Shares of Align Technology (ALGN) plummeted 35.40% in pre-market trading on Thursday following the release of disappointing second-quarter results and the announcement of restructuring plans. The medical device company, known for its Invisalign clear aligners, reported lower-than-expected earnings and revenue, missing analyst estimates and sparking a sharp sell-off.

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 $1.01 billion, down 1.6% year-over-year and below the expected $1.06 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. CEO Joe Hogan noted that recent dental industry surveys suggest less overall patient traffic, fewer orthodontic case starts, and patient hesitation toward elective procedures.

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 cut its annual revenue growth forecast, now expecting 2025 revenue growth to be flat to slightly up from 2024, compared to its earlier forecast range of 3.5% to 5.5%. The company also projected a decline in Q3'25 Systems and Services revenues due to seasonal factors and anticipates a decrease in worldwide GAAP gross margin. These factors collectively contributed to the sharp sell-off in Align Technology's stock during pre-market trading, reflecting investor concerns about the company's near-term prospects in light of economic uncertainties and changing consumer behavior.