Exactly.
Okay. Excellent.
Yeah.
Okay. Good afternoon, everyone. Welcome back to the Aerospace and Defense track here at the JP Morgan Industrials Conference. I'm Seth Seifman, the Aerospace and Defense Equity Analyst here. We are very grateful to have with us OSI Systems. We're here with CFO Alan Edrick, and Alan's gonna talk with us about the company. We're gonna do fireside chat, a little bit of Q&A. We'll ask in the audience for some questions as well. Alan, thanks very much for coming. I appreciate it.
Oh, thank you. Thank you for having us.
Cool. Maybe stepping back before we get into the detailed questions, if you just kinda wanna to set the scene, in terms of, you know, where things stand for the company this year, you know, the growth prospects that you see, kind of what you guys are excited about.
It's been a great year for OSI Systems. We are a June 30th fiscal year, so we reported half of our year and coming up on our three-quarter mark right now. You know, over the last few years, we've experienced very strong growth both on the top line and the bottom line, and that has continued into this year with strong revenues, strong bookings, and strong profits. We're excited, and the prospects ahead of us are very exciting. We've been growing quite a bit internationally, and while those prospects still remain very, very robust, we think the next few years, the U.S. growth is gonna really be outstanding for us. Exciting times for OSI.
Yeah. Excellent. Maybe we'll start off talking about the security business. You mentioned U.S. growth ahead. There was a good amount of money in the reconciliation bill last year for border security equipment. Have we seen? You know, we've also had some friction. We had the government shut down for a period at the end of last year. The Department of Homeland Security still doesn't have funding for fiscal 2026. Have you started to see some of the, you know, some of the contract activity get going?
Yeah, we've certainly seen a lot of RFIs and RFPs. The outlook for us, we believe, with some of the funding coming from the One Big Beautiful Bill , and the like, is superb, and we think it's gonna really set us up nicely, you know, for the next few fiscal years for us. We're very excited about that. We think the orders are on the come there for us and hopefully not in the, you know, in the too distant future.
You're right. The you know, the shutdown of the government back in October and November, you know, impacted some things from a timing of bookings. It didn't impact our fiscal year because these were bookings that would generate revenues, we believe, in 2027, 2028, maybe 2029. Even though the government has been opened, as you mentioned, the DHS is still shut down, though we still continue to work with many of the key parties within the government. We're very excited and are very optimistic about the outlook there.
Okay. Excellent. When we think about that, I think it was something in the low $1 billion range, a $1 billion and change that was in the reconciliation bill for border security equipment?
Yeah. There's several categories and the first category is, you know, just over $1 billion for non-intrusive inspection, scanning equipment, which is exactly what we do with CBP, Customs and Border Protection. Then there was some other funding in a few other agencies and then additionally some funding for the Olympics and the World Cup. All told, it's a very significant and sizable sum that we're trying to play a meaningful role in.
Right. I guess some of that, I mean, there's a timeline attached to some of that. The World Cup. The World Cup funding needs to be coming soon if it's gonna happen. I guess that's that part of it we can look for in the nearer term. When we think about the company's share of that, I know, in terms of port and border security equipment, OSI is the global leader. You know, would we think about the company getting, you know, at least half of what's out there?
Well, we're hopeful it'll be a very sizable award. You know, the last CBP awards that were given of a sizable nature, I believe we got around 40%-45% of the awards. We continue to be a very strong provider and have an excellent relationship with CBP. When the awards come, we're hopeful that we can, you know, maintain that share or even grow it. We are optimistic about that.
Okay. Excellent. On the airport side of the business, I gather there are some opportunities coming as well. How do we think about when those opportunities show up and also the scale of those opportunities versus what's available on the ports and border side?
Yeah, aviation is a very important part of our business. We're larger on the ports and borders and critical infrastructure side and have a higher market share, but we also have a strong market share in aviation. For the last several years, the biggest part of our aviation business has been international, and I think over the next couple of years, it's gonna continue to be, you know, outside the United States. There'll be a big replacement cycle coming for checked baggage in a few years, starting here in the United States, that will likely be, you know, roughly a five-year replacement cycle. That'll all be incremental business for us because when these checked baggage machines were first put out in the United States or installed, we didn't have a product back then.
