Earnings Call Transcript - INSE Q4 2025

Operator, Operator

Good morning, everyone, and welcome to the Inspired Entertainment Fourth Quarter and Full Year 2025 Conference Call. Please note that today's event is being recorded. Before we begin, please refer to the company's forward-looking statements that appear in the fourth quarter 2025 earnings press release and in the accompanying slide presentation, both of which are available in the Investors section of the company's website at www.inseinc.com. These also apply to today's conference call. Management will be making forward-looking statements within the meaning of the United States securities laws. These statements are based on management's current expectations and beliefs and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in such statements. For a discussion of these risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. During today's call, the company will discuss both GAAP and non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in today's earnings release and slide presentation, which are both available on the website. With that, I would now like to turn the call over to Lorne Weil, the company's Executive Chairman. Mr. Weil, please go ahead.

Lorne Weil, Executive Chairman

Thank you, operator. Good morning, everyone, and thank you for participating in our year-end conference call. As it happens, Brooks and I are doing this call from a major lottery conference in Florida, where there is a lot of buzz about the things we have going on in the lottery space including the amazing cloud-based lottery platform we launched a few weeks ago that you may have read about in the recent press release. We won't have much more to say about lottery today in our prepared remarks, but we're happy to elaborate in the Q&A, and we certainly expect to be talking more about it in the coming quarters. That said, I'll begin the call today with a few introductory remarks concerning the fourth quarter and full year and then hand it over to Brooks to discuss the quarter in detail. Beginning with Slide 3, I think we can look at the quarter as an important milestone in the steady transformation that's been occurring in the company. As we've discussed previously, hopefully not ad nauseam, the transformation continues to be led by the Interactive business, which grew revenue and EBITDA by 53% and 60%, respectively, in the fourth quarter. In a moment, Brooks will discuss the nature of the tremendous resilience we have built into this business, together with the steps we're taking to ensure that at the same time, we continue to drive growth. These kinds of growth rates were mildly interesting a few years ago when we were growing off a base of a couple of million dollars, but on a base upwards of $50 million at present, it's a whole other story, obviously. In our last conference call, we talked about targeting to get our company-wide EBITDA margin into the mid-40s. Our margin for the full year 2025 was 37%. But in the fourth quarter, it reached 42%, a record for any single quarter in our company's history. As noted on the slide, we're comfortable with 2026 EBITDA guidance of $112 million to $118 million, with the midpoint of $115 million, representing low double-digit growth over 2025 if we exclude the divested holiday parks EBITDA. This would put our full year company-wide margin squarely into the mid-40s. And as I'll touch on at the end of the program, we're comfortable that this momentum for the company as a whole will continue through into 2027. While the Interactive business follows its growth trajectory, our equipment businesses are continuing to move in an asset-light direction. And these together are positively impacting free cash flow. As noted in the slide, we expect to be deleveraging through 2026, targeting to be at 2.5x to 3x net leverage by year-end. This will lead in turn to a step down in our interest rate and perhaps other financing options as well. And on that note, I'll turn things over to Brooks.

