Good afternoon, everyone, and thank you for standing by. My name is Nicole, and I will be your conference operator today. Today's call is being recorded. I would like to welcome everyone to Nextracker's Second Quarter Fiscal Year 2026 Earnings Call. At this time, for opening remarks, I would like to pass the call over to Ms. Sarah Lee, Head of Investor Relations. Sarah, you may begin.

Thank you, and good afternoon, everyone. Welcome to Nextracker's Second Quarter Fiscal Year 2026 Earnings Call. I'm Sarah Lee, Nextracker's Head of Investor Relations, and I'm joined by Dan Shugar, our CEO and Founder; Howard Wenger, our President; and Chuck Boynton, our CFO. As a reminder, there will be a replay of this call posted on the IR website along with the earnings press release and shareholder letter. Today's call contains statements regarding our business, financial performance and operations, including our business and our industry that may be considered forward-looking statements. In such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations. Those statements are based on current beliefs, assumptions and expectations and speak only as of the current date. For more information on those risks and uncertainties, please review our earnings press release, shareholder letter and our SEC filings, including our most recently filed quarterly report Form 10-Q and annual report on Form 10-K which are available on our IR website at investors.nextracker.com. This information is subject to change, and we undertake no obligation to update any forward-looking statements as a result of new information, future events or changes in our expectations. Please note, we will provide GAAP and non-GAAP measures on today's call. The full non-GAAP to GAAP reconciliations can be found in the appendix to the press release and the shareholder letter as well as the financial section of the IR website. And now I'll turn the call over to our CEO and Founder. Dan?

Good afternoon, and thank you for joining us. We're very pleased to report another quarter of strong execution. Before we cover the company's performance, I'd like to remind everyone we will be hosting our inaugural Capital Markets Day at our headquarters in Fremont on November 12. We look forward to welcoming many of you as we explain the details of our long-term strategy, platform expansion, and growth opportunities. Given that, after Howard, Chuck, and I provide our prepared remarks on the quarter, we will hold a more limited Q&A today. Now turning to our performance. We delivered yet another solid quarter, reflecting the team's continued focus on innovation, long-term customer partnerships, and execution. In Q2, revenue grew 42% year-over-year to $905 million, and adjusted EBITDA increased 29% to $224 million. For the first half of fiscal 2026, revenue was up 31% year-over-year to $1.77 billion, a record first half for the company. Over the past year, we've significantly expanded our technology platform from foundations and electrical balance of systems solutions to AI and robotics, and our suite of complementary products and services is gaining traction. Last week, we announced a multiyear agreement with a leading U.S. solar panel manufacturer for multigigawatt volumes of our advanced module frame technology, a deal valued at over $75 million. This agreement provides tangible value to customers. It significantly increases domestic content of solar panels, which supports eligibility for tax credits. Our advanced frame technology also improves durability of solar panels for more reliable, long-term performance for owners and can facilitate faster installation during the construction phase. We also launched NX PowerMerge in September, our new electrical balance of system trunk bus product and achieved record eBOS bookings in Q2 and the highest quarterly sales in Bentek's 40-year history. We saw other products gaining traction as well. We booked our first fully integrated NX Earth Trust Foundation, which reduced parts count over an order of magnitude. And we saw strong adoption of our NX Vantage Fire Identification System, which employs AI-based visual analysis. Together, these product lines broaden the capability of our platform, connecting the tracker, electrical, and digital systems into one cohesive solution that maximizes project value for our customers and enables us to capture increased wallet share. We are scaling these innovations across our high-volume tracker footprint with over 150 gigawatts shipped to date, translating measured R&D and M&A investments into meaningful revenue and profit. Internationally, we continue to expand our market presence and partnerships. Today, we announced we entered into an agreement to form Nextracker Arabia, a joint venture with Abunayyan Holding, expanding our manufacturing footprint and commercial presence across the Middle East and North Africa. Nextracker has a strong legacy of reliable performance in Saudi Arabia, starting with KSA's first utility-scale installation, the 405-megawatt Sakaka solar park where our system has demonstrated exemplary reliability. The JV will localize production, strengthen regional supply chains, and advance Saudi Arabia's clean energy goals under Vision 2030. Looking at the broader picture, we continue to benefit from powerful structural tailwinds, including increasing electricity demand, a flight to quality, and very solid long-term customer relationships. Our strategy is clear. Through a combination of internal innovation, targeted acquisitions, and world-class operational execution, we're building a compelling integrated technology platform that delivers the lowest cost, most reliable solutions to meet our customers' needs. Chuck will walk through our updated FY '26 outlook shortly, but we're confident in our ability to deliver sustained profitability and cash generation while scaling our platform globally. And finally, before turning the call over to Howard to review some of the highlights from the quarter, I want to thank our customers for their continued partnership and trust and our employees for their passion in driving innovation and customer satisfaction.

