Good morning and thank you for standing by. Welcome to the ARCSIS third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Bryan Wendlandt, head of FP&A and investor relations. Please go ahead.

Good morning and welcome to the ARCSIS Third Quarter 2026 Results Conference Call. Joining me today are Kevin Perhamus, President and Chief Executive Officer, and Azad Badakhsh, Chief Financial Officer of ARCSIS. Before we begin, I'd like to remind everyone that today's discussion will contain forward-looking statements relating to future events and expectations. Actual results may differ materially from those projected due to a number of risks and uncertainties. Please refer to our most recent SEC filings and today's earnings materials for a discussion of factors that could cause actual results to differ materially from those forward-looking statements. During today's call, we may also reference certain non-GAAP financial measures.

Reconciliations to the most directly comparable GAAP measures are included in today's earnings release and related presentation materials.

With that, I'll turn the call over to Kevin. Thanks, Bryan, and good morning, everyone. I'll start with our third quarter performance, then discuss how we are growing in excess of our long-term algorithm and review the business model that supports that growth. Let's turn to slide three. We delivered another excellent quarter with revenue of $564 million, up 36% year over year, and adjusted EBITDA of $256 million, up 67%. Adjusted EBITDA margin expanded 840 basis points to 45.4%. Organic revenue growth was 29%, driven by mid-single-digit new business growth, high single-digit pricing, and mid-teens growth from higher production on existing platforms. Acquisitions completed year to date contributed high single-digit growth to reported revenue. Performance was consistent across the portfolio. Both our electronic components and mechanical component segments delivered similar levels of strong organic growth. In defense and space, growth was driven by higher volumes on established platforms and increased production on next-generation programs. Commercial Aerospace benefited from increasing aircraft production rates and healthy aftermarket demand. Within industrial technology, we saw strength across a wide range of applications, including medical technology, oil and gas, semiconductor equipment, telecom and datacom, and quantum computing. We also continued to execute our disciplined M&A strategy. In partnership with ArcLine, we completed two acquisitions in September, Schatz Bearings and StratEdge. bringing our year to date total to six acquisitions. I'll discuss both of these deals in more detail shortly. Our strong performance this year, along with contributions from recent acquisitions, supports another increase to our full year 2026 guidance. We are also introducing our 2027 outlook. Let me explain what's driving our growth and how we expect that momentum to carry into next year. Let's turn to slide four. As we introduce our 2027 guidance, I want to take a moment to revisit our layer cake revenue model and explain one of the key drivers behind our current growth, a concept we call ramp capture. It comes from two things, growing with customers as they increase production and winning new content on existing platforms with our technology, which then scales to full rate. This happens as we use Edge to design our products into the right platforms with increasing production rates. This year, many of our customers increased production at the same time, lifting growth above our long-term algorithm. We saw this on platforms where our content is designed in, including Patriot and other missile programs, F-35 electronic warfare, commercial aerospace, including the 737, and industrial applications. Our guidance reflects continued ramp capture in 2026 and 2027. We don't expect to keep growing at this year's rates. These programs are building a larger portfolio of recurring revenue. What changes is the revenue base, not the growth rate. Beyond 2027, we expect our long-term algorithm of high single-digit organic revenue growth and low double-digit adjusted EBITDA growth to compound over time on this larger base. Turning to slide five, we continue to execute our M&A strategy by adding complementary businesses that strengthen our portfolio and support long-term growth. Our two most recent acquisitions, StratEdge and Schatz, are good examples. Starting with StratEdge, they manufacture specialized ceramic packages for high frequency, high power electronics used in advanced defense systems. One of their key applications is missile defense, where their products support the seeker electronics and manage extreme heat while maintaining electrical performance. This is highly specialized technology that complements our existing RF and microwave capabilities. The second acquisition is Schatz Bearings, our fourth bearings business alongside Comatix, GRW, and RWG. Schatz adds precision bearings for aerospace, defense, and industrial applications. Like our existing bearings businesses, Schatz brings highly engineered products, proprietary technologies, and strong customer relationships, making it an excellent fit with our business model. Together, the combined purchase price for these two acquisitions was approximately $151 million. which is less than 10 times estimated 2027 adjusted EBITDA, further demonstrating our disciplined approach to acquire high quality businesses at attractive valuations. Our partnership with ArcLine is core to our M&A strategy. ArcLine's 70 person team brings deep expertise in sourcing, diligence, and transaction execution, while our operating teams provide the technical expertise, customer relationships, and integration capabilities to help acquired businesses grow. We've built a highly repeatable M&A engine that brings together our operating expertise and ArcLine's investment capabilities. And our combined capabilities give us a strong platform for continued growth. Turning to slide six, we've discussed how we're growing through ramp capture and acquisitions. Both are grounded in our business model. ArcSys designs and manufactures proprietary, highly engineered components for mission critical applications. Many of them deliver cutting edge performance at the extreme. Thank you for joining us. customers are designing them into new platforms and we're winning new programs as a result. That combination of proprietary technology, long platform lives and diversification across customers and end markets creates a durable business across both our electronic and mechanical components segments. On slide seven, Edge is how we organize our teams to pursue new business and execute across the company. It starts with a decentralized operating structure that keeps our teams close to customers and accountable for performance, supported by common processes across the company. Our new business engine brings engineers and sales teams together to identify opportunities, solve customer problems, and win new programs. A repeatable acquisition engine unified by our longstanding partnership with ArcLine complements that organic growth. And our 2026 execution demonstrates how these elements work together. On slide eight, our long-term growth algorithm remains unchanged. We target high single-digit organic revenue growth driven by mid single-digit new business generation and mid single-digit pricing with approximately 50% incremental EBITDA conversion. That translates into low double-digit organic EBITDA growth. M&A provides an additional layer of growth supported by a repeatable acquisition strategy. Our long-term algorithm isn't built around today's demand environment. It's built around what we believe we can consistently deliver over decades. We all know markets can change, which is why our algorithm doesn't assume any contribution from outsized ramp capture or underlying market growth. With that, I'll turn it over to Azad to walk through our third quarter results and our guidance for the remainder of 26 and full year 2027.