Brooks Pierce, Chief Executive Officer

Okay. Thanks, Lorne. So, moving to Slide 4, we're gratified to see the results in the fourth quarter justify the key premise that we've been discussing over the course of the year is that the combination of the mix of our business becoming more and more digital and particularly with the strong growth in our Interactive segment and also the disposal of the lower-margin holiday parks business, both the combination of that would drive our EBITDA margins over 40% and our fourth quarter results strongly validate that thesis. Moving to Slide 5. So this slide visually depicts the progress we've made in our mix and its impact on our EBITDA margins, but it goes beyond that. We've made a conscious decision to focus on CapEx-light business. Combining this with our significantly reduced headcount discussed last quarter will prove to materially improve the cash flow of the business on a going-forward basis. We expect these trends to continue throughout 2026, and we're targeting EBITDA margins in the mid-40s with significant improvement in cash flow. Moving to Slide 6. It's important as well to note that our focus is not solely on improving the EBITDA margins and cash flow, but also in growing each of the segments of the business. More than 80% of our revenue is recurring. So along with growth, we need to continue to renew contracts with our key customers, and we are very proud of the long-term relationships we've had with customers like bet365 and Entain and the faith they put in us to continue to innovate our products and enhance player engagement. I've discussed on previous calls the importance I place on getting access to the North American market for our Virtuals business and having the product fully integrated in the sportsbook section of the site rather than in the casino section. I'm excited to announce the successful launch with BetMGM as our first Tier 1 customer to have launched with three sports, including our NFL license game now live in New Jersey and hopefully going live in additional states in the near term. We've had success with BetMGM in Ontario and have worked with their team on this development. And I believe this will be the start of utilizing some of the key licenses we have with the NFL, the NBA and the NHL and getting broader distribution in the North American market. We're in discussions with several other sports betting operators, but BetMGM has the market for themselves for now. Getting this launched in time for the World Cup is ideal, and we believe this will provide a good proof point for other operators. Moving on to Slide 7. So we've now had 10 quarters in a row of more than 40% EBITDA growth in our Interactive segment, and that shows no sign of slowing down. We just had the single highest day and the single highest weekend of GGR in this segment over the last weekend in February. I'm also happy to announce just based on this morning's results that we had the best week we've ever had last week. We're laser-focused on keeping this performance going and are expanding our brands, our unique game mechanics and adding studio capacity that will come online in the second half of the year and increase the output of titles to support this high-growth segment. Alongside this organic growth, we have several opportunities to expand our footprint geographically, and we still believe that it's a matter of when and not if that additional states will legalize iGaming in their states as we've seen with Maine and progress in other larger states like we're seeing in Virginia. Although it's difficult to forecast when this will happen and which states will add this capability, we do believe that it's an underappreciated potential step change for Inspired. The upside is not limited to Interactive either as we are excited to see the growth potential for our North American gaming machine sales with recent changes in Illinois to expand into Chicago. We're now indexing at our highest levels since we went into the market and have strong relationships with key customers like J&J and Accel. We're confident that we'll grow our footprint over the next 12 to 18 months in Illinois substantially and believe that the Illinois model can be replicated in other states. Distributed gaming is in our DNA. It's where content is the key differentiator, and that's what we do best. Moving on to Slide 8. We prepared Slide 8 just to show that our iGaming performance isn't driven by just recent momentum or one-hit wonders. This graph shows how our games produced even earlier than 2022 continue to generate a consistent base of revenue year-over-year. Each year's new games simply build on top of that foundation. So we're not starting from zero every year. We continue to grow and sustain that growth by building on brands and game families that resonate with players as well as unique game mechanics. The key is to continue to innovate and add capacity on top of that foundation. Now moving on to Slide 9. Our proprietary game titles and mechanics create multiple important advantages. Firstly, they build strong brand recognition and loyalty with players. Players know and trust brands like Wolf it Up!, which allows us to do multiple iterations and extensions faster and more cost efficiently. We're using this to expand our hybrid dealer portfolio as well and are looking forward to the release of our Wolf it Up! roulette game to build on the momentum we're seeing in Hybrid Dealer, where turnover is up 51% quarter-over-quarter and 39% increase in customers live. We just went live yesterday with the Flutter brands like Paddy Power and Betfair in the U.K., and we'll be adding both DraftKings and Betfred in the next quarter. These proprietary brands strengthen our relationships with our operator customers. When they know our game families and mechanics will consistently perform well, they place the games in the most desirable positions on their sites and keep them there longer. This benefits everyone in the ecosystem and creates opportunities for us to do creative commercial arrangements with key operators for exclusivity and promotions, a true win-win for all. Moving on to Slide 10. As noted in the past, a few slides and on Slide 10, this is really all about building a scalable and sustainable Interactive business. Typically, adding more games comes at the expense of revenue per title. But as the portfolio grows, performance per game often declines, but that's not the case with our Interactive portfolio. We've been able to expand the number of games while also increasing revenue per title. That's why we've been able to deliver the kind of growth that you've seen in the segment, improving overall digital mix for Inspired and ultimately higher EBITDA margin. And of course, that's why we're adding another high-quality studio to our network. Moving on to Slide 10. So whether it's interactive, whether it's Virtuals or gaming machines, we've consistently stated that content drives everything we do at Inspired. Our recent success in the rollout of the Vantage cabinet to the William Hill estate and our improvement and leading position in Greece which we've maintained for years now, is a testament to not only the content but also leveraging our industrial design to build high-performing cabinets at a fraction of the cost that you would see for a Class III casino floor in North America. And we're proving that we can replicate our success in the U.K. and Greece further in North America with our performance in Illinois as well as our continuing share gain in key PLC markets in Canada. And moving to Slide 12. Finally, Slide 12 gives some of the latest data on the size and scale of iGaming compared to sports betting GGR. In states where they go head-to-head with sports betting, iGaming is more than 3x the size of sports betting. Extrapolating that to other states is a big upside opportunity for us that we don't include in our forecast, but believe that it is inevitable and would be transformative for Inspired as the flow-through margins and cash contribution would be very significant. So, with that, I'll hand it back over to Lorne.

