Nlight, Inc. Q3 FY2025 Earnings Call

Ladies and gentlemen, thank you for joining us and welcome to the Enlite Inc. 3rd quarter 2025 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to John Marchetti, VP, Corporate Development and Investor Relations.

John, please go ahead. Good afternoon, everyone. Thank you for joining us today to discuss Enlight's third quarter 2025 earnings results. I'm John Marchetti, Enlight's VP of Corporate Development and the head of Investor Relations. With me on the call today are Scott Keeney, Enlight's Chairman and CEO, and Joe Corso, Enlight's CFO. Today's discussion will contain forward-looking statements, including financial projections and plans for our business, some of which are beyond our control, including the risks and uncertainties described from time to time in our SEC filings. Our results may differ materially from those projected on today's call, and we undertake no obligation to update publicly any forward-looking statement except as required by law. During the call, we will be discussing certain non-GAAP financial measures. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings release and in our earnings presentation, both of which can be found on the Investor Relations section of our website. I will now turn the call over

to Enlight's Chairman and CEO, Scott Keeney. Thank you, John. Q3 represented another solid quarter of execution for Enlight, with total revenue at the high end of our guidance range, and both gross margin and adjusted EBITDA beating our expectations. Third quarter revenue of $67 million grew 19% year over year and we're once again driven by record aerospace and defense revenue of $46 million with defense product sales growing more than 70% year over year. I am particularly pleased with the expansion of our product gross margin which came in at a record 41% and increased from 29% in the same quarter a year ago. Our adjusted EBITDA was also above our expectations at more than $7 million in the quarter. The expansion in our gross margin and the subsequent growth in our adjusted EBITDA demonstrate the leverage that is inherent in our operating model. In aerospace and defense, we remain focused on two key markets, directed energy and laser sensing. And revenue from both markets outperformed our expectations in the quarter. In directed energy, we are uniquely positioned with our vertically integrated and industry leading high power laser technology developed over the past two decades and spanning the entire technology stack from chips to components to full laser systems and beam directors. All of which are designed and manufactured in the US have generated revenue at nearly every level of vertical integration in the directed energy market. and we have established ourselves as one of the most comprehensive suppliers to the U.S. government, other prime contractors, and foreign allies. During the third quarter, we continue to make solid progress on our Healthy 2 program. As a reminder, this is a $171 million program to develop a 1 megawatt high-energy laser with a completion date expected in 2026. The shipment of critical components towards the Healthy 2 program was a significant driver of our record and defense product revenue in the quarter and is expected to be a substantial contributor to growth through the remainder of the year and into 2026. We continue to transition our latest generation of amplifier products into advanced production by leveraging Enlight's experienced manufacturing teams and implementing quality and control processes. This transition, while not without risk, is progressing well and is critical as we continue to optimize our amplifier production line for higher volumes. Our work on the Army's DEM Short-Range Air Defense program is nearing completion and we look forward to delivering this 50 kilowatt high energy laser and beam director to our partner. Once delivery is completed, the system will begin field testing. Overall interest in U.S. directed energy programs remains high, particularly for counter UAS applications, and we expect new contracts to be awarded in the coming quarters from different agencies as part of the president's golden dome executive order which specifically highlights non-kinetic missile defense capabilities as an area for development with a mandate to build these systems in the united states we believe we are well positioned to benefit from these efforts over the coming years and we are hopeful that the coming quarters will provide additional details on the scope and timing of these initiatives we've also continued to have success in the international markets for directed energy we began shipping to a new international customer last quarter and we have a growing pipeline of new global opportunities as allied nations look to accelerate direct energy programs for cost-effective counter-UAS and other threats. Our laser sensing markets are also performing well. Our laser sensing products include missile guidance, proximity detection, range finding, and countermeasures, and we have been incorporated into several significant and long-running defense programs, all of which are poised to grow in 2026. During the third quarter, we signed a new $50 million contract for an existing long-running missile program that incorporates one of our laser sensing products. Enlight has been a long-term supplier into this program, which our customer expects to remain a key priority associated with the nation's munitions restocking efforts. Our historical performance on these programs and our early success on multiple classified programs has increased both the number of prospects and the size of our sensing pipeline. In addition, further opportunities under Golden Gnome initiatives have emerged and could also become significant contributors to our growth in 2026 and beyond. Commercial revenue was slightly ahead of our expectations at $21.2 million on a sequential increase in microfabrication sales and relatively flat results in our industrial markets. We have been pleased with the stability of our microfabrication markets year to date and have been encouraged by the growth in our advanced manufacturing products, where we see alignment with our aerospace and defense customers, and our technology remains differentiated. Let me now turn the call over to Joe to discuss our third quarter financial results.