Thanks, Dan. We continue to see strong global demand for our products and services, growing backlog to over $5 billion at quarter end. It has been gratifying to see continued sales gains and customer traction with our emerging solar technology platform. In Q2, we had record bookings for eBOS and foundations, a record number of new customers and contracts added for robotic inspection and fire detection services, and we recently announced a new multiyear agreement for advanced module frames. The speed of adoption of these additional products and services is very encouraging and a testament to our market footprint and capability to scale quickly. We also had record quarterly bookings for TrueCapture and our Navigator control system, underscoring the value and energy yield enhancement and plant performance and control. Our strategy is to build a cohesive platform by harmonizing these new products and services with our industry-leading NX Horizon-XTR system. This approach will deliver superior economics and reliability, improved installation efficiency, and excellent customer experience. In fact, we are seeing many project orders now with multiple Nextracker products and services, not just the tracker. At Capital Markets Day, we will go into the details of our solar technology platform. Now let's move to regional demand. In the U.S., bookings and revenue were up significantly year-over-year with revenue up 49%. We have benefited from a flight to quality and an ongoing shift toward domestically manufactured systems. Outside of the U.S., internationally, we highlight Europe in the quarter, which has emerged as a top market for the company. Coming off the strongest year ever for Nextracker in FY '25, we see the markets in Europe broadening and gaining momentum, delivering record sales in Q2. We are also excited by our new KSA joint venture to address the growing MENA region. Turning to project timing, cost, and pricing. Project timing remains stable and manageable on a portfolio basis, consistent with previous quarters, with some projects accelerating and others pushing out. Our deep backlog and broad project portfolio provide excellent visibility and reduce uncertainty. Pricing continues to track the broader solar cost curve, and we continue to invest in R&D and scalable infrastructure to drive costs down. Our company culture is to relentlessly serve our customers and deliver the most value at competitive cost and pricing. This innovation and customer-centric approach is working, as evidenced by increased market share and sustained earnings. We always work very closely with our customers, including managing U.S. tariff impacts. The tariffs are substantial, as we all know, but impacts are mitigated by our domestic supply chain with over 25 partner manufacturing facilities producing U.S. components and the ability to deliver 100% domestic content to U.S. Treasury guidelines. In parallel, some of our customers have told us they have successfully increased their power purchase agreement pricing both in the near term and beyond the tax credit horizon. This helps buffer some solar supply chain cost impacts and can help bridge the industry going forward as government policy changes get implemented. In summary, our business fundamentals remain strong. Demand is healthy. Our backlog is large and expanding. Project timing and execution visibility are solid and we continue to strengthen our competitive position through innovation, operational excellence, and serving our customers. With that, I'll hand it over to Chuck to walk through the financials in more detail.

Thanks, Howard, and good afternoon, everyone. We again delivered strong financial and operational performance this quarter. Q2 revenue was $905 million, and adjusted EBITDA was $224 million, representing a 25% EBITDA margin. Year-to-date, we've generated approximately $1.8 billion in revenue, up 31% from last year and $438 million in adjusted EBITDA, demonstrating continued execution across all aspects of the business. Adjusted free cash flow was $171 million for the quarter and $241 million year-to-date. We remain highly capital efficient, and our cash generation continues to support investment in growth and innovation. We closed the quarter with $845 million in cash, no debt, and total liquidity of nearly $1.8 billion, including our recently renewed $1 billion unsecured revolving credit facility with investment-grade terms. This balance sheet strength provides us with significant flexibility to fund future expansion and strategic investments. Turning to profitability. Q2 gross margins and operating margins remained strong, reflecting benefits of manufacturing credits, solid cost management, and a favorable regional mix. We continue to see tariff-related headwinds of approximately 300 basis points in Q2, up 200 basis points over Q1. Our geographic mix, diversified supply chain, domestic manufacturing footprint, and disciplined execution have helped offset those impacts. Looking ahead, we are raising our full year FY '26 outlook. We now expect revenue between $3.275 billion and $3.475 billion, adjusted EBITDA between $775 million and $815 million, and adjusted diluted EPS in the range of $4.04 to $4.25 per share. For the second half of the year, we expect modest margin impact due to Section 232 tariffs and a higher percentage of international projects. Based on project schedules, we expect the second half revenue to be slightly more weighted toward Q4. In addition, we expect gross margins to continue to be in the low 30s and operating margins in the low 20s. Our outlook assumes the current U.S. policy environment remains intact and permitting processes and timelines will remain consistent with historical levels. Overall, we feel confident in our ability to deliver sustained growth and profitability while continuing to invest in innovation and long-term value creation. We continue to execute at a high level while maintaining strong margins and cash flow and strengthening our balance sheet. We believe our strategy, team, and platform uniquely position us to deliver long-term shareholder value. With that, we'll move to Q&A.

