Market Newsdesk

Camping World Holdings, Inc. Reports First Quarter 2026 Results

• Revenues of $1.35 Billion, Net Loss of $26.7 Million, and Positive Adjusted EBITDA of $28.0 Million

• SG&A to Gross Profit Improved 135 Basis Points Year-Over-Year

• New and Used Vehicle Unit Sales Gained Momentum in March and April

• Company Reaffirms Its Full Year 2026 Outlook

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–
Camping World Holdings, Inc. (NYSE: CWH) (“CWH” or, collectively with its subsidiaries, the “Company” or “Camping World”), America’s Largest Recreational Vehicle Dealer, today reported results for the first quarter ended March 31, 2026.

Matthew Wagner, Chief Executive Officer and President of CWH stated, “We are pleased with our first quarter performance against the current RV industry backdrop. While used RV sales underperformed expectations in January and February, the year-over-year trajectory of our new and used unit volume continued to improve as we progressed through March and into late April. In the quarter, we realized SG&A efficiencies and gained market share in our exclusive brand units.”

Balance Sheet and Cash Flow

At the end of the first quarter of 2026, cash and cash equivalents totaled $200 million. Total outstanding long-term debt was $1.416 billion. The Company’s net debt leverage ratio⁽¹⁾⁽²⁾ improved to 5.6x at the end of the first quarter of 2026 compared to 8.1x at the end of the first quarter of 2025. Tom Kirn, Chief Financial Officer of CWH commented, “We believe we are taking the right steps to generate strong free cash flow for the full year. Our capital deployment framework continues to prioritize strengthening the balance sheet.”

Full Year 2026 Outlook⁽²⁾

Mr. Wagner stated, “We remain focused on our three defined goals for 2026: new and used unit growth, accelerating Good Sam’s growth, and SG&A cost efficiency. While the RV selling season started slower than expected, we believe recent trends in March and April, Good Sam’s margin stabilization, and additional cost efficiency opportunities support our 2026 outlook and position the Company for long-term value creation.”

For full year 2026, the Company is reiterating its previous guidance range of Adjusted EBITDA in the range of $275 million to $325 million.

(1)		Net debt leverage ratio is equal to Net Debt(2) divided by Adjusted EBITDA(2) for the trailing twelve months.
(2)		Adjusted EBITDA, Net Debt and Net debt leverage ratio are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release. A reconciliation for the Company’s Adjusted EBITDA outlook to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to certain items. However, in 2026 the Company expects equity-based compensation of approximately $16-19 million, depreciation and amortization of approximately $85-95 million, and other interest expense of approximately $110-120 million, each of which is a reconciling item to Net Income.

First Quarter Operating Highlights⁽³⁾

• Revenue was $1.4 billion for the first quarter, a decrease of $58.9 million, or 4.2%.

• New vehicle revenue was $587.7 million for the first quarter, a decrease of $33.7 million, or 5.4%, and new vehicle unit sales were 15,218 units, a decrease of 1,508 units, or 9.0%. Used vehicle revenue was $403.8 million for the first quarter, a decrease of $18.6 million, or 4.4%, and used vehicle unit sales were 13,464 units, a decrease of 475 units, or 3.4%. Combined new and used vehicle unit sales were 28,682, a decrease of 1,983 units, or 6.5%.

• Average selling price of new vehicles sold increased 3.9% and average selling price of used vehicles sold decreased 1.0%.

• Same store new vehicle unit sales decreased 8.7% for the first quarter and same store used vehicle unit sales decreased 2.6%. Combined same store new and used vehicle unit sales decreased 6.0%.

• New vehicle gross margin was 12.2%, a decrease of 148 basis points, driven primarily by the 5.7% increase in the average cost per new vehicle sold, partially offset by the 3.9% increase in the average selling price per new vehicle sold. Used vehicle gross margin was 17.7%, a decrease of 91 basis points, primarily due to the 1.0% lower average selling price per used vehicle sold.

• Products, service and other revenue was $158.4 million, a decrease of $6.6 million, or 4.0%, due to reduced service and collision work. Products, service and other gross margin was 47.8%, a decrease of 89 basis points, driven by the lower mix of higher margin service and collision revenue, and increased labor rates.

• Gross profit was $403.3 million, a decrease of $26.3 million, or 6.1%, and total gross margin was 29.8%, a decrease of 62 basis points. The gross profit decrease was mainly driven by the $13.3 million lower new vehicle gross profit, $7.1 million of decreased used vehicles gross profit, $4.6 million of decreased products, service and other gross profit, and $2.6 million of decreased finance and insurance, net (“F&I”) gross profit.

• Selling, general and administrative expenses (“SG&A”) were $358.3 million, a decrease of $29.1 million, or 7.5%. This decrease was primarily driven by an $18.9 million decrease in employee cash compensation costs excluding commissions; a $6.4 million decrease in advertising expenses; a $5.1 million decrease in commissions costs, and a $2.5 million decrease in stock-based compensation (“SBC”) expense, partially offset by a $2.5 million increase for software expenses and maintenance. SG&A Excluding SBC⁽⁴⁾ was $353.7 million, a decrease of $26.6 million, or 7.0%. As a percentage of gross profit, SG&A and SG&A Excluding SBC were 88.8% and 87.7%, respectively, a decrease of 135 and 84 basis points, respectively.

• Floor plan interest expense was $21.8 million, an increase of $3.5 million, or 19.2%, primarily as a result of increased average floor plan balance, partially offset by lower average floor plan borrowing rate. Other interest expense, net was $26.8 million, a decrease of $3.7 million, or 12.1%, as a result of lower interest rates and reduced borrowings.

• Net loss was $(26.7) million for the first quarter of 2026, an increased loss of $2.0 million, or 8.0%. Adjusted EBITDA was $28.0 million, a decrease of $3.2 million, or 10.1%.

• Diluted loss per share of Class A common stock was $(0.26), an increased loss of $0.05, or 23.8%. Adjusted loss per share – diluted⁽⁴⁾ of Class A common stock was $(0.21), an increased loss of $0.05, or 31.3%.

• The total number of our store locations was 199 as of March 31, 2026, a net decrease of 10 store locations from March 31, 2025, or 4.8%, which included the consolidation of 10 store locations to improve the overall cost efficiency of the remaining store locations. In the first quarter of 2026, we opened two locations and acquired one dealership.

(3)		Unless otherwise indicated, all financial comparisons in these first quarter operating highlights compare our financial results for the first quarter ended March 31, 2026 to our financial results from the first quarter ended March 31, 2025.
(4)		Adjusted loss per share – diluted and SG&A Excluding SBC are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s first quarter 2026 financial results is scheduled for April 30, 2026, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671) and using conference ID# 1136399. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com. Presentation materials are available at http://investor.campingworld.com. The replay of the conference call webcast and presentation materials will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”), unless noted as a non-GAAP financial measure. The Company is the sole managing member of CWGS, LLC, with sole voting power in and control of the management of CWGS, LLC. As of March 31, 2026, the Company owned 61.4% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the first quarter ended March 31, 2026 to our financial results from the first quarter ended March 31, 2025.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (together with its subsidiaries) is America’s largest retailer of RVs and related products and services. Through Camping World and Good Sam brands, our vision is to make it easy for everyone to enjoy RVing and empower our customers’ joy of travel. We strive to build long-term value for our customers, employees, and stockholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of highly specialized services and plans, including roadside assistance, protection plans and insurance, uniquely enable us to connect with our customers as stewards of an outdoor and recreational lifestyle. With RV sales and service locations in 44 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about macroeconomic and industry trends, future reductions in SG&A, business plans and goals, future growth of our operations and our market share, future deleveraging activities, capital deployment priorities, future cash flow, operating leverage, future financial results, and centralization initiatives. These forward-looking statements are based on management’s current expectations.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: general economic conditions, including inflation, interest rates and tariffs; the availability of financing to us and our customers; fuel shortages, high prices for fuel or changes in energy sources; the well-being, as well as the continued popularity and reputation for quality of our manufacturers; changes in consumer preferences; competition in our industry; risks related to acquisitions, new store openings and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store revenue; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; the restrictive covenants imposed by our Senior Secured Credit Facilities and Floor Plan Facility; our ability to execute and achieve the expected benefits of our cost cutting initiatives; our reliance on our fulfillment and distribution centers; impacts from natural disasters, including pandemics and health crises; our dependence on our relationships with third party suppliers and lending institutions; risks associated with selling goods manufactured abroad; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; our private brand offerings; we may incur asset impairment charges for goodwill, intangible assets or other long-lived assets; tax risks; regulatory risks; data privacy and cybersecurity risks; our inability to maintain or upgrade our information technology systems; material weakness in our internal control over financial reporting; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; risks related to climate change and other environmental, social and governance matters; and risks related to our organizational structure.

