Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 2025 The Cooper Companies, Inc. earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I would now like to turn the conference over to Kim Duncan, VP of Investor Relations and Risk Management. You may begin.

Good afternoon, and welcome to The Cooper Companies, Inc. first quarter 2025 earnings conference call. During today's call, we will discuss the results and guidance included in the earnings release and then use the remaining time for questions. Our presenters on today's call are Albert White, President and Chief Executive Officer, and Brian Andrews, Chief Financial Officer and Treasurer. Before we begin, I would like to remind you that this conference call will contain forward-looking statements including revenues, EPS, operating income, margins, cash flows, and other financial guidance, expectations and targets, strategic and operational initiatives, market and regulatory conditions and trends, and product launches and demand. Forward-looking statements depend on assumptions, data, or methods that may be incorrect or imprecise and are subject to risks and uncertainties. Events that could cause our actual results and future actions of the company to differ materially from those described in forward-looking statements are set forth under the captions forward-looking statements in today's earnings release and are described in our SEC filings including The Cooper Companies, Inc.'s Form 10-K and Form 10-Q filings, all of which are available on our website at coopercos.com. Also, as a reminder, the non-GAAP financial information we will provide on this is provided as a supplement to our GAAP information. We encourage you to consider our results under GAAP as well as non-GAAP and refer to the reconciliations provided in our earnings release which is available on the Investor Relations section of our website under Quarterly Materials. Should you have any additional questions following the call, please email [email protected]. And now I will turn the call over to Albert White for his opening remarks.

