Establishment Labs Holdings Inc. Q4 FY2025 Earnings Call

Thank you, operator, and thank you, everyone, for joining us. With me today is Peter Caldini, our Chief Executive Officer. Following our prepared remarks, we'll take your questions. Before we begin, I would like to remind you that comments made by management during this call will include forward-looking statements within the meaning of federal securities laws. These include statements on Establishment Labs financial outlook and the company's plans and timing for product development and sales. These forward-looking statements are based on management's current expectations and involve risks and uncertainties. For a discussion of the principal risk factors and uncertainties that may affect our performance or cause actual results to differ materially from these statements. I encourage you to review our most recent annual and quarterly reports on Form 10-K and Form 10-Q as well as other SEC filings, which are available on our website at establishmentlabs.com. I'd also like to remind you that our comments may include certain non-GAAP financial measures with respect to our performance, including but not limited to sales results, which can be stated on a constant currency basis or EBITDA, which we disclosed on an adjusted EBITDA basis. Reconciliations to comparable GAAP financial measures for non-GAAP measures, if available, may be found in today's press release, which is available on our website. The content of this conference call contains time-sensitive information accurate only as of the date of this live broadcast, February 24, 2026. Except as required by law, Established Labs undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call. With that, it's my pleasure to turn the call over to Peter.

Good morning, and thank you all for joining us today. Q4 2025 was another standout quarter for Establishment Labs. Fourth quarter revenue was $64.6 million, an increase of 45.2% versus Q4 2024, including Motiva revenue in the U.S. of $17.3 million. This brings our 2025 total revenue of $211.1 million, an increase of 27.2% over 2024. U.S. Motiva revenue in 2025 was $45.6 million, a number that I’m sure significantly exceeded everyone's expectations. As our business scaled, the operational leverage that we've been talking about is coming into focus. Q4 had us exceeding 70% gross margin for the second consecutive quarter, and our margins will continue to improve. Our fourth quarter net loss from operations was $3.9 million, down 79% from Q4 2024. Our Q4 adjusted EBITDA was positive $5.5 million, up from the negative $13.1 million we reported in Q4 2024. This trend should continue throughout 2026, culminating in our first positive cash flow quarter this year. In 2027, we expect to be cash flow positive for the entire year and our margin should improve for years after that. With this trajectory and our ending cash balance is $75.6 million in 2025, we have no need for additional capital. As noted at the JPMorgan Healthcare Conference, we are profitable not only setting guidance for 2026, but also providing some visibility into 2027. As such, we are giving guidance for 2026 and of $264 million to $266 million, and there may be some upside to these numbers. At a minimum, this is a 25% growth and we believe that in 2027, we will see at least this level of growth as well... ...We established ourselves as the company transforming the industry, materially changing and increasing the conversation about breast aesthetics. The $45.6 million in U.S. revenue and approximate 20% augmentation market share exiting 2025 is something that took the last new entrant almost 10 years to achieve. And we did it in 1. How do we accomplish this? Well, first off, there's been a complete lack of innovation in breast aesthetics for decades. We have had an active R&D pipeline since 2010 which continues today and is unparalleled in the industry. Our R&D investment continues to translate into highly differentiated products that address significant unmet needs in the market. When patients review or hear about the FDA study complication rates for today's commercially available implants, they recognize that Motiva should be part of the decision when selecting both a surgeon and an implant. Plastic surgeons tell us that when patients are presented with different implant options during consultation, 9 out of 10 choose Motiva even at a higher price point. This isn't just about data for them. Patients are gravitating towards Motiva when they compare implants in their hands. When doctors dig into the science and data behind Motiva, they find rigorous scientific literature that details our technologies and why implants are designed to create better patient outcomes. The process of consideration has been amplified and is actively discussed across social media. There is a new era of transparency that has evolved as women share their journey and talk openly about their aesthetic goals and decisions. An estimated 300,000 women get a primary breast augmentation every year in the United States, and it continues to be the #1 aesthetic surgical procedure annually, but it has always been a secret shared quietly... ...Social media has created a new paradigm where aesthetic and beauty secrets have become normalized. We believe that the combination of our innovative products and this new era of transparency is creating meaningful market expansion, and we can already see the start of this trend. It is not just patients that are excited about Motiva. For the first time in a very long time, plastic surgeons have a product and a surgery to talk about. It's new, it's differentiated, and they are taking to social media to talk about it. Their excitement and passion for Motiva and what it means for breast augmentation comes through and patients are responding. We are very thoughtful in how we spend our marketing dollars. And obviously, compared to some of our competitors, our resources are limited. But the marketing value we are receiving from patients and doctors is a competitive advantage and is very difficult to compete with. Our innovation and its reception in the market is driving adoption and plastic surgeons report to us that many patients come in asking for Motiva by name whereas prior to Motiva, they would really ask for a brand. All this has led to one of the fastest product launches in breast aesthetics history... ...The momentum has continued in Q1 of 2026 and with both January and the first 2 weeks of February exceeding our expectations. Since launch in late 2024, we have onboarded over 1,500 accounts, and we continue to sign up new practices every day. January and February are peak conference months for plastic surgeons, and Motiva continues to dominate the podium discussions with surgeons actively seeking us out at these events to learn more and engage with us. It certainly appears our growth curve will continue. In a recent blinded survey of plastic surgeons, 88% said they either use or are interested in trying Motiva with the top reasons including patient-driven demand, an unmatched safety profile, the benefits of SmoothSilk surface and the opportunity for above the muscle placement. In this survey, 75% of surgeons noted they’ve been asked for an implant brand by name and surgeons reported that 93% of the time, that brand was Motiva. Patients actively seeking out Motiva is having a significant impact on account volumes. In that same survey, surgeons with greater than 50% Motiva share in their practices saw year-over-year growth in augmentation volumes that was more than double that of surgeons primarily using another brand. This is important because while many early adopters have moved the majority of their volume to Motiva and are seeing the benefits of this on their practice volumes, the opportunity to grow our share of procedures and accounts remains significant. This is not surprising given how clinic onboarding has ramped up over the year and because many surgeons plan and schedule surgeries months in advance...