Thank you, Scott. Our third quarter results were characterized by another quarter of strong execution. Healthy revenue growth, a favorable mix of business, and continued execution from our manufacturing and operations teams drove meaningful upside to our gross margin. That upside, combined with operating expense discipline, resulted in significant improvement to profitability and cash flow, demonstrating the leverage that is inherent in our model. Total revenue in the third quarter was $66.7 million, an increase of 19% compared to $56.1 million in the third quarter of 2024, and up 8% compared to the second quarter of 2025. 5. Aerospace and defense revenue was a record $45.6 million in the quarter, up 50% year over year and 12% sequentially. A&D growth was driven by record aerospace and defense products revenue, which grew 71% year over year and 32% compared to last quarter. Development revenue of $19.1 million grew 28% year over year as we continue to execute on multiple directed energy programs. The quarter over quarter decline of 8% was the result of several smaller programs having been completed in the prior quarter. We expect A&D revenue to continue to grow sequentially in the fourth quarter. Third quarter revenue from our commercial markets, which includes industrial and microfabrication, was modestly ahead of our expectations at $21.2 million, a decrease of 18% year over year, but up slightly compared to last quarter. Revenue from our microfabrication markets was in line with our expectations at $11.6 million, while revenue of $9.6 million from our industrial markets was slightly better than expected, as an increase in demand for our additive manufacturing products offset continued declines in cutting and welding. While we are pleased with the overall stability that we saw in our commercial markets in the third quarter, we do not believe that the overall demand picture has significantly changed from what we described in prior quarters. Total gross margin in the third quarter was 31.1% compared to 22.4% in the third quarter of 2024 and 29.9% last quarter. Product gross margin in the second quarter was a record 41% compared to 28.8% in the third quarter of 2024 and 38.5% last quarter. Third quarter product gross margin was positively impacted by a favorable customer and product mix driven by record revenue from our A&D markets and an overall increase in volume. Development gross margin was 6.4 percent compared to 4.7 percent in the same quarter a year ago and 13.1 percent last quarter. The sequential decrease in development gross margin was largely the result of some smaller, higher margin programs that finished in the prior quarter and did not contribute to the third quarter results. Going forward, we expect development gross margin to remain in the 8% range. Gap operating expenses were $28.1 million in the third quarter, compared to $24.4 million in the third quarter of 2024, and $22.7 million in the second quarter of 2025. Included in our third quarter gap operating expenses were higher stock-based compensation expenses associated with previously announced performance shares and a restructuring charge of approximately 1.7 million dollars as we further reduced our activities in china and in cutting and welding non-gap operating expenses were 17.5 million dollars in the quarter down from 18.3 million dollars in the third quarter of 2024 and up from 16.8 million dollars last quarter we expect non-gap opex to remain in the 18 million dollar range in the fourth quarter Gap net loss for the third quarter was $6.9 million, or $0.14 per share, compared to a net loss of $10.3 million, or $0.21 per share, in the same quarter a year ago, and a loss of $3.6 million, or $0.07 per share, in the second quarter of 2025. On a non-GAAP basis, net income for the third quarter was $4.3 million, or $0.08 per diluted share, compared to a non-GAAP net loss of $3.7 million, or $0.08 per share in the third quarter of 2024, and non-GAAP net income of $2.9 million, or $0.06 per diluted share last quarter. Adjusted EBITDA for the third quarter was a positive $7.1 million, compared to a loss of approximately $1 million in the same quarter last year and a positive $5.6 million in the second quarter of 2025. We ended the third quarter with total cash, cash equivalents, restricted cash, and investments of $116 million. We generated $5.2 million in cash flow from operations despite continuing to invest in working capital ahead of growth, and we were free cash positive in the quarter. Turning to guidance. Based on the information available today, we expect revenue for the fourth quarter of 2025 to be in the range of $72 million to $78 million. The midpoint of $75 million includes approximately $55 million of products revenue and $20 million of development revenue. We expect sequential growth in A&D in the fourth quarter and we expect full year 2025 A&D revenue growth to exceed our prior outlook for A&D growth of at least 40% year over year. Overall gross margin in the fourth quarter is expected to be in the range of 27% to 32%, with product gross margin in the range of 34% to 39%, and development gross margin of approximately 8%. As we've mentioned previously, as a vertically integrated manufacturing business, gross margin is largely dependent on production volumes and absorption of fixed manufacturing costs. Finally, we expect adjusted EBITDA for the fourth quarter of 2025 to be in the range of $6 million to $11 million. With that, I will turn over the call to operator for questions.

Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Greg Palm with Craig Hallam. Your line is open. Please go ahead.

Hi, good afternoon. Thanks for taking the questions and congrats on the results. I was wondering first if you could just address healthy to, I mean, based on the results, the guide, I mean, is there a chance that you're pulling ahead the completion date here? I know you've talked about completion in 2026, but curious if that timeline has changed at all just based on the volumes that you're able to complete.

hey greg uh scott here uh thanks for the question uh no we're on track is the bottom line um we will announce uh you know progress results when we are able to do so but we're on track for 2026.

yep okay and then as it relates to product uh so you've gotten revenue up quite a bit sequentially, but gross margins down. I know you're coming off of a pretty tough compare, I guess, sequentially when you put up 40 plus percent product gross margins. But just can you give us a little bit more color what's going on? It doesn't sound like mix is going to change all

that much. Yeah, no, Greg, thanks for the question. As we've talked about in the past, you can have some pretty what seemed like are pretty big swings from a gross margin perspective when you're still talking about revenues at the levels that we are at. Really not much in terms of Q3 to Q4 on the gross margin guide. Probably 150 or 200 bps of it is related to actually freight and duties, right? As we've had the higher cost of materials that we're now going to start to feel in Q4. And then the rest is really just mix within each of our end markets. The mix within defense, the mix within commercial can change in any given quarter. And then there's just a handful of other items that as we forecast in any given quarter that But generally speaking, we're pleased that gross margin has expanded and it remains really a function of three things, higher volume, mix, where we are, and then just, you know, overall, overall, how we're levering the factory. So, you know, we're pretty happy with where we were in Q3 and not much to think about for us in Q4. Sure. Okay. All right. Congrats again on progress.

Thank you. Your next question comes from the line of Ruben Roy with Stiefel. Your line is open.

Please go ahead. Hey guys, this is Sed saying on for Ruben Roy. First off, congrats. You know, you guys are past your break-even point, which I think was $55 million to $60 million and turning profitable, so congrats on that. You know, healthy too, I think, if I do the math, is, you said it earlier, $171 million contract with a three-year estimated timeline, you know. So annualized, that's about $57 million ceiling per year, which is about $14 million lower than what you're operating on on a trailing 12-month basis within aerospace and defense products. So two questions there, and then I have a follow-up. Seems like a fixed firm price contract with moves you're making on amplifiers. Can you give us some sense of how much incremental margin benefit you're seeing from that this quarter and expect to see, you know maybe through the course of next year as you as as you're ramping down on that contract and um and the second part to this is you know as that contract ramps down do you see you know sensing tied to golden dome and the classified programs and and maybe international sales more than offset that lc2 contract uh revenue loss uh which i imagine will be probably you know

starting second half 26 okay so there's a lot there so uh help me if i don't if i don't get it all right, I can follow up. I would say on the healthy two contract first, it's a good way to look at it, right? It's $171 million contract, but it's not going to be recognized linearly, right? So it's a firm, it's a, excuse me, it's a cost plus type contract. So it really depends on the type of activities that we are engaged in at any given period of time during that contract. So you shouldn't think about that linearly. Certainly, it is a big driver of the A&D products revenue that we have been generating. And amplifiers are the key component that we are selling into that contract. Now, more generally, as we think about products gross margin expansion, we've really focused on products that enable us to drive incremental gross margins of, you know, meaningfully north of 50%. And so, you know, amplifiers and other products that we are selling are meeting that today. And we expect that to continue to expand. I think the last part of your question, just around the trajectory of Health C2 into 2026, you're absolutely right, right? At some point in the back half of 2026 we'll start to see the revenue that we're generating from healthy to everything around healthy to start to trail off but we've got plenty of other programs both in directed energy and in laser sensing that will make up for that uh reduction in the second half second