Lorne Weil, Executive Chairman

Thanks, Brooks. That was a terrific deep dive. Before I move into a discussion of guidance, let's take a minute to recap where we ended 2025 on Slide 13. Our EBITDA was $111 million, a little ahead of consensus in both revenue and EBITDA, 11% up over 2024 with an EBITDA margin of 37% of revenue. Our digital business accounted for 51% of EBITDA and leverage was 3.3. Turning now to Slide 14. We see 2026 and 2027 evolving as shown. As mentioned earlier, we're projecting 2026 EBITDA at the midpoint to be low double digits ahead of 2025, excluding the divested holiday parks EBITDA. And from midpoint to midpoint, this growth rate should continue comfortably through 2027. At the same time, we're projecting that our digital business will grow from 51% of EBITDA to more than 60% EBITDA margins will expand to 45% plus and the leverage to be 2.5x approaching 2x. Finally, with reference to Slide 15, I'd like to announce at this time a change in the way we will be reporting going forward, which we think simplifies our story and much more accurately reflects the operating characteristics of the businesses. As we have explained before, our leisure segment until very recently comprised two very different businesses, a server-based machine business focused on pubs, motorway service, bingo halls, et cetera, whose business model is very similar in nature to what we've been calling gaming. And the recently divested holiday parks business that was predominantly an amusement machine business with a very different business model. Now that we have divested holiday parks, we'll be combining gaming and the remaining leisure businesses into one reporting entity to be called Retail Solutions. We think this will reflect our current management structure and make the company more easily understood as well as generate some interesting operating synergies. Now looking at Slide 16. Finally, let's touch on our investment thesis, which is very simple and which is being pretty well validated at this time. The swing in the business mix to higher growth, higher margin, less capital intensity is having the intended result. Revenue is overwhelmingly recurring in nature and growing. EBITDA margins in the 40s and moving higher, capital expenditure showing meaningful decline despite growing revenue and EBITDA and steady declines in leverage and interest expense. And at this point, operator, we're happy to turn the program over to Q&A.

Operator, Operator

Your first question comes from the line of Chad Beynon of Macquarie.

Chad Beynon, Analyst (Macquarie)

Thanks for all the additional commentary in the deck and the guidance, guys. Just wanted to start with U.K. I know last quarter, you talked about how well you navigated the triennial review a couple of years ago. It doesn't appear that any of your partners have really made any changes ahead of the upcoming tax change. But just wondering how that's factored into your guidance, maybe your discussions with them and if you expect any mitigation either by you guys or your partners when that's rolled out?

Brooks Pierce, Chief Executive Officer

Chad, yes, I think we are seeing that. If you go down the laundry list of customers in the U.K., many of them are going to adjust to reflect the increase in taxes. And I think they're also going to adjust their bonusing structures and how they bonus players because of that. With the conversations we've had with them and the target that we've said in terms of what we think the impact of taxes, we feel better about that now than we did even before just because now the operators are certainly going forward and implementing their plans. So we'll know here in a few weeks once it goes in April. And I suspect there'll be some impact in the beginning like there always is, but we expect to be able to mitigate that. And we're comfortable with the impact as we've talked about in the last quarter.

Chad Beynon, Analyst (Macquarie)

Great. And then in terms of the capital allocation strategy across the entire digital sector globally, we've just seen some valuations come down, I think, mainly because of the threat of prediction markets, and it might give you guys an interesting opportunity to either repurchase stock or execute on that bolt-on acquisition that we had talked about in the past on conference calls. I wanted to get your update on that, Lorne and Brooks, how you kind of see the market at these valuations.

