Earnings Call Transcript - PGNY Q3 2025

James Hart, Host

Good afternoon, and welcome to the Progyny, Inc. Earnings Conference Call. I will now hand the call over to your host, James Hart. James, please go ahead. Thank you, Tom, and good afternoon, everyone. Welcome to our third quarter conference call. With me today are Pete Anevski, CEO of Progyny; Michael Sturmer, President; and Mark Livingston, CFO. We will begin with some prepared remarks before we open the call for your questions. Before we begin, I'd like to remind you that our comments and responses to your questions today reflect management's views as of today only and will include statements related to our financial outlook for both the fourth quarter and full year 2025 and the assumptions and drivers underlying such guidance, our anticipated number of clients and covered lives for both 2025 and 2026. The demand for our solutions, anticipated employment levels of our clients and the industries that we serve, our expected utilization rates and mix, the potential benefits of our solution; our ability to acquire new clients and retain and upsell existing clients, our market opportunity and our business strategy, plans, goals and expectations concerning our market position, future operations and other financial and operating information, which are forward-looking statements under the federal securities law. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business as well as other important factors. For a discussion of the material risks, uncertainties, assumptions and other important factors that could impact our actual results, please refer to our SEC filings and today's press release, both of which can be found on our Investor Relations website. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During the call, we will also refer to non-GAAP financial measures such as adjusted EBITDA and adjusted EBITDA margin on incremental revenue. More information about these non-GAAP financial measures, including reconciliations with the most comparable GAAP measures are available in the press release, which is available at investors.progyny.com. I would now like to turn the call over to Pete.

Peter Anevski, CEO

Thanks, Jamie, and thanks, everyone, for joining us. We're excited to report that Progyny had a very strong third quarter with revenue and profitability that exceeded the high end of our guidance ranges. Member engagement continues to be healthy, consistent with what we've seen throughout the past year. Following the consistent strength of our results, we're pleased to be in a position to once again for the third consecutive quarter, raise our full year guidance. With the most recent raise, we have now increased the midpoint of our revenue guidance by over $70 million, above the midpoint of our original range for this year. We're equally pleased with the results of our latest selling season. In any given year, our season reflects multiple priorities, the acquisition of new logos and lives, the retention of existing clients and the deepening of our relationships with existing clients through the expansion of their benefits with us for their employees. This year's selling season once again demonstrated our position as the leader in the market and how our value proposition aligns with both employers and their members. It starts with the consistent expansion of our base, including over 80 new logos and approximately 900,000 lives this season. As we told you last quarter, although our pipeline initially built slower than we would have liked, largely attributable to the macroeconomic uncertainty earlier in the year, we are particularly pleased with this result in the face of historically high macro medical cost inflation. We created a large influx of new opportunities throughout the spring and summer, which once again validates how family building and women's health remain a top priority for employers and their members. As the season entered its final stages, we saw that a select number of employers, including some large ones, weren't able to accelerate their decision-making process fast enough to offset their later entry into pipeline. These companies instead became part of our traditional pipeline of not nows, setting us up well for next year's selling season. Our wins this year represent a broad cross-section of industries, including consumer goods, healthcare, financial services, education, tech, business services and Taft–Hartley groups. In fact, this latest cohort continues the ongoing diversification of our member base, which is increasingly spread across dozens of sectors with no one area of the U.S. economy dominating the base. We continue to