We then developed the industry's first checked baggage machine specifically for security applications, and it's been a great success for us. We've had some great wins outside the United States and some good market share, and we would hope to do the same right here in the United States when that replacement cycle starts here too.
Is that something where you'd expect awards kind of late in the decade, and then for that five-year cycle to just kind of start from there?
I think that's probably a very reasonable timeframe, and the timing couldn't be more perfect for us because we believe we'll have some significant awards for, with CBP and Ports and Borders and some other government agencies, as well. As those maybe start to wind down a little bit and move more into service, the aviation will kick in, as you mentioned, towards the end of the decade, and then beyond.
Mm-hmm. Then on the international side, you know, what's the demand picture like internationally, both for airports, I guess, and for ports and borders?
Well, unfortunately, the world doesn't get a whole lot safer as we see in the news every day, but it kinda plays well into the business that we participate in. We continue to see, you know, robust activity in our funnel. We're excited about it on the ports and borders and critical infrastructure, but as well as aviation. All of those areas are very strong opportunities for us. Of course, the most recent, you know, conflict in the Middle East could create some medium and long-term opportunities for us as well. It's not necessarily, you know, always great for certain things going on, but it tends to play well into the business that we're in.
Right. Are there particular regions that seem more promising in terms of demand?
Yeah, there are. I mean, in addition to the United States, the Middle East, we look at as very fertile territory. We have very strong market share in the Middle East. We also see strength in Latin America, Asia, not China, but other parts of Asia, would be notable. You know, of course, we do business throughout the E.U. as well. I'd say, you know, between the U.S. and the Middle East and some parts of Latin America, that's probably our strongest growth opportunities.
What's the competitive environment like these days when you go out to try to win business internationally?
Yeah. On an international basis, the competitive landscape hasn't changed a whole lot. We tend to be, we think, one of the strongest players internationally. Our largest competitor has recently announced that this particular division is the security division is being divested. Is being sold to a private equity player. That's supposed to close sometime later in 2026. The competitive landscape is largely the same, both internationally and the United States. Same main competitors that we have that are all good companies, but we seem to compete, you know, well and favorably with.
Right. I think, you know, one of the interesting things I learned about the business when I started following the company was, you know, it's obviously equipment that you guys sell, but you also sell services. You know, there's a support aspect to the equipment, and okay, that makes sense. There's a lot of, you know, equipment that companies sell where there's an aftermarket. Also, that you will, you know, almost provide the service. Can you tell us about that offering and how penetrated that is within your sales base right now?
Yeah. Maybe I'll talk about sort of service in general. Including the aspect you're referring to. Service for us is very exciting. You know, throughout calendar 2025, we saw strong double-digit growth, I think, each quarter on our service revenues. That's important for us 'cause it can really expand margins. Our service margins are, you know, at least 10 percentage points higher than our product margins on a general basis. As the service revenue becomes a bigger part of our overall mix or percentage of our overall revenues, that can lead to nice, you know, operating or EBITDA margin expansion. Very, very favorable for us. Within our service revenues, we really have four main areas.
We have our field service or maintenance, which is the largest area for us is service revenues, where we have a very high, you know, adoption rate, where we fulfill the service for our customers. After we sell the product, and let's say it has a one-year warranty, if it's out there for 7-10 years, we tend to get, you know, annual renewal contracts for very strong margin, service revenue. In addition to that, we pioneered a new business model, which, you were alluding to, that we call turnkey or a different version of SaaS, security as a service, where instead of selling the product, we manufacture the product, we place it at the customer location, but it's just in our balance sheet, we own it. We enter into a long-term contract with customers up to 15 years.
They've ranged from 6 years to 15 years. We staff it up with our people, our employees, and then we charge a fee per scan or a fee per site per month, thus a great source of recurring revenue at strong margins. It's been a great area for us, primarily focused in the international markets. From that, we developed a proprietary software called CertScan®, which we now are taking out as a standalone true SaaS-based product, software as a service, which is exciting for us. We're beta testing it with some real orders here in the United States, but we've also gotten some significant orders outside the U.S. for this, so exciting. We're in the very early innings, but we think it can grow substantially at high SaaS-like margins, which is great for us.
The final area of service for us is training revenue. We're doing more and more training initiatives. These four things we think can contribute to nice size service revenue growth. Again, the service revenues carry substantially higher margins than our product revenues.
