Good morning, and welcome to wonderful Oslo Hotel Continental. Also, warm welcome to those of you who are following us online. We are here to report quarter three of 2026 for Smartoptics. Quarter three 2026, it is simply put, an absolutely fantastic quarter. Everything is good. We are growing the business with 80% compared to same quarter last year. We are also demonstrating very clearly that the operating leverage in the company is great. Our profitability is fantastic. When growth comes, we are also seeing that in lower down in our statement of operations. Everything good. It is a very special quarter for us in Smartoptics, because we are passing our old $100 million target.
Looking back at this target, reflecting a little bit why this happened and what took us here, I want to start out by saying that when we initially put this target forward, we said 2025- 2026. I have always claimed that the opportunity to reach this has been good, but I have also said that it does not really matter when we reach it. Rather do we have a business that is running good, great, or so-so, and we can conclude that the momentum in our industry and in Smartoptics is great when we are passing this target. Very good achievement. We achieved this in July, to be more precise, so about six months later than best-case scenario that we have discussed. Why is this happening? Well, it is what we have been talking about over the past years that is taking us here.
We have continuously, strategically developed our hardware platforms, our software platforms, to meet a broader application set, to meet a broader group of customers, and to grow our addressable market. We have achieved this. We have not stopped. This part of our strategy remains intact. We are doing exactly the same thing. Continuing towards our next set of targets, this is going to be there, contributing greatly to future success. We have also talked about the large account strategy over the years. I have told you that we are very happy with the progress of our large account strategy so far. Our repeat customers are far bigger than they were a few years ago. There are more of them.
They are very broad-based in the sense of different market segments, different geographies, highly concentrated around the U.S., but the U.S. is a big place, and there are different markets within the U.S., too. We are now engaged in several conversations, more or less developed with even larger accounts and players for new applications. Looking at the details of this, the revenue in Smartoptics is broad-based . We do not have a customer concentration problem at all in our company. The 10 largest customers represent around 31% of our revenue. So an average nine-month revenue of around $2.7 million. Eight out of 10 of those are the U.S. Two of them are Europe. Six out of 10 are network operators. Two out of the 10 are enterprises. Two out of the 10 are cloud and AI. So effectively neo, in that case.
I want to comment on this a little bit further. We can see that network operators and enterprise are continuing to be both our largest market segments, also growing fastest. Enterprise is very interesting, where we are seeing an enormous drive from actually three customers building networks in the financial industry, algorithmic trading and such globally. That has been driving growth for us through this year, which is very nice. Smartoptics is a way stronger company today than it was when this set of targets was announced. We have our best team ever. We have a wider footprint. And we have new regions that are starting to show their potential. I will comment on that further. In doing so, in growing the company over the past years, we have managed to preserve our challenger culture. We are the nimble, fast-moving player in the market.
There is no doubt that we are the challenger of challenger. When we compare ourselves with the four companies that we are normally compared with, we can see that in the U.S. market, which is the most important market for us and in our industry. If we roll back the clock to 2023, that group of four companies was about 7x larger than us together. In the first half of 2026, they are about 2.5x larger. There is no doubt that we are catching up and moving ahead of the mid-market players and, to be honest, everyone else, too. The challenger of challengers. I will now move into talking about the revenue and where it comes from. We have seen tremendous progress in Americas over a long time. This is continuing.
Interestingly enough, we are also seeing EMEA at very high growth and Asia at very high growth. EMEA, not surprising to me. We have seen progress in our large account strategy in EMEA for more than a year now. It is driven mainly out of Northern Europe, U.K., and Ireland. Not surprising at all. I want to comment on Asia because it is of course a remarkable quarter in Asia, although small compared to the rest of the company. What is interesting is that only about 11%, 12% of this revenue is coming out of Australia and New Zealand, which has been, as for those of you who have been following us over time, know that when we do a good quarter in Asia, it has normally been Australia, New Zealand. This time, it is a way broader geography.
It is Singapore, Malaysia, Indonesia. It is the Philippines. It is Japan. What I have been talking about for the past six months at least, building up a much stronger partner network in Asia. Simply put much better resellers out there today and a much stronger team within Smartoptics is starting to pay off and Asia is really starting to show its potential for the future as a great contributor to the company. I want to thank, of course, my sales teams for an exceptional performance over the past year. I also, of course, want to thank my operations team for delivering through the quarter. Thank you. Looking at our different areas, product areas.