half revenue okay thank you uh very helpful and then the second follow the follow-up i have is You know, on DEM Shorad, which I guess is now ramping down, if I'm not wrong, and please correct me if I am, it's an R&D contract, which means it probably sits in advanced development. That said, advanced development seems to be ramping quite nicely also on a trailing 12-month basis. What's driving that growth? And I guess to what degree should we look at that as a leading indicator for future sales on the A&D laser products, as you're mentioning in the 26, 27, let's say?

So you are correct that DEM Shorad is ramping down. So we are at the very end stages of delivering that product to the customer. So that's not really contributing meaningfully at all to revenue this quarter, nor will it contribute to revenue going forward. The advanced development segment of our business includes all of the development revenue that we do, including Health C2 and other programs. And while not all of the programs that we are working on that are classified as advanced development go into what will ultimately end up as programs of record, it is a good indicator that the activities that we have in directed energy and in laser sensing are putting us in a good position so that when those programs do transition or there are new programs where there are opportunities to become program of records that were well positioned to capture them, but you can't draw a line directly from our advanced development revenue to what long-term defense product revenue will be.

Understood. Thank you and congrats again.

Your next question comes from the line of Jim Rikuti from Needham & Co. Your line is open. Please go ahead.

Jim, you may be on mute.

Mr. Rikuti, please use the unmute.

Apologies. So the question I had is just relating to the previous question. If HELSE2 does wind down in the second half of the year, you've talked about a pretty full pipeline. if you when would you have to see new orders come in to be able to offset some of the the hole that we we could see from having completed LC2 in other words is they go do you anticipate orders coming in in the next couple of quarters that would allow you to fill a potential hole related to LC2 in the back half of next year

Jim, based on what we are working on today, the hole is already filled. What is somewhat dependent upon timing of bookings and how quickly we can get to work on a handful of new programs will determine, you know, how much we grow in 2026.

Got it. Could you also maybe just clarify, I just maybe misheard, on the laser sensing contract that you alluded to, is this a follow-on piece of business?

Yes, is the short answer. It's an ongoing program of record that we have been supporting for over

a decade. Okay. So Scott, this basically just extends that. And then one final question. I know all of the questions have been around the A&D business, but it's interesting to see, I guess, what a second quarter of sequential improvement in the microfabrication area, you're characterizing it as stabilizing. What is leading to some of the stabilization? Where's it coming from?

Yeah, it's coming from, certainly in microfabrication, that has always been a business that is difficult for us to predict. It's largely book and ship in the corner, during the quarter. It's a really long tail of customers. And, you know, the last couple of quarters, we've seen some stabilization in that business. So it's difficult to point to, you know, one or even two things that are that are driving that business. But we're pleased to see stabilization there. Similarly, on the industrial side of our business, the quarters, you know, have been, frankly, a little bit better than we had expected, which is, you know, a welcome development for us. But what we'll say is our overall view of the commercial business as we go into 2026 is the same as we've been saying now for a couple of quarters, right? That business, you know, is expected to, you know, again, decline in 2026.

Okay. And just with respect to microfabrication, the seasonality of that business tends to fall off a little bit in Q1. But the levels that we're seeing Q2, Q3, is that a reasonable level moving aside from the seasonality we might see in Q1?

Yeah, Jim, you're absolutely right. That is probably the most seasonal of our businesses. And in the last couple of quarters, we've seen, you know, that, you know, plus or minus 10 million of revenue. you, I think that a good range for us is probably 8 to 12 million. We don't have better visibility than that. And obviously, you know, China micro fab business has, you know, declined precipitously over the last couple of years. And we've seen continued sequential designs, declines in that

business as well. Thank you. Thanks, Jim. Your next question comes from the line of Keith Howson, with North Coast Research, apologies, your line is open.

Great, thank you, appreciate it. And congratulations on a great quarter, guys. I think I heard you guys say the amplifier transition, you know, it continues to progress. I want to guess, is that correct? Once that's complete, you know, how should we see that reflected in results? Would it, you know, make for more efficient and easier recognition of revenue, or is it Is it going to be lower cost or what's going to be the financial statement impact when the transition is complete?