Right. Okay. When you take on the operation of the equipment, and this is for your customers, this is kind of an important national mission. What kind of risk does the company take on in those cases?
Yeah. We're very careful to, you know, of course, not absorb any additional risk than we need to. In most of these cases, sitting side by side with us when we're doing the operations is a member of the government, and the member of the government makes the final adjudication or decision whether to pass the truck or the car through. We might provide a recommendation, but they make that final decision. As a result, we have not seen any particular liability associated with this.
Right. Not something that the company is exposed to.
Correct.
Okay. Excellent. One of the things, I guess, as we've seen the service portion of revenue grow in recent quarters, we haven't seen an accompanying expansion of the margin. Why is that, and when do you think that might become, you know, that service contribution might become more observable?
Sure. The service revenue growth that we've seen over the past, you know, 12 months, has led to nice, incremental margins on the service side. On the overall blended side, we had some tough comparisons. Over the past couple of years, we've been fulfilling three major contracts that we won in the country of Mexico totaling about $800 million. As we deliver those products, because we are making the same product over and over and over again, there was quite a bit of efficiencies which led to higher product margins than we would otherwise normally have. Over the last few quarters with that tough comp, as we've replaced the Mexico product revenues with other customer product revenues, it's been at a little bit lower margin. Overall, our margins have been pretty strong, but it's because the service revenues have kind of offset the change in the product margins.
All that being said, the last quarter where we have a more challenging comp on the product revenue side related to Mexico is this quarter in March which we've outlined in the past. As we move forward into kind of our June quarter and then into our next fiscal year as we start July 1st and beyond, those tough comps are gone and should lead to an opportunity for nice operating margin expansion.
Right. Okay. How does, when the growth in the business becomes a little bit more U.S.-focused and CBP-focused, does that have an impact on the margin mix?
It may. You know, sometimes margins have been favorable in the United States. It all depends, you know, as the bids go out and the like, but that should be very helpful. It should also be very helpful from a working capital perspective, as the U.S. government tends to be a faster payer than many international locations.
Right. That's probably a good segue to the cash flow topic. We'll talk about that now, and then we'll. We'll go on and talk about a few other things, as well. I know that waiting for payments from this $800 million of work in Mexico has dragged on your free cash flow in recent years. Can you talk about where that stands, what kind of remains to be collected and what's kind of the visibility on when that can arrive?
Yeah. The country of Mexico and the many agencies that we work with the country of Mexico have been longstanding customers of ours for the past couple of decades and have been very reliable payers. They paid us every single dollar or peso that they owe us. Not always on time, but they always pay us, everything they owe us. The current large contract that we have outstanding is with the Mexican army, a group called SEDENA, very, you know, it's part of the federal government. As a result, we feel, you know, very confident in collecting all the cash as we have with every contract that we've had in Mexico. It's been slower than we would like.
There's always some bureaucracies, you know, that take place, and the like. They have been paying us. Just, we wish it would be a little bit faster, but what that means for us that we think over the, you know, the next 12 months. Our free cash flow has the opportunity to be simply outstanding. The free cash flow conversion can be very, very strong.
Okay. I guess if we looked at an unbilled receivable or something like that would kind of show what the magnitude of that excess cash might be.
Yeah. Yeah, really both looking at the unbilled receivable and the billed receivable 'cause each of those balances is substantial. The unbilled receivable is coming down and converting to billed, which then means it can be paid, but the billed receivable itself is significant as well. We're excited about that. It means we should be generating very, very significant free cash flow here over the next 12 months.
Okay. Excellent. I guess when we step back and we think about the security business and having a strong market position, and demand both, domestically and internationally, what's the right growth algorithm to think about for that business?
Yeah. It's difficult to put a pure algorithm on it because there are times when we get these outsized contracts, you know, such as the three large Mexico contracts. You know, today we sit on big opportunities here in the United States with the One Big Beautiful Bill, things like Golden Dome and the like. There's times where the growth can be very outsized, and then the service revenue comes along with it. On a big picture scheme, you know, we think on a long-term basis, you know, it's kind of a, could be like an upper single digit type growth business where with many years being in the double digits in the long run.
Right.
Yes.
Okay. Within that, you know, how do you think about the margin opportunity in a business where you know, you're growing, so there's, I'm sure there's some leverage, there's a growing service component and a growing installed base. There's also right now, you know, maybe some elevated domestic demand on the OEM side, on the new equipment side. You know, does that create a path to margin expansion?