It is, of course, very nice to see that the areas where we are investing the lion's share of our money solutions, software, and service is leading the way, driving the growth. That is very good. Business area devices flat year-over-year, which I think one explanation in that is supply chain. We are seeing far bigger backlog even into 2027 in business area devices, which is a fast-moving market where we normally do not have that much backlog between quarters. Quarter-over-quarter, I should say that Q2 was a little bit stronger than Q3. That was due to a larger project, a larger customer in Q2. Order booking is roughly flat. Absolutely okay performance there. The important thing, where we put our money, where we make our investments, we are also getting growth. I want to hand over to Stefan to take you through the financials.
Thank you, Magnus. Nice to be standing here presenting those great numbers. We see revenue increased by 80.4% to a record high of $34.3 million compared to $19 million last year. We see strong growth over all regions primarily driven by business area solutions. The gross margin was 49.5% for the quarter compared to 49.5% the same last year and 48% year-to-date. Gross margin recovered from Q2 where it was affected by lower initial margins on breakthrough deals with two customers. In Q3, gross margin returned back to a more normal level. Year-to-date gross margins is in line with the full year 2025 which remains a useful reference for future quarters. We have a record EBIT of $7.1 million compared to $1.6 million last year, up 340% year-on-year and demonstrating our operational leverage.
The employee benefit expenses increased 31%, and that is reflected by a 21% increase in full-time equivalents from 134 last year to 162 this quarter. Inflation, higher variable compensation, and other factors contributed to another 10% increase in employee benefit expenses. Other operating expenses increased to $2.6 million compared to $2.2 million last year, and that is reflecting the business growth and organizational expansion. Total operating expenses decreased to 26% of revenue compared with 33% a year ago, excluding the prior year uplisting cost last year, and this is proving our operational leverage. Depreciation and amortization increased a little bit in absolute terms, but decreased to 3% of revenue. The EBIT margin for Q3 improved to 20.6%, which is record high compared to 8.5% last year. On a year-to-date level, the EBIT margin increased to 14.5% compared to 7.7%.
If we exclude the non-recurring cost last year for uplisting and this year's cost for production relocation, the EBIT margin year-to-date was 15.1%, compared to 9.2%. Profitability improved despite continued investments to support future growth. The operating cash flow in the quarter was $7.6 million, compared to - $0.4 million last year, and the strong operational cash flows was driven by higher profit before tax and a modest release of working capital. The equity ratio was 45% compared with 55% a year ago and 42% last quarter. The lower year-on-year ratio reflects growth in the balance sheet, where we see on the asset side, the total amount is $74.7 million compared to $50.7 million last year. The increase is mainly related to higher trade receivables and cash, as well as the right-of-use assets for the new Stockholm office.
Inventories has also increased to support the continued growth. The increase in asset was mainly financed by higher liabilities and equity, including the liability related to the Stockholm office lease, higher trade payables, as well as deferred revenue and retained earnings. Despite the dividend we paid out in Q2, the total equity increased to $33.5 million. We have cash of $7.5 million end of quarter compared to $1.7 million last year. During the quarter, we have increased our credit facilities from NOK 75 million-NOK 200 million , now equivalent to $ 20.8 million. This change is to support our growth strategy. Working capital decreased to $15.8 million from $18.4 million last year and slightly down from $16.8 million last quarter. Inventory continued to increase and are now at $22.8 million compared to $20 million last year and up from $21.3 million in the previous quarter.
The year-on-year increase is primarily driven by longer lead times for components and reaching higher inventory levels is part of our strategy to strengthen product availability and support future growth. Inventory quality remains high with limited inventory risk. Trade receivables increased to $25.6 million from last year where it was $19 million, but it is down from $26.4 million last quarter. The year-on-year increase reflects the higher sales. Invoicing was less concentrated at quarter end this quarter than in the previous quarter, and strong invoicing in the first months contributed to slight quarter-on-quarter reduction in trade receivables. The collections remain normal with no increase in credit risk. Trade payables increased to $12.3 million from $6 million last year, down from $12.7 million last quarter. The balance reflects substantial inventory purchase towards the end of the quarter. We have payment terms of mainly 60 days, but some suppliers have 30 days.