Your first question comes from the line of Mark Strouse with JPMorgan.

Yes. So Dan, I think being the first quarter that you guys were reporting since One Big Beautiful Bill but also safe harbor being updated. Just curious for your take. I don't want to steal thunder from the Analyst Day here in a few weeks, but kind of how you're thinking about industry growth through the next several years, let's call it through the end of the decade. I think when you first IPO-ed, you were quoting some industry sources for some pretty significant growth. Just curious with everything that's kind of changed between now and then how you're thinking about that going forward.

Yes. Thanks, Mark. We feel the fundamentals for solar are very strong. We've spoken to our customers and in the U.S., customers have safe harbored immense amounts of projects and gigawatts. Orders are continuing. The fundamentals overseas are strong as evidenced by our sustained bookings and backlog. What's interesting is as the industry moves forward, how the economics of solar stack up when tax credits are gone down the road. And way back about 6 or 7 years ago, Nextracker did the largest solar project in the Western Hemisphere at the time. It was a project in Mexico, we did for now called Villanueva we did with our partner, EPC partners solve. And there were no tax credits down there. That was an all-source solicitation. And that project stood on its own, the economics work, the no tax credits in North America. So since then, solar panels have gotten a lot more efficient. The power of the panels has roughly doubled since that project happened. Inverters are more efficient, the Nextracker platforms have our increasing yield. And so many of our customers share our view that the industry can stand on its own without tax credits and be economically viable in most of the U.S., most of the world. While this has happened this year, what we've seen is also significant escalations in the cost of fossil power-generating equipment on CapEx. And we've seen a lot of volatility on fuel pricing and things like that. So we're confident in the long-term prospects for our industry for solar. And we feel great about our current position with record backlog today at over $5 billion.

Your next question comes from the line of Brian Lee with Goldman Sachs.

Kudos on the nice execution here. I guess just one question I'd have around the cadence for this year. I know you don't necessarily control the project timing. But the first half of the fiscal year has been really strong, evident in the numbers here. So it is a bit of a different seasonal cadence. Can you maybe give us some sense, is this pull forward ahead of policy changes in the U.S.? Or are there other factors driving the project timelines this year versus historical? And then I'll just throw one in there. I don't know if I'll get an answer, but given the evolving mix of business and you've stated, Dan, record bookings in eBOS, can you guys provide any kind of rough thoughts around the bookings mix, tracker on tractor U.S., non-U.S.? I'll take a stab at that one.

Great. Thanks, Brian. I'll take part 1 and Howard will take part 2. So we had a really, really strong first half of the year. Kudos to our operations team, an incredibly strong delivery. Our on-time delivery is stellar and our customers really enjoy how we operate. As you know, we look at our business on an annual/multiyear basis. And you can't just look at one quarter and say that's a trend. Having said that, we have raised our outlook now both Q1 and in Q2, so we are seeing strength in the year. As you know, the one quarter out, the trucks are scheduled, deliveries are scheduled, and so we feel really good about where Q3 is landing. We did note in the prepared remarks in the shareholder letter that you'll see Q4 is a bigger quarter than Q3. And so I think overall, we feel good about where the year is landing. We'll see how strong Q4 will come in. If it's going to be bigger, we'll let you know next quarter. But right now, we feel really good with the pace and cadence of the business this year. It's a little smoother, quite frankly, than last year and a year before. So we do think that as we grow in scale, it is becoming a little more linear. Howard, do you want to take the second part?

