3D Systems Corp Q3 FY2025 Earnings Call

Greetings, and welcome to the 3D Systems Third Quarter 2025 Earnings Conference Call and Webcast. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to your host, Monica Gould, Investor Relations for 3D Systems. Please go ahead, Monica.

Thank you. Hello, and welcome to the 3D Systems third quarter 2025 earnings conference call. With me on today's call are Dr. Jeffrey Graves, President and CEO; and Phyllis Nordstrom, Interim CFO. The webcast portion of this call contains a slide presentation that we will refer to during the call. Those following along on the phone who wish to access the slide portion of the presentation may do so on the Investor Relations section of our website. The following discussion and responses to your questions reflect management's views as of today only and will include forward-looking statements as described on this slide. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in our latest press release and our filings with the SEC, including the most recent annual report on Form 10-K and quarterly reports on Form 10-Q. During this call, we will discuss certain non-GAAP financial measures. In our press release and slides accompanying this webcast, you will find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures. Finally, unless otherwise stated, all comparisons in this call will be against our results for the comparable periods of 2024. And with that, I'll turn the call over to our CEO, Jeff Graves, for opening remarks.

Thank you, Monica, and good morning, everyone. I'll begin today with a quick overview of our third quarter results. I'll discuss the overall market before focusing on our strategy and growth initiatives. After that, I'll hand it over to our Interim CFO, Phyllis Nordstrom, who will provide details on the financials for the quarter. Finally, we'll open the call for questions. Let's move to Slide 5. I'll start by reviewing our third quarter results from a high-level perspective. The macro environment for our company and the 3D printing OEMs remains challenging. This is reflected in our third quarter revenue of $91.2 million, a decline of 13.8% year-over-year, which is softer but aligns with our typical seasonality trends. This continued softness can be attributed to our customers' restrained capital expenditure on new production capacity due to uncertainties surrounding tariffs. Consequently, we've made significant adjustments to our cost structure while continuing to invest in core R&D to position the company for long-term growth when market conditions improve. Part of this strategy includes rationalizing noncore assets, such as the recent sale of Oqton and 3DXpert, which was finalized at the end of October. These software platforms, while designed to serve the entire industry, are not proprietary. We believe that transferring these solutions to an independent software developer will help establish them as industry standards, further promoting OEM adoption of additive manufacturing. We anticipate that this sale will have a financial impact of about $1.2 million in revenue and $1 million on gross margin for our fourth quarter, which is included in our guidance for this period. Moving to Slide 6. We are concentrating on our core assets and maintaining strategic investments in metal and polymer printing technology, with a strong focus on R&D activities that will bolster our future growth and profitability. During the quarter, we introduced important new printer platforms based on our expertise in photopolymer jetting technology. Jetting is a specialized 3D printing method that involves the simultaneous deposition of thousands of tiny droplets of photopolymer, cured by ultraviolet light as they are placed onto the build platform. This method allows the simultaneous deposition of multiple materials in a quick yet precise way to create a single structure with varied coloration, geometry, and mechanical properties. It's particularly advantageous where speed, precision, surface finish, and multiple materials are necessary for an application. In the Industrial segment, we unveiled the MJP 300W Plus at the Istanbul Jewelry Show in early October. This latest generation of jetting technology produces highly intricate wax patterns for casting precious metal jewelry, enhancing productivity by 30% and cutting down gold, silver, or platinum waste by 20%. The global jewelry market, while competitive, is quickly evolving into a digital manufacturing arena, where designers can explore custom creativity without compromising cost effectiveness. Our advantage in this expanding market lies in our recognized expertise in jetting technology, the printers, custom wax materials critical for the post-print casting process, and our knowledgeable channel partners who support numerous local jewelry manufacturers worldwide. Customer feedback on our new printing systems has been highly positive, and we have already started receiving orders for this new printer platform, which we expect to grow rapidly in the upcoming quarters given the scale of the global market. While fine jewelry is generally seen as a consumer business, it is deeply rooted in many cultures around the world, driving persistent demand growth. The distinct nature of our wax materials, together with their high usage rates in the casting process, keeps this market appealing for our company. On to Slide 7. In harnessing jetting technology for the dental market, we announced the full commercial launch of our NextDent Jetted Denture Solution for the U.S. market in the third quarter. Our continuous investment in this groundbreaking dental technology has resulted in an exceptional denture product with excellent economics for dental labs across the Americas, Europe, and even Asia. This first-to-market solution for jetted monolithic dentures utilizes multiple materials in a single printing operation, delivering durable, aesthetically pleasing prosthetics to patients. This provides a faster, more cost-effective, and highly scalable alternative to traditional denture manufacturing, ensuring a superior patient experience and a strong return on investment for dental labs supplying these products to local dentists each day. We have already placed these printers with a dozen of the leading U.S. dental labs and the feedback has been outstanding. We are building a backlog for the fourth quarter and are very enthusiastic about this opportunity, which we believe will generate $1 billion in industry revenue across the U.S. and Europe over the next few years as the market shifts towards 3D printing from machining and hand assembly. Given our successful U.S. product launch and the European regulatory approval we’re aiming for by mid-2026, we are actively navigating the regulatory landscape in other markets in Central and South America and Asia, which we expect to follow suit quickly. With our denture solution added to our leading positions in aligner technology and the NextDent dental materials portfolio, dentistry is poised to become one of our largest revenue streams in the future, thanks to the custom nature of the applications and the strict