Aureus
DWarning

Align Technology, Inc.(ALGN)

D

Financial data as of Dec 31, 2025Declining · Healthcare

FCF Margin7.6%Free Cash Flow / Revenue
Cash Conversion144.6%Operating CF / Net Income
Free Cash Flow$490.8M
Revenue$4.0B
Net Cash$980.5MCash exceeds debt
Debt / FCF0.4xManageable debt load
Current Ratio1.36Adequate short-term liquidity
YoY FCF Growth-36.2%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-1Significant YoY FCF decline (-36.2%)
→
+1Very low debt-to-FCF ratio (0.4x)
→
FinalD

Analysis Summary

Strengths

  • Excellent cash conversion (145%)
  • Net cash position ($1.0B)
  • Very low debt relative to cash flow (0.4x)

Concerns

  • Low FCF margin (7.6%)
  • Significant YoY FCF decline (-36.2%)
SBC-adjusted FCF used — $0.2B stock-based compensation (38% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.6%
Net Margin10.2%
Operating CF Margin14.7%
CapEx Ratio2.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$980.5MCash exceeds debt
Debt / FCF0.4xManageable debt load
Current Ratio1.36Adequate liquidity
Debt / Equity0.03Low leverage

Quarterly FCF Trend

-36.2% YoYDeclining (-36.2%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAlign Technology, Inc.
SectorHealthcare
Free Cash Flow$490.8M
Revenue$4.0B
Net Income$410.4M
Operating Cash Flow$593.2M
Capital Expenditure$102.4M
FCF Margin7.6%
Cash Conversion Rate144.6%
Net Margin10.2%
Total Debt$114.4M
Total Cash$1.1B
Net Cash$980.5M
Current Ratio1.36
Debt / Equity0.03
Debt / FCF0.4x
YoY FCF Growth-36.2%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeD
Data SourceYahoo Finance