Segments and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Summarized Financial Information and Non-Cash Expenses by Reportable Segment

Summarized financial information by reportable segment is as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Net revenues
Clear Aligner	$	796,843	$	817,251
Systems and Services	182,419		180,180
Total net revenues	$	979,262	$	997,431
Cost of net revenues1
Clear Aligner	$	234,754	$	238,105
Systems and Services	64,400		61,510
Total cost of goods sold	$	299,154	$	299,615
Gross profit
Clear Aligner	$	562,089	$	579,146
Systems and Services	118,019		118,670
Total gross profit	$	680,108	$	697,816
Other Segment expenses
Clear Aligner	$	301,865	$	292,908
Systems and Services	59,556		68,977
Unallocated corporate expenses	187,587		181,796
Total operating expenses	$	549,008	$	543,681
Segment income from operations
Clear Aligner	$	260,224	$	286,238
Systems and Services	58,463		49,693
Total segment income from operations	$	318,687	$	335,931

1 Management has identified cost of net revenues as a significant expense for our Clear Aligner and Systems and Services reportable segments.

The following table includes certain non-cash expenses for each reportable segment (in thousands):


	Three Months Ended March 31,
	2025		2024
Stock-based compensation
Clear Aligner	$	5,818	$	3,764
Systems and Services	403		359
Unallocated corporate expenses	38,776		34,665
Total stock-based compensation	$	44,997	$	38,788
Depreciation and amortization
Clear Aligner	$	18,904	$	14,433
Systems and Services	8,469		6,838
Unallocated corporate expenses	11,775		11,675
Total depreciation and amortization	$	39,148	$	32,946

Reconciliation of Segment Income from Operations to Net Income Before Income Taxes

The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands):


	Three Months Ended March 31,
	2025		2024
Total segment income from operations	$	318,687	$	335,931
Unallocated corporate expenses	(187,587)		(181,796)



Total income from operations	131,100		154,135
Interest income	5,316		4,392
Other income (expense), net	4,026		(141)

Net income before provision for income taxes	$	140,442	$	158,386

Schedule of Net Revenues and Long-Lived Assets by Geographic Area

Net revenues are presented below by geographic area (in thousands):


	Three Months Ended March 31,
	2025		2024
Net revenues 1:
U.S.	$	423,318	$	432,101
Switzerland	224,132		251,758
Other International	331,812		313,572
Total net revenues	$	979,262	$	997,431

1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.

Long-lived assets, which includes Property, plant and equipment, net and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands):


	March 31, 2025		December 31, 2024
Long-lived assets 1:
Switzerland	$	568,693	$	571,628
U.S.	203,140		207,689


Other International	606,193		605,193
Total long-lived assets	$	1,378,026	$	1,384,510

1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.