These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10‑K for the year ended December 31, 2025, as updated by our Quarterly Reports on Form 10-Q and our other reports filed with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

We may use our official LinkedIn account at the handle @CampingWorld and the LinkedIn account of our Chief Executive Officer at the handle @MatthewWagner, as distribution channels of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through this social media channel may be deemed material. Accordingly, investors should subscribe to these accounts, in addition to following our press releases, SEC filings and public conference calls and webcasts. Social media channels may be updated from time to time.

Camping World Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited) (In Thousands Except Per Share Amounts)
	Three Months Ended
	March 31,
	2026				2025
Revenue:
Good Sam Services and Plans	$	48,458			$	46,208
RV and Outdoor Retail
New vehicles		587,694				621,432
Used vehicles		403,780				422,351
Products, service and other		158,420				164,992
Finance and insurance, net		146,100				148,667
Good Sam Club		10,153				9,874
Subtotal		1,306,147				1,367,316
Total revenue		1,354,605				1,413,524
Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		18,909				17,721
RV and Outdoor Retail
New vehicles		515,913				536,359
Used vehicles		332,498				343,961
Products, service and other		82,773				84,739
Good Sam Club		1,173				1,116
Subtotal		932,357				966,175
Total costs applicable to revenue		951,266				983,896
Gross profit (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		29,549				28,487
RV and Outdoor Retail
New vehicles		71,781				85,073
Used vehicles		71,282				78,390
Products, service and other		75,647				80,253
Finance and insurance, net		146,100				148,667
Good Sam Club		8,980				8,758
Subtotal		373,790				401,141
Total gross profit		403,339				429,628
Operating expenses:
Selling, general, and administrative		358,304				387,445
Depreciation and amortization		22,718				22,544
Long-lived asset impairment		—				620
Loss on lease termination and/or remeasurement		64				—
Loss (gain) on sale or disposal of assets		168				(1,823	)
Total operating expenses		381,254				408,786
Income from operations		22,085				20,842
Other expense
Floor plan interest expense		(21,819	)			(18,306	)
Other interest expense, net		(26,849	)			(30,531	)
Other expense, net		(162	)			(158	)
Total other expense		(48,830	)			(48,995	)
Loss before income taxes		(26,745	)			(28,153	)
Income tax benefit		84				3,471
Net loss		(26,661	)			(24,682	)
Less: net loss attributable to non-controlling interests		10,259				12,402
Net loss attributable to Camping World Holdings, Inc.	$	(16,402	)		$	(12,280	)
Loss per share of Class A common stock:
Basic	$	(0.26	)		$	(0.20	)
Diluted	$	(0.26	)		$	(0.21	)
Weighted average shares of Class A common stock outstanding:
Basic		63,478				62,531
Diluted		63,478				102,426

Camping World Holdings, Inc. and Subsidiaries
Supplemental Data (unaudited)
		Three Months Ended March 31,								Increase					Percent
		2026				2025				(decrease)					Change
Unit sales
New vehicles			15,218				16,726				(1,508	)				(9.0	%)
Used vehicles			13,464				13,939				(475	)				(3.4	%)
Total			28,682				30,665				(1,983	)				(6.5	%)
Average selling price
New vehicles		$	38,618			$	37,154			$	1,464					3.9	%
Used vehicles			29,990				30,300				(310	)				(1.0	%)
Same store unit sales(1)
New vehicles			14,509				15,900				(1,391	)				(8.7	%)
Used vehicles			12,906				13,256				(350	)				(2.6	%)
Total			27,415				29,156				(1,741	)				(6.0	%)
Same store revenue(1) ($ in 000s)
New vehicles		$	561,507			$	591,604			$	(30,097	)				(5.1	%)
Used vehicles			386,827				404,247				(17,420	)				(4.3	%)
Products, service and other			134,846				138,113				(3,267	)				(2.4	%)
Finance and insurance, net			140,613				142,863				(2,250	)				(1.6	%)
Total		$	1,223,793			$	1,276,827			$	(53,034	)				(4.2	%)
Average gross profit per unit
New vehicles		$	4,717			$	5,086			$	(369	)				(7.3	%)
Used vehicles			5,294				5,624				(330	)				(5.9	%)
Finance and insurance, net per vehicle unit			5,094				4,848				246					5.1	%
Total vehicle front-end yield(2)			10,082				10,179				(97	)				(1.0	%)
Gross margin
Good Sam Services and Plans			61.0	%			61.6	%			(67	)	bps
New vehicles			12.2	%			13.7	%			(148	)	bps
Used vehicles			17.7	%			18.6	%			(91	)	bps
Products, service and other			47.8	%			48.6	%			(89	)	bps
Finance and insurance, net			100.0	%			100.0	%			unch
Good Sam Club			88.4	%			88.7	%			(25	)	bps
Subtotal RV and Outdoor Retail			28.6	%			29.3	%			(72	)	bps
Total gross margin			29.8	%			30.4	%			(62	)	bps
Retail locations
RV dealerships			198				208				(10	)				(4.8	%)
RV service & retail centers			1				1				—					0.0	%
Total			199				209				(10	)				(4.8	%)
RV and Outdoor Retail inventories ($ in 000s)
New vehicles		$	1,548,659			$	1,509,594			$	39,065					2.6	%
Used vehicles			465,383				406,728				58,655					14.4	%
Products, parts, accessories and misc.			172,329				202,628				(30,299	)				(15.0	%)
Total RV and Outdoor Retail inventories		$	2,186,371			$	2,118,950			$	67,421					3.2	%
Vehicle inventory per location ($ in 000s)
New vehicle inventory per dealer location		$	7,822			$	7,258			$	564					7.8	%
Used vehicle inventory per dealer location			2,350				1,955				395					20.2	%
Vehicle inventory turnover(3)
New vehicle inventory turnover			1.7				1.8				(0.1	)				(3.1	%)
Used vehicle inventory turnover			3.0				3.5				(0.5	)				(13.8	%)
Other data
Active Customers(4)			3,998,211				4,140,985				(142,774	)				(3.4	%)
Good Sam Club members (5)			1,649,168				1,702,017				(52,849	)				(3.1	%)
Service bays (6)			2,834				2,911				(77	)				(2.6	%)
Finance and insurance gross profit as a % of total vehicle revenue			14.7	%			14.2	%			49		bps			n/a
Same store locations			186				n/a				n/a					n/a
unch – unchanged bps – basis points n/a – not applicable

(1)		Our same store revenue and units calculations for a given period include only those stores that were open both at the end of the corresponding period and at the beginning of the preceding fiscal year.
(2)		Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used vehicle unit sales.
(3)		Inventory turnover is calculated as vehicle costs applicable to revenue over the last twelve months divided by the average quarterly ending vehicle inventory over the last twelve months.
(4)		An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.
(5)		Excludes Good Sam Club members under the free basic plan, which was introduced in November 2023 and provides for limited participation in the loyalty point program without access to the remaining member benefits.
(6)		A service bay is a fully-constructed bay dedicated to service, installation, and collision offerings.

Camping World Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited) (In Thousands Except Per Share Amounts)
	March 31,				December 31,			March 31,
	2026				2025			2025
Assets
Current assets:
Cash and cash equivalents	$	199,827			$	215,043		$	20,916
Contracts in transit		134,741				53,327			149,113
Accounts receivable, net		123,150				170,498			118,800
Inventories		2,186,614				2,111,900			2,119,169
Prepaid expenses and other assets		66,509				67,338			74,418
Assets held for sale		5,431				175			20,536
Total current assets		2,716,272				2,618,281			2,502,952
Property and equipment, net		818,496				832,062			886,244
Operating lease assets		797,598				790,974			749,177
Deferred tax assets, net		1,426				1,426			210,586
Intangible assets, net		14,943				15,824			18,520
Goodwill		751,650				749,321			747,802
Other assets		35,902				36,446			31,929
Total assets	$	5,136,287			$	5,044,334		$	5,147,210
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	227,696			$	147,707		$	250,884
Accrued liabilities		158,011				128,399			160,711
Deferred revenues		87,885				90,456			89,084
Current portion of operating lease liabilities		65,894				65,365			65,653
Current portion of finance lease liabilities		8,610				8,820			7,646
Current portion of Tax Receivable Agreement liability		—				1,416			1,700
Current portion of long-term debt		27,825				57,939			23,147
Notes payable – floor plan, net		1,671,492				1,603,645			1,320,687
Other current liabilities		78,482				79,391			74,129
Total current liabilities		2,325,895				2,183,138			1,993,641
Operating lease liabilities, net of current portion		813,186				804,167			769,518
Finance lease liabilities, net of current portion		114,586				125,384			130,596
Tax Receivable Agreement liability, net of current portion		—				—			148,672
Long-term debt, net of current portion		1,388,664				1,413,618			1,488,388
Deferred revenues		55,638				56,773			62,699
Other long-term liabilities		88,850				89,455			94,885
Total liabilities		4,786,819				4,672,535			4,688,399
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share – 20,000 shares authorized; none issued and outstanding		—				—			—
Class A common stock, par value $0.01 per share – 250,000 shares authorized; 63,520, 63,437 and 62,569 shares issued and outstanding, respectively		635				634			626
Class B common stock, par value $0.0001 per share – 75,000 shares authorized; 39,466 shares issued and outstanding		4				4			4
Class C common stock, par value $0.0001 per share – 0.001 share authorized, issued and outstanding		—				—			—
Additional paid-in capital		219,708				216,944			197,730
Retained (deficit) earnings		(5,394	)			11,008			112,140
Total stockholders’ equity attributable to Camping World Holdings, Inc.		214,953				228,590			310,500
Non-controlling interests		134,515				143,209			148,311
Total stockholders’ equity		349,468				371,799			458,811
Total liabilities and stockholders’ equity	$	5,136,287			$	5,044,334		$	5,147,210