Thank you, Peter. Total revenue for the fourth quarter was $64.6 million, an increase of 45.2% from last year. Excluding the positive impact of foreign exchange in the quarter, growth would have been approximately 39.4%. Sales from Motiva in the United States were $17.3 million. On a geographic basis, in the fourth quarter, sales in Europe, Middle East and Africa were 41% of the global total. We saw strong growth in the region overall, including another good quarter in our direct markets where we exceeded 20% as well as good demand from our distribution partners. Sales in the United States were 26.8% of the global total. Latin America was 18% of sales. Brazil remained stable, and we saw good growth in Argentina or other direct market in the region as well as from our distributors... ...Asia Pacific was 14.1% of sales. Results in the quarter reflected the comp in the year ago period where we saw sales to our Chinese distributor as well as the normal ebbs and flows of distributor purchase timing. Gross profit for the fourth quarter was $45.5 million or 70.5% of revenue. This was a 200 basis point increase compared to the 68.5% of revenue last year. Overall, in 2025, our gross profit margin increased 330 basis points compared to 2024, primarily the result of the higher margin sales in the United States. SG&A expenses were $44.0 million and were flat compared to the fourth quarter of 2024. R&D expenses for the third quarter were $5.4 million. Total operating expenses for the fourth quarter were in line with the year ago period at $49.5 million. Adjusted EBITDA was positive $5.5 million in the fourth quarter. This compared to a loss of $13.1 million in the fourth quarter of last year. This is our second consecutive quarter of positive adjusted EBITDA. The $18.6 million improvement year-over-year in adjusted EBITDA was driven by the strong sales and the higher gross profit in the United States... ...But we've also been very focused on managing our operating expenses overall. Over the course of 2025, we grew our U.S. commercial operations, and we launched the second offering in our minimally invasive portfolio. We're able to do this and still generate increasing profitability by finding efficiencies across all parts of the organization and making structural changes when needed. Cash increased $4.9 million in the fourth quarter to $75.6 million. The increase was primarily the result of reduced operating cash use as well as inflows from option exercises. For 2026, our initial revenue guidance is for $264 million to $266 million, an increase of 25.1% to 26% over 2025. We expect our OUS business to grow in the single digits, and the U.S. will exceed 30% of overall sales, which is up from approximately 22% in 2025. Gross margins are expected to increase 200 to 300 basis points. Operating expenses in total are expected to be approximately $195 million to $200 million in 2026. However, as we saw in 2025, there can be some variability in quarterly spending levels based on the timing of expenses. We expect to be adjusted EBITDA positive every quarter in 2026. Cash use will continue to improve over the course of 2026. Our free cash use is expected to be less than half of what it was in 2025, and we expect to reach cash flow positive this year without the need for any further equity raises. Our credit facility will enter the last year of its term in April, and we are considering a number of refinancing options. ...Overall, our financial outlook reflects a significant momentum in our business. The adoption of Motiva in the U.S. is still early with significant room to drive further practice adoption as well as penetration within accounts. Preserve will add to both procedure growth as well as our realized ASPs. Outside the U.S., global demand remains good and our focus on direct markets and our minimally invasive portfolio should lead to another solid year of results. Now on the P&L, gross margins are benefiting from the positive geographic and product mix playing out. Even with continued investments, incremental operating spending over the next few years will be at a rate well below top line growth. This leverage should allow us to achieve cash flow profitability in the second half of the year and is the basis of the meaningful and increasing earnings we expect to see in 2027 and beyond. We continue our work to make ESTA eligible for inclusion in a number of indices including the Russell. Recent updates have increased our confidence that we will be included this year... ...Finally, as Peter mentioned, I'm moving into a new role at Establishment Labs. With the company on a good financial footing, Peter and I have been discussing the best way for us to realize the significant potential we have to create shareholder value. ESTA is in a very unique situation with unmatched innovation and products and a pipeline that even further distances us from our competitors. To realize this, effective execution is the key. The company has grown very organically over the past 20 years and there are a number of areas that have the opportunity to be strengthened. After five years as CFO, I'm looking forward to a new challenge of leading our global strategy. In this new role, I will remain actively engaged in driving our performance, but the day-to-day finance function and CFO role transition to Cassandra Harris, who was selected after an extensive search...

