and Services406 403 783 806 
Unallocated corporate expenses38,767 41,740 73,365 80,516 
Total stock-based compensation$45,560 $48,208 $86,484 $93,205 
Depreciation and amortization
Clear Aligner1
$21,782 $19,495 $59,420 $38,399 
Systems and Services
10,572 9,302 21,106 17,771 
Unallocated corporate expenses
7,777 11,779 16,153 23,554 
Total depreciation and amortization$40,131 $40,576 $96,679 $79,724 
1 Includes $15.6 million of accelerated depreciation for the six months ended June 30, 2026 as disclosed in Note 1 “Summary of Significant Accounting Policies."

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,
2026202520262025
Net revenues 1:
U.S. $395,174 $422,801 $799,662 $846,119 
Switzerland248,618 235,247 493,766 459,379 
Other International 412,400 354,401 802,851 686,213 
Total net revenues$1,056,192 $1,012,449 $2,096,279 $1,991,711 
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,
2026		December 31,
2025
Long-lived assets 1:
Switzerland$481,493 $493,584 
U.S. 197,317 200,343 
Other International550,815 545,848 
Total long-lived assets$1,229,625 $1,239,775 
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.