Camping World Holdings, Inc. and Subsidiaries
Summary of Consolidated Statements of Cash Flows (unaudited) (In Thousands)
	Three Months Ended March 31,
	2026				2025
Net cash used in operating activities	$	(65,583	)		$	(232,479	)
Investing activities
Purchases of property and equipment		(34,654	)			(23,511	)
Proceeds from sale or disposal of property and equipment		126				542
Purchases of real property		(1,381	)			(48,584	)
Proceeds from the sale or disposal of real property		52,430				6,689
Purchases of businesses, net of cash acquired		(7,035	)			(80,564	)
Net cash provided by (used in) investing activities		9,486				(145,428	)
Financing activities
Payments on long-term debt		(56,322	)			(6,268	)
Net proceeds on notes payable – floor plan, net		99,565				207,781
Payments on finance leases		(1,867	)			(1,763	)
Payments on sale-leaseback arrangement		(51	)			(51	)
Payments of stock offering costs		—				(572	)
Dividends on Class A common stock		—				(7,821	)
RSU shares withheld for tax		(507	)			(871	)
Contributions from (distributions to) holders of LLC common units		63				(34	)
Net cash provided by financing activities		40,881				190,401
Decrease in cash and cash equivalents		(15,216	)			(187,506	)
Cash and cash equivalents at beginning of the period		215,043				208,422
Cash and cash equivalents at end of the period	$	199,827			$	20,916

Loss Per Share

Basic loss per share of Class A common stock is computed by dividing net loss attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted loss per share of Class A common stock is computed by dividing net loss attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted loss per share of Class A common stock (unaudited):

		Three Months Ended March 31,
(In thousands except per share amounts)		2026				2025
Numerator:
Net loss		$	(26,661	)		$	(24,682	)
Less: net loss attributable to non-controlling interests			10,259				12,402
Net loss attributable to Camping World Holdings, Inc. — basic		$	(16,402	)		$	(12,280	)
Add: reallocation of net loss attributable to non-controlling interests from the assumed redemption of common units of CWGS, LLC for Class A common stock			—				(9,191	)
Net loss attributable to Camping World Holdings, Inc. — diluted		$	(16,402	)		$	(21,471	)
Denominator:
Weighted-average shares of Class A common stock outstanding — basic			63,478				62,531
Dilutive common units of CWGS, LLC that are convertible into Class A common stock			—				39,895
Weighted-average shares of Class A common stock outstanding — diluted			63,478				102,426
Loss per share of Class A common stock — basic		$	(0.26	)		$	(0.20	)
Loss per share of Class A common stock — diluted		$	(0.26	)		$	(0.21	)
Weighted-average anti-dilutive securities excluded from the computation of diluted loss per share of Class A common stock:
Stock options to purchase Class A common stock			136				155
Liability-classified awards			578				—
Restricted stock units			1,847				2,383
Common units of CWGS, LLC that are convertible into Class A common stock			39,895				—
Weighted-average contingently issuable shares excluded from the computation of diluted loss per share of Class A common stock since all necessary conditions had not been satisfied:
Performance stock units			750				750

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we use the following non-GAAP financial measures: EBITDA; Adjusted EBITDA; Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Basic; Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Diluted; Adjusted Loss Per Share – Basic; Adjusted Loss Per Share – Diluted; SG&A Excluding SBC; and Net Debt (collectively the “Non-GAAP Financial Measures”). We believe that these Non-GAAP Financial Measures, when used in conjunction with GAAP financial measures, provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics we use in our financial and operational decision making. Certain of these Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in the Company’s industry and are used by management to evaluate our operating performance, to evaluate the effectiveness of strategic initiatives and for planning purposes. By providing these Non-GAAP Financial Measures, together with reconciliations, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. In addition, our Senior Secured Credit Facilities use Adjusted EBITDA and Net Debt, as calculated for our subsidiary CWGS Group, LLC, to measure our compliance with covenants such as the consolidated leverage ratio. The Non-GAAP Financial Measures have limitations as analytical tools, and the presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. They should not be construed as an inference that the Company’s future results will be unaffected by any items adjusted for in these Non-GAAP Financial Measures. In evaluating these Non-GAAP Financial Measures, it is reasonable to expect that certain of these items will occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other companies over time. Each of the normal recurring adjustments and other adjustments described in this section and in the reconciliation tables below help management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations.

A full reconciliation of the forecasted Adjusted EBITDA to its most-directly comparable GAAP metric cannot be provided without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations.

The Non-GAAP Financial Measures that we use are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation.

EBITDA and Adjusted EBITDA

We define “EBITDA” as net (loss) income before other interest expense, net (excluding floor plan interest expense), provision for income tax benefit (expense) and depreciation and amortization. We define “Adjusted EBITDA” as EBITDA further adjusted for the impact of certain noncash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, losses and gains on lease termination and/or remeasurement, losses and gains on sale or disposal of assets, net, SBC, loss and/or impairment on investments in equity securities, modification expense relating to Marcus A. Lemonis’ second amended and restated employment agreement and Tax Receivable Agreement liability adjustment. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial performance measures (unaudited):

		Three Months Ended March 31,
($ in thousands)		2026				2025
EBITDA and Adjusted EBITDA:
Net loss		$	(26,661	)		$	(24,682	)
Other interest expense, net			26,849				30,531
Depreciation and amortization			22,718				22,544
Income tax benefit			(84	)			(3,471	)
Subtotal EBITDA			22,822				24,922
Long-lived asset impairment (a)			—				620
Loss on lease termination and/or remeasurement (b)			64				—
Loss (gain) on sale or disposal of assets, net (c)			168				(1,823	)
SBC (d)			4,774				7,270
Loss and/or impairment on investments in equity securities (e)			162				157
Adjusted EBITDA		$	27,990			$	31,146

	Three Months Ended																TTM Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
($ in thousands)	2026				2025				2025				2025				2026
Adjusted EBITDA:
Net (loss) income	$	(26,661	)		$	(109,128	)		$	(29,351	)		$	57,523			$	(107,617	)
Other interest expense, net		26,849				29,487				30,982				30,836				118,154
Depreciation and amortization		22,718				23,718				25,654				23,419				95,509
Income tax (benefit) expense		(84	)			3,488				207,459				18,321				229,184
Subtotal EBITDA		22,822				(52,435	)			234,744				130,099				335,230
Long-lived asset impairment (a)		—				—				617				—				617
Loss (gain) on lease termination and/or remeasurement (b)		64				(1,965	)			76				(107	)			(1,932	)
Loss (gain) on sale or disposal of assets, net (c)		168				(746	)			534				1,185				1,141
SBC (d)		4,774				20,814				7,750				8,444				41,782
Loss and/or impairment on investments in equity securities (e)		162				6,459				1,163				2,600				10,384
Employment agreement modification expense (f)		—				1,500				—				—				1,500
Tax Receivable Agreement liability adjustment (g)		—				216				(149,172	)			—				(148,956	)
Adjusted EBITDA	$	27,990			$	(26,157	)		$	95,712			$	142,221			$	239,766

(a)		Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment.
(b)		Represents the loss on the termination of operating leases resulting from lease termination fees and the derecognition of the operating lease assets and liabilities.
(c)		Represents an adjustment to eliminate the gains and losses on disposals and sales of various assets.
(d)		Represents noncash SBC expense relating to employees, directors, and consultants of the Company.
(e)		Represents loss and/or impairment on investments in equity securities and interest income relating to any notes receivables with those investments.
(f)		Represents the 2026 salary under the second amended and restated employment agreement (“Lemonis Second Employment Agreement”) for Marcus A. Lemonis, our former Chairman and Chief Executive Officer. We deemed the 2026 service conditions under the Lemonis Second Employment Agreement to be nonsubstantive for accounting purposes, so we accrued Mr. Lemonis’ 2026 salary of $1.5 million as of December 31, 2025, which was the date that Mr. Lemonis retired from the position of Chairman and Chief Executive Officer. Mr. Lemonis’ SBC and other compensation that may be settled in shares is included in the SBC amount above.
(g)		Represents an adjustment to the Tax Receivable Agreement liability for the change in the determination of the realizability of future cash tax benefits underlying the estimate of future payments under the Tax Receivable Agreement.