Net other short-term liabilities increased to $ 20.4 million from $14.6 million last year. Deferred revenue, which is the largest component here, increased to $14.2 million compared to $11.1 million last year, and tax liabilities increased to $2.1 million due to higher taxable income. Thank you, and Magnus, welcome back.
Thank you. I will now talk about our longer-term financial aspirations. I want to start by repeating that our revenue is broad-based. We are seeing, of course, AI being a very important component in all our market segments. Our network operator customers are selling a lot of bandwidth to hyperscalers, neoscalers, and enterprises for supporting the AI infrastructure. We are seeing our enterprise customers investing into their application layers and IT infrastructures to support future generations' operating models. Of course, we are seeing an emerging market for us coming on board with direct neoscaler and such revenue more related directly to the AI data centers that are continuing to grow. Having said that, the investments we are now doing going forward is, as I said, to continue to grow our addressable market.
We see a fantastic opportunity in renovating, for the lack of a better term, the internet to support future generations of optical transport demands. A lot of the networks out there are built for things like broadband rollout five, 10, 15 years ago and need higher capacity and better performance. We are tagging on to that, so more performance in our products, longer reach in our network solutions will broaden the addressable market for the company to probably around 2x, as we have discussed earlier. Other investment areas for us, of course, AI-driven automation in our products and in our software platforms to address our customers' OpEx in a more effective way. That is another area where we are investing.
Last but not least, of course, investing in our own operations and all of our processes to drive more automation into how we do things, what we do, and so on. We are going through a very interesting phase in the company now. Building everywhere which is, for me as a company builder, is super fun, to be perfectly honest. I think that my colleagues in the company agree with me. It is all very positive. I also have to say that the midterm financial aspirations that we introduced about half a year ago to grow the company to $300 million-$400 million and to achieve an EBIT margin long-term sustainable with upside potential of 16%. Quarter three is a data point that is, of course, indicating more. But it is one data point.
When it comes to our midterm financial aspirations, we are staying firm for now and we will come back as the longer-term results trickle in. With that, I want to hand over to Q&A. Mr. Burman.
Perfect. Any questions in the room? No. Then let us go to our analysts on the portal. First up is Christoffer Wang Bjørnsen from DNB Carnegie. Please ask your question, Christoffer.
Good morning.
Good morning.
Congrats on the strong quarter. I just wanted to start off with the dynamics between Q2 and Q3. I believe you said last quarter that you had a couple of weeks of manufacturing issues in conjunction with the site transition. One could make the argument that adjusted for that, if you were shut for a couple of weeks, that depending on when the catch-up came on that Q3's revenues is essentially flattish on a sequential basis. Is that how to look at it? Or how do you look at the underlying trend improvement, or what you want to call it? Just for starters.
No. So Q3 is a better quarter from all aspects.
All right. On the inventory, typically we would applaud a strong cash flow, but given what seems to be a really strong demand outlook, we are looking for a bit more additions to inventory. I think you have said in the past that you are comfortable with the supply chain through the first half of 2027, but can you maybe expand a bit on that? Despite current inventory maybe not supporting that much growth going forward, are you confident because you have stuff coming in that you have visibility on? Given the 20 million expanded credit facility, which is unused, does that suggest the level of inventory you are looking to bring in over the next couple of quarters incremental to the current run rate on the inventory side? It is a messy question, but I hope you catch my drift.
Yes, I catch your drift, Christoffer. Inventory, supply chain. I think we can safely conclude that going forward and through 2027, it is going to be access to components that will be everything. We have demonstrated clearly that our own capability, our own production is great. It is better now than it was when we entered Q2. It is better now than it was when we entered Q3, and we are continuing to improve. Supply chain is going to be it for the foreseeable future. We have also explained numerous times that our demand planning for critical components is one year out. That means we are now working with Q3 and Q4. What we did six months ago for Q1 and Q2 will, to an extent, determine our future. You should hope that we have done a good job.
That is only one side of the story, however, because if you look at this market, it is daily work that my supply chain team is doing that matters more. How much can we pull in? How much can our suppliers provide us with in addition to what we have asked for? Are we going to get any push outs that are unexpected for one reason or another? That is unknown to us today. Opportunities arise all the time. We get a call from a component supplier telling us that we have X amount of pieces of this particular ASIC or whatever it might be, ready for shipment next week. Do you want it or not? Generally, our answer will of course, be yes, we want it. But it is impossible to predict for us. It is constant work. This will continue. So far so good.
