Butterfly Network, Inc. Q3 FY2025 Earnings Call

Good morning, everyone, and welcome to the Butterfly Network Third Quarter 2025 Earnings Conference Call. My name is Carla, and I will be coordinating your call today. I would now like to hand you over to the Interim Chief Financial Officer, Megan Carlson, to begin. Please go ahead when you're ready.

Good morning, and thank you for joining us. Earlier today, Butterfly released financial results for the third quarter ended September 30, 2025, and provided a business update. The release, which includes a reconciliation of management's use of non-GAAP financial measures compared to the most applicable GAAP measures is currently available on the Investors section of the company's website at ir.butterflynetworks.com. I, Megan Carlson, Interim Chief Financial Officer of Butterfly, alongside Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, will host this morning's call. During today's call, we will be making certain forward-looking statements. These statements may include, among other things, expectations with respect to financial results, future performance, development and commercialization of products and services, potential regulatory approvals and the size and potential growth of current or future markets for our products and services and changes in the nature of our business. These forward-looking statements are based on current information, assumptions and expectations that are subject to change and involve a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those contained in the forward-looking statements. These and other risks are described in our filings made with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, and the company disclaims any obligation to update such statements. As a reminder, this call is being webcast live and recorded. To access the webcast, please visit the Events section of our investor website. A replay of the event will also be available on this page following the call. I would now like to turn the call over to Joe.

So thanks, Megan. Good morning, and thank you for joining us for our third quarter 2025 conference call. We're pleased to report the third quarter '25 results were at the higher end of revenue guidance. We continue to consume less and less cash while driving gross margins higher, excluding our noncash inventory adjustments that we recorded. Please keep in mind that our third quarter 2025 results compared to last year's third quarter where we delivered 30% revenue growth on the heels of a very successful iQ3 launch. We were able to keep growing on top of that very strong quarter a year ago. We knew coming into 2025, we would have to anniversary a big year and new product launch. In major medical institutions across the United States, there are hundreds of doctors who own a Butterfly. To drive enterprise sales, we developed a strategy that builds on the base of individual support and introduces Butterfly more holistically through the health system. During the second quarter of this year, we encountered some headwinds in the strategy as hospitals were focused on broader macro issues. Those headwinds remained during the third quarter. Nonetheless, our pipeline opportunities have increased. We believe we're starting to see the cloud lifting. I expect we'll return to the momentum we're used to in 2026 and may even see early signs in the current quarter. When we laid out our 5-year plan in March 2024, we introduced multiple growth pillars. One of those was our core business, going deeper into the POCUS category with higher quality imaging and software that meets the needs of hospital systems. We also said we'd expand into entirely new markets, and we continue innovating to maintain our differentiated edge. We're seeing that our strategy is working and that our many shots on goal position us for success. We're improving healthcare economics every day and are intent on bringing this innovation directly into the heart of medical care. While the third quarter is usually our quietest, we kept busy driving progress across the business and continuing to lay the necessary foundation as we mature and scale. An important part of that foundation is ensuring that we remain a trusted partner to our customers and information security plays a big role in that. We've always had a strong security posture, and we've now strengthened that further with ISO 27001 and other international certifications announced earlier this week. Each of these reinforces that Butterfly's cloud is safe, trusted and enterprise-ready as we expand globally. Our AI strategy is also proving to be a great accelerator for