Thank you, Raj. While continuing to invest selectively, we are maintaining an investment pace well below the expected top line growth. We expect to achieve free cash flow positive in 2026 with meaningful earnings beginning in 2027. I'd like to thank the entire organization for a great 2025. This year, we remain focused on disciplined execution and building a global category leader. Operator, we're ready to take your questions.

As a reminder, this conference is being recorded. The first question comes from Josh Jennings with TD Cowen.

Congratulations on a strong end of the year and excited for you, Raj, in your new role. I was hoping to just start on the minimally invasive portfolio. I mean, it seems clear that Preserve and Mia are pulling patients off of the sidelines a couple of years back, I think prior to your tenure Peter, the team had kind of put forward the potential for the minimally invasive portfolio to grow the market and grow breast augmentation procedure volume, maybe even double them. But can you just maybe not going to put that stake back in the ground, but can you just talk about the optimism and the trajectory of the market with minimally invasive offerings from establishment coming through?

Thank you, Josh. What we're observing in the international markets with the minimally invasive platform, based on our early experiences in the U.S., is very encouraging. The advantages of avoiding general anesthesia, having smaller scars, and achieving faster recovery are really appealing to patients. We are noticing this reflected in the market and also in surveys indicating that 14% of patients who opted for breast augmentation were previously unaware of Preserve until they learned about it. This insight speaks to our potential not only to gain market share but also to attract new patients, particularly women, into this category. We are witnessing significant benefits and believe this will become a major driver for our business as we progress through this year and into the next. Our guidance suggests over $30 million in revenue for this year, and we are confident in that estimate. We see this as a significant contributor to our success this year and in the future.

Excellent. Maybe just one follow-up. I appreciate you laying out U.S. revenues being roughly 30%. You are planning on adding reps around 30% higher number. Maybe just talk about where you're pulling these reps from. Are you still taking all-star veterans from the competition in the breast implant sector or the aesthetic sector? And just remind us of how productivity can ramp for these new reps as they come on board over the course of 2026.

Yes. Thanks, Josh. I mean, I think one of the key drivers for our success in the U.S. market is we've been able to put together a best-in-class organization. So if you couple that with what we believe is the best products from a performance and a safety profile and bringing together with the best-in-class organization. And we are very focused on the type of reps that we bring to Establishment Labs. And we are continuing to focus on reps that have significant industry experience that have a very good reputation in the market that have a very strong track record. And I think what's very positive for us is that a lot of these reps see us as very attractive opportunities. And that will continue to be a key driver for us in this year as well as into the future.