Thank you, Kim, and welcome everyone to today's fiscal Q1 earnings call. We are off to a strong start this year reporting record Q1 revenues and earnings. We met our expectations for revenues and exceeded expectations for margins, earnings, and free cash flow, and this included overcoming the negative impact of currency. We are also outperforming our operational plans at CooperVision and have increased availability and accelerated product launch activity. This includes moving up international launch dates for MyDay Energous, increasing availability of our MyDay multifocal and extended toric ranges, and starting early-stage launch planning for MyDay MySite outside the US. We have also increased our private label availability as that part of our business has started accelerating. We will discuss all this during the call, but let me say we are in excellent shape driven by strong operational execution. Moving to the quarterly numbers, consolidated revenues were $965 million, up 4% year over year and up 5% organically. CooperVision reported quarterly revenues of $646 million, up 4% and up 6% organically. Cooper Surgical posted quarterly revenues of $319 million, up 3% and up 2% organically. Margins improved nicely and non-GAAP earnings per share were $0.92. For CooperVision, the Americas grew 8%, EMEA 6%, and Asia Pac 3%. Within categories, torics and multifocals grew 10% and spheres were up 3%. Within modalities, our daily silicone hydrogel lenses, MyDay, and Clarity grew 9% and our silicone hydrogel FRP lenses, Biofinity and Avera, were up 9%. Our myopia management portfolio grew 20% with MySite up 27%. As we discussed on our last earnings call, the quarter started soft with some channel inventory contraction but quickly returned to normal. The only area that continued to see struggles was China where our business was impacted. Turning to product details and starting with our premium daily silicone hydrogel lenses, MyDay is seeing healthy demand with torics, multifocals, and Energous all performing really well. MyDay Toric continues to see success with our parameter expansion rollout being received extremely well in new markets around the world. And we are also increasing availability in existing accounts where demand remains very high. The fantastic design and toric lens, which mirrors Biofinity's design, combined with the widest toric SKU range in the market gives us a great competitive advantage, and we believe we have a long runway of success in front of us. MyDay multifocal also had a strong quarter driven by the unique combination of its advanced design paired with an easy fitting system delivering very high satisfaction levels driven by an incredible 98% fit success rate in two pairs or less. That is critical for busy eye care practitioners who want to optimize chair time while capitalizing on the large, lucrative, and growing presbyopia segment of the market. And MyDay Energous continues to grow nicely with ECPs and patients loving its innovative digital boost technology designed specifically for today's digital lifestyle. We will be launching this lens in additional markets soon and believe it will be extremely well received. Wrapping up on MyDay, our investments in capacity expansion are running ahead of schedule allowing us to be more aggressive with all our MyDay activity, which is obviously great to see given the strong demand. Turning to our Clarity portfolio, we continue posting nice growth with a very high-quality alternative to MyDay at a lower price point. We are receiving fantastic feedback from customers in the US and Canada on our redesigned Clarity multifocal, and we are launching in APAC later this month with more markets to follow. This upgraded multifocal mirrors the MyDay design providing wearers optimal comfort and vision while giving ECPs confidence they will have the same fitting success they currently enjoy with the MyDay Multifocal. Moving to frequent replacement lenses, Biofinity continues to deliver great results led by the strong performance of our Toric multifocals and industry-leading extended range offerings. Biofinity remains the number one lens in the world with more people wearing it than any other contact lens, and the reason is simple. It is an incredibly comfortable lens. It has market-leading technology. It offers more prescription options than any other lens, and it is sold at a great price point. Turning to myopia management. After a soft start to the quarter, we saw a significant pickup in activity particularly in the US. MySite led the way, and we continue forecasting MySite growth of around 40% for the year. Supporting this growth is a recent realignment of our US sales force to double coverage, additional sales resources in key European markets, expanded digital marketing and CRM programs, and increasing activity around key account private label deals. In parallel, we are reinforcing CooperVision's leadership in this category with investments in R&D, and clinical study activity and with advocacy groups supporting the industry's continuing move to making myopia control standard of care. I am also happy to report that our capacity improvements in MyDay have allowed us to start planning for the launch of MyDay MySite outside the US. It will take a little while to get launched, but it is now on the radar. We expect the combination of the market-leading comfort and design of MyDay combined with the technology of MySite to make MyDay MySite a truly exciting entry into this market. Lastly, in this area, we are seeing tremendous growth with Sight Glass in China which is part of our joint venture with Essilor Luxottica. And we are seeing improving traction with OrthoK, which was up 9% globally. For the broader contact lens industry, we forecast market growth of 5% to 7% this year in constant currency with us taking share. This follows last year where the market grew 7% and CooperVision grew 8%. Factors driving the market remain largely the same, including the ongoing trade-up to dailies, growth in torics and multifocals, growth in wearers, improved pricing, and for us, growth in myopia management. To conclude on CooperVision, we received some questions around our private label business. So let me address those. To start, we have not changed our private label strategy. It is around one-third of our revenues, and it is a core part of our long-range strategic growth plan. A few points to note. Contact lens manufacturers produce lenses using different materials and different lens feeds such as lens thickness, size, and design. So you cannot replace them without patients noticing, especially with torics and multifocal. Also for private label, packaging, label, and distribution is more complex as you need tremendous flexibility within your logistics platforms to meet customer demands. And lastly, our private label portfolio is very diverse with a significant number of long-term contracts tied to a wide variety of brands including at times different brands within the same customer. Moving to Cooper Surgical. We reported revenues of $319 million, up 3% or up 2% organically. This was actually slightly ahead of our internal expectations remembering that we implemented an important IT system upgrade in fiscal 2024 which resulted in buy-in activity in Q1 and shipping disruptions in Q2 of last year. This meant a tough comp for Q1, but it is an easier comp for Q2. We also had strong capital equipment sales in fertility in Q4 of last year, which made for a tough quarter sequentially. Regardless, this was all expected and we remain comfortable with our full-year guidance of 4% to 6% organic growth. Moving to the details. Fertility posted quarterly revenues of $120 million, up 1%. This was an unusual quarter for us in terms of revenue growth but it was due to the unique items I mentioned earlier. The important takeaway is that this was a blip and we expect fertility to return to high single-digit to low double-digit growth for the remainder of the year. During the quarter, we saw strong demand for our leading portfolio of innovative products and services, including within consumables, reproductive genetic testing, and donor activity. Our pipeline of planned equipment installations strengthened nicely during the quarter. We are also continuing to see exciting activity with new innovation, including within our reproductive genetic testing business, where our cutting-edge AI-based testing methodologies are advancing efforts at detecting genetic variations at the DNA level in embryos. Our integration activity from prior acquisitions is driving efficiencies such as the recent consolidation of our donor egg and sperm storage into a centralized location. Regarding the broader fertility industry, the global market continues to expand driven by strong underlying macro growth trends. These include women delaying childbirth, improving access to treatment, increasing patient awareness, increasing benefits coverage, and improving technology. The World Health Organization estimates that one in six people worldwide will experience infertility at some point in their lives due to a variety of health factors, so this is a large industry that offers significant long-term growth potential. As a leader in the space, we remain deeply committed to supporting patients and clinics by delivering innovation, launching new products and services, providing extensive clinical training, expanding geographically, and advancing our R&D efforts. Moving to our office in surgical products and services, we posted sales of $199 million, up 4% or up 2% organically. Per my earlier comments, we had a tough comp in Q1, but expect much stronger performance in Q2, and we are already off to a good start. This performance will continue to be driven by strength in targeted minimally invasive gynecologic surgical devices, such as our Ally uterine manipulator portfolio, and within labor and delivery with products such as Fetal Pillow and our cervical ripening glue. We also saw strength in Q1 from PARAGARD, which grew 12%. Although this was primarily tied to channel fill associated with our new single-handed inserter and a price increase. With that, let me conclude by saying that our focus remains on execution, taking share, driving profitability, and delivering on our strategic priorities, including increasing the availability of innovative products, expanding our state-of-the-art manufacturing capacity, optimizing our technology investments, developing and launching new products, and investing in our people. With that, I will turn the call over to Brian.