Well, I'm not sure the amplifier transition is not complete per se. I think what is going to be complete is the amplifiers that are delivered into one particular program, which is healthy, too. And that will happen over the course of 2026. Generally speaking, we have a lot of programs into which we are delivering amplifiers domestically. And as we've said the last couple of quarters, there's also opportunities for us that we are working on with a host of allies internationally. So we expect our amplifier business to continue to grow. And so that is one of the reasons that you are starting to see some of the margin expansion is due to the fact that we are selling higher volumes of amplifiers. And at the same time, you know, we're working hard to take what is a really difficult, you know, product that is that is pushing the, you know, the limitations of physics and make it more manufacturable. So I think over time, you're going to see both revenue growth and margin expansion as we start to mature our ability to manufacture those amplifiers.

That's helpful. I appreciate it. Your restructuring charges, you know, in China, cutting and welding, is that more to right size these businesses based on your expectations going forward? Or what's the reason behind that?

Yeah, no, that's exactly what it is, right? I mean, we were operating in Shanghai for a very long time, not an easy transition to move assembly of our lasers from Shanghai to Fabronet and to the U.S. And so there's lots of ongoing support activities that are required to do that. And so you're seeing some of that in that restructuring charge. And then there's also a bit of expectation that the cutting and welding business are going to continue to decline. And so we want to make sure that we are right-sizing our investments for our expectations of those markets going forward.

appreciate it and then i'm not sure this is a true statement or not but is there an opportunity for you guys in the counter drone technology space sure yeah absolutely that's one of the big applications for directed energy okay gotcha gotcha so we're still relatively early innings in that area as well but obviously it gets a lot of press and that we read today correct and and

direct energy goes well beyond counter drones. Yep. Yep. Absolutely. Okay. Thank you guys.

Appreciate it. Thanks Keith. Mind reminder, if you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine to raise your hand and then star six to unmute. We have a follow-up question from Greg Palm with Craig Hallam. Your Your line is open. Please go ahead.

Yeah, thanks. You said something that I thought was pretty important in terms of programs next year that could, you know, offset or that could make up the absence of healthy too. So I just want to make sure we're clear. Are those programs that have been booked or is that still in the pipeline?

Those are programs that have been booked, Greg.

okay um and then i'm just curious uh can you talk a little bit about what you know are those directed energy are those laser sensing and i don't know if i missed it but the two confidential laser sensing programs one of them was supposed to go to lrip uh by the end of this year is that still the case is that has that begun and what's the status of the second one

good uh so let's see your first question is um the um you know the the work for 26 that is key that we're highlighting is in both directed energy and in sensing first uh let's see your second question was around uh yeah the two laser sensing programs that you uh the confidential ones

that we've been talking about for the past, well, multiple quarters?

Yeah, the summary is they're both progressing. I want to be pretty sensitive to the specifics of the timeline, but they're both progressing. It supports the outlook that we're providing generally in the business.

Okay, and then to be clear, going back to my first question, there are programs, these are not the programs that are necessarily supposed to offset. It could help, but there's new additional programs that have been won, but that is going to help offset that lost Health C2 business.

Yeah, Greg, so let me parse it a little bit more finely for you. So there are programs that we are on today that are not Health C2 that we expect to continue to grow. There are new programs that we've won, right, that will plug the hole that we will see as healthy to trails off. Those are both directed energy and laser sensing. And then there are other very high probability of win and go programs that we expect in 2026 that will drive growth in defense beyond what it is today. hopefully that helps yeah okay all right appreciate the car you got it your next

question comes from the line of brian gisweli from raymond james you may need to press star

six to unmute hey great uh thanks a lot for taking my questions guys really nice job on the quarter um i'd like to maybe talk a little bit when i've spent some time in dc the last few weeks And it just seems like there's a lot of opportunities around directed energy. Could you maybe give us a thought on the pipeline, both domestically and globally, and then maybe talk about your capacity? Because it seems like demand is pretty vibrant right now.

