Financial research concept

Digital Orthodontics GAAP Gross Margin

measures Align Technology GAAP gross profit as a percentage of net revenue.

By Lee BaileyPublished Oct 2, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Oct 2, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 10 connected conceptsPart of the reviewed Digital Orthodontics Platform Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

FX affected the reported margin
Generic gross margin still owns the concept
Part of the Digital Orthodontics Platform Economics
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Digital orthodontics GAAP gross margin measures Align Technology GAAP gross profit as a percentage of net revenue.

Align reported a 71.7% GAAP gross margin in the second quarter of 2026, up from 69.9% a year earlier.

FX affected the reported margin

Align estimated that year-over-year foreign exchange reduced Q2 2026 gross margin by about 0.8 percentage points.

The company reported a higher constant-currency gross margin after removing that effect.

Generic gross margin still owns the concept

This company-specific slice remains subordinate to the generic gross margin canonical.

Read it with constant-currency gross margin and GAAP operating margin.

Primary source: Align Technology Q2 2026 earnings release filed with the SEC.

Part of the Digital Orthodontics Platform Economics

Connects Align Technology Clear Aligner revenue and case-volume growth, Systems & Services monetization, foreign-exchange effects, and reported versus adjusted margin conversion.

Browse the full operating model in Company Analysis →

Where this concept fits

Gross and operating margin conversionCurrent relationship
GAAP gross margin, constant-currency gross margin, GAAP operating margin, and non-GAAP operating margin show reported profitability, currency effects, and management's disclosed adjusted view.
Constant-Currency Gross MarginGAAP Gross MarginCurrent conceptGAAP Operating Margin Non-GAAP Operating Margin
Treatment volume and revenue
Clear Aligner case-volume growth measures physical treatment shipments while Clear Aligner revenue growth and total revenue growth show how volume, ASP, product mix, geography, and other factors convert into reported sales.
Clear Aligner Case Growth Clear Aligner Revenue Growth Total Revenue Growth
Platform monetization and currency
Systems & Services revenue captures scanner and CAD/CAM monetization under purchase, lease, and rental models, while total and Clear Aligner FX impacts separate currency translation from underlying operating activity.
Clear Aligner Revenue FX Impact Systems & Services Revenue Growth Total Revenue FX Impact

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

ALGNOpen operating-model research →10 of 10 reviewed concepts in Digital Orthodontics Platform EconomicsGross and operating margin conversion4 of 4 bridge concepts supportedContinue through this bridge:Constant-Currency Gross Margin GAAP Operating Margin Non-GAAP Operating Margin

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Compare reported gross profit conversion before issuer-defined constant-currency adjustments.

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