Lorne Weil, Executive Chairman

Sure. It's actually a complicated and multifaceted question. Let me comment for a second first on the root of your question, which is about the prediction market. Right now, the overwhelming majority of prediction market handle is on sports. For Kalshi, it gets upwards of 90%. There's a lot of talk about people betting on political events or celebrity outcomes, but the fact is it's almost entirely about sports. What you're seeing in terms of valuations is whether it makes sense or not, it's pretty much focused on people whose business is primarily in the sports business. So we're not only completely insulated from that, but there's actually an interesting case to be made that it will accelerate the growth in iGaming in iGaming states because of the impact on state revenues of the swing in the sports betting handle from the sports betting operators to the prediction markets. We'll have to see how that plays out. But it would be an interesting irony that we would actually benefit from the prediction markets. In terms of the second part of the question, which is the impact on valuation, yes, for sure. At our current valuations, even though for a variety of reasons strategically we're probably more focused on deleveraging than we are on share repurchase, at a certain point in valuations it's too ridiculous to not do everything we can to take advantage of that opportunity. Since we have a pretty good buyback plan in place, and we have significant headroom in our credit agreements to buy back stock, I think it's safe to say that we'll be putting stock valuation in proper perspective in our asset allocation, at least for the present time.

Operator, Operator

Your next question comes from the line of Jordan Bender of Citizens.

Jordan Bender, Analyst (Citizens)

If I compare your targets that you gave a couple of months ago to what you have in the deck today, the '27 targets, even adjusting for the U.K. taxes appears to be better than what you had put out previously. You guys kind of went through the prepared remarks and talked to the digital business and the positive momentum you're seeing there. Can you just kind of help us unpack what you're seeing, if I'm reading this correctly, that your expectations are maybe lifted from what you were seeing before?

Brooks Pierce, Chief Executive Officer

Yes. I guess to answer your question, I'm not sure exactly what the reference is to '27. I know Lorne just mentioned it in the remarks. But we're not seeing anything that would tell us that the momentum is not going to continue. As I mentioned in my remarks, because I just happened to get the numbers this morning, the last week we had was the best week we've ever had. So we're seeing the momentum continue in the Interactive business. We have a number of drivers in the Virtual Sports business staying in the digital space that we think are just about to come upon us. Obviously, the North American launch. Certainly, we've got some opportunities in Brazil that we are pretty excited about. The World Cup coming up here in the next couple of months. So we don't see anything on the horizon that tells us anything other than this momentum is going to continue.

Jordan Bender, Analyst (Citizens)

Okay. Yes. And that was in reference to your EBITDA targets in '27, but that answered that. And then just on the follow-up in the press release, you kind of talked about your iGaming market share in the U.S. improving quarter-on-quarter and the results that led to. Can you just kind of talk to what you're seeing there from a customer perspective and I guess, also a spend perspective from those customers?

Brooks Pierce, Chief Executive Officer

I think we're having an interesting dynamic going on with the big three customers, DraftKings, FanDuel and BetMGM. We talked a little bit about the game mechanics and some titles that we have using this thing that we call cash bank. It's kind of morphed into each one of the big three taking under their wings an individual brand. DraftKings is really strong with Wolf it Up!. FanDuel is really strong with this new Kong game. What's happening is the big three are continuing to grow for us from a share perspective, and we're getting better placement, et cetera. But we're also doing extremely well with companies like Rush Street and Fanatics and so on and so forth. So it really is across the whole board, but I'd say probably the biggest driver in terms of the share gain is our game with the top three operators.

Operator, Operator

Your next question comes from the line of Ryan Sigdahl of Craig-Hallum.

Ryan Sigdahl, Analyst (Craig-Hallum)

I want to stay on the U.K., you mentioned kind of from a tax increase on the digital side and strategy is changing. Curious if you've heard anything from a retail standpoint, if any of your key customers are planning to shift promotions, marketing, et cetera, back to the retail side, just given the balance between online and retail?

Brooks Pierce, Chief Executive Officer

They look at it holistically as we've talked about before, kind of a whole ecosystem. From a margin standpoint they would benefit with some of this business moving to retail from online. The sense we get from the operator customers is that they're trying to mitigate the online tax change as much as possible. Obviously, the more business that flows through the retail channel is better for them from a margin perspective. One of the things we've talked about is some of the shop closures with William Hill. One question people ask is what do you do with those machines that are going to be coming out of the shops? As you know, shop closures are generally on the long end of the tail, so they're the least performing shops. Ironically, a number of these shops are being secured by other independent operators that are also customers of ours. So we've had the ability to take the machines that would be coming out of the William Hill shops and either another operator will buy the shop themselves or they're expanding on their own, and we'll move the machines into that part of the business. I think, obviously, nobody likes to hear anything about shop closures. But at the end of the day, we might actually be better served with the reconfiguration across the portfolio of LBO companies in the U.K. with some of the lower-performing shops going to other operators.