see a broad distribution by client size with our newest logos contributing anywhere from 1,000 to over 100,000 lives. The second way we see how our solutions are resonating is our near 100% renewal of existing clients in covered lives for 2026. This extends the long track record of success we've maintained since our first year in market. In our opinion, this is the strongest testament to our market leadership and value proposition. This strength and continued execution is also highlighted in the expansion of benefits where nearly 30% of our clients have chosen to add to their solution in some way for 2026. And this includes clients consolidating their benefits with Progyny away from our competitors. Historically, this meant more smart cycles, adding Rx or expanding the coverage for areas like donor tissue or storage. While those all still occur, we can deliver for our clients and their members an expanded suite of services, including end-to-end reproductive health support for both their domestic and international populations as well as benefit and lead navigation. Equally important, not one client has reduced their benefit in any meaningful way next year. Our newest services in pregnancy postpartum, menopause and benefit and lead navigation continue to resonate particularly well with the clients. Although we're in just our second year in market with these programs, we've seen an incredible positive response. Between the uptake from existing clients as well as our newest logos, more than 2.7 million members will have access to one or more of these newest services in 2026. That's an incremental 1.2 million members versus this year. Taken together, these data points build a complete picture of Progyny's market leadership and the continued demand for our services, and it's what inspires us to continue to expand both the services and segments of employers that have access to Progyny's benefits. A few weeks ago, the White House announced its focus on expanding access to fertility care. We view this as a significant step forward for the country and a strong positive for us. It's also an affirmation of the work we have accomplished over the last 10 years. The administration expressed its enthusiastic support for supplemental plans to address the small and midsized market. To date, those employers have had limited choices in adding family building care with cost predictability to their benefits, which has forced their employees into the same one-size-fits-all dollar-based plan designs that our model has long proven to be ineffective and inefficient use of resources. In the past, we've referenced that we've been developing a product for small and midsized companies to address the more than 50 million covered lives within these businesses in the U.S. This is in addition to the 100 million-plus lives that we're already addressing today through large self-insured federal government and Taft–Hartley populations. We're pleased to announce the first of its kind supplemental plan for fertility and family building, which will be in our product portfolio in next year's selling season. In addition to this expansion, we have also broadened the platform through our newly launched Progyny Global offering. This provides multinational employers with a continuum of integrated services, including family building, pregnancy, postpartum and menopause across their full populations. Progyny's platform was purposely built for global markets and delivers member support tailored to their local environment. This marries together the capabilities we acquired last year with what we had created in-house and produced a better, more comprehensive offer that's second to none in the market. Given the results we've achieved this past year, coupled with generating over $50 million in operating cash flow this quarter, which brings the total operating cash flow to a record $156 million over the first 9 months of the year, we believe our stock is significantly undervalued. Accordingly, with our solid cash position and the overall strength of our balance sheet, we're pleased to return value to our investors through the announcement of a new share repurchase program for up to $200 million. Mark will describe this program in more detail, along with our higher expectations for the year. Hopefully, my remarks today help you understand why we're happy with our performance thus far in 2025 and why we're even more excited for the year ahead. With the momentum we've built, we are well positioned to continue our growth trajectory into the next year and beyond and look forward to keeping you updated on our progress. With that, let me now turn the call over to Mark.

