May Ortho Data - Sluggish Volumes, but Not Out of Line with Mgmt Commentary

Research evidence excerpt

May Ortho Data - Sluggish Volumes, but Not Out of Line with Mgmt Commentary

djusted), though still within the stable +/- band we've observed in our ortho data set FY26E EPS — US$11.21

FY27E EPS — US$12.25 over the past several quarters. Note that some of ALGN's initiatives underway in the U.S.

market continue to be early in their contributions (expanded access to HFD, portfolio 52-Week High / Low US$208.31 / US$122.00

evolution with no AA) and aren't directly trackable within our dataset. Shares Out (mil) 71.8

Market Cap. (mil) US$12,452.0

Total Assets ($mil) 6,234

• Teen Aligners Comparable to Broader Data Set at -LSD. Teen aligner volumes slid Avg Daily Vol (000) 1,061

-6.8% in May (closer to -LSD% adjusting for selling day differences) and underperformed Book Value/Share US$54.65

B&W by 7 points, a performance that follows relative underperformance for aligners in Price/Book 318%

April and is the third consecutive month of weakening results vs. B&W. The only silver Net Cash Per Share US$13.87

linings here are that leading indicators were relatively better, including Ph1 aligners Debt to Total Capital 0.0%

that grew 15% y/y and outperformed Ph1 B&W, as well as teen ortho exams that were Div Yield 0.00%

healthier than case volumes (~flat adjusting for days). Fiscal Year End Dec

Price Performance - 1 Year

• PSC Perspective. The most important context for investors when interpreting results

from our data set is the combination of underlying performance (down only slightly on USD220

a same-day sales basis) and management's commentary (pointing to general stability

in the U.S. on the 1Q call, reiterated in late-May at the company's tech showcase for 200

the sell-side that the demand environment continues to be what was contemplated in 180

full-year guidance).