Thank you, Al, and good afternoon, everyone. Most of my commentary will be on a non-GAAP basis, so please refer to the earnings release for a reconciliation of GAAP to non-GAAP results. For the first fiscal quarter, consolidated revenues were $965 million, up 4% as reported, up 5% organically. Consolidated gross margin was 68.7%, up from 67.3% driven by efficiency gains. Operating expenses increased 5% to 43.6% of revenues driven largely by commercial and R&D investments, offset by leveraging targeted areas within G&A. From a leverage perspective, we are continuing to see success in several parts of the P&L at both CooperVision and Cooper Surgical as our prior investment activity pays off. This is especially evident in our production and distribution activities, but also in certain support functions. So expect this to continue as we deliver efficiency improvements combining our back-office activity and leveraging technology. Consolidated operating income was up 6.5%, improving the operating margin to 25.1%. On a constant currency basis, operating income grew a healthy 12%. Below operating income, interest expense was $25.3 million. And the effective tax rate was 14.3%. Non-GAAP EPS was $0.92, up 7.4% or up 14.2% excluding FX, with roughly 201 million average shares outstanding. With respect to FX, it was $0.06 negative for the quarter, $0.02 worse than what was included in our original guidance. Free cash flow was $101 million with CapEx of $89 million. Net debt decreased to $2.44 billion, with our bank-defined leverage ratio reducing to 1.91 times. To summarize fiscal Q1, this was a solid quarter and a good start to the year. We met our internal revenue expectations, delivered margin expansion, and took another step forward with free cash flow generation. Moving to fiscal 2025 guidance. We are holding CooperVision's revenue guidance range unchanged at $2.733 to $2.786 billion, up 6.5% to 8.5% organically and holding Cooper Surgical's revenue guidance range unchanged at $1.347 to $1.372 billion, up 4% to 6% organically. On a consolidated basis, this translates to revenues of $4.08 to $4.158 billion, up roughly 6% to 8% organically. We are raising our non-GAAP EPS guidance range slightly by increasing the bottom end to $3.94 to $4.02, up 7% to 9%, 11% to 13% excluding FX. Within this, we expect a very similar P&L to what we highlighted on our last earnings call with strength in gross margins and targeted OpEx leverage delivering solid earnings growth. We expect free cash flow to be in the range of $350 to $400 million and we will continue prioritizing debt reduction with those proceeds. With that, let me conclude by highlighting a few points. Our investment activity over the past several years is yielding positive results. We have emphasized our commitment to reporting improved financial returns and we are delivering on that with efficiency improvements driving higher gross margins, targeted OpEx leverage, double-digit constant currency, operating income growth, and an increase in our EPS guidance. We still have a lot of work to do, but we are on a great trajectory to continue our momentum and we remain laser-focused on strong execution. This includes leveraging our newly deployed IT systems, delivering efficiency from centralizing and harmonizing our organizational structure, including capitalizing on cross-functional back-office efficiency projects, and simplifying and standardizing our processes and procedures to reduce the need for further headcount. Our focus remains on ensuring all our activity produces strong operational success, earnings growth, and improving free cash flow generation. Now, before moving to Q&A, let me make a quick comment on FX. Over the past two days, we have seen the US dollar weaken against most currencies. We did not update our guidance to reflect this move, but if rates hold, it puts us in great shape to reach, if not exceed, the top end of our EPS guidance range. With that, I will hand it back to the operator for questions.

We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you are called upon to ask a question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star one to join the queue. Our first question comes from the line of Jeffrey Johnson with Baird. Your line is open.

Good evening, guys. Can you hear me okay?

Yep. Hey, Jeff.

