Align Technology, inc. ALGN

Revenue Intelligence Report • 22 quarters of SEC filing data • Updated 2026-03-15

Revenue is driven primarily by R&D-led product development, with SG&A contributing more modestly to the top line. The model implies a strong ROI on spending: roughly $14.38 of long-run revenue per $1 of R&D, versus about $1.23 of revenue per $1 of SG&A, underscoring R&D as the key growth engine. The model shows solid predictive accuracy, with 2.4% MAPE and a holdout error of 1.1% (latest quarter revenue of $199M vs predicted $196M). For the year, revenue is forecast at $810M, up about 6.4% year over year, indicating a steady growth trajectory supported by efficient spending and ongoing product adoption.

Investment Thesis

Our ARDL model tracks Align Technology, inc.'s revenue with exceptional precision (2.4% MAPE), indicating highly predictable cash flows. Every $1 of R&D investment is associated with $14.38 of revenue, indicating efficient capital deployment in innovation. Each $1 of SG&A spending generates $1.23 in revenue, reflecting strong commercial efficiency.

Next FY Revenue
$810.2M
+6.4% YoY
R&D Multiplier
$14.38 per $1
SG&A Multiplier
$1.23 per $1
Model Accuracy
2.4% MAPE
Holdout validation: The model predicted $196M vs the actual $199M — an error of 1.1%.

Revenue Forecast

ALGN Revenue Forecast

Quarterly Detail

QuarterModel ForecastActual95% RangeYoY GrowthStatus
Q4 2014 $196M $199M $188M – $205M +10.1% ✓ In range
Q2 2015 $197M $185M – $208M +8.8%
Q3 2015 $201M $186M – $215M +4.3%
Q4 2015 $205M $188M – $222M +7.9%
Q1 2016 $208M $189M – $227M +4.7%

Seasonal Factors

Multiplicative seasonal adjustment: These factors capture Align Technology, inc.'s systematic quarterly revenue patterns relative to the trend model. A factor of 1.05 means that quarter typically runs 5% above the underlying trend; 0.95 means 5% below. Factors are computed as the median of (actual / fitted) across all available quarters.
Fiscal QuarterSeasonal Factorvs TrendInterpretationObs.
FQ1 (Sep–Nov) 0.9905 -1.0% In line with trend 5
FQ2 (Dec–Feb) 1.0138 +1.4% In line with trend 5
FQ3 (Mar–May) 0.9984 -0.2% In line with trend 4
FQ4 (Jun–Aug) 1.0276 +2.8% In line with trend 4

How Spending Drives Revenue

ALGN Spending Timing
Reading this chart: Each line shows the cumulative revenue generated per $1 spent over subsequent quarters. The effect builds over 4-5 quarters as investments mature.

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