us, and it's really come to life in Q3. A major milestone came in September when the POCUS CARE trial from Rutgers Robert Wood Johnson Medical School published in JAMA, highlighted the real-world impact of Butterfly's AI lung tool, or auto beeline counter on patient care and hospital efficiency. In this evaluation of over 200 patients, integrating Butterfly's tool into workflows, improved clinical management in 35% of the cases, reduced hospital length of stay by 30% and generated more than $750,000 in direct cost savings. This is exactly the type of clinical and economic validation that fuels our enterprise strategy and shows the power of AI to drive real change in health care. And our next-gen enterprise software, Compass AI is on track to launch before year-end. So we expect to take this type of impact further by making large-scale hospital use even easier and more effective. We've also said time and time again that education is the biggest barrier to mass adoption of point-of-care ultrasound. Butterfly has invested throughout our journey in education from in-person training to advanced AI tools. Butterfly Garden is our ecosystem to deploy AI tools to caregivers, including those who were not classically trained in ultrasound. During the third quarter, HeartFocus from DESKi became the first FDA-cleared Butterfly partner app to launch in the Garden. HeartFocus uses AI to guide echo probe placement, capture quality images and support faster cardiac scans for any healthcare professional. So we're excited with this launch and now it's bringing action into the vision that we've had. Echocardiograms are done about 7 million times a year in the U.S. with a wide range of procedural costs from $250 a study and sometimes well over $1,000 out of pocket. That's over $1.7 billion to payers on the lower end. Most of that happens in a facility. And if the cost isn't a barrier, access is. Now anyone with a Butterfly can get a HeartFocus license, download the app from the Apple Store, plug in their probe and perform a limited echo, a scan that's often all you need to get key information fast right at the bedside. It's that easy, and this is why Butterfly Garden is an amplifier. It lets more users practice medicine in ways they couldn't before, improving patient access to timely care. We also have Butterfly ScanLab in our very own AI-powered app that members can use for ultrasound learning at no additional cost. Last October, Kansas City University College of Osteopathic Medicine became the first medical school to use ScanLab in an elective course. This week, they joined us for a webinar to share their results, which 95% of students committed to independent scanning, over 7,000 scans were reviewed and more than 230 faculty hours were saved. This was made possible because they leveraged AI through ScanLab. In fact, the impact and student enthusiasm was so strong, as of this fall, KCU expanded to a one-to-one model using our probes and ScanLab across all 4 years of their curriculum. Continuing on AI. For the last several years, Butterfly has been working with the Gates Foundation and the University of North Carolina on an AI-powered gestational age calculator. In many low- and middle-income countries, women often learn they're pregnant late in their term and may not know the date of conception. Yet gestational age is critical in guiding the care and could be life-saving for those far from health facilities. This is where the AI steps in. So using a simple set of blind sweeps across the uterus during pregnancy, the tool automatically calculates the age of the baby. No image interpretation or specialized training required. It's a powerful example of technology meeting accessibility and affordability. Since 2022, more than 1,000 Butterfly devices have been deployed in over 1,000 healthcare providers across sub-Saharan Africa, resulting in about 2 million scans to date. What's exciting is as of Q3, caregivers now in Malawi and Uganda can now use the AI calculator directly in the Butterfly app. No additional hardware needed. And with the tool currently under FDA review, we're looking ahead at bringing it to even more settings. Each of Butterfly's AI initiatives have the opportunity to drive a paradigm shift in how care is delivered and represents exactly what Butterfly stands for, using AI and handheld ultrasound to remove barriers, empower more providers and help improve outcomes. We've built the framework and the platform, and now AI is unlocking massive leverage and bringing our growth strategy to life. So I'll pause here and turn it over to Megan to review the financial results for the quarter.