Mark Livingston, CFO

Thank you, Pete, and good afternoon, everyone. Before I begin, I'd like to first highlight that we're introducing a new format for my prepared remarks. We're aware that many of you routinely have multiple companies reporting at the same time as us, and we recognize how this divides your time and focus. Our prepared remarks have traditionally included commentary on the drivers to our recent results. To make it easier and faster for you to understand those drivers at your own pace, the 8-K we filed this evening includes a set of summary slides providing highlights of the quarter as well as some of the longer-term trends that we believe are important in understanding the health and direction of the business. We've also posted that material to the IR section of our website. Rather than duplicate that content here in my remarks, I'll instead focus more on the key takeaways and important trends. Our hope is that this will not only create more time for Q&A, but also give you some time back by shortening the call. We intend for this to be our approach going forward. We certainly greatly value the feedback of our investors and analysts, so please let us know your thoughts. Moving on to the key takeaways for the quarter. As shown in the press release and the accompanying slides, our results this quarter reflect the continuation of several long-term trends. First, we continue to see good revenue growth, 9% on an as-reported basis in the quarter or 23% when excluding the impact of a large former client in the year-ago period. I'll remind you that the transition of care agreement pertaining to this large client ended as of June 30, 2025. So our results for the third quarter and second half of the year do not include any contribution from them. Second, member engagement this quarter, which is measured in the utilization rate as well as in ART cycles per unique utilizer was consistent with or slightly better than what was reflected in our guidance. Accordingly, revenue exceeded the top end of our guidance by more than $8 million. The engagement we're seeing reflects that members are continuing to pursue care and services they need to meet their family building and overall health goals. Third, we continue to achieve healthy levels of profitability through a 23% gross margin and a 17.5% adjusted EBITDA margin. We've accomplished this while we've continued to invest to expand our product platform and to integrate the acquisitions completed over the last year or so. I'll also highlight that this quarter's results include a $2 million reduction to expenses related to the employee retention credit program, which we received during the quarter. Fourth, through disciplined, prudent management of the business, we continue to achieve a high conversion rate of adjusted EBITDA to cash. In the third quarter, we generated over $50 million in operating cash flow, which contributed to a record $156 million over the first 9 months of 2025, an increase of $29 million over the comparable period in 2024. Third quarter CapEx was $4.7 million, a $2.9 million increase over the prior year period and reflects the previously disclosed investments enhancing member experience and integrating our recent acquisitions. We continue to expect that the incremental CapEx for those projects will be approximately $15 million over our 2024 spend levels. As of September 30, we had total working capital of approximately $412 million, which includes $345 million in cash, cash equivalents and marketable securities. There are no borrowings against our $200 million revolving credit facility and no debt of any kind, and we have no planned use for the facility at this time. With our balance sheet strength and solid cash position, we're pleased to be in a position to return meaningful value to our shareholders through our latest share repurchase program. The Board has authorized up to $200 million in open market and facilitated purchases, and this is immediately available for us to use. While this is a sizable program, we're also maintaining our ability to continue investing in our business for future growth across our other long-standing capital priorities. I'll remind you, those priorities include product expansions, new distribution channels and select acquisitions. Turning now to our expectations for the fourth quarter and the year. As the fourth quarter begins, we continue to see that member engagement is consistent with recent periods. With the unexpected variability we experienced at certain times in 2024, the assumptions we're making today reflect the potential for further variability in activity and treatments, particularly at the low end of our ranges. To be clear, this is the same approach we've taken throughout the past year. As you can see in today's press release, we have narrowed our assumption for full year utilization to 1.05% at the low end and 1.06% at the high end. This is still lower than the 1.07% we saw in 2024. In terms of consumption, given the current pacing of member activity, we've maintained our assumptions for full year ART cycles per unique of 0.91 at the low end of the range and 0.92 at the high end. With these assumptions, we're projecting between $292.7 million to $307.7 million in fourth quarter revenue, reflecting growth of negative 1.9% to positive 3.1%. As the transition of care with a large client concluded on June 30, there's no contribution from that client in the second half of this year. If we exclude the $35.9 million in revenue from that client in the year-ago quarter, our fourth quarter guidance reflects growth of 11.5% to 17.2%. On profitability, we expect between $45.3 million to $49.3 million in adjusted EBITDA in the quarter, along with net income of $12.5 million to $15.5 million. This equates to $0.14 to $0.17 of earnings per share or $0.37 and $0.40 of adjusted EPS based on approximately 91 million fully diluted shares. As usual, our expectations for fourth quarter profitability reflect the ramp-up in hiring ahead of our newest client launches on January 1, in addition to the previously disclosed increased spend this year to expand the features of our platform and integrate our recent mergers. Please note that our assumptions do not consider the impacts of the repurchase program we announced today, given the unpredictability of the underlying timing of its execution. With our strong results over the first 9 months of the year, we're pleased to raise our full year guidance. We now project revenue of between $1.263 billion to $1.278 billion, reflecting growth of between 8.2% to 9.5%. If we exclude the revenue from the client under the transition of care agreement from both years, our full year revenue growth is projected to be 17.8% to 19.2%. We also expect between $216 million to $220 million in adjusted EBITDA with net income of between $58.5 million to $61.5 million. This equates to $0.65 and $0.68 earnings per diluted share and $1.79 and $1.82 of adjusted EPS based on approximately 90 million fully diluted shares. With that, we'd like to now open up the call for questions.

Operator, Operator

And the first question today is coming from Jailendra Singh with Truist Securities.

Jailendra Singh, Analyst

Congrats on a strong quarter. My first question is around the 900,000 new covered lives. It might be slightly below your 1 million goal, but it is definitely higher than broader investor expectations. How should we think about these results in light of your messaging around lives running lower year-over-year for the last couple of earnings calls? Did win rates you guys pick up in the last couple of months or were you trying to message this potential 100,000 shortfall? And does your messaging on the last earnings call that lives were coming at a higher revenue attach than prior year still hold true?