regulatory standards involved. Moving to Slide 8. Another vital focus area for us is the MedTech segment of our healthcare business. For 3D Systems, MedTech includes our historical personalized health services, a small but significant point-of-care business, medical implants, and traditional printer and consumable sales to medical OEMs. While we often cannot discuss the details of our point-of-care initiatives for extended periods, these operations are integrated within top research and specialty hospitals globally, concentrating on innovative applications of our medical 3D printing technology that greatly impact patients and signify where 3D printing can potentially provide the most benefit to patients and healthcare systems in the future. As these applications achieve success, we're well-prepared to secure any necessary regulatory approvals and subsequently introduce them broadly to the market. Despite the fluctuations in growth rates for MedTech from quarter to quarter, especially due to seasonal variations in planned orthopedic procedures, this business is once again on track for double-digit growth this year. To maintain this strong growth, we continue to expand our market-leading position with new applications, materials, and printing technologies, most of which will require regulatory approvals. This not only creates a robust pipeline of new patient applications but also opens new markets for medical 3D printing, particularly in trauma, which is now the fastest-growing segment of our personalized health services business. A primary focus area in MedTech is to accelerate the adoption of our medical-grade PEEK materials. These biocompatible materials closely resemble the properties of native human bones and can be printed quickly and cost-effectively. Significantly, they can complement titanium implants, which are strong and compatible but can block radiation used in imaging or cancer treatment, whereas PEEK materials allow for observation and treatment of the underlying tissue as needed. These printed PEEK materials are currently being utilized in real-world patient applications, such as reconstructing facial and cranial defects or injuries and addressing post-cancer surgical needs as well as trauma cases. An example depicted on Slide 8 shows a porous PEEK implant designed for enhanced bone growth, evident in the x-ray results. In addition to benefiting patients, our technology investments have significantly reduced costs and response times, enabling bone repairs to be completed in hours or days instead of weeks, thereby expanding the types of cases we can handle from planned complex surgeries to rapid responses needed for trauma. We expect this trend to persist in the coming years. Now, let’s move to Slide 9. Along with innovations in printers and materials, we've also recently achieved significant milestones in our Saudi Arabian Growth Initiative. In 2022, we founded the National Additive Manufacturing Innovation Company, or NAMI, through a partnership with the Saudi Arabian Industrial Investments Company. This venture aims to support Saudi Arabia's Vision 2030 program, which seeks to establish a strong local manufacturing base and enable rapid industrialization through the adoption of large-scale 3D printing. 3D Systems is the exclusive supplier of printers and materials, both in polymers and metals, to this joint endeavor, with NAMI offering local application expertise, service, and support for customers. Recently, we proudly announced that the Saudi Electric Company, the largest electricity producer in the Middle East, has signed a strategic investment agreement with NAMI, acquiring a 30% interest in the venture aimed at reducing costs and lead times for high-demand spare parts through local manufacturing capabilities and advanced digital warehousing. This partnership enhances NAMI's strength and fosters collaboration with SEC to develop new workflows that promote the adoption of 3D printing in crucial energy infrastructure and facilitate the creation of a skilled national workforce. Furthermore, the Modern Isotopes Factory, established to meet the increasing demand for radioactive sources in industrial applications, has signed a $26 million framework agreement with NAMI for manufacturing up to 2,000 tungsten core components used in nondestructive testing devices for pipelines and weld inspections. In the vital defense and aerospace sector, Lockheed Martin has also announced a collaboration with NAMI to qualify and utilize additive manufacturing for critical military and aerospace components within Saudi Arabia, using 3D Systems' Direct Metal Printing Technology. Although it has taken time to build the local capabilities needed to support these clients, we are thrilled to witness our efforts start to yield results, which we believe will play an important role in our global growth strategy in high-reliability industrial markets in the coming years. As we head to Slide 10, I'll briefly touch on some additional key market opportunities before turning it over to Phyllis. AI infrastructure, shown on the left side of Slide 10, along with aerospace and defense, highlighted on the right, are two emerging growth sectors that excite me due to the substantial investments being funneled into them. Focusing on AI infrastructure, we participate in three critical areas: semiconductor chip manufacturing, where our 3D metal printing capabilities yield essential components for chip fabrication equipment; data centers, where our ability to 3D print copper-based heat transfer components is increasingly vital for cooling high-intensity computational units; and components utilized in gas turbine engines for producing the electricity that powers these data centers. These markets are starting to attract significant investments worldwide, and we've been preparing key applications for these sectors for many years, anticipating rising demand. Regarding aerospace and defense, as printing technology has advanced and new materials for high-temperature and demanding environments have become available, the applications for 3D printing have rapidly diversified. Our recent initiatives span rocketry, naval applications, human systems, and drones, each demonstrating great potential. Our partners are not only exploring a variety of new applications for our technology but are also encouraging us to support them selectively from the developmental stage through initial component production, particularly for low-volume, challenging parts. We are meticulous in selecting this work to ensure we can transition the customer from limited part supply to full-scale production, either within their facilities or with their chosen suppliers. This unique business model is expected to be highly effective as we strive to expand this aspect of our operations both in the U.S. and in Europe from our locations in Colorado and Leuven, Belgium. With that said, I'll turn the floor over to Phyllis Nordstrom, our Interim CFO. I've enjoyed working alongside Phyllis in various roles over the years, and I'm very pleased she has taken on this critical position during such a challenging time for our industry.

