Shares of Align Technology (ALGN) plummeted 31.72% in after-hours trading on Wednesday following the release of disappointing second-quarter results and announcement of restructuring plans. The medical device company, known for its Invisalign clear aligners, reported lower-than-expected earnings and revenue, missing analyst estimates.

For Q2 2025, Align Technology posted adjusted earnings per share of $2.49, falling short of the $2.57 consensus estimate. Revenues came in at $1.012 billion, down 1.6% year-over-year and below the expected $1.059 billion. The company cited lower-than-anticipated volumes in Europe and North America as a key factor in the underperformance of its Clear Aligner segment.

Adding to investor concerns, Align Technology announced plans to realign certain business groups and reduce its global workforce. The company expects to incur one-time charges of approximately $150 million to $170 million in the second half of 2025 related to these restructuring efforts. Furthermore, Align projected a decline in Q3'25 Systems and Services revenues due to seasonal factors and anticipates a decrease in worldwide GAAP gross margin to 64% to 65%, down 5 to 6 points sequentially. These factors collectively contributed to the sharp sell-off in Align Technology's stock during extended trading.