No, we think so. I think you've just hit on the key elements. You know, with as service revenues become a bigger proportion of our overall mix, that drives operating margins. Economies of scale associated with higher revenues and leveraging that fixed cost structure also does. The mix of where the revenues may occur in one country versus another, one product versus another, and all three of those type of things we think can lead to nice operating margin expansion.
Mm-hmm. Okay. I'm glad you mentioned Golden Dome, and I'm glad you did because people, you know, generally think about security products, and we've talked about ports and borders, and we've talked about airports and, you know, not necessarily thinking about the company in a military context. But can you talk about what you guys do in radars and how that's relevant to missile defense?
Sure. About 18 months ago, we completed an acquisition of an RF, or a radio frequency, solutions company. At the time we did the acquisition, I'm not sure the words Golden Dome existed, so it certainly wasn't part of the underwriting of our acquisition. This is an acquisition that's performed incredibly well for us out of the gate over the past 18 months, where we've had, you know, significant revenue growth, significant bookings. We took basically their strong products and technologies, and we put it in and combined it with our larger sales channel, our larger balance sheet, and the like, and we've seen, you know, just tremendous momentum. I think in the September quarter, we had, I think, a 3.3 book-to-bill ratio in this business.
S trong bookings again in the December quarter. All this being very exciting, so the business is doing great. Now we layer on Golden Dome, which came, and we're part of the $151 billion IDIQ along with numerous other companies. We believe we are extremely well positioned for it using our over-the-horizon radar products. These are classified programs, so we can't go, you know, deep into exactly what we do. I would say suffice it to say we think we're extremely well positioned for Golden Dome and would anticipate we'll be seeing some nice orders in this business, which should be very favorable for us. In that regard, we increased manufacturing capacity in this business.
We began to move into new facilities in November of 2025, and we'll be continuing that move throughout calendar 2026, and we'll be out of our current facilities by the end of this year. The timing couldn't have been better. I mean, we needed the extra capacity just for our own existing business even before Golden Dome. With Golden Dome, you know, it provides even more room for us to grow in a significant way.
Right. Is that something where the company is selling directly to a military customer, or are you part of a team with a prime contractor?
The answer is both avenues are available to us. We do have direct talks directly with the U.S. government. We also have discussions with prime contractors.
Okay. The growth that you've seen in that business thus far has been mainly domestic? It's with the U.S. DOD?
It's been a combination. We've seen domestic growth, but we also sell to a number of countries as well. We've seen broad-based, you know, global demand, which is one of the things I think OSI Systems kinda brought to the table being with our global footprint. The U.S. opportunities are very robust, but international opportunities are nice too that we've won and continue to pursue.
When you sell those products internationally, the RF and over-the-horizon radar products, are those foreign military sales, or can those be direct commercial sales to the customer?
Yeah, they have not been part of the FMS program. They are direct sales.
It's very, I would imagine then, very solidly profitable.
They are very much in line with our overall security margins, which are nice and strong.
Right. Okay. We talked a little bit earlier, you know, you'd mentioned the demand around the World Cup. When we see events like that, is that something that ever kind of, you know, we ever would see in the quarterly results, or is it something that just kind of is in the numbers and part of the business? You know, there's often events going on, and we wouldn't necessarily recognize it.
It depends on the event. You know, we've been very strong winning, you know, many of the Summer Olympics, many of the Winter Olympics, many of the World Cups, Super Bowl, things like that. Oftentimes, they're nice revenues, but it won't move the needle in a quarter, but it's great from a marketing perspective and otherwise. There'll be other events, such as the Summer Olympics, which can be very meaningful, and we anticipate, you know, the 2028 Olympics, you know, could be meaningful if we're to win that. You know, we recently did the past Olympics in Paris and the like. Great from a marketing perspective, nice from a profit perspective, but in terms of moving the needle, Summer Olympics would probably move it more than other events.
I think for most investors to kind of think about the security products business as kind of the core of the company. There are two other segments within OSI. Maybe you can give us an update on optoelectronics and prospects for that business?