Thank you, Joe. Revenue for the third quarter of 2025 was $21.5 million, reflecting 5% growth over the prior year period, which was primarily driven by higher average selling prices from a larger percentage of iQ3 sales internationally as well as increases in volume mainly in the U.S. Breaking things down between U.S. and international channels, total international revenue increased 4% over the prior year period to $5.4 million. The increase was driven by price given the international launch of iQ3 in the third quarter last year. During the third quarter, U.S. revenue was $16.1 million, which was up slightly from the third quarter of the prior year. The slight gain was due to e-com sales as well as improved performance in our veterinary distribution channel. Breaking our revenue down between product and software and other services, product revenue was $14.6 million, an increase of 8% versus Q3 2024. This increase was largely driven by higher average selling prices in our international markets as well as increased volume within both e-com and vet. Software and other services revenue was $6.9 million in the third quarter, which was flat to the prior year period. During the period, we saw increased licensing and services revenue from our partnerships, offset by lower renewals of individual subscriptions and lower revenue from extended warranties as the standard warranty of our iQ3 probe is longer than our prior models. Software and other services mix was 32% of revenue, which was slightly lower than the third quarter of 2024. The percentage of revenue from software and services has decreased in recent quarters as our product revenue growth outpaced software revenue with the launch of the iQ3 in early 2024 as well as our geographic expansion. Turning now to gross profit. Gross margin, including a noncash write-off of excess inventory of $17.4 million was negative 17.5% compared with 59.5% in the prior year. Adjusted gross margin, which excludes the impact of the inventory write-downs, increased to 63.9% from 60% in the prior year period. The increase in adjusted gross margin was driven by an increase in average selling prices as well as a reduction in software amortization costs. To expand on the inventory write-off, during Q3, we recorded a noncash charge for the write-off of excess quantities of our previous generation chip that are used in the manufacturing of our iQ+ probes. We originally expected iQ+ to continue to be a larger portion of our volume. However, the strong market adoption of iQ3 has outpaced expectations, prompting us to revise our assumptions to reflect a higher proportion of volume attributable to iQ3. In quarter 3, for example, iQ3 accounted for approximately 85% of our probe volume and iQ+ represented the remaining 15%. While iQ+ will continue to serve as the lower cost alternative and address targeted use cases, our earlier forecast assumed a greater share of demand from iQ+. We've since refined our forecast to reflect the actual product mix and market trajectory, resulting in the write-down. Moving to adjusted EBITDA and capital resources. For the third quarter of 2025, adjusted EBITDA loss was $8.1 million compared with a loss of $8.4 million for the same period in 2024. The improvement in adjusted EBITDA was driven by the previously mentioned improvement in adjusted gross profit. These reductions and improvements led to a normalized cash burn of $3.9 million. Cash and cash equivalents, including restricted cash at the end of the quarter were $148 million, and the trailing 12-month use of cash was $31.5 million. Before turning to guidance, I can update you on some macroeconomic factors. As of this morning, we are on the 31st day of the federal government shutdown. To date, we have not been directly or significantly impacted by this. However, we're keeping our eyes on customers that may be impacted as well as agencies such as the FDA. A shorter-term shutdown is not expected to affect our sales pipeline, but a prolonged closure could delay deal timing for the deals that rely on some degree of government funding. However, this is not currently a significant portion of our pipeline. We're also exposed to the indirect, more systemic impacts of a prolonged shutdown such as customer cash flow timing as a result of impact to payers. As of now, we don't see this as a significant risk to our business. Additionally, at this time, the FDA has paused fee-based submissions during the closure, though they'll continue to review in-flight submissions for the time being. Again, a short-term shutdown is not expected to impact our submission timeline. However, should it extend significantly, regulatory processing delays could become a factor. We will keep you updated on this matter as it progresses. Next, we continue to see a trend of some of our customers delaying purchase decisions as they navigate macroeconomic factors. And while Q3 is typically our softest quarter of the year, contributing to this were purchase delays that impacted our U.S. hospital and enterprise channels. While timing remains uncertain, we have several large deals in our pipeline we expected to close earlier in the year that remain active. From an opportunity perspective, in addition to unlocking the Octiv pipeline, we are working on several deals within our Octiv business and continue to negotiate an agreement with a large insurance company to reduce readmissions. As soon as we have updates on these, we'll let you know. When we evaluate our headwinds and opportunities together, we are reaffirming our full year revenue guidance in a range of $91 million to $95 million, which implies $25 million to $29 million in revenue for Q4. In order to get to the higher end of the range, we need to close on some of the larger deals that are in our pipeline. Given the visibility we have into the remainder of the year, we are able to tighten our full year adjusted EBITDA loss guidance to a range of $32 million to $35 million or $9 million to $12 million for Q4. We have continued to maintain our disciplined approach to expense control while also investing appropriately beyond our growth areas to enhance our delivery capabilities as additional revenue opportunities crystallize. To summarize, we delivered on the top and bottom line in Q3. And while uncertainties continue to exist around the impact of the government shutdown or the outcome of policy decisions from the administration, we have strengthened the diversification of our business and are excited about the opportunities in front of us. Butterfly is extremely well positioned to meet the needs of our customers as our technology not only enables superior flexibility and strong image quality, but has allowed us to be a much more affordable solution at scale than the current cart-based ultrasound solutions. In addition, our semiconductor development path will continue to improve this price performance advantage with each subsequent generation. Simply put, we see Butterfly as a long-term winner in ultrasound in any macro environment. With that, I'll turn the call back to Joe.