Thanks, Kevin, and good morning, everyone. I'll begin on slide nine. Q3 revenue was $564 million, an increase of 36% year over year. consisting of 29% organic growth and a 7% contribution from acquisitions. Turning to profitability, Q3 adjusted EBITDA was $256 million with margins expanding 840 basis points year over year to 45.4%. Margin expansion was driven by operating leverage from higher sales volumes, strong pricing realization, and continued productivity and cost optimization initiatives. Free cash flow was $150 million in the quarter, up 117% year over year, reflecting higher earnings and improved networking capital dynamics. These results demonstrate our ability to convert earnings into cash. Turning to slide 10, our balance sheet remains well positioned, supported by earnings growth and healthy cash generation. During the quarter, we further reduced net leverage to 1.6 times down from 1.8 times at the end of the second quarter. Together with the capital structure improvements completed as a result of our debt pay down from the IPO and repricing, our low leverage profile and strong cash generation provide significant capacity to support our continued M&A momentum. Looking ahead, we remain focused on disciplined capital allocation, maintaining a prudent leverage profile, and preserving the capacity to pursue attractive acquisition opportunities. Turning to slide 11, we're raising our full-year revenue and adjusted EBIDOC guidance based on strong year-to-date performance and increased visibility into the remainder of 2026. We now expect revenue of $2.05 to $2.07 billion, an increase of $90 million at the midpoint compared to our prior guidance. At the midpoint, this represents approximately 29% year-over-year growth, including 22% organic growth. We're raising adjusted EBITDA guidance to $855 to $865 million, up $65 million at the midpoint. This implies an adjusted EBITDA margin of approximately 41.7%, up 130 basis points from our prior guidance. The increase is driven by higher volumes attributable to ramp capture and stronger operating leverage across our existing businesses. Our updated guidance also includes approximately $60 million of incremental revenue, and $20 million of incremental adjusted EBITDA from the recent acquisitions of Omnetix, Schatz and StratEdge. We're raising our margin outlook despite approximately 30 to 40 basis points of dilution from the acquisitions completed this year. We expect this dilution to be temporary as we drive margin improvement through the execution of our proven VPC playbook and the implementation of ArcSys Edge. Turning to slide 12, we show our latest organic growth expectations by end market. incorporating our third quarter results and outlook for the remainder of the year. We now expect organic growth of approximately 20% or greater across each of our three end markets, supported by continued customer demand and new business activity. This broad-based performance supports our increased full-year guidance. And finally, on slide 13, we're pleased to provide our initial outlook for next year. For FY2027, we expect revenue of $2.4 to $2.5 billion, representing organic growth of 10% to 15%. and adjusted EBITDA of $1.01 to $1.06 billion, with an adjusted EBITDA margin of 42.1 to 42.4%. Please note that 2027 adjusted EBITDA margin guidance includes approximately 20 to 30 basis points of dilution from acquisitions completed in 2026. Our 2027 guidance reflects continued ramp capture, which is expanding our revenue base faster than our long-term growth algorithm. That raises the revenue base we compound from. It doesn't change the growth rate. Our long-term algorithm of high single-digit organic revenue growth and low double-digit adjusted EBITDA growth is unchanged. Overall, we expect another year of strong organic growth and continued margin expansion. With that, I'll turn the call over to the operator for questions.