Michael Sturmer, President

This is Michael. Thank you for the question. We are very pleased with the team's performance this sales year, especially considering the challenges they faced. The late-developing pipeline was a new factor for us, along with relatively high macro healthcare inflation. These aspects do affect employers' decisions. Nevertheless, the team did an excellent job, achieving 900,000 sales this year. Regarding the 100,000 shortfall, it's important to note that it represents a small number of clients, essentially just a handful, and is minor compared to the overall base of about 7 million clients. Additionally, while we typically have some small opportunities available after November, this year we've seen an increase in those deals, likely due to the slower pipeline development. As a result, decision-making has taken a bit longer. However, we are not relying on those deals closing this year, although it would be great if they did. Regardless of the outcome, they will help create a strong start for the pipeline next year. Pete, would you like to add anything?

Peter Anevski, CEO

No, but I'll take the second part of that question, which is the revenue value of the 900,000. The easiest way to think about it is given the mix of clients, industries, benefit design, et cetera, it's pretty proportionate to what the 1.1 million added last year, is the way to think about it.

Michael Sturmer, President

Yes, I believe we mentioned previously that we anticipated the early commitments, which were of relatively higher value, would normalize by this time, and that has indeed occurred.

Jailendra Singh, Analyst

That's helpful. I have a quick follow-up regarding the current administration's focus on making fertility medications more affordable in the cash pay market and what this could mean for your Progyny Rx business. I understand why employers prefer to keep medical and pharmacy services together. However, I'm curious about the potential impact on your business if prices in the cash pay market decrease. Could this lead employers to seek pricing concessions? Please share your thoughts on how this might affect your business.

Peter Anevski, CEO

Sure. So I'll give you some context around the announcement. So the announcement is around what already exists across manufacturers in terms of patient assistance programs for those that don't have coverage. The announcement from the White House is no different. They've had for years, certainly longer than we've been around cash pricing and the cash assistance program, patient assistance program for those that don't have coverage. And the announcement is simply just deepening a little bit the discount around those. A large portion of people won't qualify for those. Some will. There will be an income exclusion as part of that. But either way, these have been around for a long time. So I don't expect there to be an impact on covered benefits and/or what manufacturers have in terms of pricing for covered benefits. These are separate cash assistance programs for those that don't have coverage.

Operator, Operator

Your next question is coming from Brian Tanquilut from Jefferies.

Brian Tanquilut, Analyst

Congrats on the quarter. Maybe just to follow up on the question on the selling season. I mean, just curious what those discussions were this quarter? And then what are you seeing in terms of your current employer clients in terms of layoffs and how that's impacting your view on utilization going forward?

Peter Anevski, CEO

Sure. I'll address the second part first, and then I'll let Michael respond to the first part. We are not observing any significant layoffs. The layoffs that have been announced are relatively small compared to those companies and are minor in general. There have not been any widespread layoffs. If we go back to early 2023, there were several announcements that I referred to as rightsizing rather than reductions in workforce. I apologize, I think that was actually in 2022, but it was not about cutting jobs. At that time, even with many announcements from various tech companies, which did not all pertain to our portfolio, there were about 150,000 jobs identified in total. Thus, we are not hearing anything from our clients that we believe will noticeably impact us in relation to layoffs, so that's the brief answer.

Michael Sturmer, President

Yes. And then to the other part of the question, as for discussions in the market, similar that they've been in other years, right? Employers always want to understand and focus on really 3 areas: member experience, quality and outcomes, and cost control. Those remain the same. Certainly, this year, cost control remained in that top 3 category. And all 3 fit well into our value proposition, whether that's exhibited by, I should say, whether that's exhibited by, again, the strong sales season or in particular, the near 100% retention of our existing clients where those things are even more visible to them on a year-over-year basis.

Brian Tanquilut, Analyst

Got it. And then maybe, Mark, just a quick follow-up. As I think about the gross profit margin being where it is, is there any specific call out there? How should we think about modeling that going forward?

Michael Sturmer, President

Yes. Look, I think we've continued to expand our gross profits year after year. We've made some investments. I think importantly, here as you look at Q4, we always model that down. In part of my prepared comments addressed that we're building that staff as we enter into the next year. But look, we try to keep that fairly consistent from a profitability standpoint, leveraging those teams as we grow.

Operator, Operator

Your next question is coming from Michael Cherny from Leerink Partners.

Michael Cherny, Analyst

Really nice job on the quarter and the selling season. Maybe if I can just follow up on the drug pricing question. Right now, in terms of what you see as cash prices in the market, how do they compare roughly to the net prices you offer clients?