Sure. You inquired about eBOS and the mix of non-tracker and tracker products, along with a regional perspective. We are focused on developing a platform with our tracker at the center, which we are advancing through both internal R&D investments and external acquisitions. We've made several acquisitions recently, including Bentek, which achieved record bookings in its first full quarter with us, marking a milestone in its 40-year history. This illustrates our market presence and ability to scale these acquisitions effectively. We're pleased with the results thus far. Our Advanced Foundations business also saw record bookings through a combination of acquisitions and internal development. We recently acquired Onsight, a robotic inspection company, and we signed a record number of new customers and contracts this quarter. We are optimistic about the non-tracker segment of our business. During the upcoming Capital Markets Day, we will provide more details about the tracker and non-tracker segments, including their growth prospects and contribution percentages. We invite you to join us on November 12 for that discussion. Additionally, the U.S. market has performed exceptionally well, and we anticipate continued strong results. Revenue increased by 49% year-on-year in the U.S.

Your next question comes from the line of Philip Shen with ROTH.

First one is on bookings. Your bookings and book-to-bill have been consistently impressive. With the expansion of your technology platform, our check suggests that your customers who already spend a large chunk of their wallet with you are open to spending yet more. Can you talk about how bookings could continue to trend the coming quarters, especially with the increased number of product offerings? And my second question here is on the poly 232. I think in your shareholder letter, you talked about the steel and aluminum 232 impacting your back half margins. But on the poly 232, which is potentially going to be announced in the next few weeks. How are you and your customers prepared or potentially high 232 tariff that may have a limited quarter level for the different segments of the value chain?

I'll take the first part, Phil. Howard, and Dan will take the second part. So yes, another very good quarter for us on sales, very strong. Demand is still there. For us, we think there's a flight to quality and that our customers want us to do more. And so that's what we're doing. We're responding to customer demand. And we're unlocking a lot of synergies between the tracker and other elements of what we're selling as evidenced by record bookings and particularly for foundations, which we're very pleased about. Another quarter of increased backlog. So you can infer from that that monotonically increasing backlog is a good thing. And so we are going to get into it in a lot more detail at Capital Markets Day on how these different products and services and solutions integrate together and how customers are responding to that. Thanks for the question. Part A, Phil, and Dan will take the next one.

With regard to the topic of 232 and poly, we do not purchase poly wafer cells. However, last week we visited a significant new 5-gigawatt module manufacturing facility and had the opportunity to meet with executives from Corning, who are actively increasing their production of polysilicon and other materials in the United States. It is encouraging to witness the substantial expansion of capacity in the country. That said, we can't comment specifically on how this will impact the raw materials for our customers. I will mention that the tariffs influenced our decision to launch our steel frame business, and this initiative has been well received in the market. The primary motivation for pursuing this was Nextracker's long-standing involvement in advanced module frames since our inception. Almost every solar panel on the market incorporates design features that originated from Nextracker. We have invested heavily in engineering and research in this area. Traditionally, the frame material has been aluminum, which was suitable when solar panels were smaller. However, with the current large size of panels, the aluminum is not sufficient to prevent the floppy module problem. Our next-generation frame designs and our recent acquisition of Origami, with their innovative frame design, effectively address these challenges by offering increased rigidity, which we believe will enhance the long-term durability of solar panel performance and streamline the attachment process, reducing installation time and labor. Additionally, this approach tackles supply chain issues, as we can produce these frames in the United States using domestically sourced steel, which we are already implementing. This strategy enhances our customers’ positions regarding tax credits and increases product content. We are committed to boosting domestic manufacturing for various components of solar power systems, and this optimization will facilitate that goal.

Your next question comes from the line of Praneeth Satish with Wells Fargo.

Maybe just kind of digging into the T1 Energy partnership that you announced a few weeks ago. Are you viewing this as maybe a blueprint for future deals with other U.S. solar manufacturers? And if so, how far along are those discussions? Could we see more deals this year? Or do you view the T1 deal as kind of more of a one-off or more kind of an exclusive pilot? And then maybe just kind of longer term on the product side for steel frames. You mentioned some of the benefits. But is there an opportunity to maybe design or develop a new tracker product that better integrates the steel frame designs and enhances the overall performance?