Hey, guys. So, Al, I wanted to start just on some of your MyDay commentary. You know, our conversations over the last couple of months maybe have suggested that there are actually some markets you do not have MyDay in. I think that is pretty clear that is Japan, but even some more markets beyond that. As you talk about now some of those MyDay manufacturing constraints coming off, I guess I am wondering, are there markets that you have been out of for six, twelve, eighteen months that you could go back into, and it is almost a slam dunk to get some, you know, faster MyDay growth as you go back into those markets. And then I have one follow-up.

Yeah. I can probably answer that one very succinctly by saying yes. You are correct. There is demand out there whether it is countries that we are not in right now that we can reenter or go into, and then there are accounts within a number of those countries that are asking for more product, including within private label that I mentioned, that are asking for more product. And us just getting them more product, increasing availability and getting them more product or putting that product into a country or an account where the demand currently exists, should result in some nice sales growth.

Okay. Any way you could quantify you are out of markets that account for 5% of your global revenue that other lenses are in, anything like that, number one. And then maybe just you know, you do not talk very often about the private label business but since you brought it up, I thought maybe I would push you there just a little bit. You know, on private label, how has that been growing each of the last couple of years relative to your branded business? Faster, slower, about the same? And, you know, given some of the questions that have been raised with RFPs out there on one of your bigger clients right now on the private label side, would you expect that private label business to grow, you know, similar trend line relative to branded as you would seen in the last couple of years or any changes there on a go forward Thank you.

Sure. And MyDay, I will not quantify it other than to say as we are increasing production right now and things are improving and I am seeing product working its way through our channel, it certainly gives me more confidence especially in Q3 and Q4 this year. Right? I mean, we kept our guidance the same for a reason, and we have good reason to hold that guidance where it is based on what we are seeing internally in the topics we just discussed. On private label growth, the last couple of years, it has been growing in line. I would say roughly the same as what our branded business has been growing. We are starting to see or we have started to see a little bit of an acceleration in that part of our market. I would think as I sit here today, if I was a betting man, I would say that our private label business will grow a little bit faster than our branded business, probably for the remainder of this year and it would not surprise me as next year. You know, if customers changed their purchase habits, we have a tendency to see some increases in private label if they are looking for lower cost or bulk purchase opportunities and so forth. So I would think private label actually strengthens a little bit.

And our next question comes from the line of Larry Biegelsen with Wells Fargo. Your line is open.

Hey, Al. Good afternoon. Thanks for taking the question. So, Al, I mean, the question is just asking, you know, Jeff's question maybe it a little bit differently. Maybe just help us understand why your growth was below the peers in the fiscal Q1. You know, maybe you can give us kind of the calendar year growth and maybe you could tell us what January and February did, just a little bit more confidence that you can manage that transition without anything falling through the cracks. And then, sorry for the multipart question, but is it Q3 and Q4 with some of this supply comes online? I mean, how do we think about just a little more color on Q1 you know, relative to your peers and how to think about the acceleration through the rest of the year.

Yeah. You know, we spent some time on our last earnings call and through the quarter kind of talking about how we had a soft start to this quarter. Right? And we do not give quarterly guidance, so we did not quantify that. We did. We had kind of a weak end to last year, last couple weeks, and then our fiscal Q1 started slow. And then it started picking back up, and actually, we had a strong January, and that continued. We had a really good February. So and I am optimistic about how things are moving forward now. I think the market is doing well, and I think we are doing well. I will go back and just kind of confirm comments I made before that we saw some channel inventory reductions that negatively impacted us at the beginning of November. I think we had a couple of competitors running some activity that probably just transferred some inventory holdings in the channel from one party to another party. So to me, whatever. I do not care about that kind of stuff. At the end of the day, when I look at our growth right now in our recent numbers, I am pretty bullish on where things set. I look at the quarterly gating, no reason we are not going to have a good quarter in Q2. I think we will. I think we have got the potential certainly to have better quarters at CooperVision in Q3 and Q4. When I think about the release schedules associated with that MyDay product I am talking about.

That is very helpful, Al. And just one follow-up. The non-hormonal IUD was recently approved which, you know, I know you have been expecting. What is assumed in the guidance for the competition to PARAGARD? And how do you think about the longer-term impact of a new competitor? Thanks for taking the question.