We have received more than we were hoping for. I am expecting that to continue. But I am not expecting a general massive improvement in the component market in the coming years, probably because the demand is very high and we know that the biggest players in our market, the hyperscalers and such, they are planning how to build their data center infrastructures in 2029, 2030, and 2031 today. There is no doubt that it is something that will be with us for some time.
Just to be clear, you are guiding for 25% growth medium term from what is now a pretty high base, assuming also Q4 is a pretty decent quarter. So you are seeing that you will have access to more inventory next year than this year, you know what I mean? Or supply.
You are interpreting our midterm financial aspirations as guidance. We are saying that we see a revenue potential of $300 million- $400 million and above. We are seeing a minimum average growth from 2026 of 25%. We are not really talking at all about what the guidance is. So we shall see is my answer.
All right. I will jump in the back of the queue. Thank you.
Thank you.
Good. Next up is Markus Heiberg from SEB. Please ask your question, Markus.
Thank you. Just to continue a little bit on the constraints into Q4. Normally that's a stronger quarter than Q3. Is there anything now in the component market or certain constraints that makes this normal seasonality not valid, that there are other things determining your growth into Q4? How should we think that as we update our models?
Yeah. Q4 will be a lot about access to components, no doubt. We do not know what normal seasonality is after an 80% growth quarter. What I do know, as I said, is that Q4 will be a quarter that's going to contribute greatly to what we're looking at here. However, again, unfortunately, our visibility on the supply chain is not good enough. I'm more talking about when I'm saying that we know what we're getting, but what can we get in addition to that? That we don't know. It's very difficult at the moment to predict that.
That's understandable. Then maybe you can reflect a bit on the EBIT margin, which is now above 20% in the quarter. To what extent is that sustainable into the coming quarters? I think OpEx is up 40%, or its employees are up 20% year-over-year, and OpEx up 40%, but your top line is much higher, so you have a high operating leverage now. How should we think about margins in the coming quarter considering your high level now?
Well, I think everyone clearly can see that obviously if we continue to grow at very high levels, we will see a clear upside on this number. That is mathematics. It is proving the model in a sense. We have one data point now. We will see how this develops. I am sure that we have to come back and discuss this several times in the future. What I do know is that in the first half of the year, growing by 50%, 60%, in the third quarter, growing by 80%, I can assure you that is impossible to drive OpEx growth at that level. It is not wanted. It is very difficult. Hence, growth will contribute to EBIT.
Good. Then a final one from me. Can you elaborate on the even larger players that you are engaging with? What kind of players are we talking about? Is it Tier 1 telcos, hyperscalers? To what extent is that due to competitors unable to supply, or to what extent is that driven by your own technology? When could this engagement result in volume orders?
I will start by answering the last question. Of course, we are in a very good position when it comes to supply chain compared to many of our larger suppliers. That is reality. However, I believe that the investments that we have done in our products over the years has taken us to a point where we have a very attractive offering for even the larger players. As a company, we have grown to a maturity when it comes to things like security, which is top of mind for us and for everyone else. It is security in our products. It is security in our IT environments. It is probably the most important question at the moment compared to several years ago where it was more normal CSR questions that mattered most.
We are there. We can prove to the larger players that we have a very stable environment that we are operating within. We are simply a good company. When it comes to who these people are, I would say it is predominantly network operators of different kind in different markets predominantly.
Helpful. Thank you.
Thank you.
Okay. Up next is Øystein Lodgaard from ABG. Please ask your question, Øystein.
I have a couple of questions on these larger clients that you are talking about. First of all, are there now Tier 1 opportunities we are talking about? What is required for you to win these contracts? Are there any key things you need to develop or any other kind of things you need to accomplish before you can land a Tier 1? The last question on that is if you land one of these big Tier 1s with the tight component supply that are in the market, are you then actually able to deliver on those large opportunities in this current tight market?
I can confirm that we have Tier 1 opportunities with our existing products that are in very developed phases, meaning proof of concept lab trials, first office applications, and such. That is what we are talking about. None of these are RFQs, I should say, added to that. We are not quite there yet. It is looking very promising. As you know, this is not new territory to us as a team. We have done this in the past. We know how this is done. We know what we need to do to be successful as a team. It all looks fairly good. Then your question is can we supply? Yes. I can only reiterate that availability of components will be the most important thing for us in the foreseeable future here. I certainly hope that we will be able to supply in line with expectations.