Yes. Thanks, Praneeth. For question number one, we see the need as universal for solar panels. These panels, the physical area has significantly increased in these panels. The need to provide more mechanical stability and functionality in these panels applies really to everyone. And so we've had a very positive reaction to the launch of our advanced module frame business at the major trade show of the year, RE+, which was last month and in the run-up to the T1 transaction you mentioned and afterwards. So we see this as a great win for everyone. Really owners, the IPPs that are operating these plants want to see longer-term durability in the module industry, want to be able to source competitive domestic products and increase their U.S. content. And EPCs want more durable solar panels to handle and ship in the installation phase. Now the next thing that's possible is, hey, can we co-optimize the frame with the tracker system? And the answer is yes. In another part of our shareholder letter, we commented on how we just launched our integrated Earth Trust product in the foundation space, and there's an analogy here. With that product, we were able to reduce the parts count by an order of magnitude. So if you look at the existing foundation and the new foundation, we're able to engineer a lot of these parts out. The analogy with the frame, you can think about an automobile. Old cars, they had a very strong automobile frame; okay? And then the panels were just sort of hung on the car, the side panels. And then you came out with these like unibody cars where it's a co-optimized structural element that has to survive dynamic forces. It seems that it's true with the solar panel on the tracker. So there's a lot of opportunities to co-optimize these products and to really serve the industry with both frames that work with Nextracker as well as other support systems. We're very excited about this product family, and it's been very well received in the market.

Your next question comes from the line of Sean Milligan with Needham.

Great quarter. I was curious on the international side. You mentioned a lot of markets. And so I was interested to see what your comments are around tracker uptake in those markets. And if you just go back a couple of years, how much additional share have trackers taken in those markets that have grown to? And just kind of where you see that heading over time?

Yes, this is Howard. Trackers are undeniably the primary structure for utility-scale solar projects, and larger distributed generation projects have also adopted trackers. Over time, innovations have increased energy yield. For instance, 20 years ago in Germany, trackers achieved an energy gain of about 12% over fixed-tilt systems. Fast forward to today, due to numerous innovations implemented by Nextracker, we are now seeing an energy gain of 18% to 20% over fixed tilt in the same region. This reflects a significant drive for improved energy yield and reduced costs, creating a virtuous cycle that has enabled trackers to become the leading platform in nearly every region worldwide. The only areas still seeing some fixed tilt applications are extremely niche, often in challenging terrains like mountainsides, where fixed tilt might be more appropriate.

Your next question comes from the line of Dimple Gosai with Bank of America.

Team, you mentioned or you called out expansion in the Middle East through Nextracker Arabia JV. Can you help quantify the level of investment in the Saudi Arabia JV? Is there any local manufacturing planned or in place? And then further to that, what kind of revenue contribution or manufacturing footprint you expect by '27, right? Like maybe give us a sense of pricing or margins in those regions compared to the U.S., please?

Yes, Dimple. Dan here. I'll provide some context and then ask Howard to elaborate on the market, followed by Chuck to discuss the numbers in detail. We are very excited to launch Nextracker Arabia. As mentioned earlier, we have a long history, having completed the first utility-scale project in Saudi Arabia seven years ago with the 400-megawatt Sakaka Project. We have successfully exported from Saudi Arabia several times due to the manufacturing capacity we established there. The market in Saudi Arabia is expanding rapidly and is among the top growing markets globally. It’s crucial to collaborate with the right partner, and we are thrilled to be working with Abunayyan, a highly respected entity in the water, energy, and infrastructure sectors, boasting 75 years of experience. Local content is significant to us. In response to your question about increasing capacity, we indeed have a factory in place. Generally, we partner with others to operate factories, but in this instance, we have established an Nextracker factory in Saudi Arabia. Chuck will provide insights on this shortly. That facility is already shipping finished goods, and we are fulfilling multi-gigawatt orders currently, supported by a long history of delivering over 6 gigawatts throughout the region. The environment in that region presents challenges, including extreme temperatures and sand, yet our systems have performed excellently with superior reliability and enhanced energy yield. The structure of our business arrangement for Nextracker Arabia is as a joint venture, which includes a technology licensing aspect, and we will not consolidate it. Chuck, could you please first - I'm sorry, Howard, can you share more about the market and the regions we are involved in, followed by Chuck discussing the financial details?

Sure, Dan. So first of all, before I get to the market, I just want to say that we couldn't be more pleased, as Dan mentioned, because finding the right partner is nontrivial. We found the right partner, and we believe they felt the right partner to an Abunayyan Holding. Just the culture fit is there, first and foremost, to make a joint venture work. You have to speak the same language, be on the same page, and be highly complementary and synergistic, which we are. They're going to bring the market; we're going to bring the technology together; we're going to go and win. And so we feel very good about the plan that we've developed together to execute. We're going to hit the ground running with projects that we've already secured in the region that will go into the joint venture. And as far as the market goes, it's not just Saudi Arabia. I want to make that clear, which is a very strong market, okay? They have a 2030 vision that they're executing on. They need to install 20 gigawatts per year there to execute to that vision in Saudi KSA, but the joint venture also covers the MENA region, Middle East, North Africa. There are some very strong markets within that region that we can go and conquer together. So very exciting. And with that, I'll hand it over to Chuck.

