US HealthTech & Distribution: 2Q26 Model Round-Up: ALGN and WAY

Research evidence excerpt

US HealthTech & Distribution: 2Q26 Model Round-Up: ALGN and WAY

US HealthTech & Distribution

31 July 2026 Citi Research

lower-cost aligners).

• New market entrants are gaining share through aggressive pricing

strategies, creating direct pressure on ALGN's average selling prices and

volume. • A significant and growing portion of ALGN's revenue is generated

internationally. Continued U.S. dollar strength or heightened FX volatility

could create a persistent headwind to reported revenue and earnings.

• ALGN spends ~$250M annually on logistics costs, making the business

meaningfully sensitive to oil price fluctuations and freight cost inflation.

• iTero scanners are relatively larger purchases, making them a discretionary

capital expenditure for dental practices. Economic uncertainty, low patient

traffic, and higher financing costs for dental practices can delay or defer

scanner purchases.

• If doctor demand for open-architecture intra oral scanners intensifies,

ALGN's closed iTero ecosystem could lose share, undermining the "flywheel"

effect that drives Invisalign volume.

Waystar Holding Corp

Company description

Waystar is a cloud-based, end-to-end revenue cycle management (RCM)

software provider serving ~30K provider clients across ambulatory/alternative

sites of care (70% of revenue) and health systems/hospitals. Waystar was

formed in 2017, when Bain-backed Navicure acquired ZirMed for

~$750M. According to Waystar management, the acquisition combined

ZirMed’s cloud-native technology backbone with Navicure’s deep focus on

the client experience (Waystar runs on the ZirMed’s tech chassis). Since the

merger, WAY has grown from $60M in revenue to $944M in 2024 (48%

CAGR). Along the way, the company bolstered its product set through 9