Sure. You know, I think that Perrigo's probably going to be the same as what we said. It will be down a couple percent to up a couple percent this year. We had a good start to the year. We have got some purchase in going with our single-hand inserter that we have in the market right now. But before I get too optimistic on that because there is definitely channel fill there, you know, we want to see end-user demand increase. So for this year though, I would say for this fiscal year, yeah, somewhere in that kind of minus two to plus two, something like that. You know, when I look at the competitive product, you are right. It got approved. I mean, at the end of the day, they have a couple of hurdles that they have to get over, you know, that product is used to make a nitinol, which is the same material that was used in Assur, which anyone who knows our space will remember that product. You know, it is less copper, so it is less efficacious. It has a three-year label compared to our ten-year label. So you know, we will see how it goes. I think we are well-positioned. We have got a great PARAGARD team, so we will see how it plays out.

Our next question comes from the line of Jonathan Block with Stifel. Your line is open.

Thanks, guys. Good evening. Brian, I will throw one your way to kick things off. Just gross margin was solid and certainly above our estimate, and you know, curious to anything to call out regarding the sustainability I think I heard PARAGARD of 12%. You know, I believe that is accretive to corporate gross margins, but would just love to get some color on, you know, your thoughts going forward because of course, everyone wanted the margins and now the reps were light. But the margins were really a standout. So in the quarter that is. So any color you can provide there would be helpful.

Sure, John. Thanks for the question. Yeah. You know, I would say, you know, the story on gross margins is sort of a continuation of what we talked about last quarter. You know, we are as we have been driving higher production in existing buildings, you know, we are seeing yields increase, but when we put those manufacturing lines, those high-volume manufacturing lines in existing buildings, we get better utilization, better allocation of overhead, absorption, you know, that all results in lower cost per unit. So those efficiency gains we were expecting to play out this year and that those efficiency gains will show up in gross margins year over year, probably every quarter this year, resulting in higher gross margins year over year on an as-reported basis versus last year. I would say what happened in Q1 which resulted in maybe higher margins than what you were thinking, also it is just kind of was really tied to product mix and regional mix. As we have talked about in the past, you know, when we have strong America's revenue growth against sort of weaker Asia Pac growth, that results in a lift to gross margins. Then, of course, we had a product mix product mix advantages in Q1 with strong Biofinity sales and you referenced PARAGARD, the strong PARAGARD sales. So that probably gave us a bigger lift than maybe what you were thinking, but I would say, yeah, that the story around gross margins is going to be a good one for this year.

Okay. Great. That was very helpful. Thanks. And then I will shift gears and maybe essentially ask the same question there. Larry and Jeff did, but for the acceleration in CVI for the balance of this year, you know, I heard your comments on Q3, Q4. Those are expected to be strong. You have a pretty tough comp in Q2. So maybe just a little bit more expansion on how to think about that growth in each of the quarters, and then I will throw my other one on here. EMEA, 6% growth this quarter. Slightly lower than kind of the double-digit that you guys have been doing the last couple of years. So just want to understand anything with EMEA specifically in Q1 and how to think about that for the rest of the year? Thanks, guys.

Sure. Yeah. EMEA has been putting out a good growth here for a little while, just fantastic team over there that is killing it. Got to get over there and see them because it has been a little while since I have been there. I should go there and tip my hat to the level of excellence that that team is delivering. But I would not take anything away from the 6%. I think they are going to put up good numbers and they are going to continue to put up they put up good numbers, they are going to continue to put up good numbers. If I look at CooperVision growth through the year, yeah, I mean, Q2 is going to be a fine quarter. It is a tough comp, but going to be a good quarter. Q3, Q4 have potential to have faster organic growth rates. Maybe the only other rental I would mention is, you know, Brian just ended his script kind of talking about the fact that we did not roll in the improvements from improved FX over the last couple of days. That is a benefit, obviously, to earnings if those rates hold. Would also be a benefit to topline, and that would push those benefits would push more on a forward basis, which would positively impact Q3 and Q4 on an as-reported basis.

Next question comes from the line of Brett Fishbin with KeyBanc. Your line is open.

Hey, guys. Thank you very much for fitting in the questions. Just wanted to ask one follow-up on PARAGARD. You know, first time that there has been a new entrance into this market in a really long time. So just curious if you could touch on maybe any changes in strategy you would be considering just given the changing dynamics maybe either around pricing or marketing of the product. Thank you.

Yeah. To me, continue to execute. That is what it is about. We have got a killer team there. They do a great job. They know the product. Extremely well. We went through a relatively length FDA approval process to get our new one-hand inserter or single-hand inserter approved. We are putting that product in the market, making sure everyone knows how to use it and so forth. So to me, it is like, no. You do not need to change. We need to keep executing. We need to keep doing what we are doing. We just had a hell of a Q1. Let us keep our heads down and keep executing and drive end-user unit growth on that because that is ultimately what is going to improve that product's performance.