Thanks, Howard. Yes, Dimple. Abunayyan is really a blue-chip company. It's the kind of partner that a U.S. specifically Silicon Valley technology company would want to partner with. We spend a lot of time with them working on this transaction, and they are really incredibly sharp astute people, great partners. As Dan mentioned, this is going to be a roughly 50-50 joint venture that we do not plan to consolidate. It really fits with our kind of asset-light model, kind of high ROIC. Given that the joint venture will have factories and operations, we think it's better overall for our financials that way. And then on the revenue side, we will have a license fee and be able to sell our technology in. We think this will be a really good business for years to come. I won't comment specifically on 2027, but as Howard mentioned, the aspirations in that market are incredibly strong, and we're really excited about the future.

Your next question comes from the line of Corinne Blanchard with Deutsche Bank.

Can you discuss TrueCapture? I believe you mentioned it accounts for 2% of the quarterly revenues. Could you also provide insights on its expected contribution through 2026? Additionally, a brief update on the regional market for trackers would be appreciated.

I'll take the first part, Corinne. TrueCapture, as we mentioned last quarter, TrueCapture revenue recognition is really tied to commissioning of systems. It’s been around 2% of revenue last quarter. We said it did dip a little bit because of just the timing of commissioning and as predicted, it rebounded to a really strong quarter of around 2% recognized this quarter. Howard, do you want to take the second part?

I'll just say that adoption continues to increase. So when we did the IPO back 2.5 years ago, almost 3, we're at about 1%. So the adoption of our TrueCapture software continues. We keep adding features and capabilities, and the energy yield keeps going up. So it's becoming more and more compelling with a very strong backlog for TrueCapture.

Your final question comes from the line of Ben Kallo with Baird.

My question was just about you guys have made several acquisitions, but half a dozen. And just thinking about your appetite going forward? And then also how we think about how you feed the different acquisitions with capital, whether that's R&D or other types of capital going forward? How you allocate that and how we should think about that number as we go forward to next year as you grow each of those businesses and integrate them?

Thanks, Ben. This is Dan, and I'll address the first part while Chuck will handle the second. We consider our new products and services in a comprehensive manner, looking at both what we generate internally as well as potential acquisitions. We stay close to our customers and ask them about their challenges, how things are going, where they are encountering issues, and what opportunities they see for increased yield. We incorporate their feedback along with our own insights and experiences to enhance profitability from these systems and to help achieve lower LCOE. Therefore, we've made a substantial investment in our internal R&D, tripling our budget to around $100 million over the past two to three years. Regarding acquisitions, we aim for a thorough and objective assessment of market needs. A case in point is our work on advanced module frames. Nextracker has been involved in this for many years, and many current module frames incorporate our innovations. We recognized the need to control this process to add value for module manufacturers, EPCs, and owners. We pursued the development of the next-generation advanced module frame internally and also collaborated with Origami Solar, which created an innovative universal frame similar to traditional aluminum ones. We determined they had taken their company as far as possible and were ready for an exit. We believed that while we were making progress internally, acquiring them would accelerate our market entry and address immediate customer demands. Their team brought significant engineering expertise to enhance our internal capabilities. This approach reflects how we address customer needs. Chuck, can you elaborate on capital allocation?

Yes, certainly. And Ben, one of your questions was funding these post-close. We do have a very experienced M&A team in the company, both sourcing and integration. We are really, really intentional with not making the mistake of killing the company you've acquired by not investing in it. We actually buy the company; we have an investment case, and we stick to our guns. We're playing the long game, Ben. We're not looking at the short-term results. So we're heavily investing in things like R&D and marketing and sales to ensure success. We've built out a really capable team to manage these investments, and I'm really proud of the work. It's really bearing fruit, you can tell. And I think so we're excited about the investments that we're making. We're not going to slow down, and we appreciate that. Dan, do you want to close?

Yes. I do want to just say on these new businesses we are growing. It takes time to operationalize these and get the leverage of scale, which drops through into significant margin. We feel great about the portfolio as we've brought in the foundations. I mentioned we just launched this integrated product, which reduces the parts count significantly and lowers the cost. We love the margin profile as we optimize products and how they contribute to the overall company. Both with the organic and the new businesses we're bringing in, we look forward to unpacking those in our Capital Market Day upcoming. Thank you all for joining us. We look forward to welcoming you either in person or on our Capital Markets Day on November 12.