Adjusted Net Loss Attributable to Camping World Holdings, Inc. and Adjusted Loss Per Share

We define “Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Basic” as net loss attributable to Camping World Holdings, Inc. adjusted for the impact of certain noncash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, loss on lease termination and/or remeasurement, loss and gain on sale or disposal of assets, net, SBC, loss and/or impairment on investments in equity securities, the income tax (expense) benefit effect of these adjustments, income tax expense impact from the significant change in valuation allowance against deferred tax assets, and the effect of net loss attributable to non-controlling interests from these adjustments.

We define “Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Diluted” as Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Basic adjusted for the reallocation of net loss attributable to non-controlling interests from stock options and restricted stock units, if dilutive, or the assumed redemption, if dilutive, of all outstanding common units in CWGS, LLC for shares of newly-issued Class A common stock of Camping World Holdings, Inc.

We define “Adjusted Loss Per Share – Basic” as Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Basic divided by the weighted-average shares of Class A common stock outstanding. We define “Adjusted Loss Per Share – Diluted” as Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Diluted divided by the weighted-average shares of Class A common stock outstanding, assuming (i) the redemption of all outstanding common units in CWGS, LLC for newly-issued shares of Class A common stock of Camping World Holdings, Inc., if dilutive, and (ii) the dilutive effect of stock options and restricted stock units, if any. We present Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Loss Per Share – Basic, and Adjusted Loss Per Share – Diluted because we consider them to be important supplemental measures of our performance and we believe that investors’ understanding of our performance is enhanced by including these Non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Loss Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Loss Per Share – Basic, and Adjusted Loss Per Share – Diluted to the most directly comparable GAAP financial performance measure:

		Three Months Ended March 31,
(In thousands except per share amounts)		2026				2025
Numerator:
Net loss attributable to Camping World Holdings, Inc.		$	(16,402	)		$	(12,280	)
Adjustments related to basic calculation:
Long-lived asset impairment (a):
Gross adjustment			—				620
Income tax expense for above adjustment (b)			—				(95	)
Loss on lease termination and/or remeasurement (c):
Gross adjustment			64				—
Loss (gain) on sale or disposal of assets (d):
Gross adjustment			168				(1,823	)
Income tax benefit for above adjustment (b)			—				278
SBC (e):
Gross adjustment			4,774				7,270
Income tax expense for above adjustment (b)			(3	)			(1,114	)
Loss and/or impairment on investments in equity securities (f):
Gross adjustment			162				157
Income tax expense for above adjustment (b)			—				(24	)
Adjustment to net loss attributable to non-controlling interests resulting from the above adjustments (g)			(1,994	)			(2,420	)
Adjusted net loss attributable to Camping World Holdings, Inc. – basic			(13,231	)			(9,431	)
Adjustments related to diluted calculation:
Reallocation of net loss attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (h)			—				(9,982	)
Income tax on reallocation of net loss attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (i)			—				2,609
Adjusted net loss attributable to Camping World Holdings, Inc. – diluted		$	(13,231	)		$	(16,804	)
Denominator:
Weighted-average Class A common shares outstanding – basic			63,478				62,531
Adjustments related to diluted calculation:
Dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (j)			—				39,895
Adjusted weighted average Class A common shares outstanding – diluted			63,478				102,426
Adjusted loss per share – basic		$	(0.21	)		$	(0.15	)
Adjusted loss per share – diluted		$	(0.21	)		$	(0.16	)
Anti-dilutive amounts (k):
Numerator:
Reallocation of net loss attributable to non-controlling interests from the anti-dilutive redemption of common units in CWGS, LLC (h)		$	(8,265	)		$	—
Denominator:
Anti-dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (j)			39,895				—
Anti-dilutive liability-classified awards (j)			578				—
Anti-dilutive restricted stock units (j)			103				254
Reconciliation of per share amounts:
Loss per share of Class A common stock — basic		$	(0.26	)		$	(0.20	)
Non-GAAP Adjustments (l)			0.05				0.05
Adjusted loss per share – basic		$	(0.21	)		$	(0.15	)
Loss per share of Class A common stock — diluted		$	(0.26	)		$	(0.21	)
Non-GAAP Adjustments (l)			0.05				0.05
Adjusted loss per share – diluted		$	(0.21	)		$	(0.16	)

(a)		Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment.
(b)		Represents the current and deferred income tax expense or benefit effect of the above adjustments. For the three months ended March 31, 2026, the income tax impact for many of the adjustments related to the public holding company, CWH, which had a full valuation allowance against its net deferred tax assets, for which no income tax benefit or expense could be recognized. This assumption uses a blended statutory tax rate of 25.0% for the adjustments for the 2026 and 2025 periods, which represent the estimated tax rates that would apply had the above adjustments been included in the determination of our non-GAAP metric.
(c)		Represents the loss on the termination and/or remeasurement of operating leases resulting from lease termination fees and the derecognition of the operating lease assets and liabilities.
(d)		Represents an adjustment to eliminate the gains and losses on disposals and sales of various assets.
(e)		Represents noncash SBC expense relating to employees, directors, and consultants of the Company.
(f)		Represents loss and/or impairment on investments in equity securities and interest income relating to any notes receivable with those investments.
(g)		Represents the adjustment to net loss attributable to non-controlling interests resulting from the above adjustments that impact the net loss of CWGS, LLC. This adjustment uses the non-controlling interest’s weighted average ownership of CWGS, LLC of 38.6% and 39.0% for the three months ended March 31, 2026 and 2025, respectively.
(h)		Represents the reallocation of net loss attributable to non-controlling interests from the impact of the assumed change in ownership of CWGS, LLC from stock options, restricted stock units, and/or common units of CWGS, LLC.
(i)		Represents the income tax expense effect of the above adjustment for reallocation of net loss attributable to non-controlling interests. For the three months ended March 31, 2026, the income tax impact of this reallocation adjustment related to the public holding company, CWH, which had a full valuation allowance against its net deferred tax assets, for which no income tax benefit or expense could be recognized. This assumption uses a blended statutory tax rate of 25.0% for the adjustments for the 2026 and 2025 periods.
(j)		Represents the impact to the denominator for stock options, liability-classified awards, restricted stock units, and/or common units of CWGS, LLC.
(k)		The below amounts have not been considered in our adjusted loss per share – diluted amounts as the effect of these items are anti-dilutive. Additionally, 750,000 performance stock units granted in January 2025 were excluded from the calculation of our adjusted loss per share – diluted, since they represent contingently issuable shares for which all of the necessary conditions had not been satisfied.
(l)		Represents the per share impact of the Non-GAAP adjustments to net loss detailed above (see (a) through (g) above).

Our “Up-C” corporate structure may make it difficult to compare our results with those of companies with a more traditional corporate structure. There can be a significant fluctuation in the numerator and denominator for the calculation of our adjusted loss per share – diluted depending on if the common units in CWGS, LLC are considered dilutive or anti-dilutive for a given period. To improve comparability of our financial results, users of our financial statements may find it useful to review our loss per share assuming the full redemption of common units in CWGS, LLC for all periods, even when those common units would be anti-dilutive. The relevant numerator and denominator adjustments have been provided under “Anti-dilutive amounts” in the table above (see (k) above).

SG&A Excluding SBC

We define “SG&A Excluding SBC” as SG&A before SBC relating to SG&A. We caution investors that amounts presented in accordance with our definition of SG&A Excluding SBC may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate SG&A Excluding SBC in the same manner. We present SG&A Excluding SBC because we believe that investors’ understanding of our performance and drivers of our other Non-GAAP Financial Measures, such as Adjusted EBITDA, is enhanced by including this Non-GAAP Financial Measure. We believe it provides a reasonable basis for comparing our ongoing results of operations.

The following table reconciles SG&A Excluding SBC to the most directly comparable GAAP financial performance measure:

		Three Months Ended March 31,
($ in thousands)		2026				2025
SG&A Excluding SBC:
SG&A		$	358,304			$	387,445
SBC – SG&A			(4,644	)			(7,145	)
SG&A Excluding SBC		$	353,660			$	380,300
As a percentage of gross profit			87.7	%			88.5	%

Net Debt and Net Debt Leverage Ratio

We define “Net Debt” as the sum of long-term debt, finance lease liabilities and our revolving line of credit balance outstanding, if any, less cash and cash equivalents. We commonly use Net Debt along with Adjusted EBITDA, as described above, to calculate the “Net Debt Leverage” ratio, which we define as Net Debt divided by Adjusted EBITDA for the trailing twelve months. We caution investors that amounts presented in accordance with our definition of Net Debt may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate Net Debt in the same manner. We present Net Debt because we believe that investors’ understanding of our solvency and borrowing capacity is enhanced by including this Non-GAAP Financial Measure.