Yeah. We couldn't be more proud and excited of what our optoelectronics team have done. You know, in opto, we serve a variety of customers, excuse me, in aerospace and defense, medical, automotive, industrial, technology, and the like, with no customer concentration. In addition to serving all these, you know, Fortune 500 type companies, we also supply many of the key components that go into our security products and into our healthcare products, which is, you know, how everything is sort of tied together. Through that vertical integration, we end up enhancing the gross margin.
Control the supply chain. We can be a little bit more responsive to our customers. Our opto team has just done a great job. You know, I think in the first two quarters of the fiscal year, we grew 11%-12%, which is fantastic. It's a business that we show a little bit of operating margin expansion, mostly on a year-over-year basis, generates very strong free cash flow. The team's done a great job getting new business in a variety of ways. You know, one is, we serve numerous very large companies, and oftentimes in a program or two, just mining new business out of those very large companies, and the team's done a good job of that. Second is, of course, attracting very new customers.
The third is, you know, there's a number of companies who have had China as part of their supply chain, where there's a desire to move away from China. We have a footprint globally, so if they wanna remain in Asia, we have operations in Malaysia, Indonesia, and India. If they want a nearshore, we have Mexico, in addition to, you know, U.S., Canada, and the U.K. The team has done a really great job, you know, getting new business, having strong bookings, good book-to-bill, and have really just been delivering, you know, quarter after quarter.
You mentioned aerospace and defense as one of the key end markets for opto, and you know, we see the growth that's been in the defense budget, growth that could be ahead of us in the defense budget. Is that something that moves the needle in that business?
Yeah, we're very focused on the aerospace and defense business. A lot of the Hi-Rel or high reliability products go into that, which, while smaller dollars carry a nice margin and the like. We look at that as a big opportunity, particularly in today's landscape.
Yeah. That's, if I recall that's a fairly global business in terms of the footprint. Do, I mean, do increasing European defense budgets create an opportunity for the opto business or in Asia?
You're absolutely right. We're seeing, you know, quite a bit of activity in Europe in addition to the U.S. We don't see quite as much out of Asia. The EU is very fertile territory for us there.
Right. Okay. I assume there's no, you have U.S. operations on the defense side that can be completely separate, and so even though it's part of a global business, there's no issue with supplying for U.S. military.
No, no issue whatsoever.
Yeah.
Yep.
Excellent. Maybe we'll take a brief pause to see if there's any questions in the room. We can also continue to talk about the third segment, which is healthcare. I guess you guys made an effort to kind of retool that business, starting maybe towards the end of 2024 or so. Can you talk about the progress there?
Yeah. We're very excited about the progress. We brought on a new president just about a year ago in this business. Over the past six or seven months, he's really retooled his team and brought on a number of new, you know, senior management personnel. We think we probably have the highest quality team that we've ever had in a number of different disciplines, and we're seeing that, you know, beginning to, you know, yield dividends for us. The excitement for this business is as we launched our next generation patient monitoring platform, which we hope to launch the, you know, the first phase, you know, towards the end of this calendar year or so, and it's a multi-phase approach. We think that can really get the top line engine going quite nicely.
This business has the highest contribution margins of any of our divisions. Even though it's a small business, under 10% of our revenues and even a smaller percentage of our profits, you know, for every incremental dollar we sell, more drops to the bottom line than any of our other businesses. We're excited about the future prospects.
Right. Okay. How long do you think it'll take to get a sense of, you know, how that's working out?
Yeah, it's a good question. I mean, I think we'll gain confidence as time goes on, but I think as we get into, you know, calendar 2027, we'll start to have a feel for that. I n the meantime, even before the next generation patient monitor launches, some of the initiatives that are being put into place, we think will drive better results, you know, over the next four quarters and the like. We're excited about the business.
Excellent. I guess when you think about cash flow, you talked about the benefits that should be coming from collections from customers in Mexico. When we think about CapEx, a fair amount of growth ahead, is there a need to step up capital investment in the coming years?
Yeah. I guess the good news for us is we're fairly light from a capital intensity perspective. When you look at our CapEx, you know, sort of year-over-year, it's not too significant. W here it can increase in a good way, and we wish this happens, you know, more and more, is when we do the turnkey programs or the security as a service, because as we place the equipment out there and it sits in our balance sheet that's treated as CapEx. That's what we actually wanna have happen. Absent that, we don't think there's a massive need for additional capital as we grow. We think we have ample capacity. We'll continue to, you know, continue to invest, but CapEx is just not overly significant for OSI as we sit here today.
