KINGSWAY Corp Q3 FY2025 Earnings Call

Good day, and welcome to the Kingsway Third Quarter 2025 Earnings Call. Please note, this conference is being recorded. With me on the call are JT Fitzgerald, Chief Executive Officer; and Kent Hansen, Chief Financial Officer. Before we begin, I want to remind everyone that today's conference call may contain forward-looking statements. Forward-looking statements include statements regarding the future, including expected revenue, operating margins, expenses, and future business outlook. Actual results of trends could materially differ from those contemplated by those forward-looking statements. For a discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward-looking statements, please see the risk factors detailed in the company's annual report on Form 10-K and subsequent Forms 10-Q and Form 8-K filed with the Securities and Exchange Commission. Please note also that today's call may include the use of non-GAAP metrics that management utilizes to analyze the company's performance. A reconciliation of such non-GAAP metrics to the most comparable GAAP measures is available in the most recent press release as well as in the company's periodic filings with the SEC. Now I would like to hand the call over to JT Fitzgerald, CEO of Kingsway. JT, please proceed.

Thank you, Morgan. Good afternoon, everyone, and welcome to the Kingsway Earnings Call for Q3 2025. Let me start by saying that to our knowledge, Kingsway is the only publicly traded U.S. company employing the Search Fund model to acquire and build great businesses. We own and operate a diversified collection of high-quality services companies that are asset-light, profitable, growing, and that generate recurring revenue. Our goal is to compound long-term shareholder value on a per-share basis. And we believe our business can scale due to our decentralized management model and our talented team of operator CEOs. We also continue to benefit from significant tax assets that enhance our returns. In short, Kingsway is uniquely positioned to capitalize on the Search Fund model at scale within a tax-efficient public company framework. I'm pleased to report an excellent third quarter for Kingsway. Revenues were up 37% year-over-year, and the company reached an important milestone as our high-growth KSX segment represented the majority of our revenue for the first time. Our KSX segment achieved stellar results with revenue growth of 104% and adjusted EBITDA growth of 90%. Our stable cash-generating Extended Warranty segment also performed well in the quarter, producing top-line growth of 2% with robust cash flow and resilient modified cash EBITDA. While these headline numbers are impressive, there is reason to believe our underlying operating performance may have been even better than the reported figures show. First, in the quarter, there were 2 one-time expenses in our KSX segment that were mostly non-cash and should not repeat. Late last year, a hospital system filed for bankruptcy that was a client of our SNS nurse staffing business. Based on new information received in the quarter, we fully reserved the remaining $325,000 receivable from that client, which ran through our P&L as a non-cash item. In addition, we had roughly $180,000 of mostly non-cash expenses recorded in our Kingsway Skilled Trades segment as we converted recent acquisitions from cash accounting to accrual accounting. Had we excluded these expenses from our adjusted EBITDA calculation, KSX adjusted EBITDA would have been roughly $500,000 higher in the quarter or $3.2 million instead of $2.7 million. Second, we made 4 acquisitions during the quarter with 3 completed mid-quarter. We look forward to having a full quarter of benefit from all of these businesses beginning in Q4. Third, we are seeing tangible business and financial momentum in a number of our operating subsidiaries. Roundhouse and Kingsway Skilled Trades have performed well since day one and are ahead of our underwriting case. Just in the month of September, Roundhouse achieved EBITDA of roughly $500,000, and the Roundhouse team is actively recruiting for open roles to meet strong customer demand. Image Solutions saw EBITDA grow sequentially by $100,000 from Q1 to Q2 and another $150,000 from Q2 to Q3. DDI also saw a notable improvement in EBITDA from Q2 to Q3. The impressive performance at Roundhouse and Kingsway Skilled Trades and the clear evidence that Image Solutions and DDI may be exiting their J-curves provide confidence that organic growth is likely to play an increasingly key role in driving Kingsway's success going forward. In short, we are seeing real business momentum across our portfolio that sets us up well as we go into Q4 and 2026. Turning now to some of the strategic developments in the quarter. On our last earnings call, we discussed our acquisitions of Roundhouse, Advanced Plumbing, and Drain, and the HR team. And we're excited to welcome all 3 to the KSX segment and to the Kingsway family. On August 14, we completed our 12th KSX acquisition with the purchase of Southside Plumbing for a purchase price of $5.625 million, plus a potential earn-out of up to $1.125 million for a total maximum purchase price of $6.75 million. At the time of acquisition, Southside Plumbing's unaudited pro forma annual revenue