Ryan Sigdahl, Analyst (Craig-Hallum)

Then Virtual Sports. Last quarter, you expected growth year-over-year from a revenue standpoint in Q4 that didn't happen. I'm just curious what changed versus your expectations, but you did see very nice margin expansion. So I guess, is that sustainable? What happened on the top line? What happened on EBITDA? And should we expect kind of that higher level of EBITDA margin to be sustainable going forward? And then maybe last point on Virtual Sports, just the Bet Builder product. I know it's very, very early, I know you have launched it, but curious if you can quantify any kind of uplift what you've seen there and then how you plan to if you do accelerate that pipeline ahead of the World Cup?

Brooks Pierce, Chief Executive Officer

We're racing to get everybody. We announced the contract extensions with Bet365 and Entain, both of which are very big customers of ours, and we've got long-term extensions with them. So we've secured our future in the Virtual Sports business on a going-forward basis. The Bet Builder product has shown modest growth in OPAP, and I don't think there should be an expectation that this is going to be anything more than a high single-digit increase. In the first quarter, we've seen a little bit of softening in the Brazil market in Virtual Sports, which we think is probably a little bit of seasonality and a little bit of a lag pre-World Cup. Virtual Sports has a lot happening that we hope will drive top-line revenue. We are comfortable with the margin expansion that you saw in the fourth quarter. But a big part of that is whether we can get the revenue going in the way that we'd like to see it go. So it's been a little bit of a mixed bag in the first part of the first quarter, but we'll obviously be reporting on that in the near future.

Operator, Operator

Your next question comes from the line of Barry Jonas of Truist Securities.

Barry Jonas, Analyst (Truist Securities)

I wanted to start with the Iran conflict. I think a lot of investors are wondering how we should be thinking about any potential impact to your business, specifically maybe talk about any historical sensitivity to higher oil and gas prices.

Lorne Weil, Executive Chairman

Over the years we've seen a number of gyrations in the energy market, and in my personal experience I haven't seen much of an impact of that on our business. If the price of oil were to go up high enough, long enough that it impacted players' disposable incomes that might show itself in our business. Right now, it's not something that we're focused on. There could be an issue in some businesses of supply chain disruption associated with a situation like this. Our supply chains are in terrific shape right now. We had the memory chip shortage, but we have fixed that. So I think right now I'm cautiously optimistic that we're pretty well insulated from this. But it's a volatile world and anything is possible.

Barry Jonas, Analyst (Truist Securities)

Great. And then just, Lorne, you teased it in the opening remarks, so I'll bite. Can you maybe talk more about the STRATA lottery platform? I think you've been working on this for a while, right, since the Sportech acquisition. So I would love to get your thoughts on the market opportunity and maybe potential time lines given how lengthy RFP processes are usually.

Lorne Weil, Executive Chairman

Yes. We've spent probably 2.5 years developing this. We developed it completely from scratch with a clean sheet of paper. The first lottery system I was involved in developing was back in the '70s when I worked with a company that put in the very first digital lottery system in the world. Then we did it again very successfully at Scientific Games, and now we've done it yet again. We assembled probably the best team of developers in the lottery industry. The system is completely cloud-based. It was designed to be integrated retail and online. It's running flawlessly in a very commercially successful lottery in North America with about 2,500 retailers. This system can scale to millions of retailers if needed. We've had very significant reaction to it in the market. Our focus for the market opportunity is going to be outside the United States, at least for the first few years. These are customers and markets we're very familiar with. The architecture and functionality are geared to those kinds of markets. We're getting significant revenues, a few million dollars a year from the system right now in the Dominican Republic. As we begin to expand throughout the Caribbean and Latin America and probably Europe over the next couple of years, we should start to see significant revenue. That's something that's not factored at all into the guidance that we gave earlier.