Right. Okay. When we think about some of the strong cash flow that's ahead of us. Y ou know, how do you think about what to do with that cash? What are your capital deployment priorities?
From our capital allocation perspective, we kind of look at three things principally, and we don't look at these three things as necessarily being mutually exclusive. At times, we can do all three. The first is M&A. You know, we think we have tremendous organic growth ahead of us, so by no means do we feel compelled to do any acquisitions. We've always done acquisitions over the last couple of decades, and the acquisitions have contributed very nicely. You know, we're a very disciplined buyer, and the like. I would envision that M&A, particularly in our security and opto divisions, will continue to be a part of our overall growth strategy.
Second, we do stock buyback. You know, we bought back some significant stock in November, you know, a few months ago, and I would imagine that we'll continue to buy back stock over time. Then any excess cash we have, we sometimes use to pay down debt.
Okay. When you look at M&A, when we think about your position in ports and borders, you're the number one provider in maybe in airports number two. So leading market position. Do you think there is an opportunity from a concentration and regulatory perspective for the company to do M&A?
Oh, we do think there's a real opportunity. You know, we think there's opportunities to fill channel needs, technology needs, maybe take out a competitor. Of course, we'd always sort of look at antitrust, but we can also look at natural adjacencies a little bit like the RF business that we bought in 2024 that might not have been straight down the middle of the fairway, but made total sense using a similar customer base and allowing us to greatly expand their business. We think there's, you know, kind of great opportunities for us to continue to pursue M&A and security.
Okay. When things come across your desk that you see, I think in a lot of areas in the A&D space, the sense is that valuations are quite high. Is that something that you've observed as well?
We've always observed that over time. I mean, there's always a disconnect between the buyer, what the buyer thinks it's worth and maybe what the seller thinks it's worth, and it takes time to have a meeting of the minds and sometimes bridging that with contingent consideration, like earn-outs and the like. We're a company that historically has been disciplined and, you know, we're willing to wait it out for, you know, for the right valuation. Because we have such strong organic growth we believe ahead of us, we don't feel compelled to do an acquisition for the sake of growth or for the sake of anything else. We'll continue to be disciplined in that approach.
Right. What's the right level of leverage for the company?
You know, now we're leveraged just over 2x, which I think most would consider net leverage very modest. We're traditionally more conservative. For the right acquisition and with the ability to rapidly de-lever, we would lever up to 3.5x or more if we saw a path to de-levering. We did that when we took out a publicly traded company called American Science and Engineering a few years back, which has been, you know, not just a home run, probably a grand slam, acquisition for us, and we did just that. I think we levered up to the mid threes and within two years we were levered back to approximately where we are today. We would consider that for anything that we thought was very strategic and value creating for our shareholders.
Right. Excellent. Maybe moving back to another topic, which is the top line, you know, we'll be looking out for orders from Department of Homeland Security. Are there other international opportunities on the horizon that you would you know, point to in the near term that people should be looking out for?
There's a number of opportunities on a global basis outside the United States. However, they just usually are not well known or public, so the sort of the first time investors or the sell side can become aware of them might be the time they're announced, because they're just private tenders that don't become public until the deal's already done.
Right.
Yeah.
Based on what's out there, I mean, one of the things that I've found kind of, actually kind of impressive over the last couple of years, we've seen sales grow significantly. I think the backlog has been fairly steady in that $1.8 billion range o ver a couple of years now. Do you see exiting this year or at some point during 2027, you know, sufficient demand to bring that backlog higher?
Yeah. You know, I know some of the concern a couple of years ago was when we won the big Mexico contracts. We converted that backlog into revenue, that our backlog would come down and our revenues would come down, and we said we didn't think that would be the case over this period of time, which has proven to be true. To your question, yeah, we think as we go out through this calendar year, we think there's great opportunities through some of the bookings that we may get to continue to expand the backlog give us even greater visibility toward the future.
Right. Okay. Excellent. Well, we're down under 30 seconds here. So I just wanna make sure, is there anything we didn't cover that you think we should highlight?
I think you covered all the main things, and with the big game tonight, I'll say go USA in the World Baseball Classic.
Okay. Yep. Good. Excellent. Very good. Well, Alan, thanks so much for being here. Really appreciate it. Thanks everyone.
Thank you.