So thanks, Megan. As we discuss almost every quarter, we're working on a compelling growth plan that builds first on our market leadership in point-of-care ultrasound. As I mentioned before, it's coming to life through education, cloud compatibility, incredible technology and accelerated through our leadership in AI. We're also building on our POCUS business with strategic initiatives that we're getting closer to delivering in a meaningful way. We are working every day to transition our home care pilot to a commercial agreement. And the moment we have a significant update, we'll let you know. In parallel, we're engaging with additional national risk-bearing organizations that are receptive to the model we tested earlier in the year. What we've learned is clear that selling probes isn't enough for large at-risk providers. They need scalable models that educate, manage data and competency and enable growth through new use cases and AI. I believe a meaningful part of Butterfly's future revenue will come from solutions, not just devices. Selling hardware alone is in the past and pairing it with software, services and hands-on support is how we'll scale. I'm hopeful we'll bring the first of these opportunities across the finish line very soon, signaling the start of a potent next chapter for Butterfly. I'm also happy to share that we have officially completed the development of our P5.1 chip. As discussed during our 2024 Investor Day, Butterfly's next-gen chip was designed to integrate advanced MEMS capabilities that significantly increase the mechanical pressure associated with imaging, something critics of CMUT technology long claimed couldn't be done. They said our digital approach would never accomplish harmonics like piezo-based handhelds. Well, they were wrong. P5.1 is now entering fab production, and we expect that in the second half of next year, it will debut in its new form factor. If Butterfly iQ3 established performance parity with other handhelds across key presets, helping fuel our sales growth over the past 2 years, P5.1 will surpass them entirely with the potential to make piezo handhelds a thing of the past for nearly all use cases. Apple recently launched its 48-megapixel chip, a continued manifestation of Moore's Law, demonstrating they will never stop innovating. Well, neither will we. Our image quality will continue to make exponential leaps for Butterfly. The only question will be, why would anyone buy a piezo handheld anymore? These competitors are loading their devices with more LED crystals, trying to keep up with what Butterfly's all-in-one digital platform already delivers. But piezo is yesterday's technology. Soon, these devices will be in the drawer next to the film cameras. Big Piezo may be well funded, but they failed to invest and now they no longer deserve the market. I'm equally excited to share that with P5.1's release to fab production, we transition into the beginning of our sixth-generation Apollo AI chip development. Apollo AI is designed to deliver not only lightning fast ultrasound processing, but also a local AI capability at the edge. The upcoming Apollo AI chip introduces a scalable architecture that seamlessly fuses Butterfly's proprietary ultrasound front end with the advanced digital processing, achieving a much smaller chip size and greater power efficiency in order to deliver even better image quality and capability across a broad range of clinical applications. It's intended to support both on-device and edge AI acceleration, providing flexible compute expansion and integration with leading AI platforms. With its intelligent architecture and future-ready design, Apollo AI will serve as the foundation of Butterfly's next wave of innovation, advancing diagnostic imaging performance and enabling a new era of AI-driven medical insight. So finally, Octiv. There are several large ultrasound on-chip partnership discussions that we are continuing having. And while I'm still not at liberty to unpack them for you, I hope you can sense my enthusiasm. Progress is happening and the time line that allows us to share news with you is largely driven by our partners. What I can share is this, if these opportunities play out the way we see them shaping up, Butterfly may, over time, transition from a POCUS company with an ultrasound chip to an ultrasound chip company with a POCUS business. That's a step change in how our core technology will scale and how our total addressable market will multiply with POCUS becoming just one of many ways ultrasound on semiconductors can be deployed across some of the largest medical applications in the world. I am looking forward to providing more information as it becomes available and when our partners are ready. As I close, it's worth remembering just 1.5 years ago, we set out to transform this business. Today, I can see the vision now coming to life. Soon, we'll be swimming in a big, beautiful sea of Blue Ocean. So with that, operator, let's move to Q&A.