Okay. Thank you very much.
I should also say that as we are seeing with the larger accounts that we have now, which are typically Tier 2-type players and typically in the U.S., so fairly large organizations, I should say, compared to, for instance, what we are seeing in Europe. There are ramp-up periods, and it is a share-of-wallet game. It is application by application. It is growing in importance. It is proving ourselves over time. That matters. It is not like a construction company where we get a contract to build a bridge, and that is it. It is a long game.
Thank you.
Okay. Next up, we have Jørgen Weidemann from Pareto. Please ask your question.
Hello. Thank you for taking my questions. First up, I would like to ask, have the discussions you have with your customers changed in the last quarter? Is there more urgency to the discussions you have, or is it more or less the same that what it has been for the last, call it, year or so?
There is more urgency, and the urgency has been there for 9- 12 months. Caused by, as you have seen, our larger competitors are leaning more and more on hyperscalers for their growth, which means other segments in the market have a problem getting attention, which means qualifying us as a supplier is typically an accelerated activity that gets very high priority within our customers' organizations because they need it to provide their growth, simply.
Okay. Could you say something about how quickly you now manage to build out the organization that you have? You said it obviously cannot be as quick as the top-line growth, but how is your access to talent, and how is the current development of the organization helping you to maybe accelerate the development of some products that you need to address new use cases for customers or access larger customers than what you currently do?
Yeah. May I also say that as we have discussed, growing our capabilities today versus growing our capabilities a few years ago is a completely different game. It is much, much more about automation, about leveraging the possibilities that we get through AI and our in-house software development capability. Having said that, talent, domain competence is going to be critical for the future, and so far so good. I think when people in our industry look at Smartoptics, they are seeing the same thing that I'm seeing, the challenger of challengers. It's an attractive place to be. People want to work for Smartoptics. It's all good, I would say.
Then a final one from me. If you look now at the largest customers that you're currently serving, how large a share of their use cases would you estimate that it can address today, and how much do you think you can address incrementally by developing new products over the next, say, two years?
We can address a very large part of all our larger customers' applications and networks. I would say we're dipping our toes in those accounts that I was talking about. Maybe not all of them, but certainly some of them. The potential in that group of customers and of course the other 10, 15, 20 that comes after this top 10 list are very much of the same nature where potential is great.
You don't necessarily feel like you have to develop a new product to get the full out of those accounts?
We will, because in the dialogue with our customers, the most important tool we have, I would say, besides our capabilities here and now, is our roadmap. No one will select to work with Smartoptics on a niche application if they don't have a very high confidence in our roadmap and our ability to support them broadly in the future. These are very long customer relationships, and it's very important to the customers. So maybe not for here and now, but certainly for here and now when it comes to building up the credibility of becoming a future partner for them to rely on.
Makes sense. Thank you so much.
Thank you.
Next up is Lisa Wiermyhr from SB1 Markets. Please unmute yourself, Lisa, and ask your questions.
Hi, good morning and congrats. First for me, you highlight large account deliveries as a big driver for solutions. Can you indicate how much of the growth that came from recently large added customers versus expansion with existing customers?
In the quarter, we have won a couple of new accounts in the quarter, but the revenue from those accounts is marginal. From that standpoint, the growth is coming from customers that we had when we entered the quarter. What I should also say is I talked about the top 10 customers being 31% of our revenue. Of course, there is 69 more percent there that is also driving growth for us broadly. I hope that was a good answer.
Okay. Yeah, but how should we think these new customers, do you think they are moving into a recurring deployment phase, or do you expect more an even order patterns?
Many of them are network operators renovating their older infrastructures, building networks for a broad application set anything from broadband and mobile and so on and so forth to AI data center interconnect applications. This is, in its nature, very recurring, and it is very long relationships that we build.
Okay. The last one from me. The devices revenue was quite flat on a very strong solutions growth. Is this a deliberate mix shift, or what explains the devices' flat growth?