The following table reconciles Net Debt to the most directly comparable GAAP financial performance measure, which is total debt:

		March 31,				December 31,				March 31,
($ in thousands)		2026				2025				2025
Net Debt:
Current portion:
Finance lease liabilities		$	8,610			$	8,820			$	7,646
Long-term debt			27,825				57,939				23,147
Total current portion of debt			36,435				66,759				30,793
Noncurrent portion:
Finance lease liabilities			114,586				125,384				130,596
Long-term debt			1,388,664				1,413,618				1,488,388
Total noncurrent portion of debt			1,503,250				1,539,002				1,618,984
Total debt			1,539,685				1,605,761				1,649,777
Less: cash and cash equivalents			(199,827	)			(215,043	)			(20,916	)
Net Debt		$	1,339,858			$	1,390,718			$	1,628,861
Net Debt Leverage Ratio(1)			5.6				5.7				8.1

(1)

We define Net Debt Leverage Ratio as Net Debt divided by Adjusted EBITDA for the trailing twelve months.

 

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Brett Andress

[email protected]

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Align Technology Announces First Quarter 2026 Financial Results, $200M Stock Repurchase, and Reaffirms Fiscal 2026 Guidance

Record Q1’26 Invisalign^® Clear Aligner shipments of 685.7 thousand increased 6.7% year-over-year reflecting double-digit growth in the EMEA, APAC, and LATAM regions, and stability in North America

Q1’26 Clear Aligner shipments to Orthodontists and GP Dentists increased 7.4% and 5.6% year-over-year, respectively

Q1’26 Invisalign teen/kid patients increased 4.8% year-over-year and Invisalign adult patients increased 7.8% year-over-year

• Q1’26 total revenues were $1,040.1 million, down 0.7% sequentially and up 6.2% year-over-year

• Q1’26 total revenues were favorably impacted by foreign exchange by approximately $8.7 million sequentially, and favorably impacted by approximately $44.9 million year-over-year⁽¹⁾
• Q1’26 Clear Aligner revenues of $856.0 million increased 7.4% year-over-year, and Clear Aligner volume increased 6.7% year-over-year to 685.7 thousand cases

• Q1’26 Imaging Systems and CAD/CAM Services revenues of $184.1 million increased 0.9% year-over-year

• Q1’26 gross margin of 70.8% was unfavorably impacted by foreign exchange of approximately 0.3 points sequentially and by approximately 0.4 points year-over-year.⁽¹⁾ On a non-GAAP basis, Q1’26 gross margin was 71.8%⁽¹⁾
• Q1’26 operating margin of 13.6% was unfavorably impacted by foreign exchange by approximately 0.4 points sequentially and by approximately 0.1 points year-over-year.⁽¹⁾ On a non-GAAP basis, Q1’26 operating margin was 21.5%⁽¹⁾
• Q1’26 diluted net income per share was $1.57, non-GAAP diluted net income per share was $2.58⁽¹⁾

TEMPE, Ariz.–(BUSINESS WIRE)–
Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign^® System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry, today reported financial results for the first quarter (“Q1’26”). Q1’26 total revenues were $1,040.1 million, down 0.7% sequentially and up 6.2% year-over-year. Q1’26 total revenues were favorably impacted by foreign exchange by approximately $8.7 million, or 0.8% sequentially, and favorably impacted by approximately $44.9 million, or 4.5% year-over-year.⁽¹⁾ Q1’26 Clear Aligner revenues were $856.0 million, up 2.1% sequentially and up 7.4% year-over-year. Q1’26 Clear Aligner revenues were favorably impacted by foreign exchange by approximately $7.5 million, or 0.9% sequentially, and favorably impacted by approximately $38.2 million, or 4.7% year-over-year.⁽¹⁾ Q1’26 Clear Aligner volume of 685.7 thousand cases was up 1.3% sequentially and up 6.7% year-over-year. Q1’26 Imaging Systems and CAD/CAM Services revenues were $184.1 million, down 12.1% sequentially and up 0.9% year-over-year. Q1’26 Imaging Systems and CAD/CAM Services revenues were favorably impacted by foreign exchange of approximately $1.2 million, or 0.7% sequentially and favorably impacted by approximately $6.7 million, or 3.8% year-over-year.⁽¹⁾

Q1’26 gross profit was $736.6 million, resulting in a gross margin of 70.8%. Q1’26 gross margin was unfavorably impacted by foreign exchange of approximately 0.3 points sequentially and by approximately 0.4 points year-over-year.⁽¹⁾ On a non-GAAP basis, Q1’26 gross profit was $746.9 million, resulting in a gross margin of 71.8%.

Q1’26 operating income was $142.0 million, resulting in an operating margin of 13.6%. Q1’26 operating margin was unfavorably impacted by foreign exchange of approximately 0.4 points sequentially and by approximately 0.1 points year-over-year.⁽¹⁾ Q1’26 net income was $112.8 million, or $1.57 per diluted share. Foreign exchange unfavorably impacted Q1’26 diluted net income per share by approximately $0.07 sequentially and favorably impacted diluted net income per share by approximately $0.01 year-over-year. On a non-GAAP basis, Q1’26 net income was $184.6 million, or $2.58 per diluted share.⁽¹⁾

Commenting on Align’s Q1’26 results, Align Technology President and CEO Joe Hogan said, “We’re pleased to report another better-than-expected quarter, with Q1’26 revenues, Clear Aligner volumes, and both GAAP and non‑GAAP operating margins exceeding our outlook, reflecting continued execution against our strategic priorities and resilience across our global business. First quarter revenues of $1.04 billion increased 6.2% year-over-year, driven primarily by higher Clear Aligner volumes and increased ASPs. Record Clear Aligner shipments of 685.7 thousand cases increased 6.7% year-over-year, reflecting double‑digit growth across our international business, with continued stability in North America. We also saw good growth across customer segments, with orthodontic and GP dentist shipments up 7.4% and 5.6% year‑over‑year, respectively, and momentum across adult, teen, and growing kid patients. DSOs remain a force multiplier and continue to drive double-digit Clear Aligner volumes globally. As expected, due to first‑quarter seasonality for capital equipment, our Systems and Services revenue was down sequentially. On a year-over-year basis, Q1 Systems and Services revenue growth reflects continued adoption of iTero Lumina™ full systems, services revenues, and Certified Pre-Owned sales, alongside a continued mix shift toward lower-priced scanner offerings, including PC-based configurations, leasing, and rental units. As we move forward in 2026, our focus is on maintaining discipline as we strategically invest in innovation and growth opportunities, including advancing digital dentistry through the Align™ Digital Platform, scaling our iTero Lumina ecosystem, expanding internationally with localized strategies, and continuing to build a differentiated portfolio for teens and growing patients.”

(1) For more information, please see the tables captioned “Unaudited GAAP to Non-GAAP Reconciliation.”

Financial Summary – First Quarter Fiscal 2026

	Q1’26			Q4’25			Q1’25			Q/Q Change		Y/Y Change
Clear Aligner Shipments		685,650			676,855			642,305		+1.3%		+6.7%
GAAP
Net Revenues	$	1,040.1M		$	1,047.6M		$	979.3M		(0.7)%		+6.2%
Clear Aligner	$	856.0M		$	838.1M		$	796.8M		+2.1%		+7.4%
Imaging Systems and CAD/CAM Services	$	184.1M		$	209.4M		$	182.4M		(12.1)%		+0.9%
Net Income	$	112.8M		$	135.8M		$	93.2M		(16.9)%		+21.0%
Diluted EPS	$	1.57		$	1.89		$	1.27		($0.32)		+$0.31
Non-GAAP
Net Income	$	184.6M		$	236.0M		$	156.9M		(21.8)%		+17.7%
Diluted EPS	$	2.58		$	3.29		$	2.13		($0.71)		+$0.45
Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.

As of March 31, 2026, we had approximately $1,059.8 million in cash and cash equivalents, compared to approximately $1,094.9 million as of December 31, 2025. As of March 31, 2026, we had $300.0 million available under our revolving line of credit and a $50.0 million letter of credit sub-limit.

Align Announcement Highlights

• April 15, 2026 – Align Technology announced it has been recognized for the fifth consecutive year as a Top 100 Global Innovator in the 2026 LexisNexis Innovation Momentum report.

• March 3, 2026 – Align Technology announced participation in key financial conferences: Leerink Partners Global Healthcare and Barclays Global Healthcare (28th Annual).

Q1’26 Stock Repurchase

• In August 2025, Align announced its intention to repurchase $200.0 million of common stock under its previously authorized $1.0 billion stock repurchase program. Between August 2025 and January 2026, Align repurchased approximately 1.4 million shares at an average price per share of $143.85, completing the $200.0 million repurchase plan.