And our first question comes from Chase Knickerbocker with Craig-Hallum.

Could you help us quantify the size of some of the deals that have been pushed due to the macro environment and share what you're observing in terms of activity in October regarding those deals and your overall pipeline? When we look at the guidance, it suggests a significant increase for Q4, so please share your confidence in that pipeline and the activity seen so far in October.

Well, yes, we've been seeing through the year deals just simply push, and we just haven't been able to get them closed. So those can be in a size of 100 to 200 probes. We have some pretty large medical school deals also. So it's kind of across the board when it comes to anything over 100 probes.

And then just as far as October has...

Yes, regarding my confidence, the positive aspect is that we are not losing deals. This is not a competitive issue. As we engage more with hospital administrators for the first time, there seems to be an inevitability to this. Doctors are buying Butterflies independently, and when we inform administrators about how many individuals in their institution own a Butterfly, they are surprised. Additionally, there are many ghost scans that are not being reimbursed because they are outside the established ecosystem. We genuinely believe in the inevitability of our situation and observe significant activity as we approach the end of the year. When we enter the new 2026 budget cycle, I think there will be a greater willingness to invest in new projects. I've witnessed other companies where people feel comfortable with capital expenditures since they are already budgeted and are making reorders. However, initiating a brand-new project requires time from the IT department, especially as everyone is occupied with major electronic medical record projects. The challenge of securing that time for new initiatives has contributed to delays. Nonetheless, we are seeing opportunities build up, which is encouraging, and we are quite optimistic; we wouldn’t provide guidance for the quarter if we didn’t have confidence in what we have presented.

Understood. And maybe just on the subs and software side of the business. It sounds like there's a little bit of some lower renewal rates. Can you just maybe discuss kind of drivers there and kind of how you think you can kind of improve some of those metrics, particularly with Compass on the horizon here?

Yes, sure. Thank you for the question. So we continue to see churn in our individual subscription as we've seen over the past couple of quarters. And also year-to-date, we've seen an uptick in our enterprise subscription. In terms of timing of subscription as a percentage of revenue, a lot of it is just that timing because the software and the hardware have different revenue recognition patterns. But as you mentioned, we are very excited about the rollout of Compass AI later in Q4.

And the next question comes from Josh Jennings with TD Cowen.

I wanted to follow up on the sales funnel or pipeline and ask about the sales cycle and timing, as well as how the pipeline is shaping up for 2026 in terms of growth outlook. It seems that with some delays and concerns around tightening capital spending for new projects, the sales pipeline may be stronger as we head into 2026 compared to what you're currently experiencing heading into 2025. Could you help us understand that better?

Yes, Josh. The time to close has definitely increased. We have many deals that have taken longer than usual. As a result, we are accumulating more deals, but the closing process has not been fast enough. I believe this will improve in 2026. There was some disruption in 2025, and people have been adjusting to it. However, as we approach the end of the year, there are always funds that need to be allocated, and we will be competing for those funds.

Regarding the Robert Wood Johnson study and the associated cost savings and effectiveness, I believe the cost effectiveness data for the Butterfly iQ platform is accumulating well. I'm curious about how impactful this will be in generating greater interest and finalizing deals as we approach 2026, especially as your team promotes that Robert Wood Johnson study published in JAMA and other outlets.

It's really important for several reasons. First, it establishes that pulmonary congestion is a key endpoint for congestive heart failure. From a clinical standpoint, whether we operate in home care, outpatient, or inpatient settings, using ultrasound as a marker for the progression of congestive heart failure is crucial. Additionally, when we have discussions about our enterprise, we focus on economic factors starting from go scans. In hospitals, 35% of point-of-care ultrasound scans achieve reimbursement. Implementing Compass increases that to 70% to 80%, providing a significant economic benefit that can be realized in the first year of using the software. The next piece of economic evidence indicates that using point-of-care ultrasound in intensive care units, where doctors can quickly perform pulmonary scans, leads to substantial economic advantages in managing hospitalized patients. It’s about more than just early diagnosis; it’s about enhancing patient care in real time, equipping doctors with the tools they need to make immediate assessments rather than relying on external scan orders. When we speak with administrators now, we have solid evidence demonstrating the economic value of this approach. It’s shifted the conversation from whether to implement this to when to initiate the project, when to coordinate with IT, and when to move forward. This compelling evidence strengthens our economic argument in relation to enterprise sales.

If I could ask one more question. I know there’s no update on the home program today, but you completed a pilot program with a major partner and payer. It seems to be a matter of when, not if, and you will provide an update once that partnership is finalized. My understanding is that there’s still a strong sense of optimism and enthusiasm about that channel and opportunity, but I just wanted to clarify.

Well, not certainly about the channel, but until you have ink on something, it's not real. So I would have liked to have had it done by now. It will be done when it's done. I just don't control it.

Our next question comes from Andrew Brackmann with William Blair.

So you seems very confident on the P5.1 chip and new form factor launching next year. Can you maybe just sort of talk to us about what's needed to get to the point of launch sort of between now and then what you're going to be working on to sort of derisk that launch? And then when you get there, anything you can share on just sort of the product build ahead of that launch or anything on pricing that you might expect for P5.1?