was $4 million and its unaudited pro forma annual adjusted EBITDA was $900,000. Based in Omaha, Nebraska, Southside Plumbing is a leading provider of commercial and residential plumbing services. This transaction, which was sourced and led by Rob Casper, President of Kingsway Skilled Trades, marks the third addition under our Kingsway Skilled Trades platform in 2025. We believe that Southside Plumbing has significant potential to accelerate growth through expanded marketing efforts and new service lines and to increase the proportion of sales that are recurring or reoccurring given the strong momentum in its service and repair operations. The Southside team has earned an exceptional reputation in its market for quality and service, driving consistently robust growth in its core business. We are thrilled to partner with Josh Gruhn, who is remaining with the company as President and maintaining an economic interest, ensuring an alignment of incentives and continuity of leadership. We look forward to supporting Josh and his team and upholding Southside Plumbing's long-standing legacy of excellence and reliability. Subsequent to quarter end, on October 20, we welcomed Colter Hanson as our newest Operator-in-Residence, or OIR. His combination of military leadership, strategic consulting experience, and a passion for entrepreneurship make him an exceptional fit for our platform. Colter will conduct his search out of Minneapolis, where he intends to pursue an acquisition in the testing, inspection, and certification sector with a focus on the Midwest. Year-to-date, we have now acquired 6 high-quality asset-light services businesses, exceeding our target of 3 to 5 per year. While that range remains an important benchmark, it is worth noting that it serves as a target, not a cap. Our primary objective is to remain disciplined investors, focused on quality opportunities that meet our strict acquisition criteria, and we continue to see a robust pipeline of attractive opportunities. With the addition of Colter, we currently have 3 OIRs actively searching for our next platform acquisitions in addition to our other KSX businesses, which are, in many cases, evaluating potential tuck-ins and inorganic growth opportunities themselves. We are energized by the pace and quality of acquisition activity. Finally, as of quarter end, our trailing 12-month adjusted run rate EBITDA for the businesses we own stands at approximately $20.5 million to $22.5 million. This metric provides a view of how the company would have performed over the last 12 months if Kingsway had owned all our current businesses for that entire time. GAAP results, in contrast, only capture the performance of acquired businesses from their respective close dates onward. We believe this metric is particularly relevant during periods of high M&A activity like the past few years and better reflects the run rate earnings power of our current portfolio of businesses. It's important to call out that in calculating this metric, we are not using modified cash EBITDA for our Extended Warranty businesses. As we have discussed in previous earnings calls, many in the Extended Warranty industry, including our management team here at Kingsway, prefer to use a metric called modified cash EBITDA when assessing and valuing Extended Warranty businesses. This is because under GAAP accounting, growing Extended Warranty businesses often see their EBITDA penalized, while shrinking Extended Warranty businesses often see their EBITDA boosted due to timing differences in how revenue and expenses are recognized. Kingsway's Extended Warranty businesses are in growth mode. Cash sales in our Extended Warranty businesses accelerated from up 9.2% year-over-year in Q2 to up 14.2% year-over-year in Q3. However, due to these timing differences, a gap has opened up between adjusted EBITDA and modified cash EBITDA, which widened further in the third quarter. This can be seen in the company's financial statements where deferred service fees from Extended Warranty are up $2.8 million year-over-year. In addition, hundreds of thousands of dollars of commission expenses associated with issuing new warranty contracts have been booked upfront. Over time, these timing differences will even out and adjusted EBITDA and modified cash EBITDA will converge. We expect the same to occur for Kingsway. Our management team at Kingsway assesses the company's earnings power by looking at adjusted EBITDA for our KSX segment and modified cash EBITDA for our Extended Warranty segment. Using this framework, Kingsway today has the highest earnings power from its operations during my tenure as CEO. It's a remarkable place to be, though in many ways, it feels like we're just getting started in our journey. To conclude, this was an excellent quarter for Kingsway. We grew overall revenue by 37%. Our KSX segment roughly doubled its revenue and adjusted EBITDA relative to last year, and our Extended Warranty segment once again performed well with resilient cash flow and accelerating cash sales. We remain focused on disciplined execution, scaling our KSX portfolio, and supporting our operator CEOs to deliver sustainable long-term growth. With that, I'll turn the call over to Kent for a closer look at our third quarter financial performance. Kent, over to you.