Brooks Pierce, Chief Executive Officer

And Barry, just to add one more point. Our focus over the next couple of years is primarily outside the U.S., and that's generally a sales market as opposed to a recurring revenue market. We've had a number of people interested when they've seen the results of what we've done in the Dominican Republic. We're going to start building a pipeline of opportunities that we'll be able to talk about coming up. But it's not like bidding for a big U.S. state. That's a completely different kind of business.

Operator, Operator

And our last question comes from the line of Josh Nichols of B. Riley Securities.

Josh Nichols, Analyst (B. Riley Securities)

Great to see a very strong quarter yet again for the Interactive business. I was just curious, when you look at the north of 50% growth that you're seeing here, what's your expectations in terms of sustainability when you kind of look at the pipeline for '26, '27 to maintain that type of pace of growth? I know the U.K. tax increase may have some impact on margin, but I'm just curious like where you think the trajectory for that type of growth rate is likely to level out over the next 12 months or so?

Brooks Pierce, Chief Executive Officer

That's hard to say. If you had asked me several years ago if we would have more than 10 quarters in a row of more than 40% EBITDA growth in this segment, I would have been surprised. Every time I look at the numbers, I keep wondering if we're going to start hitting a wall, and that doesn't seem to be the case, certainly through as of this morning. In the U.K. in particular, I think the stronger operators and suppliers will tend to thrive in this environment. We're more than 10% share in the U.K., and I fully expect even with the tax situation that we'll be increasing our share because there are providers that don't have enough scale to make it. We're not seeing any indications of slowing yet. Mathematically it's not possible to sustain this forever, but we're seeing nothing that would lead us to believe it will slow down anytime soon, both in North America and in the U.K. We're also adding geographies — we're going into South Africa and other geographies. Our hope is that if there's any softening in the two biggest markets we can fill that gap with new geographies to continue to keep this going.

Lorne Weil, Executive Chairman

Just one other point on that, Josh. You mentioned the impact of the tax on margins. But just to be clear, the way the tax works, it actually shouldn't have any effect on our margins because our revenue is a percent of our customers' GGR. The increase in the tax would reduce our customers' GGR, and thus our revenue, but our margin on the revenue that we get from that customer shouldn't have any impact at all. Obviously, it will impact the revenue, but not the margin.

Josh Nichols, Analyst (B. Riley Securities)

Yes. Thanks for clarifying on that front. I think just one more follow-up. I mean, a pretty big shift you go into a very asset-light model here. The headcount is already down pretty significantly, and we're expecting to see CapEx step down as well. I know it looks like there was some outsized CapEx in 4Q. But is everything now on a more normalized asset-light digital focused basis going forward as we start with 1Q of '26? Or is there a little bit more work to be done to get to some of those targets that you kind of laid out for '26 and '27?

Brooks Pierce, Chief Executive Officer

The targets are solid. The composition is going to be slightly different because one of the things we're doing from a CapEx perspective is replacing terminals related to long-term contracts like the Dominican Republic Lottery. We replaced the system and now over the next couple of years will replace terminals there. I think total CapEx will be as we've laid out. The composition will be slightly different with some investment over the next two years in lottery terminals. Going out to year three and four, we would hope to see a further step down apart from potential expansion opportunities. We feel very good about what we've laid out from a CapEx perspective.

Eric Carrera, Chief Financial Officer

Yes. The only thing I'll add is when you look at our reporting, the CapEx will include all our gross CapEx. In our presentation on Slide 14, we have a cash CapEx number, which we footnoted. It excludes any purchases of PP&E that are customer funded, effectively where we receive the cash upfront. So if you look at it from that perspective, 2025 was about $44 million as opposed to the number in our financial statements which is like upwards of $55 million or $56 million. I just want to make sure you understood that caveat, and we can chat later offline, if not.

Josh Nichols, Analyst (B. Riley Securities)

I think that's good right around $46 million number.

Operator, Operator

That concludes our Q&A session. I'll now turn the conference back over to Mr. Weil, Executive Chairman, for closing remarks.

Lorne Weil, Executive Chairman

Thanks, operator, and I don't really have much more to add to what we said already. As I said in my remarks earlier, I think the fourth quarter was a very important milestone in terms of the transformation or the evolution that we're going through. We feel pretty good that it will continue in that direction into the first quarter of 2026 and through 2026. So thank you for your support, and we'll look forward to speaking to you again in a few months. Thanks.

Operator, Operator

This concludes today's conference call. You may now disconnect.