Peter Anevski, CEO

They vary based on drug. Obviously, cash pricing is cheaper across the board, but they vary and sort of getting into that detail, I'm not sure how that helps. But at the end of the day, I think the more important point is that they have been around for a long time and haven't been a catalyst around pricing for coverage to date nor even a conversation relative to what's out there and clients are aware that they're out there, but they understand that patient assistance programs exist where you don't have coverage. And so it's probably the best way I can answer it. The best color I can give you around it.

Michael Cherny, Analyst

No, that's completely fine. I just have one more question regarding the selling season. Considering the upsell potential, particularly with the 1.2 million additional lives associated with the new products, how do you see this developing in terms of ongoing upselling? Do you now have the opportunity to lengthen the selling season due to these new products, enabling upsells throughout the year? How should we view this in relation to both your existing customers and the pipeline of customers who did not complete the process?

Michael Sturmer, President

Yes, thank you for the question. This is Michael. We meet with our clients quarterly to review their purchases and the performance of those services, as well as to identify their priorities and opportunities for expansion. Our teams have additional products and services to discuss with clients regarding potential cost impacts or support in strategic areas. We engage in these conversations throughout the year.

Operator, Operator

Your next question is coming from Scott Schoenhaus from KeyBanc.

Scott Schoenhaus, Analyst

On the quarter and the strong selling season, I wanted to delve deeper into the selling season commentary from last quarter. You mentioned that the mix of lives developed later last quarter, but there was higher utilization. I'm curious about how you manage that pool now that the trend has normalized with the additional lives added. Are you analyzing claims data? Are you considering demographic factors? How much information is a new employer or a potential new client providing you ahead of the selling season to understand the employee cohort and utilization profile?

Peter Anevski, CEO

Sure. We've been operating in the same manner for years. This includes factors like plan design, purchased products, and the industries our clients are in, as well as the individuals represented by each client. When we consider all this together, we possess more experience and comprehensive data across various industries, which allows us to accurately predict their revenue contributions. Our approach has consistently shown that the overall group becomes predictable. There will always be some variability among individual clients, but when we aggregate data based on expectations for each client—considering plan design, size, and industry—we establish a pool expectation that informs our earlier remarks.

Scott Schoenhaus, Analyst

As a follow-up, I'm not asking for guidance for next year, but typically, you wait for your first month of utilization to better understand revenue in order to provide guidance. Given the fluctuations we've experienced over the past few years, and with the significant rebound in utilization this year, how are you strategically considering guidance going forward?

Peter Anevski, CEO

I think what you describe as choppiness is actually a small amount of variability. I recognize that in any given year, variability of plus or minus 5% can influence year-over-year results and affect growth rates. However, overall, it does not significantly alter our financial results or trends. That being said, we have accounted for this variability in the guidance ranges we have provided throughout the year and expect to keep doing so, considering the fluctuations we have observed over the last few years when issuing guidance, and we do not anticipate this changing.

Operator, Operator

Your next question is coming from Dev Weerasuriya from Bank of America.

Nisala Devanath Weerasuriya, Analyst

I'll follow up on Scott's question. I'm considering the ART cycles per female user that have generally trended upward each quarter. If I exclude the significant client contribution from this quarter, it appears that revenue is slightly down compared to the previous quarter, whereas it typically trends upward historically. How are you viewing this? It seems that utilization is stabilizing a bit. I'm trying to understand how we should approach this in the upcoming quarters since the fourth-quarter guidance still anticipates ART cycles per user to be below previous years. What are your expectations? How did the third quarter perform against expectations? Are you observing anything that boosts your confidence that cycles per user will return to historical ranges in the coming years?

Peter Anevski, CEO

Yes, I'll offer a few comments regarding your question. There is seasonality in the fourth quarter, and generally, our base business tends to decrease slightly from the third quarter to the fourth quarter, primarily due to the holidays. We have two major holidays—Thanksgiving and Christmas—that affect clinic capacity as they often close for cleaning and maintenance. Additionally, many individuals prefer to postpone treatment during these holiday weeks to avoid undergoing procedures at that time. Last year, for instance, the sequential increase we observed was due to the cycles per utilizer normalizing rather than a decline, which is usually not the case as we typically see sequential increases throughout the quarters. In previous years, there has always been some variation in reported figures that impact the transition from Q3 to Q4. Ultimately, I do not view the $6 million decline in sequential revenue as a negative trend but rather as a reflection of current circumstances. As Mark mentioned in our prepared remarks, we do not perceive any weaknesses in utilization or care consumption when compared to the third quarter, but we do account for the typical seasonality characteristic of the fourth quarter. That's the best response I can provide to your inquiry.