• As of March 31, 2026, $800.0 million remains available for repurchases of common stock under our $1.0 billion stock repurchase program announced in April 2025.

• Align expects to repurchase an additional $200.0 million of its common stock over a six-month period beginning on or about May 1, 2026.

Tariff Update as of March 31, 2026

• As a result of the Supreme Court’s ruling on February 20, 2026 that certain of the tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unlawful, we are no longer subject to IEEPA tariffs, but are subject to new, temporary tariffs on imports under Section 122 of the Trade Act of 1974, effective February 24, 2026. We do not expect this change to have a material impact to our results.

Fiscal 2026 Business Outlook

• With Q1’26 results as a backdrop, we remain focused on executing our strategic growth initiatives and building on the recent quarterly results. At the same time, there is uncertainty and the potential for adverse impacts on patient traffic, consumer demand and shipping/freight resulting from the ongoing military action in the Middle East.

• With respect to the Middle East, we continue to monitor developments closely. While our doctor customers in MEA have noted some impact on patient traffic and case conversion, the overall effect on our EMEA results was immaterial in the first quarter. Given the ongoing uncertainty, we have taken a prudent approach in our second‑quarter outlook by assuming some impact on both clear aligner and scanner demand. Beyond the second quarter, it becomes increasingly difficult to predict how the conflict in the Middle East will affect our business, particularly in the event of further escalation, sustained constraints on oil and gas supplies, or broader softening in consumer and patient sentiment.

• As we look to Q2 and the remainder of 2026, assuming no circumstances occur beyond our control such as: additional ramifications as a result of the aforementioned military action in the Middle East beyond what we have already assumed, adverse foreign exchange fluctuation, changes to currently applicable duties, including tariffs or other fees that could impact our business, our outlook is as follows:

Q2’26:

• We expect Q2’26 worldwide revenues to be in the range of $1,040M to $1,060M, up approximately 3% to 5% year-over-year

• We expect Q2’26 Clear Aligner volume to be up sequentially and year-over-year, and Clear Aligner Average Selling Price (“ASP”) to be flat sequentially and year-over-year

• We expect Systems and Services revenues to be up sequentially

• We expect our Q2’26 GAAP operating margin to be approximately 16.4% and non-GAAP operating margin to be approximately 21.5%

For fiscal 2026:

For fiscal 2026 we remain confident in the outlook that we provided previously and reaffirm our full year fiscal 2026 guidance as follows:

• We expect 2026 worldwide revenue growth to be up 3% to 4% year-over-year

• Our full year 2026 revenue guidance continues to assume a benefit from foreign exchange that is consistent with the assumptions underlying our initial full year outlook. We expect the impact of foreign exchange to moderate in the remaining quarters, trending toward the full year assumption of approximately 100 basis points

• We expect 2026 Clear Aligner volume growth to be up mid-single digits year-over-year

• We expect 2026 GAAP operating margin to be slightly below 18.0%, an approximately 400 basis points improvement over 2025 and non-GAAP operating margin to be approximately 23.7%, a 100 basis points improvement year-over-year consistent with our previous guidance

• We expect our investments in capital expenditures for fiscal 2026 to be $125 million to $150 million. Capital expenditures primarily relate to technology upgrades, additional manufacturing capacity as well as maintenance

• We expect to repurchase up to $200.0 million of our common stock over a six-month period beginning on or about May 1, 2026

Align Webcast and Conference Call

We will host a conference call today, April 29, 2026, at 4:30 p.m. ET, 1:30 p.m. PT, to review our Q1’26 financial results, discuss future operating trends, and our business outlook. The conference call will also be webcast live via the Internet. To access the webcast, go to the “Events & Presentations” section under “Company Information” on Align’s Investor Relations website at http://investor.aligntech.com. To access the conference call, participants may register for the call at https://edge.media-server.com/mmc/p/k4mzoqyu. An archived audio webcast will be available 2 hours after the call’s conclusion and will remain available for one month.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S. GAAP”), we use the following non-GAAP financial measures: constant currency net revenues, constant currency gross profit, constant currency gross margin, constant currency income from operations, constant currency operating margin, constant currency diluted net income per share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP total operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP effective tax rate, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP financial measures exclude certain items that may not be indicative of our fundamental operating performance, including foreign currency exchange rate impacts, the effects of stock-based compensation, amortization of intangible assets related to certain acquisitions, restructuring and other charges, legal settlements, acquisition-related costs, discrete cash and non-cash charges or gains and associated tax impacts that are included in the most directly comparable GAAP financial measure.

Our management believes that the use of certain non-GAAP financial measures provides meaningful supplemental information regarding our recurring core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by our institutional investors and the analyst community to help them analyze the performance of our business.

There are material limitations to using non-GAAP financial measures as they are not prepared in accordance with U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. Non-GAAP financial measures exclude certain items that may have a material impact upon our reported results of operations, which can limit their usefulness for comparison purposes. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which charges and gains are excluded or included from the non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on both a GAAP and non-GAAP basis and by providing specific information regarding the GAAP amounts excluded or included from these non-GAAP financial measures in our public disclosures. The presentation of non-GAAP financial information is meant to be considered in addition to, not as a substitute for, superior to, or in isolation from, the directly comparable financial measures prepared in accordance with U.S. GAAP. We urge investors to review the reconciliation of our GAAP financial measures to the comparable non-GAAP financial measures included herein and not to rely on any single financial measure to evaluate our business. For more information on these non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the tables captioned “Unaudited GAAP to Non-GAAP Reconciliation.”

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign^® System, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for approximately 299.5 thousand doctor customers and are key to accessing Align’s 600 million consumer market opportunity worldwide. Over the past 29 years, Align has helped doctors treat approximately 22.8 million patients with the Invisalign System and is driving the evolution in digital dentistry through the Align™ Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners. Visit www.aligntech.com for more information.

For additional information about the Invisalign System or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.

Invisalign, iTero, exocad, Align, Align Digital Platform and iTero Lumina are trademarks of Align Technology, Inc.

Forward-Looking Statements

This news release, including the tables below, contains forward-looking statements, including statements of our current intentions, beliefs and expectations regarding our ability to grow in 2026 and beyond, actively manage our business with focus and discipline while strategically investing in innovation and growth opportunities, including advancing digital dentistry through the Align™ Digital Platform, scaling our iTero™ Lumina ecosystem, expanding internationally with localized strategies, and continuing to build a differentiated portfolio for teens and growing patients; our expectations regarding, and our ability to navigate, dynamic macroeconomic environments; our expectations regarding implemented or proposed tariffs and the potential impact on our financial results; our expectations for Q2’26 worldwide revenues, Clear Aligner volume, Clear Aligner ASPs, Systems and Services revenues, and GAAP and non-GAAP operating margin, including our assumption that the impact of the ongoing conflicts in the Middle East will have some impact on both Clear Aligner and scanner demand; our expectations for fiscal year 2026 worldwide revenue growth, Clear Aligner volume growth, GAAP and non-GAAP operating margin, and investments in capital expenditures, including our assumption of approximately 100 basis points of benefit from foreign exchange; and our expectations regarding the timing and amount of future stock repurchases. Forward-looking statements contained in this press release are based upon information available to Align as of the date hereof. These forward-looking statements reflect our best judgments based on currently known facts and circumstances and are subject to risks and uncertainties, and assumptions that may be inaccurate. As a result, actual results may differ materially and adversely from those expressed or implied in any forward-looking statement.

Factors that might cause such a difference include, but are not limited to:

• macroeconomic conditions, including fluctuations in foreign currency exchange rates, higher interest rates, market volatility, inflation, general economic weakness, and threats of or actual slowdowns or recessions;

• geopolitical events, such as wars, military conflicts (such as those involving the Middle East, Ukraine, and China), terrorism and major public health crises, which could result in, among other things, disruptions to our supply chain and the global economy, energy shortages, inflation, decreased customer and consumer sentiment, uneven patient traffic at dental practices, and a shift in public opinion about companies based in the United States or in the regions where we operate;

• trade policies, tariffs, customs duties and fees, and retaliatory actions, international trade disputes, or protectionist trade measures taken in response to or resulting from such measures;

• customer and consumer purchasing behavior and changes in demand for dental services as a result of, among other things, prevailing macroeconomic conditions, declining customer confidence and consumer sentiment, consumer economic uncertainty, employment levels, health insurance coverage, wages, debt obligations, discretionary income, inflationary pressure, and perceptions of current and future economic conditions;

• variations in our geographic, channel or product mix, product launches, product pilots and product adoption, and selling prices regionally and globally, including product mix shifts to lower priced products or to products with a higher percentage of deferred revenue;

• reductions, delays or shifts in purchasing or utilization of our products and services by doctors at dental support organizations, orthodontic service organizations and other large group practices;