So just want to start with one on reconstruction in the U.S. So can you maybe just talk about how you plan to launch into that market? And when you do get the FDA approval, do you need specialized reps? Do you need maybe like a corporate accounts type sales team? And maybe just talk about the importance of hospital contracts there.

Thank you, Mike. As you can see, the reconstruction indication presents a significant opportunity for us, essentially doubling our market potential. We have already made some early inroads with Flora, as we are present in over 200 accounts. As we approach the launch, we will be expanding our sales team, likely employing a mix of hybrid representatives and dedicated representatives focused specifically on larger hospital networks. It's crucial for us to ensure we have the right coverage and sales support to fully harness this opportunity. Given our initial traction with Flora, I anticipate that the ramp-up will be somewhat quicker. Additionally, while we will prioritize specific coverage, we will also utilize our existing sales force.

Okay. Got it. And then the international growth was a fair bit stronger this quarter. So was there any kind of one-offs in there, stocking orders or anything like that? Or is this truly reflective of the underlying procedure growth that you're seeing?

Yes. This year, we made a strategic focus on driving our direct markets and have been successful in achieving growth there. We allocated resources for supply and investment and implemented organizational changes, and you can see the benefits of that. We've experienced 20% growth over the last three quarters. Preserve is also contributing to that growth as we increase the number of accounts. Overall, I would say that demand across all our markets is fairly stable, and as we finished the quarter, there weren't any significant stocking orders typically seen in distributor markets. There are fluctuations, and it's not always a straight line; it can be a bit inconsistent. However, there were no efforts to increase inventory or stocking; it's really based on market demand and our effective execution. Raj can elaborate on the phasing.

No, I think that's fair. As Peter noted, there are always some fluctuations in the distributor markets, particularly based on the timing of orders. However, demand remains very healthy across all regions. The direct markets, which we manage ourselves, are performing very well right now, and we are executing at a high level.

Congrats on a strong year. Congrats, Raj, on the transition and Cassandra welcome to the team if you're on the call. So maybe just maybe around the horn globally. I know the macro has come up quite a bit. It seems a little bit better maybe on a 3-month to 6-month basis here when you think of the regions? And maybe just a quick recap, where do you see the underlying augmentation markets, U.S. and in some of the core OUS markets, thinking of Europe China, Korea? And then I'll have a follow-up question.

Yes, Anthony. The question really pertains to the underlying markets. Generally, the markets appear to be healthy at this moment. In the U.S., we’re experiencing significant growth that surpasses what’s occurring in the overall market. However, we’ve observed a notable increase in interest in breast augmentation procedures, which I believe is largely influenced by our own initiatives, but it does seem like the U.S. market is robust, as confirmed by surgeons who report full surgery schedules and considerable interest. Overall, I would say the U.S. market remains quite strong. Internationally, we are seeing a similar trend. In our distributor markets, we’ve experienced over 20% growth for several quarters, which reflects the positive conditions on the ground and our increasing market share. Additionally, demand in distributor markets appears to be strong. China has been a highlighted market facing some challenges that have required significant management attention. We are dedicating substantial effort to working with that distributor, and we’re beginning to see some positive changes. Overall, I would summarize that the markets continue to be healthy for us, as evidenced by our results.

That's helpful. And then a follow-up would be on just the Establishment Labs mix. When you think of Preserve here coming in and obviously, good feedback, but also reconstruction. Where do you think, I guess, Preserve can be as a percent of total revenues once we get into the sort of '27 to '28 time range, can it eventually be 50% of, let's say, U.S. revenues? And if that's the case, what do you think the tailwind looks like to your gross margin?

Yes. I mean, Anthony, it is early still, right? So Preserve launched essentially a year ago in Brazil, it's February of 2025, right? And the demand we've seen has been very strong. The U.S. globally, there's a lot of interest. It is really, I think, caught the attention of surgeons. It fits into the way that they do surgery. A number of them are saying, why would I do surgery any other way. And so your numbers of getting to 50% are not outside of the realm of possibilities. I mean, I think we could see that kind of penetration. And to your point about what it does to our gross margins, the ASPs we realized for a Preserve case relative to a case that only uses the implant, it's about twice the revenue for us as a company, and they are much higher margins. So it is a tailwind to what you're going to see on the gross margin side if that, combined with the ASPs in the U.S., what's going to happen with recon. It just adds to a number of initiatives that are going to support the gross margins going significantly higher over time.