Thank you. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. In the interest of time, we do ask that you limit your questions to one question and one follow-up. Please stand by while we compile the Q&A roster. Our first question comes from Sheila Kayakoglu of Jefferies. Your line is open.

Good morning, guys. The results are so good, I don't know what to ask, actually. But maybe if we could talk about the top line first to start. Can you hear me OK, by the way?

Yeah. Good morning, Sheila.

Morning. Sorry about that. Maybe just on the top line, can you give us a better feel for seasonality of the business as it relates to what's implied in Q4? I know you've talked about purposeful factory planning in the past and getting ready for that. And I guess what are some of the what have you seen for Q4 performance, whether there's still a sense of that or to outperform what you've guided here?

Yeah, no, you're exactly right. You know, we've seen this in prior years as well. We stepped down a little bit from the Q3 revenue number because there are simply less working days in Q4. And that's a combination of holidays and then some intentional preventative maintenance that we do at the end of the year to gear up and get ready for next year. So that's all you're seeing. It's as simple as that.

Okay, perfect. And then maybe if I could just follow up with the If you could tease out what drove some of the robust margins in the quarter, 45%, it seems like it did carry some M&A dilution as well. So maybe if you could just level set us on the operating performance, is this a new standard that you're going to put up here?

Yeah, there was a little bit of dilution from the acquisitions, not that much. What really drove the results in the quarter was high single digit pricing came through, and normally that's mid single digit, so We got a little bump from that and then the operating leverage. So I wouldn't call it a new standard. You know, I would I would encourage you to zoom out and look at the full year guide, which is about forty one point seven percent for EBITDA. So let's I think that's a better number to use and as a jumping off point as we go into next year.

Thank you, Sheila. I'll just jump in and answer the question specifically about dilution in Q3. We did see about 40 basis points of dilution, so our reported margin of 45.4 would have been approximately 45.8, excluding the impact. In Q4, that dilution is going to increase as the full contribution of the three acquisitions that we just completed kick in. So expect dilution of about 100 basis points in Q4. Perfect.

Thank you. Thank you. And our next question comes from Christine Lee Wag of Morgan Stanley. Your line is open.

Hey, good morning, guys. And, you know, echoing what Sheila said on the performance, a very good revenue growth. But, you know, maybe taking a look back at 2026 so far, I mean, you look at the organic growth you guys have printed, you're at 17% in 1Q, 21% in 2Q, and, you know, 29% in 3Q. This is significantly above the growth algorithm you guys have talked about, which was historically 9%. When we take a look back here, where did you see the most difference in what your initial outlook was? Did you have more market share capture? Did you have better pricing? Are sunsetting things just not sunsetting? Because I think in terms of end markets, that's fairly uniform in the industry. You guys are doing something a little bit more special than peers. and it would be helpful to take a look back and see what drove that.

Yeah, sure. Good morning, Christine. I think that gives us a good opportunity to reiterate the concept that we talked about in the opening remarks, which is the ramp capture. You know, we're designed in on platforms and those platforms are built at a certain rate. It just so happens that in 2026, many of the platforms that we are designed in on are ramped simultaneously. And it's somewhat intentional because we target growing platforms and the platforms that are growing tend to need our products because they are on the cutting edge of technology and performance. And so many of those platforms ramped simultaneously and stacked up. in the layer cake model to create an outsized growth rate. You know, we're cautious, though, to not extrapolate those ramps into the future, which is why, you know, we look at the long term algorithm of high single digit growth. And we talk about that over decades. But this is a little bit of an unusual time because of all the ramps happening simultaneously.