Yeah. And then I will just ask one more follow-up on the same topic. I think you highlighted a couple of the advantages of PARAGARD versus this product. I think you touched on the efficacy and duration. But it feels like, you know, those are definitely good points. But just thinking about, you know, how it is incorporated into the guidance, it feels like still a pretty tight range. Just given how the product has swung positive and negative at times in the past. Maybe just any thoughts on, like, risk to that guidance and, like, how you will be evaluating that going forward? Thanks again.

Yeah. I think that the key probably to take away on that is we have all this variability by quarter with that product, which is kind of interesting. You know, last year, I think we grew 2% if I remember right. But the 2% came from some pretty dramatic swings up and down. It will not surprise me if that is similar this year where we get some dramatic swings up and down. But at the end of the day, I think when you look back on it on a full-year basis, it is probably somewhere in that kind of tighter range because, really, that is what it is doing. I mean, when I look at the non-hormonal market from a user or a unit perspective, it is really not doing that much. It is down probably from a unit perspective. So you are getting a little bit of price, and at the end of the day, you will get quarterly fluctuations. But the reality is you will have a product that is relatively flat. You know, hopefully, it is up a little bit.

Next question comes from the line of Young Li with Jefferies. Your line is open.

Alright. Great. Thanks for taking my questions. Can you discuss further your private label contract or any high customer concentration or typical length of contract etcetera. And on PARAGARD, what have you seen since the approval of the low copper IUD that you mentioned? And do you expect less than competitive impact due to the nickel energy?

Thank you. Sure. And the private label contracts, I mean, we have a lot of them. And they span in time. Obviously, when you sign them, they are longer and time goes by and they go down, you renegotiate them and extend them. So we have contracts that go out as long as ten years. A lot of contracts that are in the two, three, four, five-year range because both of us are making a commitment on both sides. Right? We are making a commitment to have that product and labeled and produced and so forth and shipped to someone's stores, they are making a commitment around it that they are going to build a brand around it and continue to sell around it. So those are very much partnership type deals, and I would say that there is just a lot of them. It is a very diverse portfolio of products, and it even has multiple brands to the same customer. And numerous examples and different geographic locations and so forth. With PARAGARD, I really do not have too much to add on that. You know, competitive product was approved, and we will see what they do with it. And when they launch it and how they launch it, and they have to go through the full REMS process on that for training. So they will do what they are going to do. In the meantime, we will do what we are going to do on that one.

Our last question comes from the line of David Saxon with Needham and Company. Your line is open.

Great. Hey, guys. Good afternoon. Thanks for choosing me in. Just two quick ones. I guess, first on CVI, I think in the script, you mentioned you realigned the sales force in the myopia management part of the business. So, you know, what drove that move? What is changing? And kind of level of confidence you can manage that transition without anything falling through the cracks. And then my second is just a follow-up on PARAGARD. I think a lot of that growth has been driven by pricing. So with this new launch, kind of, you know, everything about your ability to continue to take price and see that product grow? So much.

Sure. Well, on PARAGARD, that is a fully reimbursed product. IUDs are fully reimbursed. So that is what it is. I mean, we will see how that plays out in time. We are taking a price increase right now. It is kind of an inflationary plus price increase, but I think you will continue to see that. On the sales force, the work that we are doing with respect to Myopia Managed, that work is done. We went ahead and made those moves and adjust to just some of our sales practices there. You remember over the years, I have kind of talked about how we had dedicated salespeople and shifted over to dedicated salespeople and specialists who are able to work on myopia control. And we have just some amazing team there. I am super happy with that. I am super proud of the myopia management specialists that we have in the marketplace and the education they are doing and travel and the work they do to support that product by reorganizing the sales a little bit to put it more in the hands of our traditional sales force that is really strong. That is just going to benefit that product, and we are already seeing some of that play out here. As I mentioned, we saw acceleration as we went through Q1. So that is one of the things that gives me confidence as I think about us reaching that 40% for the full year.

That concludes the question and answer session. I would like to turn the call back over to Albert White for closing remarks.

Thank you. Thank you, operator, and thank you everyone for taking the time to listen to the call today. There is not really too much to add at this point, so looking forward to continuing to execute this quarter, and I am really looking forward to getting on our earnings call here at the end of the quarter.

Thank you. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.