Maybe I can come back to the U.S. for just a second and Peter, get your thoughts on some of the momentum you called out in the early days of 2026. And then I guess where you think you are along this growth trajectory, is the long-term outlook for share gains still around the same goalposts that you've laid out in the past?

We continue to have very strong momentum going into 2026. There are many opportunities for us to gain market share in our existing accounts as we increase utilization rates and as surgeons manage their schedules. We will also be adding more accounts to our pipeline, which will be significant drivers for us. We are bringing on up to 15 new representatives, and most have already joined. We began this process last year, and close to 10 reps have come on board so far. This will be a key driver for us, along with the launch of Preserve and the strong performance we've seen outside the U.S. This early success is generating considerable excitement in the U.S. market and will continue to drive our growth in 2026. We anticipate getting the smaller sizes approved in the first half of this year, pending FDA approval, and we are confident this will happen. This will mark the beginning of a cycle of innovation, particularly with the Recon indication, which we expect to be a significant driver for us in 2027. We are also focused on ERGO2, enabling us to bring Mia to market. Our goal remains the same: we expect to achieve a dominant market share in the U.S. and are on track to reach that sooner than originally planned due to our strong momentum thus far.

Yes. Sam, if you look at the guidance we've given for the U.S. for it to exceed 30% of our sales, it's almost 1/3 of our sales will be coming from the U.S., if not more. in the second full year. So we've got a lot of momentum in the U.S. is going very, very well.

Following up on the last point, you have many organic opportunities with minimally invasive and Recon. However, looking ahead, are there any gaps in your portfolio that you are considering, or do you have the infrastructure in place to add additional capabilities?

Yes, Sam, it's a good question. And I think it's part of the reason for my transition into this global strategy role is that with the financial performance of the company in a very good spot. There are things like you're describing, business development, go-to-market strategies, the way that we prioritize things in our portfolio of innovation that I can now spend more time focusing on, right, because there are significant opportunities, as you're describing, to continue to expand what we're doing and to really realize the potential of what this company has put into motion.

You touched upon it already in response to some other questions. But I'm just curious about the contribution you're currently factoring into the 2026 guide from some of the pipeline products you have between small sizes and reconstruction. Is reconstruction going to be more of a 2027 story? And how quickly can you really ramp that up once you get the approval since, as you mentioned, you're already seeded in around 200 hospital facilities?

Yes, regarding reconstruction, we expect that to be more of a focus in 2027 and beyond since it is still under FDA review. Our stance remains that the product is approvable and should receive approval soon. However, we need to navigate the process of gaining access to hospitals, which involves working through various committees and securing contracts, and that will take some time. Nevertheless, we have already seen strong interest from hospitals, and we are currently present in several of them. There is significant enthusiasm for getting reconstruction to market and making it available to more surgeons.

Yes, Allen, just to add to that, as Raj highlighted is the Recon, our expectation is that's where we're going to see the impact in 2027. So we're not really considering that for 2026. And also, as you look at Preserve, I think we see a tremendous upside in those numbers. And I think we've been very pleased with the initial response, not only in the U.S. but outside the U.S., and I think that has the opportunity for upside for us in terms of how we drive the business this year.

Got it. And then just a quick follow-up on spend. When we look at 2024, we saw a pretty linear increase in spend to support the U.S. launch this year was a little bit bumpier talking specifically about SG&A, and it sounds like you've already put in a good amount of investment into the U.S. sales force expansion you previously talked about early on in the year. So just any color on the cadence of spending on the operating side throughout the year. Should we expect it to be a little bit more front half weighted and then a little maybe improvement in the back half and then maybe next year we see a little bit of a step up to support reconstruction?

I think your question is a good one. I mean you look at the overall spending for us, we talked about $195 million to $200 million. But if 1x is out noncash expenses and onetime things, that's $175 million, $180 million in cash operating expenses, which compares to a number roughly $160 or so, right? So the increase is well below the $50-plus million of revenue expansion we're going to see this year, right? So we are starting to see the significant leverage in the model playing out, and that's going to continue in '27 and beyond. Even the incremental investment to support the Recon market will be well below the opportunity that represents. And so again, that's another source of leverage for us. As it relates to kind of the timing, it is not linear, right? We do have certain expenses that hit at certain times. The first quarter will actually likely be a little below trend, and it will pick up in the back half of the year. But we're supporting a lot of the U.S. expansion early on and then it will continue to be leveraged over the course of the year. But it's not going to be kind of flat every quarter, as you described. It will be a little up and down with the first quarter, perhaps being a little lower and then picking up in the middle part of the year in the back half.