Okay, great. So the 10 to 15 is more going back to a more normalized rate. Is that a fair look?

That is fair. Yeah. Closer to a more normalized rate, but north of our long-term algorithm. Just because we can see that there will be some continued ramp, you know, and that's visible to us already, you know, as we look into edge and we see our secured revenue and how it's shaping up for next year.

Great, super helpful. And if I could sneak a last one in. Regarding M&A, we've seen the valuation of a lot of aerospace defense assets in the public markets drop. I was wondering, when you look at the availability of pricing and availability of assets in the private market, how is the pool looking? Does this kind of pricing dislocation we're seeing in the public markets, is that echoed in the privates? And how do you see your pipeline?

Yeah, honestly, it's not changed much at all. You know, the pipeline is full. We're working on lots and lots of deals. We track, you know, over a thousand companies in our edge system. And, you know, we're working on many things simultaneously. The market does sort of bifurcate down into, you know, large deals and small deals. are trading at higher multiples. And I don't think that that's changed in the smaller deals. This is like less than $25 million of EBITDA type companies tend to trade for the lower multiples. And that's actually reflected in what we announced in terms of Schatz and StratEdge. We'll be at less than 10 times in 2027 on those two deals. So yeah, it's a We haven't seen anything change.

Great. Thank you very much.

Thank you. And our next question comes from Peter Arment of Barrett. Your line is open.

Hey, good morning, KP and Azad. I'll echo everyone else's sentiments. Nice results. KP, can you remind us a little bit about your algorithm when you think about forward guidance for 27, like how much coverage you maybe have today and where you expect to be to start the year?

Yeah, sure. Good morning, Peter. We we like to start the year roughly half filled in, you know, and I say roughly because it's a real it's a bottoms up exercise. It's not tops down. It depends on the business units. So we can see that we are, you know, between what we already have secured for twenty twenty seven and what we have coming in the door very soon, that we're going to be in a good position against that metric. And that's why we were confident enough to give this guidance here earlier than we probably expected to, that we're going to see positive growth next year. So next year's guidance is 10 to 15, which is mid single digit price, mid single digit new business, and then zero to five of continued ramp capture.

Super helpful. And then just a quick follow up, you know, with all these missile framework agreements being established and you guys are being a strong supplier into into the defense and space and market, you know, are you seeing any any any potential opportunities there on some of these missile framing, any long term agreements possible or any call there be helpful?

Thanks. There have been some initial conversations with customers. They're making their way through the supply chain, probably haven't all reached us yet. But we haven't committed to anything. You know, we continue to, we like to operate, you know, on a purchase order to purchase order basis. It gives us better visibility. You know, we can, we have more, more, you know, control. So, there are conversations happening, but, you know, nothing firm yet.

Got it. Thanks, KP. Nice results.

Thank you. and our next question comes from John Godden of Citi. Your line is open.

Hey, guys. Thanks for taking my question. I wanted to just focus on the incremental margin outlook. Obviously, you guys are performing very well. Maybe you can talk about the role of price versus productivity in driving the 50 percent incremental margins as we look out next year and any other puts and takes that we should be thinking through.

Yeah, good morning, John. Yeah, so we're just continuing to assume mid single digit price, mid single digit new business. And then, you know, the two of those things together create, you know, and sorry, the third piece is the cost control down to a very low single digit growth rate. And when you put those three things together, it results in a 50 percent conversion margin plus just based on the gross margin that we have in our products. So You know, the VPC algorithm unchanged. It certainly we outperformed this year. And, you know, we've talked about why that is. There were some acquisitions that came through in twenty four and twenty five that had had more opportunities for pricing adjustment and cost reductions. And so those those have resulted in a higher conversion margin this year. But we think it'll revert back to the 50 as we go forward.

got it. And when we when we think about kind of the new business, new volume that's being added, that comes in at 50 percent incremental as well. Or is that higher or lower than the enterprise average?

Yeah, the new the new business margin is is very similar to the existing business margin. The margin is very consistent across electronic and mechanical and across the three markets. So, you know, and lastly, in the in the in OE and aftermarket. So our margins are pretty consistent across all the different ways that we slice the business.