Thank you, Jeff. I appreciate everyone joining us today. I began at 3D Systems in 2021, serving as the Chief People Officer and then Chief Administrative Officer. In early September, I stepped into the role of Interim Chief Financial Officer. My background is in finance and accounting, and throughout my career, I've held a variety of roles within these areas. Most recently, I led audit and risk management teams at MTS Systems and PricewaterhouseCoopers, where I focused on advancing strategic priorities, driving operational excellence and strengthening discipline around risk and controls. Before I begin a review of the third quarter results, I would like to remind you that we completed the divestiture of our Geomagic software business on April 1 of this year. As a result, throughout today's call, we will reference both reported results and adjusted comparisons that exclude our Geomagic business, allowing for an apples-to-apples comparison of our performance across periods. With that, let's begin with a summary of our revenue, which you'll find on Slide 12. Third quarter consolidated revenue was $91.2 million, down 19% year-over-year or 14% when excluding Geomagic. Sequentially, revenue declined modestly, primarily reflecting typical third quarter seasonality and the absence of a Regenerative Medicine milestone that was recognized in the prior quarter. Within our segments, Industrial Solutions revenue of $48 million declined 16% year-over-year or 4.5% excluding Geomagic. These declines were primarily driven by softness in our printers and materials sales in consumer-facing end markets. This was partially offset by continued momentum in aerospace and defense, which grew nearly 50% over the prior year. Healthcare Solutions revenue of $43 million decreased 22% from the prior year, predominantly driven by lower sales within dental, with 2024 representing higher purchase volumes from a specific customer. Outside of our dental business, MedTech delivered solid growth, up 8% from the prior year and slightly ahead of last quarter. Additionally, we continue to see momentum in our PHS business with year-to-date growth of 10% through Q3. Now to Slide 13. For the third quarter, we reported a non-GAAP margin of 33% compared to 38% in the prior year and 34% when adjusted to exclude Geomagic. The year-over-year gross margin decline was modest, primarily driven by lower sales volume and reduced material sales. These impacts were partially offset by reduced inventory reserves compared to the prior year. Gross margin declined sequentially, reflecting the absence of the prior quarter's Regenerative Medicine milestone, as previously discussed, as well as higher manufacturing variances in the period. Turning to Slides 14 and 15. We continue to demonstrate strong cost management in the quarter with non-GAAP operating expenses of $44.7 million, down 24% year-over-year when adjusted to exclude Geomagic and down 4.5% sequentially. This improvement reflects the impact of our cost reduction initiatives, which run through the first half of 2026. Our cost actions are well underway and continue to focus on optimizing our organizational capacity, streamlining our facilities footprint, and reducing expenses across the business. Looking ahead, we expect continued reductions in expenses through the end of the year and are targeting fourth quarter operating expenses to be marginally below the current quarter. To date, we are on track to deliver over $50 million in annualized savings by year-end. As we look ahead to the fourth quarter and the first half of next year, our cost savings initiatives will be closely aligned to the company's strategic priorities for 2026, focusing our investments on the products and markets that offer the greatest opportunity, both for growth and profitability. Turning now to Slide 16 to finalize the P&L. Adjusted EBITDA for the third quarter was negative $10.8 million, an improvement of $3.5 million compared to the prior year. We reported a GAAP net loss of $18 million for the quarter or a GAAP loss per share of $0.14, a meaningful improvement compared to the $1.35 loss per share in the prior year period. The improvement was primarily related to the absence of prior year asset impairment charges, as well as lower amortization expense and lower operating expenses in the current quarter. On a non-GAAP basis, loss per share was $0.08, an improvement from $0.12 in the prior year period. This progress reflects our focus on cost reductions across the business. Turning now to Slide 17 for a review of the balance sheet. We closed the quarter with $114 million in total cash, consisting of $95 million in cash and cash equivalents and $19 million in restricted cash. Total debt net of deferred financing costs was $123 million as of the end of the quarter. Of that total, $35 million is due in the fourth quarter of 2026, with the remaining balance due in 2030. We have successfully reduced cash usage over the past two quarters and expect continued improvement as we execute on our remaining cost savings actions through the first half of next year. As we enter the fourth quarter, my priorities remain focused on completing our cost reduction initiatives while working closely with the business to prioritize key markets, products, services, and investments. These efforts are aimed at delivering meaningful impact, both in the near term and throughout 2026. So with that, we thank you for your time and support of 3D Systems. We'll now open the line for questions.

