Sezzle Inc. Q1 FY2026 Earnings Call

Good afternoon, and welcome to Sezzle's First Quarter 2026 Earnings Call. Please note this event is being recorded. I would now like to turn the conference over to Charles Youakim, CEO and Executive Chairman of Sezzle. Please go ahead.

Thank you, and good afternoon, and welcome to Sezzle's First Quarter 2026 Earnings Call. I'm Charles Youakim, CEO and Executive Chairman of Sezzle. I'm joined today by our CFO, Lee Brading, and my Co-Founder and Company President, Paul Paradis. In conjunction with this conference call, we filed our earnings announcement with the SEC and posted it along with our earnings presentation on our investor website at sezzle.com. To retrieve the documents, please go to the Investor Relations section of the website. Please be advised of the cautionary note on forward-looking statements and the reconciliation of GAAP to non-GAAP measures included in the presentation, which also covers our statements on today's call. Before diving into the quarter, I want to start by touching on the big picture for 2026. We believe it is going to be an exciting year for Sezzle. 2025 was about enhancing our current consumer ecosystem. We improved the app experience, expanded engagement features, leaned back into higher-value consumers and continued to give our users more reasons to come back to Sezzle. But in 2026, we are pushing that strategy further. We are moving beyond being a product consumers think about only at checkout. Our ambition is to serve our consumers more broadly in their everyday lives and in the way they manage everyday spending. That means continuing to build around payments, but also expanding into areas like deposit accounts, card products, enhanced lending options, our recently launched Sezzle Mobile plan and more. The goal is simple: to create more value for the consumer, create more reasons to engage with Sezzle and over time, make Sezzle a critical part of our consumers' daily lives. The strategy is working. In the first quarter, we delivered strong growth, strong profitability and improved engagement across the platform, and we are raising our full year guidance as a result. We are still very early in what Sezzle can become for the value-focused consumer. With that, let's dive in. The first quarter followed a similar and important pattern to the first quarter of last year. Better-than-expected credit performance helped drive strong margins and bottom line results. The strength in repayment trends also gave confidence to approve more volume while staying disciplined on risk, helping drive GMV that nearly matched the fourth quarter holiday period. We also saw the benefits of the investments we made throughout 2025 to create a more engaging product ecosystem. Average quarterly purchase frequency increased by a full purchase across the consumer base, reaching 7.1x in the quarter compared to 6.1x in the first quarter of last year. That's a meaningful increase, and it tells us our consumers are coming back to Sezzle more often and finding more ways to use us. Those factors helped drive the results you see on Slide 3. GMV grew 37.3% year-over-year. Total revenue grew 29.2%, and our gross margins reached 74% of total revenue. We also generated $51.3 million of net income, representing a 37.9% profit margin and $71.1 million of adjusted EBITDA, representing a 52.5% adjusted EBITDA margin. Given the strength of the first quarter and the growing engagement we're seeing across the platform, we are increasing our full year 2026 guidance across the board. We are raising total revenue growth guidance from 25%–30% to a new range of 30%–35%. We are also increasing adjusted net income guidance by $10 million to $180 million and raising adjusted EPS guidance to $5.10 from $4.70 with some benefit from repurchase activity in the first quarter. We will provide more detail on guidance later in the call, but overall, this reflects our confidence in the momentum of the business. A key factor in the recent growth of our business has been the payoff of our reinvestment and refocus on our subscribers, our highest LTV users on the platform, which you'll see depicted on Slide 4. Our investment continued to pay off in the first quarter with total subscribers increasing by 44,000 to 714,000. The overall total on-demand users' sequential decrease is due to the decrease in monthly on-demand users, a drop which reflects the seasonality of our platform from the busy holiday shopping period to the lower activity we see in the quarter after, along with the deemphasis or a renewed focus on our subscribers. Turning to Slide 5. Much of that subscriber momentum traces back to the continued investment we are making in