Nisala Devanath Weerasuriya, Analyst

Got it. That's helpful. And then just one other quick one. I think Rx revenue growth is still trending below medical. And I think it was attributed to a mix impact last quarter. Was that the same this quarter? And then how should we think about when those two maybe converge, I think, as previously expected?

James Hart, Host

Yes. One thing to keep in mind is that various factors influence each line, so they won't perfectly align. There are differences in timing and variations in treatment and program mixes, meaning some treatment journeys require fewer drugs than others. Pricing also plays a role; we've consistently managed cost control for our clients, sometimes absorbing increases from manufacturers on the prescription side that aren't reflected on the medical side. Therefore, these can differ slightly. Additionally, we are not separating the revenue from our newer products into distinct categories; instead, they are included in the fertility services line, which shows some revenue growth without corresponding pharmacy growth. As a result, the two won't align perfectly, but they should grow together over the long term.

Operator, Operator

Your next question is coming from David Larsen from BTIG.

David Larsen, Analyst

Congratulations on the good quarter. Can you talk a little bit more about the supplemental product that you mentioned? It sounds like it's a sort of a cash-based solution maybe for more middle market accounts maybe that want to spend a little less money on the fertility benefit but want to start with something.

Peter Anevski, CEO

Yes. To start with, it's not a cash-based solution. It's a covered solution. However, it does address small and mid-market companies. Consider options like ASO, minimum premium, and fully insured populations, so it accommodates various funding methods, but again, it targets small and mid-market companies. It offers a solution that is more predictable concerning cost expectations, which these smaller companies typically require to understand their potential expenses when adding this type of benefit. Overall, it is a comprehensive solution that enables them to compete with much larger companies by providing a benefit offering similar to what is generally available through larger employers that meets these needs.

David Larsen, Analyst

That's great. And then can you talk about the year-over-year growth in number of clients expected for 2026 versus the number of lives growth expected in '26. And I guess what I'm getting at is, it looks like you're going to add maybe 55 clients in '26, which is a decline from 73 in '25, but maybe the number of lives are going to increase. Just any thoughts around that would be helpful.

Michael Sturmer, President

Early go-lives have not been clearly stated.

Peter Anevski, CEO

So part of the challenge whenever we do this is that we update the number of clients that are live throughout the year. During our sales season, many clients go live earlier or may be off-cycle clients that have already gone live, but they are included in our overall sales figures. The way to think about it is based on what we've just reported today against the overall number of companies and clients we've added. It includes a reasonable amount, although not significant in terms of revenue contribution, similar to last year and every year where we usually have a small number of clients contributing live, and when they are not, we highlight that. Typically, the majority of live contributions will start next year.

Operator, Operator

Your next question is coming from Sarah James from Cantor Fitzgerald.

Unknown Analyst, Analyst

This is Gaby on for Sarah. I wanted to double-click on the supplemental plans. As you get ready to roll those out for the 2026 selling season, should we think about that having impact on the expense line in 2026? Do you need to increase the sales force? Do you need to increase marketing efforts? And then do you expect them to be read through to the revenue and EBITDA line as soon as '27?

Peter Anevski, CEO

Yes, we will need to add resources for go-to-market efforts, and we have already begun that process. However, this change won't be as significant as you might expect, and it won't greatly alter the profitability profile in sales and marketing.

Unknown Analyst, Analyst

Okay. Great. And then any updates you can share on the global or international business and how that rollout has been?

Mark Livingston, CFO

Yes, we had some nice additions this year with the enhanced benefits and global services and solutions. As we mentioned in the script, we're excited to now offer our full U.S. portfolio of services internationally, and that will be available for sale next year as well. We have good momentum and are looking forward to continuing that on a global scale.

Operator, Operator

Thank you. That does conclude our Q&A for today. And I'd now like to turn the floor back to James Hart.

James Hart, Host

Thank you, Tom, and thank you, everyone, for joining us this evening. Please, as always, feel free to reach out to me for any further questions or clarifications you may need. We appreciate your time and attention. We know it's been a busy day. We look forward to reporting our next results in February.

Operator, Operator

Thank you. This does conclude today's conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.