Our first question today is coming from Troy Jensen from Lake Street Capital Markets.

Could you explain the significant drop in gross margins we observed recently? It seems to have affected both products and services.

Thanks, Troy. I think looking at gross margins quarter-over-quarter, there's really two main components as I highlighted. RegMed, we recognized a milestone under our lung program in the prior quarter. That was about $2 million of that total revenue that dropped down to the bottom line. We also had some manufacturing variances recognized in the quarter, which also had an impact on our margin. I don't think those will repeat going forward, but there was some scrap and some inventory reserves or some slower-moving inventory that we had that we cleaned up this quarter. So looking ahead, you can see that we said gross margin would be flat quarter-over-quarter. Again, Jeff will touch on some of that printer revenue that we're seeing with the new products that will come in next quarter as well.

So Troy, that explains Q3. If you look at going forward, there are offsetting factors. So on the positive side, volume is going up, the launch of our new products, we're selling more product, but it is concentrated in printers right now. Printers faster than materials. So it will be a mix effect going forward, offsetting the volume benefit through the factory. So that's largely it. We have a slight drag continuing on tariffs, but it's relatively constant. It's there. It's relatively constant quarter-by-quarter. That's it. It's pretty simple, pretty simple puts and takes.

All right. Understood. Phyllis, regarding operating expenses, I think I heard you mention that they're down slightly sequentially. Is there still more to be done on cost reduction efforts? I know you had some facility consolidations that were dependent on timing. Ultimately, I'm looking to understand if there's a specific revenue level you believe you need to reach once all these cost cuts are implemented to achieve breakeven.