• competition from existing and new competitors;

• competitive pressure from AI-powered technologies in the dental industry, regulatory and legal risks surrounding implementation of AI, and reputational harm from improper use of AI;

• declines in, or the slowing of the growth of, sales of our clear aligners and intraoral scanners domestically and/or internationally and the impact either would have on the adoption of Invisalign products;

• the possibility that the development and release of new products or enhancements to existing products do not proceed in accordance with the anticipated timeline or may themselves contain bugs, errors, or defects in software or hardware requiring remediation and that the market for the sale of these new or enhanced products may not develop as expected;

• the timing, availability and cost of raw materials, components, products and other shipping and supply chain constraints and disruptions;

• unexpected or rapid changes in the growth or decline of our domestic and/or international markets;

• rapidly evolving and groundbreaking advances that fundamentally alter the dental industry or the way new and existing customers market and provide products and services to consumers;

• our ability to protect our intellectual property rights;

• our ability to comply with regulatory requirements and obtain and maintain regulatory approvals or clearances, including as a result of any shutdowns of the U.S. federal government or reductions in government personnel;

• the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers;

• our ability to sustain or increase profitability or revenue growth in future periods (or minimize declines) while controlling expenses;

• expansion of our business and products;

• our ability to identify, complete, finance and integrate acquisitions, investments and other strategic transactions, and to realize the anticipated synergies and benefits of those transactions;

• the impact of excess or constrained capacity at our manufacturing and treat operations facilities and pressure on our internal systems and personnel;

• security breaches, data breaches, or other cybersecurity incidents involving any customer and/or patient data, and our failure to comply with laws, regulations and other obligations related to privacy, data protection, data governance and cybersecurity;

• natural disasters and extreme weather conditions occurring in a region where one of our facilities or those of our customers or suppliers are located;

• the timing of case submissions from our doctor customers within a quarter as well as increases in manufacturing cost per case; and

• the loss of key personnel, labor shortages, or work stoppages for us or our suppliers.

The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”) on February 27, 2026. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
		Three Months Ended March 31,
		2026			2025
Net revenues		$	1,040,087		$	979,262
Cost of net revenues			303,500			299,154
Gross profit			736,587			680,108
Operating expenses:
Selling, general and administrative			465,342			447,629
Research and development			98,658			97,201
Legal settlements			30,632			4,178
Total operating expenses			594,632			549,008
Income from operations			141,955			131,100
Interest income and other income (expense), net:
Interest income			3,911			5,316
Other income (expense), net			3,020			4,026
Total interest income and other income (expense), net			6,931			9,342
Net income before provision for income taxes			148,886			140,442
Provision for income taxes			36,115			47,212
Net income		$	112,771		$	93,230
Net income per share:
Basic		$	1.58		$	1.27
Diluted		$	1.57		$	1.27
Shares used in computing net income per share:
Basic			71,425			73,562
Diluted			71,614			73,615

ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
		March 31, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	1,059,834		$	1,094,908
Accounts receivable, net			1,125,114			1,101,757
Inventories			214,944			226,343
Prepaid expenses and other current assets			215,706			165,571
Assets held for sale			39,832			27,983
Total current assets			2,655,430			2,616,562
Property, plant and equipment, net			1,108,092			1,131,453
Operating lease right-of-use assets, net			110,223			108,322
Goodwill			503,041			491,833
Intangible assets, net			100,818			93,933
Deferred tax assets			1,471,425			1,513,542
Other assets			365,144			278,048
Total assets		$	6,314,173		$	6,233,693
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	123,720		$	121,450
Accrued liabilities			546,879			536,749
Deferred revenues			1,235,254			1,261,816
Total current liabilities			1,905,853			1,920,015
Income tax payable			67,287			68,200
Operating lease liabilities			83,422			82,507
Other long-term liabilities			108,192			113,824
Total liabilities			2,164,754			2,184,546
Total stockholders’ equity			4,149,419			4,049,147
Total liabilities and stockholders’ equity		$	6,314,173		$	6,233,693

ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
		Three Months Ended March 31,
			2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities		$	151,042			$	52,676
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities			(131,581	)			(25,289	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in financing activities			(48,128	)			(206,756	)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash			(6,387	)			8,480
Net decrease in cash, cash equivalents, and restricted cash			(35,054	)			(170,889	)
Cash, cash equivalents, and restricted cash at beginning of the period			1,096,186				1,044,963
Cash, cash equivalents, and restricted cash at end of the period		$	1,061,132			$	874,074

ALIGN TECHNOLOGY, INC.
INVISALIGN BUSINESS METRICS
		Q1			Q2			Q3			Q4			Fiscal			Q1
		2025			2025			2025			2025			2025			2026
Number of Invisalign Trained Doctors Cases Were Shipped To
			85,275			86,250			88,155			87,710			130,015			88,065
Invisalign Trained Doctor Utilization Rates*
			7.5			7.5			7.3			7.7			20.1			7.8
Clear Aligner Revenue Per Case Shipment**
		$	1,240		$	1,250		$	1,245		$	1,240		$	1,245		$	1,250
* number of cases shipped / number of doctors to whom cases were shipped ** Clear Aligner revenues / Case shipments

ALIGN TECHNOLOGY, INC.
STOCK-BASED COMPENSATION
(in thousands)
		Q1			Q2			Q3			Q4			Fiscal			Q1
		2025			2025			2025			2025			2025			2026
Stock-based Compensation (SBC):
SBC included in Gross Profit		$	1,538		$	1,636		$	1,540		$	1,463		$	6,177		$	1,620
SBC included in Operating Expenses			43,459			46,572			46,837			42,825			179,693			39,304
Total SBC		$	44,997		$	48,208		$	48,377		$	44,288		$	185,870		$	40,924

ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION+
CONSTANT CURRENCY NET REVENUES
(in thousands, except percentages)
Sequential constant currency analysis:
	Three Months Ended
	March 31, 2026				December 31, 2025			Impact % of Revenue
GAAP net revenues	$	1,040,087			$	1,047,561
Constant currency impact (1)		(8,675	)					(0.8)%
Constant currency net revenues (1)	$	1,031,412
GAAP Clear Aligner net revenues	$	856,024			$	838,145
Clear Aligner constant currency impact (1)		(7,483	)					(0.9)%
Clear Aligner constant currency net revenues (1)	$	848,541
GAAP Imaging Systems and CAD/CAM Services net revenues	$	184,063			$	209,416
Imaging Systems and CAD/CAM Services constant currency impact (1)		(1,192	)					(0.7)%
Imaging Systems and CAD/CAM Services constant currency net revenues (1)	$	182,871

Year-over-year constant currency analysis:
		Three Months Ended March 31,
		2026			2025			Impact % of Revenue
GAAP net revenues		$	1,040,087		$	979,262
Constant currency impact (1)			(44,931)					(4.5) %
Constant currency net revenues (1)		$	995,156
GAAP Clear Aligner net revenues		$	856,024		$	796,843
Clear Aligner constant currency impact (1)			(38,219)					(4.7) %
Clear Aligner constant currency net revenues (1)		$	817,805
GAAP Imaging Systems and CAD/CAM Services net revenues		$	184,063		$	182,419
Imaging Systems and CAD/CAM Services constant currency impact (1)			(6,712)					(3.8) %
Imaging Systems and CAD/CAM Services constant currency net revenues (1)		$	177,351

Note:
(1)		We define constant currency net revenues as total net revenues excluding the effect of foreign exchange rate movements and use it to determine the percentage for the constant currency impact on net revenues on a sequential and year-over-year basis. Constant currency impact in dollars is calculated by translating the current period GAAP net revenues using the foreign currency exchange rates that were in effect during the previous comparable period and subtracting it by the current period GAAP net revenues. The percentage for the constant currency impact on net revenues is calculated by dividing the constant currency impact in dollars (numerator) by constant currency net revenues in dollars (denominator).
(+)		Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.Refer to “About Non-GAAP Financial Measures” section of press release.

ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED+
CONSTANT CURRENCY GROSS PROFIT AND GROSS MARGIN
(in thousands, except percentages)
Sequential constant currency analysis:
		Three Months Ended
		March 31, 2026				December 31, 2025
GAAP gross profit		$	736,587			$	683,587
Constant currency impact on gross profit (1)			(2,557	)
Constant currency gross profit (1)		$	734,031

		Three Months Ended
		March 31, 2026			December 31, 2025
GAAP gross margin		70.8	%		65.3	%
Gross margin constant currency impact (1)		0.3
Constant currency gross margin (1)		71.2	%

Year-over-year constant currency analysis:
		Three Months Ended March 31,
		2026				2025
GAAP gross profit		$	736,587			$	680,108
Constant currency impact on gross profit (1)			(27,518	)
Constant currency gross profit (1)		$	709,069

		Three Months Ended March 31,
		2026			2025
GAAP gross margin		70.8	%		69.5	%
Gross margin constant currency impact (1)		0.4
Constant currency gross margin (1)		71.3	%

Note:
(1)		We define constant currency gross profit as GAAP gross profit excluding the impacts of foreign exchange rate fluctuations on net revenues and cost of net revenues. We define constant currency gross margin as constant currency gross profit as a percentage of constant currency net revenues. Gross margin constant currency impact is the increase or decrease in constant currency gross margin compared to the GAAP gross margin.
(+)		Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.Refer to “About Non-GAAP Financial Measures” section of press release.

ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED+
CONSTANT CURRENCY INCOME FROM OPERATIONS AND OPERATING MARGIN
(in thousands, except percentages)
Sequential constant currency analysis:
		Three Months Ended
		March 31, 2026			December 31, 2025
GAAP income from operations		$	141,955		$	155,324
Income from operations constant currency impact (1)			2,743
Constant currency income from operations (1)		$	144,698

		Three Months Ended
		March 31, 2026			December 31, 2025
GAAP operating margin		13.6	%		14.8	%
Operating margin constant currency impact (2)		0.4
Constant currency operating margin (2)		14.0	%

Year-over-year constant currency analysis:
		Three Months Ended March 31,
		2026				2025
GAAP income from operations		$	141,955			$	131,100
Income from operations constant currency impact (1)			(4,793	)
Constant currency income from operations (1)		$	137,162

		Three Months Ended March 31,
		2026			2025
GAAP operating margin		13.6	%		13.4	%
Operating margin constant currency impact (2)		0.1
Constant currency operating margin (2)		13.8	%

Notes:
(1)		Beginning in Q1 2026, we define constant currency income from operations as GAAP income from operations excluding the effect of foreign exchange rate movements for GAAP gross profit and operating expenses on a sequential and year-over-year basis. Constant currency impact in dollars is calculated by translating the current period gross profit and operating expenses using the foreign currency exchange rates that were in effect during the previous comparable period and subtracting it by the current period GAAP net revenues and operating expenses.
(2)		We define constant currency operating margin as constant currency income from operations as a percentage of constant currency net revenues. Operating margin constant currency impact is the increase or decrease in constant currency operating margin compared to the GAAP operating margin.
(+)		Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.Refer to “About Non-GAAP Financial Measures” section of press release.

ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED+
CONSTANT CURRENCY DILUTED NET INCOME PER SHARE
(in dollars)
Sequential constant currency analysis:
		Three Months Ended
		March 31, 2026				December 31, 2025
GAAP diluted net income per share		$	1.57			$	1.89
Diluted net income per share constant currency impact (1)			(0.07	)
Constant currency diluted net income per share (1)		$	1.65

Year-over-year constant currency analysis:
		Three Months Ended March 31,
		2026			2025
GAAP diluted net income per share		$	1.57		$	1.27
Diluted net income per share constant currency impact (1)			0.01
Constant currency diluted net income per share (1)		$	1.57

Notes:
(1)		Constant currency diluted net income per share is computed by dividing GAAP net income excluding the impacts of foreign exchange rate fluctuations on GAAP operating income and non-operating income and expense by the weighted average diluted shares outstanding during the period. Diluted net income per share constant currency impact is the increase or decrease in constant currency diluted net income per share compared to the GAAP diluted net income per share.
(+)		Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.Refer to “About Non-GAAP Financial Measures” section of press release.

ALIGN TECHNOLOGY, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION CONTINUED+
FINANCIAL MEASURES OTHER THAN CONSTANT CURRENCY
(in thousands, except per share data)
		Three Months Ended March 31,
		2026				2025
GAAP gross profit		$	736,587			$	680,108
Stock-based compensation			1,620				1,538
Amortization of intangibles (1)			3,880				3,549
Restructuring and other charges (2)			80				2,253
Gain on Assets held for sale (3)			(11,699	)			—
Depreciation on assets disposed of other than sale (4)			15,599				—
Other non-GAAP items (5)			841				—
Non-GAAP gross profit		$	746,908			$	687,448
GAAP gross margin			70.8	%			69.5	%
Non-GAAP gross margin			71.8	%			70.2	%
GAAP total operating expenses		$	594,632			$	549,008
Stock-based compensation			(39,304	)			(43,459	)
Amortization of intangibles (1)			(957	)			(841	)
Restructuring and other charges (2)			(646	)			197
Legal settlements			(30,632	)			(4,178	)
Non-GAAP total operating expenses		$	523,093			$	500,727
GAAP income from operations		$	141,955			$	131,100
Stock-based compensation			40,924				44,997
Amortization of intangibles (1)			4,837				4,390
Restructuring and other charges (2)			726				2,056
Legal settlements			30,632				4,178
Gain on Assets held for Sale(3)			(11,699	)			—
Depreciation on assets disposed of other than sale (4)			15,599				—
Other non-GAAP items (5)			841				—
Non-GAAP income from operations		$	223,815			$	186,721
GAAP operating margin			13.6	%			13.4	%
Non-GAAP operating margin			21.5	%			19.1	%

		Three Months Ended March 31,
		2026				2025
GAAP net income before provision for income taxes		$	148,886			$	140,442
Stock-based compensation			40,924				44,997
Amortization of intangibles (1)			4,837				4,390
Restructuring and other charges (2)			726				2,056
Legal settlements			30,632				4,178
Gain on Assets held for sale (3)			(11,699	)			—
Depreciation on assets disposed of other than sale (4)			15,599				—
Other non-GAAP items (5)			841				—
Non-GAAP net income before provision for income taxes		$	230,746			$	196,063
GAAP provision for income taxes		$	36,115			$	47,212
Tax impact on non-GAAP adjustments			10,034				(8,000	)
Non-GAAP provision for income taxes		$	46,149			$	39,212
GAAP effective tax rate			24.3	%			33.6	%
Non-GAAP effective tax rate			20.0	%			20.0	%
GAAP net income		$	112,771			$	93,230
Stock-based compensation			40,924				44,997
Amortization of intangibles (1)			4,837				4,390
Restructuring and other charges (2)			726				2,056
Legal settlements			30,632				4,178
Gain on Assets held for sale (3)			(11,699	)			—
Depreciation on assets disposed of other than sale (4)			15,599				—
Other non-GAAP items (5)			841				—
Tax impact on non-GAAP adjustments			(10,034	)			8,000
Non-GAAP net income		$	184,597			$	156,851
GAAP diluted net income per share		$	1.57			$	1.27
Non-GAAP diluted net income per share		$	2.58			$	2.13
Shares used in computing diluted net income per share			71,614				73,615

Notes:
(1)		Amortization of intangible assets related to certain acquisitions.
(2)		During the fourth quarter of 2024 and the third quarter of 2025, we initiated restructuring plans to reduce headcount and increase efficiency across the organization and lower the overall cost structure. Restructuring charges are primarily related to involuntary termination benefits, including employee severance and other post-employment benefits.
(3)		During the third quarter 2025, we originally recorded an impairment loss related to a manufacturing facility disposal group that met the criteria to be classified as assets held for sale. During the first quarter of 2026, we recognized a gain of $11.7 million resulting from an increase in fair value less costs to sell related to these assets held for sale.
(4)		During the third quarter 2025, we initiated the disposal, other than by sale, of certain manufacturing fixed assets. Accordingly, we revised the useful lives of these assets and recorded accelerated depreciation expense.
(5)		During the first quarter 2026, we recorded other non-recurring charges related to the disposal of certain manufacturing fixed assets.
(+)		Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.Refer to “About Non-GAAP Financial Measures” section of press release.

ALIGN TECHNOLOGY, INC.
Q2 2026 OUTLOOK – GAAP TO NON-GAAP RECONCILIATION
GAAP operating margin		Approximately 16.4%
Stock-based compensation		~4.6%
Amortization of intangibles (1)		~0.5%
Non-GAAP operating margin		Approximately 21.5%
Percentages do not add up due to rounding.
(1) Amortization of intangible assets related to certain acquisitions

ALIGN TECHNOLOGY, INC.
FISCAL 2026 OUTLOOK – GAAP TO NON-GAAP RECONCILIATION
GAAP operating margin		Slightly below 18.0%
Stock-based compensation		~4.5%
Amortization of intangibles (1)		~0.5%
Asset sale, accelerated depreciation and restructuring charges		~0.1%
Legal settlements (2)		~0.7%
Non-GAAP operating margin		Approximately 23.7%
Percentages do not add up due to rounding.
(1) Amortization of intangible assets related to certain acquisitions (2) Legal settlements from Q1’26
Refer to “About Non-GAAP Financial Measures” section of press release.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428886966/en/

Align Technology

Madelyn Valente

(909) 833-5839

[email protected]

Zeno Group

Sarah Karlson

(828) 551-4201

[email protected]

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Medical Devices Other Health Health Dental Health Technology

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