Yeah, that's right, Brian. I've spent a lot of time in DC also. And I think there is a lot of new work that's going on. It's a little frustrating, obviously, with the details around the shutdown and on some of the details. But at the senior level, we are seeing very good engagement across all levels, whether it be from the Pentagon to the services and really across the breadth of direct energy from the lower power systems through the higher power systems. So we are seeing, you know, continued progress in the U.S. programs. And that is supported. It's reinforced by also some of the international programs. I think, you know, over the last quarter, we've seen news out of, you know, Israel of the demonstrations of the success of Iron Beam out of the UK. We've seen success out of Dragonfire and there have been other international efforts that both are opportunities for us as we engage internationally, but they also have played a role in reinforcing what's going on in the US. So high level, yeah, direct energy remains a very important area for us, in addition to sensing.

Okay, fantastic. Is there any thoughts on the urgency with some of the things that are happening in Europe? Do you see more rapid adoption there over the next few quarters, particularly with the government shutdown? Or it seems like the domestic market has accelerated a lot when I talk to a lot of the customers and look at some of their demand outlets over the next year or so.

Yeah, I think that's right. And I think in the coming weeks, you'll learn more about the acquisition reform that's being promulgated to address that. So I think we're all eager to see some of that formally launched to change the way that at least the US pursues procurement to more rapidly implement some of these systems. So I think we will see some of that. I think there is urgency around the world, actually, to get the technology implemented in new ways.

Fantastic. Thanks for taking my questions, guys. Thanks, Brian.

Your next question comes from the line of Troy Jensen. Mr. Jensen, please press star six to unmute.

We're not picking you up.

Sorry, guys. Can you hear me?

Yeah. Guide, Troy.

All right. Yeah, sorry about that. Hey, so first of all, congrats to another great, great print for you guys. Just a quick question. I know you're getting lots of questions on the development revenues here, but can you just give us the number of customers that are in your development product line or revenue line?

we're probably working in total on you know a dozen just plus or minus a dozen a dozen programs they're all of obviously you know different sizes and at different periods of time but that's you know a pretty good number okay all right thank you and then um just uh on the

sensing stuff i did as you're going through your prepared remarks scott it kind of felt like you're upticking on that um i'd guess you know most of the strength in a and d over this past year or so has been on the directed energy side, but would that be a true statement? Do you feel like you're upticking or are these contracts just kind of sustaining the strength? On the, on the sensing

side, Troy, you mean? Yeah. Sensing specifically. Yep. Yeah. Uh, yes. I think you read that correctly. I think that, um, you know, direct energy, there's a, there's a greater awareness of, um, the set of applications in direct energy and what's going on. Uh, sensing, it gets a little more challenging to describe how lasers are, I would say, supplementing, augmenting radar and other systems. But that is a very important area and listed as one of the critical technologies by the Pentagon and one that we're very well positioned for.

Awesome. All right, guys. Well, that's all I got. Keep up the good work.

Thank you. Thanks, Troy.

We have a follow-up question from the line of Ruben Roy with Stiefel. Your line is open.

Please go ahead. Hey guys, me again. Just trying to understand, so your comment on how C being an R&D contract makes sense, why it's an advanced dev, and of course it is, you know, my mistake there, but the jump up in revenue really looks like it's coming from your products with an A&D. And I know you guided advanced dev to 25 mil next quarter. So, you know, I'm assuming that's either, I'm assuming that's mostly healthy, but can you maybe talk through the A&D product side and just help us understand what drove this jump this quarter? You know, I think someone asked whether it was government shutdown or, you know, are you expecting this to sort of sequentially improve?

Yeah, we are expecting A&D products to continue to improve. So we sell a variety of products that are booked as in the products segment of our financial statements. Amplifiers that we sell into the Healthy To program, which is a cost plus development program, those amplifiers are reflected in our revenue as product revenue. There are also laser sensing products that are being sold that are A&E product revenue. And so you start to look at that, and that's why you see the growth in the A&E product side of the revenue.

That makes sense. Thank you. That's all I had.

There are no further questions at this time. I will now turn the call back to John Marchetti for closing remarks.

Thanks, everyone, for joining us this afternoon. And as always, thank you for your continued interest in Enlight. We will be participating in a number of conferences over the next several months. So we look forward to speaking with everybody as we continue to go through the quarter. And thank you again for joining us today. This concludes today's call. Thank you

for attending. You may now disconnect.