Troy, I'll start with the first part of your question, and I'll let Jeff handle the second part of your question. The first part of the question, there is still more to go get. We've taken a lot of the organizational capacity actions already. There's still a little bit left to do, but the vast majority of that is behind us. The facilities take a little longer. There's work to do. We've made, I think, significant strides in getting ourselves into a place where the facilities will be ready to be exited that we've identified. It's a timing issue just with the market and ensuring we can get those things closed out. So that will happen, I think, in the first part of next year. In terms of OpEx, you're going to see a continued decline through the first half of 2026. It will be a little bit of puts and takes in terms of timing to achieve our total cost savings objectives here. As far as revenue, I'll let Jeff sort of cover where our OpEx would need to be in terms of revenue outlook. It's something that we're doing right now as part of our 2026 budgeting.

And the frustrating part of what Phyllis just said, Troy, is the timing around facilities. We've exited five or six facilities, and they're on the market now. It's just a matter of timing to get them subleased or have the leases expire. So that will flow through over the next few quarters, we're estimating, but they're all in the market right now. Just look, the other question is, to me, very important is where does OpEx need to be in order to really drive profitability and positive cash flow for the business? It's highly dependent, obviously, on the gross margin that we derive from sales. So it will be sales volume dependent, gross margin dependent. The good thing right now is we are selling a lot of high materials used printers. Our new products are largely focused on those. It's these jetting solutions consume a lot of materials in the markets they serve. The new SLA printers, we have the large SLA printers, the large SLS printer that we go to market with, those consume a lot of materials. So you'll continue to see us innovating on SLA and impacting all those product lines. They pull through a lot of materials. So there's a lag when you first sell the printer on gross margin, but we should see some nice continuous gross margin lift as they pull through materials. So the OpEx, you could argue it to a couple of different levels depending on sales volume for factory efficiencies and the gross margin we derive from those sales. So I'm not giving you a crisp answer. Our original target of $70 million for these rounds of cost takeout we believe in a little bit more normalized environment, but not great environment, but in a little bit more normalized environment through our gross margin estimates, we believe that would get us to positive cash flow and profitability. I still believe that. It's all in all is dependent on the volume and mix that comes with increased sales. Good news is sales are picking up in Q4, as we've guided to, and we all fingers crossed for 2026 if the world continues to improve.

Good luck going forward.

Your next question is coming from Greg Palm from Craig-Hallum.

This is Jackson Schroeder filling in for Greg Palm. I wanted to discuss the recent press release regarding our new partnerships, particularly with Lockheed Martin and some developments in the Middle East. Can you provide more details about that, including the end market in A&D and the specific products you are collaborating on?

Sure. We collaborate with Lockheed Martin globally, and they are a significant defense contractor in the U.S., which makes us very enthusiastic about our business there. Our initiative in Saudi Arabia is particularly interesting because the country is a major consumer of American defense products, which encourages original equipment manufacturers to invest in the Kingdom. This leads them to focus on innovation and local product manufacturing, aligning with the purpose of establishing our joint venture there. While much of the joint venture supports local Saudi infrastructure such as oil, gas, and electricity, defense also sees considerable benefits due to the requirement for global defense manufacturers to invest locally. This is advantageous for us as it fosters development. The specific parts they are interested in relate closely to the products offered in that region, although I cannot go into detail. However, they involve the typical systems associated with Lockheed, including aircraft and missile systems. Their efforts are notably focused and proactive due to these local sourcing obligations. So, we have a strong partnership with an excellent customer, and we are well-positioned to meet their needs. While there are other providers in the U.S. who can also serve them, building these relationships takes time, and proving the technology is a lengthy process. Whether this validation occurs in the U.S., Europe, or Saudi Arabia, it ultimately leads to the same result. Regarding systems and applications, I can't specify anything for any customer, but it involves the usual flight systems you would expect, including the engines and rocket motors that power them.

And then as an off-topic follow-up, maybe I missed this, talking about cash generation for next year. Can you touch more on CapEx expectations for that?

Yes. Our CapEx, we are now able to throttle back on CapEx pretty nicely because we've made some significant investments in past years. And our infrastructure needs don't evolve that quickly. We generally assemble products, we mix materials. They're not highly CapEx-intensive manufacturing processes. So that works in our favor. We have traditionally, if you draw a line through the past, said 4% of sales on CapEx is a good long-term average. But I would tell you over the next couple of years, the number can be meaningfully below that because we've spent pretty heavily in the last several years on building out what we needed in terms of building infrastructure, stuff like that. So 4% is a historic benchmark in a perfect world and everything is growing, that's probably the level to model us at. But for the next couple of years, I would tell you we can get by with substantially less than that, probably less than half of that. We're still putting things together for 2026. But we can get by with substantially less than that because, again, the nature of our manufacturing operations is not very capital intensive.