Okay, and then just last one. Normally, I wouldn't ask you guys about supply chain, but things like semiconductors, et cetera, are coming up more and more as supply chain issues. You guys are knocking on 50% electronic components, so this is more just a temperature check. Anything in the supply chain of note, and how are you handling that?

No, nothing in our supply chain. Those issues could impact the supply chain further upstream from us, but we're at the beginning of the supply chain. We're converting, in most cases, raw chemicals or metals into products, so not impacted. Thank you. Thanks, John.

Thank you. And our next question comes from Scott Maitis of Muleus Research. Your line is open.

Nice quarter. KP, quick question, just kind of high level. I mean, whether we look at companies like Transdime, Danaher, Roper, Ingersoll, Rann, Fortive, Rollins, et cetera, we've just seen a lot of stocks that are M&A compounders not work over the past roughly three to five years. I'm just curious, when you sit with Rajiv and the rest of the board, why do you think those compounders stopped working? And when you're discussing with the board, how do you make sure that doesn't happen to ARCSIS?

Yeah, good morning, Scott. Yeah, so we're focused on ourselves, so I really can't comment on the other compounders. But what we think is going to work over the long term and probably differentiate us is that we have the VPC algorithm, we have ArcSys Edge, so we can drive new business and we're really focused on winning new business all the time. That's coming through at a very steady mid-single digit rate. And then we have the unique relationship with ArcLine that others don't have, where we're going to be able to probably execute on more M&A and others. We can do big deals, small deals. We can do many deals simultaneously. And being able to stay focused on new business price and acquisition simultaneously while controlling costs, maybe not everybody can do that. We have a unique structure and a unique relationship that sets us apart. All right. I'll stick with one.

Thank you.

Scott, the only other thing I would add is we're really religious about sticking to business model fit. We will only buy companies if they check our business model scorecard.

Okay, got it. Thank you.

Thank you. And our next question comes from Miles Walton of Wolf Research. Your line is open.

Hi, good morning, everyone. This is Greg Dahlberg on for Miles. Thanks for taking my question. I was just curious, in the 2027 outlook, is there any bifurcation in organic growth by segment? And then maybe following on to that, could you provide growth expectations by end market next year?

Yeah, good morning. There is no bifurcation by segment or end market. We actually think all three of the end markets are going to grow in the same kind of the same rate, 10% to 15% organically. And the same is true for electronic and mechanical. Pretty consistent, very diversified as always.

Easy enough. Thank you. And then Azad, maybe can you touch on your expectations for cash conversion next year?

Sure. Cash conversion for next year is going to be exactly what it, you know, the exact same framework it always is, which is We always focus on operational free cash flow, which is just simply EBITDA, less CapEx, less change in networking capital. So you have a pretty good sense of EBITDA from our guide and revenue. Change in networking capital and CapEx each contribute about 3% of revenue. So the math for operational free cash flow is pretty simple. And then I think the rest between interest and taxes is pretty easy to model.

Great. Thank you.

Thank you. And our next question comes from Noah Pavanak of Goldman Sachs. Your line is open.

Hey, guys. You've got Connor on for now this morning. Thanks for the time and thanks for taking my question. I had a quick question on what the updated full-year margin guide implies for the next quarter. So I think I might have my math right. The 41.7% at the midpoint implies a little over 500 bps of compression quarter-over-quarter. And I caught that you guys are anticipating the 100 bps of dilution from M&A next quarter. Can you help us if you understand what's recurring versus non-recurring in the margin improvement we saw this quarter and how that's expected to continue into the next quarter?

Yeah, good morning, Connor. So as we said, high single-digit pricing came through in Q3. That'll revert back to mid-single-digit pricing in Q4. And then the operating leverage that we saw in Q3 will reverse a little bit because there's less revenue caused by less working days in Q4. And so it's as simple as that. There's nothing else going on there. Okay. And then, KP, just on that,

operating leverage you saw in the third quarter. I know that the mechanical component segment saw really strong operating leverage in 2Q, and that's why the margin stepped up from 1Q to 2Q. Last quarter on the call, I think you guys were anticipating that the rest of your margins for mechanical would kind of be in line with the broader first half margin, closer to 40%. So did that operating leverage continue? and mechanical along with better pricing or was there just more productivity that you were able to eke out of the segment than you previously thought?