Thank you. P5.1 will definitely be a specialized product, and we have not set a price for it yet. We will determine that closer to the launch. As demonstrated with iQ3, we have established a new price benchmark and improved our overall gross margins. Moreover, we maintained a higher average selling price, and iQ3 has significantly outsold iQ+ beyond our expectations. It is reasonable to anticipate those trends will continue with the next version. Integrating a chip into a probe, tuning it to our software and AI, and perfecting that probe is a collaborative effort across our company, as every team contributes to developing new technology each year. The iQ3 launch was very successful, and we effectively brought the technology to market. Importantly, when introducing new processors, we don't have to start from scratch. We integrate a new processor, optimize all components and software to match its capabilities, and then launch it. Therefore, I believe the risk associated with executing the new product launch is low, though there's always some risk involved, as it involves research. Overall, we feel very positive about our position.

That's perfect. And then just on the info security piece, you had the press release out earlier this week and then obviously touched on this call. Maybe just in practical terms, how does this help you win business? And as you sort of think about sort of what you've achieved here, do you think that this is sort of table stakes for the entire market? Or is it a sort of meaningful differentiator for Butterfly?

It's an interesting situation because apart from one possible independent competitor, the industry primarily operates on-premises. They have software that connects to WiFi to send images into a DICOM, but they lack cloud connectivity. This lack of cloud connection means that security isn't a major concern, as outsiders can't access the device. Our competitors have made it clear that they aspire to follow our lead and eventually catch up to our current position in cloud connectivity for imaging devices. Historically, they have used our cloud requirement as a disadvantage, arguing that it introduces security concerns; however, this reasoning is misleading since most hospitals already use AWS cloud services. As the first company to successfully commercialize in the cloud, we have established stringent security standards, including data compartmentalization and compliance with HIPAA regulations. With 25 million images stored in our cloud, growing by 30,000 images daily, maintaining data security while ensuring accessibility for our clients is crucial. We anticipate achieving our HITRUST certification and FedRAMP by 2026, which is the highest level of global security certification and extremely complex. Thus, having this level of security in our cloud environment is remarkable. Cloud connectivity has always been our competitive edge, and while others have criticized us, they eventually recognize its value once they catch up. We firmly believe that cloud technology is essential for managing extensive fleets, handling data, and facilitating complex models. We possess the best cloud security posture in the industry.

And our next question comes from Ben Haynor with Lake Street Capital Markets.

Joe, on the commentary on Apollo AI, I was just curious, have there been kind of upgrades to the original design as far as the kind of edge AI aspects to it beyond what was kind of discussed at the Investor Day last year?

Yes.

Any more color there?

Yes. So we have pushed the boundary of Apollo to include the ability and to make sure that we are capable to do local AI on the chip. That is the next biggest trend in AI instead of having to calculate and process AI in the cloud and then push the devices to be able to do it actually on location is the next biggest processing feat and it creates a significant amount of local benefits in speed and capability. Instead of having to take something, push in the cloud process it and wait for it to come back by having that processing power to do it dynamically in your hand is a major step-up. So yes, Apollo has 20x the processing power of P5.1 and our legacy. And so we're making sure that, that processing power is put to the right use.

Yes. So specialized model to push the device eventually. Got it. Go ahead.

Yes. So more and more AI capabilities be processed on the device.

Got it. I’m just curious if there are any updates regarding IQ Station or the RoHS situation with the European Commission.

IQ Station is currently under development, and we will provide updates as we approach completion. It is a significant aspect of our future strategy. Regarding the RoHS standards, submissions from us and our competitors closed on August 1. We are currently undergoing a third-party review, where the third party is examining the data and may ask questions as needed. We hope that by next summer, they will reach a decision or provide their opinion to the governing body, which will then make a final decision. At this moment, all the data is being analyzed, and we are in a quiet period waiting for any inquiries while anticipating an outcome.

And that was our final question. So I will hand back over to Joe DeVivo for any final comments.

So everyone, thank you very much for the support. Sorry about my seasonal cough I keep getting. We're thoroughly excited about the progress that we're making, and we're thoroughly excited about what's to come. We definitely think we had a slower start to the year, but everything that we're building is very, very strong. And I just can't wait to be able to unpack a lot of other things for you as they mature. And also, I'm just very appreciative for Megan Carlson, our Interim CFO, for doing just such an expert job in this interim. So thank you, Megan, and thank you, everyone, for your support.

Thank you, everyone. This concludes today's call. You may now disconnect. Have a great rest of your day.