Thank you, JT, and good afternoon, everyone. For the third quarter, consolidated revenue was $37.2 million, an increase of 37% compared to $27.1 million in the prior year. Adjusted consolidated EBITDA was $2.1 million for the 3 months ended September 30, 2025, compared to $3 million in the prior quarter. In our KSX segment, revenue increased by 104% to $19 million in Q3, up from $9.3 million in the same quarter a year ago. Adjusted EBITDA for KSX increased 90% to $2.7 million compared to $1.4 million in the year-ago quarter. Moving to our Extended Warranty segment, revenue increased by 2% to $18.2 million in the quarter, up from $17.8 million in the prior year period. Adjusted EBITDA for Extended Warranty was $800,000 in the current quarter compared to $2.1 million a year ago. As JT discussed earlier, however, the Extended Warranty segment's modified cash EBITDA, a key industry metric that more closely reflects the cash flow dynamics of warranty businesses, was resilient as our Extended Warranty businesses continue to perform well. The improvement in cash sales in our Extended Warranty segment reinforces our confidence that GAAP earnings will recover over time as deferred revenue from our recent cash sales is recognized. Overall, the Extended Warranty segment remains cash generative and well-positioned for continued success. Turning now to the balance sheet and the capital structure. As of September 30, 2025, the company had $9.3 million in cash and cash equivalents, up from $5.5 million at year-end 2024. Total debt was $70.7 million at quarter-end compared to $57.5 million as of December 30, 2024. Our September 30 debt is comprised of $55.8 million in bank loans, $1 million in notes payable, and $13.1 million in subordinated debt. Net debt or debt minus cash at quarter-end was $61.4 million, up from $52 million at year-end 2024. The increase in net debt is primarily related to additional borrowings related to the recent acquisitions of Roundhouse and Southside Plumbing. I'll now turn the call over to JT for a few final thoughts before we open the line for questions. JT?

Thanks, Kent. To close, I'd like to express my thanks and appreciation to Kingsway's employees, partners, and shareholders. We have an amazing team, a wonderful set of operating businesses, and both KSX and Extended Warranty are performing well. This really was an exceptional quarter. The business and financial momentum is tangible, and we are positioned to finish the year strong. I'll now turn the call back over to the operator to open the line for questions. Morgan?

Your first question comes from Mitch Weiman with Sumner Financial.

JT, congrats on a great quarter. So a question for you. With the current environment with all the uncertainty regarding Medicare and reimbursements and everything, how is that going to affect secure nursing and digital diagnostics? Because you hear a lot of anecdotal evidence that hospitals are going to be having some issues going forward here.

Yes, I think we've seen that. Certainly at SNS, we mentioned that customer bankruptcy at the end of last year. I think some of that has to do with the pressure that they're feeling from kind of reimbursement pressure. And so I think it's kind of looking at each one of those businesses independently. If you start with SNS, I think a real focus on the types of hospitals where we're placing nurses, right? So I think that the most sensitive would obviously be where the predominant number of your patients are Medicare, Medicaid. And I think that, that's even more acute in some of the more rural hospital settings. I think we feel pretty good about our hospital mix at SNS in terms of both the payer mix and sort of geography and the type of profile of the people that are coming in and their balance sheets and budgets. And a lot of that stuff is publicly available. I think that these hospitals have to file their financials. And so Charles, when he's thinking about new hospital relationships or existing relationships, is sort of acutely aware of that and checking the financial positions of his hospital customers. So certainly something to monitor. But I think, yes, I think hospitals are under quite a bit of pressure. With DDI, I think these are outpatient rehab and long-term acute care hospitals. I think a little bit less exposure to Medicare and Medicaid and certainly something after the experience at SNS, something that Peter is very focused on as well in terms of customer selection and credit extension, right? So it's something we'll continue to keep an eye on.

Your next question comes from Scott Miller with Greenhaven Road Capital.

JT, congratulations on all the progress. Basically, it seems like the key to this business is buying at reasonable multiples, doing it repeatedly, and then driving organic growth. And the first 2 pieces, you've been buying at reasonable multiples. You've, I think, done 7 deals this year. So the repetition seems plausible. The organic growth, you called it out, I think, in the press release. Can you talk a little bit about kind of the type of organic growth you're seeing, what you think is possible, how it might differ across businesses?