marketing. Since we began leaning harder into this effort in late 2024, we have tested a number of campaigns, funnels and pathways to reach new consumers. Like most things at Sezzle, there is trial and error along the way, but I think it's clear that we are starting to catch our stride in finding the most effective ways to win subscribers and drive greater engagement across the consumer base. The best part is that we have been able to push spending higher while still maintaining attractive returns. Marketing spend increased again in the first quarter, but we continue to see a payback period of less than 6 months. That gives us the confidence to keep investing where we are seeing performance. To be clear, the goal is not just to acquire any user at any cost. The goal is to acquire and retain consumers with the highest lifetime values. The ones who transact more frequently demonstrate stronger loyalty and give us more opportunities to create value over time. In practice, that means subscribers, repeat users and consumers who engage across multiple parts of the Sezzle ecosystem. The Earn tab is a great example of how our product and marketing strategies reinforce each other. Since launching in June 2025, the Earn tab has generated 4.8 million visits. And consumers show a 55% increase in BNPL conversion within 30 days after their first Earn tab activity. This is exactly the type of engagement loop we want to build. That brings us to Slide 6. Pay-in-4 has been the foundation of the business, but consumers are asking for more utility and more ways to use Sezzle beyond a single checkout moment. In the first quarter and shortly after quarter end, we made progress on several fronts. We expanded short-term installment optionality with Pay-in-5, launched an enhanced long-term lending capability across the entire BNPL product suite, introduced the virtual card in Canada with select integrated merchants and launched the Sezzle Mobile plan on AT&T's network with an unlimited wireless plan starting at $29.99 for Sezzle Anywhere members. Each of these products has slightly different use cases, but the strategic theme is the same: expand what a Sezzle relationship can do for the consumer. Turning to the next slide. AI continues to be a major focus across Sezzle. We are not treating AI as a side project or a small productivity experiment. We are embedding it into how we build products, support consumers, analyze data and operate the business. On the consumer side, we recently launched our AI support chatbot, and it's already resolving approximately 60% to 70% of the chats without escalation. That improves speed for the consumer while allowing our support organization to handle greater volume with the same disciplined cost structure. We are also testing our AI shopping assistant, which is driving stronger click-to-order conversion and helping consumers find the right products with less friction. Internally, we are using AI everywhere in the company to improve efficiencies and automation. We're using it to help analyze chargebacks, improve business intelligence, increase support quality, improve access to company data and speed up engineering workflows. Taken together, these efforts do three things: improve the consumer experience, increase output across the company and scale the business while keeping expense growth well below revenue growth. All of this points to a broader vision, which the next slide lays out. Sezzle started with Pay-in-4, but we are no longer just a Pay-in-4 company. We are building an all-in-one services platform for the value-focused consumer. The strategic goal is to make Sezzle more useful in more moments. The more value we provide, the more reasons consumers have to come back. That drives engagement, supports retention and strengthens the consumer relationship over time. We still have a lot ahead of us, including products like bank accounts and greater post-purchase split capabilities among other ideations. And overall, the real test of the strategy is engagement. If the product ecosystem is working, we should see consumers using Sezzle more often across more merchants and across more use cases. That's exactly what we saw in the first quarter, as seen on Slides 9 and 10. In the first two boxes, on-demand users and quarterly purchase frequency prove out the ROI across products and marketing. Even the sequential increase in quarterly purchase frequency seen on Slide 10 jumped to a half purchase more than our busiest quarter of the year. To me, all of these metrics you see on Slides 9 and 10 are a clear sign that we are moving in the right direction. We are still early, but the flywheel is getting stronger. And with that, I'll turn it over to Lee.