So, as I said, I think one part of the explanation is supply chain. We are seeing a much bigger backlog in that product area than we normally do. Last quarter, we had a bigger project, $1.4 million or something around that, which is, of course, contributing greatly within one quarter. But look, I think looking ahead, we are seeing more and more synergy between our product areas, same customers, same type of applications, et cetera. It is still a difference in business model, of course, but I would not read too much into this if I were you.
Okay. Thank you very much, Magnus.
Thank you.
I see that Christoffer has a follow-up question. Please go ahead, Christoffer.
Thank you. Just wanted to, and maybe I missed it if you've already said this, but could you give maybe an update on the progress towards launching not only the new product for more long-haul application, but also the new platform offering with the agentic network operations features and stuff? Some of the customers who've seen it thus far that we've spoken to are really impressed and excited with that. How should we think about the rollout there and when it could maybe perhaps start contributing to revenue in a meaningful sense?
Right. If I start with on the software side, in this month, we have released the first commercial product, which is a data collector, multi-technology, multi-vendor data collector that our customers can use then to start building the time series databases for future agentic systems. That's one step. We are going to release to a select group of customers in weeks or possibly a month or two, and our brand-new agentic system for evaluation and also for, of course, collaborative development purposes. All good there. When it comes to our product offering for longer haul, higher capacity, the so-called L-band, C+L-band product family, it's progressing nicely. We have not made all of our technology selections yet. We will make our final technology selections here in a month or so.
Processor platforms is ongoing since a while because we're upgrading that for other products, too, not all of them, but for some of the other new products that we've been talking about. Building up the new infrastructure for that product offering is progressing very nicely. We see no reason why we should not meet our targets here when it comes to release cycles and so on.
Hence the L-band T-shirt.
Hence the L-band T-shirt.
Just a quick final one for me. Sorry to put you on the spot, but we just noted that in the presentation materials, you note that you are ahead of peers in next-generation open and disaggregated networking. Is that you being ahead of the other challengers on the features and the performance and stuff? Are you saying you are up there with and ahead of the bigger incumbents as well? Just trying to have you unpack a bit that statement that you are ahead of peers.
Look, Christoffer, our whole DNA in the company since 2017, 2018 is to build open and disaggregated platforms, optimizing not only the CapEx but also the OpEx for our customers. We have been doing this for a very long time. We are through generations of products. Our software platforms are super stable and modern. We are not building exactly the same products as if we pull someone out of our hat, Ciena, as an example. But we believe strongly that our offering is second to none in terms of what we do and how we think.
That is clear. Thank you.
Good. Then I see that Jørgen has a follow-up question as well. Please go ahead.
Yes, thank you so much. I do not think we have spoken about it this quarter, but could you just remind us if there are any pull-ins from the Q2 production facility move into this quarter, or whether that is more of a, call it, or you have not seen any of that?
If we go back to what we said in Q2, we said back then that we were building backlog. On the other hand, we are building backlog this quarter, too. To that level of detail, it is not something that we pay an awful lot of attention to be perfectly honest.
That is fair. Then a final one from me. Components is obviously a big question in the industry, not just for you, and we are seeing the larger or industry leaders looking to secure more components going forwards. I am just wondering, the components are obviously going to increase in prices because there is more demand. How do you perceive your ability to push those increased prices over on customers? Do you see risk on your gross margins, or do you think that is going to be an easy thing to do given the demand for your products?
We will push those increases, if they occur, to our customers. There is no doubt that is how it has to be. We have already seen larger competitors announcing price increases. Why they have done that, I have no idea. The reality is that we have not seen any material increases in optical components. We have seen increases in the ICs, the FPGAs and ASICs that we are using. Of course, we have seen that in things like memory, and we have managed that situation well. But in any optical platform, the optical components are going to dominate the cost. It has not yet happened. I agree with you that sooner or later this may happen. We will be prepared for it when it does.
Okay. Thank you very much.
Okay, then we will go to the portal. We have one question here. It is from [Arne]. How is your current production capacity dimensioned to coming demand?
Our in-house production is great. As I said, it's better now than when we went into Q3 and started Q3. I'm not worried about that. We're continuing to make investments. Coming up now it's a lot of IT, production-related IT and tools and such, into new, more automated warehouse solution that we're plugging in here in November. Put in a different way, I refuse to be in a situation where our own capabilities limit our abilities.
Good. That was the last question.
Then thank you very much for joining us. Looking forward to speaking to you all in a quarter. Thank you. Bye-bye.