And congrats on all the new roles to all. As it relates to revenue guidance, anything to call out from a seasonality perspective this year, particularly as you ramp further in the U.S.

So it's a good question, right? Because the U.S., we do expect is going to continue to grow, right? So sequentially, we should be up in the first quarter, modestly, right? It is a quarter where it's usually a down quarter for the market overall, and then you'll see kind of continued step ups every quarter with a very strong finish to the year in the U.S. Again, following normal seasonality. Internationally, it's a bit more normalized because you're not right, growing at the same rate you are in the United States. And so overall, it will be that similar pattern where the first quarter is down. You see a pickup in the second quarter. It's down a little bit in the third quarter, and we see a very strong finish to the year. But you do have the subtlety of what's happening in the U.S. with the very strong growth we're seeing overall.

Great. And then just one more. Just how many of your current accounts in the U.S., would you say are high-volume accounts? And then any color on kind of the average penetration within your accounts?

Yes, it's a good question. I mean, when we started a little over a year ago, we did sign up a lot of high-volume, larger accounts, a lot of interest in the product that's broadened out a bit. The 1,500-plus accounts we have now kind of span the spectrum of where we are. And I would say, while it's hard to get exact numbers on penetration, we're still quite low in a number of markets, and that's based primarily on the timing of when these accounts came on. Right? So account that's been with us for 6 months or less, it's going to be lower than one that's been with us for a year. And so 2026, the story for us is going to be about continuing to expand the number of accounts that we have in the United States but also going quite a bit deeper into all these accounts. And that's what's really going to drive the results. There's a lot of potential there. We're still early in a lot of the customers we signed up over the back half of last year.

Yes, Caitlin, I want to emphasize that this will be a major focus for us in 2026. At the start, our priority is to acquire as many accounts and early adopters as possible. We have seen significant momentum, with Motiva representing the majority of their volume. The next phase is to enhance our market penetration, which is a key focus for us. There are numerous opportunities in this area, and in certain accounts, we are still underdeveloped. This will naturally evolve as these accounts progress through their schedules. As Raj mentioned, this is a crucial driver for our growth this year.

I guess, first, could you just talk about your expectations around China this year? What are you baking in there? Sorry if I missed it. And really, what do you view as kind of the key hurdles to unlocking that market, whether it be in 2026 or 2027 or a future year?

Yes, thanks. As we mentioned in the prepared remarks, and we've really communicated this in the last couple of calls, this is a major focus for us. The start in China regarding the distributor building their commercial capabilities was slower than we would have liked, but we have concentrated a lot of effort in that area concerning their organization, strategy, and targeting different hospitals and pricing. Over the last six months, we have seen significant progress in terms of the sellout. I believe this effort is having a positive impact. Our expectations remain unchanged; this is a very large market, and we expect to achieve the same dominant share in China as we have in the rest of Asia.

Got it. Okay. And with Preserve launching this year, it seems like ASPs should benefit. So I guess, how much of U.S. growth in 2026 do you really see coming from volume versus ASP expansion? Or I guess how do you think about that algorithm, that growth algorithm even moving into 2027?

Yes. I think, Mason, we're still so early in the penetration in the United States that the majority of the growth is going to come from continued unit growth, right, if that's how you described it, right? So continue to take share, procedure volume, that is what's going to drive the revenue. Preserve certainly going to contribute. We're going to launch it here in the first quarter very soon. And it will play out over the course of the year. But for us, it's still primarily about penetration into this market and taking share from the incumbents.

Thank you. That is all the time we have for questions today. I would now turn the call back over to Peter Caldini for closing remarks.

Thank you, operator, and thank you, everybody, for joining the call today. We've made tremendous progress over the last 12 months. I think we're in very good position to really capitalize and I think on a unique opportunity and the strength that we have, especially around our products and pipeline. So very happy with the progress and really appreciate everybody joining the call today, and look forward to talking to everybody in the future. Thank you.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.