Yes, that's a great question. Organic growth is indeed a vital aspect of our strategy. We aim to grow the cash flows of the businesses we own through organic means and then reinvest that capital into further acquisitions, whether within those businesses or in other areas of our operations. Additionally, attracting talent plays a significant role in our success. Organic growth is central to our approach, which is reflected in our analysis as we pursue acquisitions in industries with favorable long-term trends. We also understand that we are acquiring smaller businesses that require professionalization and adaptation to a public company setting, which involves considerable initial investment in operating expenses. This is necessary to bring in expertise, systems, and technology that will foster organic growth. Often, these businesses operate on tight margins and lack the effective scalability due to insufficient systems, processes, and personnel. Consequently, we enter these situations with the intention of investing in their development, akin to the J-curve concept. This involves bringing in new operators and investing in various aspects such as accounting, HR, and technology to prepare them for growth. As seen with DDI and Image Solutions, they are progressing on this journey and starting to experience accelerated growth. We anticipate similar patterns in all cases. The potential for each individual company varies based on the industry and its underlying dynamics. However, we aim to target high single-digit organic growth potential across all our acquisitions.

Got it. That's very helpful. And can you talk a little bit about Image Solutions and what's driving the progress there? And yes.

Yes, sure. I mean, obviously, Image Solutions had a very steep early J-curve because in addition to all of the things that I talked about, they had to weather a pretty significant hurricane and the disruption to the business across all of Western North Carolina and things. But Davide has done an awesome job. He got in there, got his hands around that, built real trust and support with the team, has added to the team, brought in some exceptional people to really professionalize their IT MSP platform, new technology, etc., and is now investing in sales leadership to drive new accounts, recurring revenue accounts in the IT MSP and get that business growing. And so we kind of got through business disruption, onboarded some great people, built an operating plan, assigned accountability to the various people to execute that plan, and you're starting to see the benefits of that coming through the business now. And so he's sort of exiting his J-curve and in growth mode.

And how big could a business like that be? What is the maximum potential for something like that?

Well, look, I mean, I think that one of the things in each one of these businesses, each also has the potential to be their own grower inorganically as well, right? And so IT MSP, very large industry in North America, growing at high single-digit secular growth rate, but also very fragmented. And so as Davide has gotten through his J-curve, he's been delevering and building cash. And so I think in addition to just organic growth, there will be a potential there to do additional capital allocation things like inorganic growth and buying tuck-ins and really scaling that business. And so I think there's a big opportunity, but we want to do it in a very equity capital-efficient way.

I understand. My final question pertains to the vertical market software. Could you provide some insights into the acquisition you made in that sector? It appeared to be a compelling setup given the limited number of competitors in the industry. It seems you made a smart purchase. Could you elaborate on how that deal came about and your perspective on its future potential?

Yes. So the original acquisition, so it's run by a young guy named Drew, and Drew acquired the business from the widow of the founder, built a relationship with her and we were able to buy a great business with a long history and super loyal customers, mission-critical software kind of operating system of record for their customers, and was able to structure a deal that was attractive for us and attractive for the sellers as well, continuity and continued legacy, etc. And then more recently, he did a small tuck-in acquisition of a small competitor in Australia, which gave him access to that region and some customers. And so Drew is pulling on all of the levers, right? He's improving the application layer and the technology. He has rolled out a couple of significant upgrades to the core software product and is investing in sales and marketing for new customer acquisition to continue to grow ARR. So he's done a really nice job growing that business and ARR and did one small tuck-in acquisition, and he's really focused on sort of the organic execution, but also becoming a solid operator in vertical market software with like a longer-term view that that could be a platform to do other interesting niche VMS acquisitions.

Your next question is a follow-up from Mitch Weiman with Sumner Financial.

Two more quick questions. On the OIRs, with the current infrastructure, what is the ideal number in your mind to have on board searching?

Yes. I mean, I think we're trying to balance being super selective with respect to the attributes and background of the people. And I think we can be. Our ability to support them to run an effective search and our capital constraints to deploy capital, and pacing. So I would suspect that with this kind of talent flywheel that we're building here, as we continue to demonstrate success, we will have access to even more and higher quality OIRs over time. And concurrently, we're building those systems to support more and the cash flow generation of the businesses hopefully will grow and we can deploy even more capital. So right now, we'd like to say 3 to 5 at any given time, but I would expect that we could scale that over time as well.