Yeah, no, both segments actually benefited from the high single digit pricing that came through and the operating leverage. So, you know, both outperformed the 40 percent. They averaged out to forty five point four for the quarter. But as we look to the full year and you zoom out, you know, they average out to 41.7. Okay. Got it. Thank you, guys.

Thank you. And our next question comes from Ken Herbert of RBC Capital Markets. Your line is open.

Hi. Good morning, KP and Azad. I just want to maybe take a higher, ask a higher level question here on the supply chains today. It seems like we continue to hear about continued struggles for defense, but also aerospace ramping of a lot of, you know, basic electronic components and other subsystems. And it would appear to really play to your ability to drive greater volume growth through, you know, more second sourcing opportunities just as the supply chain really struggles. and a lot of OEMs are looking for other solutions and suppliers that can execute. How do you balance what probably is a fairly robust opportunity environment today with wanting to continue to maintain the price discipline? Obviously, new business is a big part of your equation, but I can imagine there's a healthy debate on which business to win and durability of that business. Can you just walk through your approach to that? Because it seems like that would get at the core of your ability to really maintain the incremental margins with obviously driving the new business growth as well.

Yeah, that's a good question, Ken. We are hearing about supply chain constraints. It's not impacting us. I think we've done a really good job of investing and staying in front of it with our decentralized model. Each general manager has been managing their CapEx and their capacity well enough to not cause those issues here. There could be customers that come to us with issues around supply chain and then we can jump in and help out. But I would say as a matter of practice and as a matter of strategy, it is not our strategy to go off and try to pick off in second source products. Our whole new business engine is a little bit different. We form teams of people, salespeople and engineers work together and then go to our customers and solve technical problems, usually not supply chain problems, and get our products designed into their platforms where they stay for a long time. So it could be a short-term opportunity, but it wouldn't change our long-term strategy around what we focus on. We focus on helping to solve technical problems and get our products designed in, usually as the only source.

That's helpful, KP. And as you think about specifically your comments on supporting the RAMP, what's your confidence on some of these major missile ammunition programs, in particular We step our capacity up as we see the demand come to fruition in the form of actual purchase orders. And so, you know, we're

across the 70 odd factories that we have in the 51 business units. We're looking at that very carefully, again, decentralized. So the general managers are very focused on that. And yeah, I don't see any, it's happening already in some places and we add incremental capacity to those facilities and we're able to meet the demands. So we don't see that becoming an issue. Great, thank you, and nice results. Thank you.

Thank you. And our next question comes from Noah Levitz of William Blair. Your line is open.

Great, KP, Azad. Good morning. Thanks for taking my questions. To start off, are there any particular component areas that are seeing heavier demand than others, for example, bearings? And then just on that, you noted that Schatz is Your fourth bearing related acquisition. I'm curious if you can walk us through how integration cross selling go between these very similar type businesses. How do you expect Schatz to cross sell, for example, with Thematics and others? And then are there areas of overlap where you kind of have to work through those dynamics between those those similar businesses?

Thanks. Yes. Good morning, Noah. So the first question about, you know, is it hitting any one particular product set? The answer is no. It's very diversified. It's across all of our electronic and mechanical components. So that one's easy. You know, it's obviously not exactly uniform across, but I mean, it's very diversified. So, you know, the ramp capture is happening in just about every single one of our business units. And then to your second question about chats and how it integrates Shatz becomes part of the block that Comatics is in. They're actually geographically not that far away from each other. And so those two teams are working together. Shatz is being integrated into Arc's Edge and there's already cross-selling opportunities being identified and all of the normal integration steps that we take are going well already at Shatz. The product The products are complementary between what Schatz makes and what Comatix makes. Schatz actually filled a product gap that we had so that we can offer more bearing products to our customers and there isn't actually any overlap or competition per se between those two businesses. So it's a really good fit. And the two teams are working really well together to grow the business now.

Great. Thanks. And then just a quick one for Azad. Can you talk about the preventative maintenance that you mentioned for the fourth quarter and just is it similar or comparable to what you experienced for Q of 25? Is this just a normal situation? Thank you. I show no further questions at this time.

I'd like to turn it back to Kevin Perhamus for closing remarks.

Yeah, thanks, everyone. We appreciate your time today, and we look forward to speaking with you again next quarter.

This concludes today's conference call. Thank you for participating, and you may now disconnect.