Our next question today is coming from Alek Valero from Loop Capital Markets.

So my first question is, I saw in the press release that you mentioned that the Dental business is seeing more stability. I wanted to ask what is driving the Dental business to stabilize? And I also wanted to ask on monolithic dentures. I want to see if you could speak to the opportunity there and when we can possibly see it become a meaningful part of revenue.

Yes. You raised two great questions. To start with stabilization in our dental business, we have multiple revenue streams. One of our traditional revenue sources comes from materials for tooth repairs, like NextDent and Vertex. This market has been stable and consistently performs well, as we have long-standing approvals in the U.S. and Europe. On the other hand, the aligner revenue stream is more volatile but still valuable. This market tends to fluctuate, especially in challenging economic conditions, as some consumers perceive these products as luxury items and reduce their spending. There are also varying demographic factors that influence demand, from younger consumers to older ones, and this varies by region—whether in the U.S., Europe, or Asia. We are a leading provider of printing technology and materials in this space, and while we navigate the inherent volatility, we see that the aligner market has recently stabilized after a decline in sales over the past couple of quarters. As a result, we expect revenue in this area to stabilize as well. Regarding dentures, this is a fascinating topic. Currently, most dentures are handmade, which is a labor-intensive process. Patients often don't realize the amount of manual work involved. Traditionally, teeth were either machined or printed, but the finishing touches were still done by hand, and many labs have outsourced this assembly to Asia for cost reasons. However, with advancements in digital dentistry, we can now easily create 3D-printed dentures in a matter of hours instead of days. The quality of these products is impressive, often meeting or exceeding existing standards, and we anticipate that within a year or two, they will be available in a full range of colors and performance features that consumers expect. I am excited about the potential of this technology, as it significantly reduces time and costs in manufacturing while enhancing the patient experience. To tap into a $1 billion market, we will need to secure regulatory approval in Europe, similar to what we have in the U.S., which we hope to achieve by 2026. Additionally, we need dental labs to adopt this new manufacturing process. Although I wish the transition were quicker, the product is gaining traction, and labs that have tried it are pleased with the results. Consequently, we expect to sell more machines as our production rates increase and inventory becomes available. We're also seeking regulatory approval in Central and South America, as many countries there are interested. Each country has its own standards, which can complicate the process, but so far, feedback on the product has been overwhelmingly positive. Though there are some market-specific nuances to address, we are optimistic about future growth in dentistry. Our repair materials will always be necessary for procedures like caps and crowns, and our aligner products are well-accepted, albeit subject to some market volatility in consumer spending. Aligners are a significant application for 3D printing, with over a million made daily, as they are customized for each individual's dental needs. Additionally, we are making strides in other areas like night guards and direct printing of aligners. Overall, dentures represent our key growth initiative, and I am very enthusiastic about our progress and future developments. Thank you for the questions, and I look forward to providing more updates.

I have a quick follow-up if that's okay.

Sure. I'll give you a short answer.

Now I was just going to ask on the denture opportunity, just digging a little deeper. So denture seems to be kind of like a more nondiscretionary product for that, but if and when that initiative turns into revenue, would that become kind of like a more stable part of the dental revenue?

Yes, that's a great question. Aligners are often considered discretionary purchases for many, as numerous individuals have good teeth. However, their applications are broadening to include those who require more than just cosmetic adjustments, such as functional improvements for chewing. Consequently, the market for aligners continues to grow. On the other hand, dentures are essential items for many people, especially in both developed and developing countries; they are often a priority for individuals. With increasing life expectancies and an aging population, the demand for teeth replacement is rising. Our product meets both aesthetic and economic needs in this area, suggesting a more stable and growing revenue stream as manufacturing changes to meet this demand. We are excited about this opportunity and believe dentistry will rival our orthopedic business in becoming one of our largest and most valuable revenue sources moving forward.

We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Jeff for any further or closing comments.

So thank you all for calling this morning. We look forward to updating you again as we wrap up the year and report Q4 and full year results in the springtime. Thanks very much for the call.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.