Okay. And then one last question. On the skilled trades platform, we've made three acquisitions right off the bat. How should we view that moving forward? Can we assume a couple of acquisitions per year? Am I underestimating that?

I don't want to give any guidance on how many acquisitions we're going to do. But I would say, Mitch, I'm not trying to be cute or dodge the question, but I would say in Rob, we have high attribute OIR qualities, coupled with deep industry experience. And so we're comfortable really leaning in and doing acquisitions at maybe a faster pace than we would with an Operator-turned President who's getting up the experience curve. And so I think the pacing is just a little faster there. I think kind of all of those things coupled with what we see as like a really interesting and exciting opportunity set. Yes, I think we'll go a little faster than we otherwise would.

This concludes the audio question-and-answer portion. I'd like to turn the call over to James for further questions.

Thank you, operator, for the e-mailed questions that came in. We'll try to move past ones that may have already been asked. Seeing one that says, can you please discuss how Roundhouse and the plumbing businesses are doing in the first quarter or 2 since acquiring them?

Yes, I mentioned this briefly earlier, but it's still early days. Both businesses are performing well, operating at or above our expectations. We have a talented team in place with Miles and the existing management. We're excited about the combination of Miles and Lee, who has experience in the business and has invested equity. This support helps maintain steady progress without significant setbacks. Regarding Kingsway Skilled Trades, we have an experienced operator who is ready to implement his strategies and benchmarks without any learning curve. So, while it's still early, we are pleased to see performance at or above our original expectations.

Great. And the next one is cash sales are up a lot in Extended Warranty. Can you speak to what is leading to this growth?

Yes. There are three different businesses to discuss. Starting with Trinity, it's experiencing modest growth, particularly stronger growth in its warranty segment. Peter has invested in a new sales team focused on national accounts and vendor-managed services. One of their largest customers, Leslie's Pools, is going through some changes, but despite this customer turnover, Trinity is still achieving modest growth. The team is effectively adding new customers, and the warranty business is performing well. Next is IWS, which focuses on credit unions and has shown impressive performance. There have been six consecutive quarters of growth in cash sales, driven by both increased units and pricing. They are continuously onboarding new credit union partners, which provides more opportunities to sell extended warranties when these credit unions process direct loans. The team has deep industry expertise and is successfully navigating the post-pandemic landscape, having rebounded since mid-2023. Lastly, PWI and Geminus have seen significant growth in the third quarter. After transitioning management at the end of the first quarter, Robbie Humble brought in new talent and revitalized the business with his energy and experience in auto warranties. The business had been declining but turned around quickly after Robbie's arrival, leading to accelerated cash sales growth in the second and third quarters. Overall, these three businesses are contributing to strong sales growth.

Excellent. And the next one is Kingsway has an interesting structure. Why do you think search works in a public vehicle? And what are the advantages versus traditional search?

Okay, I have a two-part question. Why does search operate effectively in a public company? There are a number of public companies that pursue a strategy of acquiring multiple smaller businesses. Our model aligns closely with other programmatic acquirers, focusing on purchasing small businesses at fair valuations that demonstrate sustainable profitability. Combining this model with search is quite compelling. It provides an extended opportunity to redeploy capital effectively. Some of this relates to demographics, but much of it stems from the exceptional talent we have that identifies opportunities, leveraging our Operating Investment Representatives as effective sourcing tools. Additionally, many of these acquisitions led by searchers can evolve into platforms for organic growth, creating a cycle of continuous improvement. I find this approach very persuasive. Programmatic acquisitions have a proven track record, sharing similar foundational principles enhanced by this talent-driven cycle I previously mentioned. Therefore, I’m confident it functions effectively. For the second part, regarding the advantages compared to traditional search, there are key differences when a searcher raises capital from Limited Partners. One of the initial differences relates to trust and track record, which builds significant credibility for an Operating Investment Representative when engaging with potential sellers. This credibility is also valuable when negotiating favorable debt terms with lenders during the acquisition phase. Moreover, this established track record enhances our ability to attract new Operating Investment Representatives to our platform, contributing to talent selection. We complement this with highly effective sourcing tools. While these tools aren't exclusive to public companies, they offer an incubated advantage. In traditional search, you often start from scratch to establish these resources. However, we have a strong sourcing engine and technology framework in place. We also benefit from established due diligence, lending relationships, and legal support that facilitate quicker deals. We take pride in how we assist our operators once they assume leadership roles, providing a supportive structure through the Kingsway Business System, alongside our advisory board and an expanding network of presidents who share experiences and best practices. Finally, the permanence of our capital is a distinct advantage compared to traditional search, as there is no pressure from fund lifespan or liquidity needs. We can hold onto these businesses and compound capital over the long term, which is a significant differentiator in this model.

Excellent. Next one is you mentioned Roundhouse and Kingsway Skilled Trades have performed well since day one and are ahead of budget. What do you attribute that to? And is there a key learning that can be applied to the M&A process going forward?

Yes, absolutely. There are lessons to be learned in every situation. I often derive my insights from failures, but it's important to also learn from successes. To start, I believe it's still early in the process. One of the key advantages of these businesses compared to others we have acquired is that the operators do not need to climb the experience curve. For instance, Rob has experience in this area, allowing him to make an impact from day one without going through a lengthy learning period filled with trial and error. A similar situation applies at Roundhouse, where Lee, the former VP of Operations and President, is staying on to assist Miles, effectively enhancing the operation. This ability to bypass the typical learning curve is significant. While it's not a necessity for ETA or search to succeed and is somewhat uncommon, it certainly provides an advantage. We aim to collaborate with operators who possess in-depth industry experience and a strong rationale for acquiring a business within that sector. As we evaluate potential industries, we are also considering how to align experience with those areas of interest.

Excellent. Next one is if Image Solutions and DDI are exiting their J-curves, how do you manage that positive scenario, let them continue to perform, look for tuck-in M&A, increase the investment for organic expansion?

Yes. They are two completely different businesses. I discussed Image Solutions with Scott. As Image Solutions moves through its J-curve and begins to exit, the company has been reducing debt and accumulating cash. They operate in a fragmented market, and I expect a significant part of the narrative in the upcoming quarters will involve opportunities for small acquisitions, driven by industry dynamics. DDI, on the other hand, is distinct. Its J-curve revolves around a high-growth business that required stabilization and professionalization before investing in sales and marketing for organic growth. It stands out in its industry with a large addressable market that has hardly been tapped. Unlike Image Solutions, it's not fragmented; it's unique, and there is substantial potential for organic growth. The focus of the J-curve was to stabilize, professionalize, and prepare for scaling.

Great. And I see just 2 more. The first one is, can you speak to the testing, inspection, and certification sector that Colter will be pursuing? Any market sizing and dynamics that you can share? And in success, do you envision that being a platform or non-platform-based strategy?

Yes. So TIC, large and fragmented with a long tail, probably growing mid- to high single digits as an industry, lots of little niches in subsectors. And that growth is supported by really nice secular trends, aging infrastructure, regulation. And then there's an element of criticality. These are mission-critical, nondiscretionary testing inspection certification requirements that are often required by law or insurance. And it's also like a small thing into a big thing, right? Low cost of the service relative to high consequence of failure of the asset. And so that is all a very nice setup. And I think certainly, the industry has the hallmarks for this for anything that we do there to be a platform. But ultimately, it would depend on the target we identify and the niche that it's in. I think we go into these things being open to the idea that they become platforms, but you need the operator to find the right opportunity, build the operating muscle, and then delever a bit so that we can be equity capital efficient and then explore that. But yes, I think we would be open to it.

Excellent. And the last one is related, and you may have just answered it, is how do you view KSX's search strategy moving ahead to pursue more aggressively platform opportunities or non-platform opportunities? Or do you even view them all as platforms?

Yes. I mean, I think with the exception of KST, which we went in with a very specific thesis around platform and pacing of acquisitions, we have always looked first at the industry dynamics and the business quality, right, to buy a great business, but also with the view that they could become platforms to do inorganic growth. And so if you look at what we've done at vertical market software, we've done a tuck-in acquisition there and the potential to do more. IT MSP, as we've talked about with Image Solutions, has the potential to be a platform. And then Timi, obviously, with outsourced accounting and HR, has done a couple of tuck-in acquisitions, and then there's an opportunity there. So coming all the way back, like first underwrite to like great industry dynamics and a great business with the optionality of it becoming a platform over time.

Excellent. I don't see any more questions. JT, I'll throw it back to you.

All right, James. Thank you. Well, thanks, everyone. I really appreciate it. Great third quarter, and I appreciate you being with us here this afternoon and this evening. That's it for me.

This concludes today's call. Thank you for attending. You may now disconnect, and have a wonderful rest of your day.