Thanks, Charlie, and good evening to everyone joining us. I will start on Slide 11. But before getting into the details, I want to highlight the seasonality in our business. From a revenue yield standpoint, which is simply total revenue divided by GMV, Q1 is typically the peak of the fiscal year as some payments from Q4's holiday season spill over into Q1. The quarter is also typically the best performing quarter in terms of our provision for credit losses as a percentage of GMV because our consumers generally benefit from tax refunds at the start of the year, thus leading to better loss rates in Q1. As a result, Q1 is usually the best quarter in terms of margins. While we would love to just annualize a unit economic margin of 74%, we can't. And if you look back to last year's results, you will recognize that dynamic. Even though we had a tough year-over-year comp this quarter, you can see the strong momentum in our business as we reached all-time highs in adjusted EBITDA margin and total revenue less transaction-related costs as a percentage of total revenue. As noted earlier by Charlie, our marketing spend more than doubled year-over-year in the quarter. Nonetheless, we were able to leverage non-transaction-related operating expenses by 30 basis points year-over-year. Top line growth and leveraging our nontransaction-related OpEx, combined with strong unit economics resulted in net income outpacing total revenue for the quarter. For those playing the Rule of 40 game at home, which we measure as revenue growth plus EBITDA margin, we exceeded a score of 80 in Q1. On Slide 12, you can see the strong momentum in our business as Q1 GMV of $1.1 billion nearly surpassed Q4's holiday season GMV of $1.2 billion. Sequentially, our revenue yield rose to 12.2% from 11.2% due to seasonality, which I addressed in my earlier remarks. Year-over-year, however, revenue yield declined 80 basis points due to the mix in merchant and virtual card activity, plus a reduction in the number of consumer fees charged. Slides 13 through 15 dive into our unit economics, which are powering our bottom line results. As a reminder, transaction-related cost is a non-GAAP measure that combines transaction expense, provision for credit losses and net interest expense. You might hear us refer to gross margin and net transaction margin, which is total revenue less transaction-related costs. Let's jump to Slide 14 and review the three cost components of transaction-related costs. Each of the three components had a favorable year-over-year move. Transaction expense consisting mostly of payment processing costs continues to experience the benefits of us driving consumer adoption toward lower-cost payment channels such as ACH. Meanwhile, our provision for credit losses fell year-over-year because of the better-than-expected performance in the current year's portfolio as well as prior year vintages. Further, we are not seeing any unusual strains on the consumer. And as noted earlier, seasonally, this is our best quarter for provisioning for credit losses. But the story is not simply about consumers doing better than expected. Our team continues to enhance their toolkit and decisioning. Our underwriting team is exploring new data sources, accelerating model iterations and utilizing new machine learning techniques and collections. All of these add up to improvements as we scrutinize every lever of our underwriting inputs. Lastly, net interest expense remained low at 0.3% of GMV. There is further room for improvement here as we move forward with refinancing our current credit facility, which matures next April. Slides 13 and 14 demonstrate our hyper focus on unit economics and its components. It is evident how it all comes together on Slide 15. We continue to find ways to improve our economic model and not sacrifice growth. We recognize the importance of profitability as it allows us to pursue strategic initiatives that will further propel the business. As we have stated in the past, our goal is to drive our business and profitability with revenue less transaction-related costs in the 55% to 65% range. Our hyper focus on cost does not stop at the unit economic line. It extends to our nontransaction-related operating expenses, too, as shown on Slide 16. Even as we more than doubled marketing spend year-over-year, we continue to generate operating leverage across the business, particularly in personnel costs. While our team has grown, we have scaled thoughtfully and remain disciplined in where we add resources. Looking ahead, we expect to continue leveraging our operating expense base while still investing in the areas that are delivering attractive returns. We did incur minor costs related to our corporate strategic projects during the quarter. Our antitrust suit is currently ongoing and something we cannot elaborate further on. We are making progress on the banking charter process and have moved beyond the discovery phase as we are now actively hiring executives and nonexecutive directors. We anticipate submitting our application mid-2026. We recognize this process is long and not guaranteed, but we believe it is an important strategic opportunity to pursue. Sezzle's significant momentum is evident in our bottom line results shown on Slide 17. Driven by a healthy unit economic story and leveraging our nontransaction-related OpEx, net income outpaced our top line growth. For the quarter, GAAP net income reached $51.3 million, representing a 37.9% profit margin. Adjusted net income was $50 million, and adjusted EBITDA was $71.1 million, a 52.5% margin. Each of these reflects an all-time high for Sezzle. Our liquidity remains strong as shown on Slide 18, as we ended the quarter with $147.4 million in cash, including $26.9 million in restricted cash. In addition, we had $69 million in availability under our line of credit. Working capital did build relative to previous quarters due to the launch of Pay-in-5 in January. But as noted, we have plenty of liquidity. The strength of our liquidity and cash flow generation is further exemplified by us repurchasing $24.8 million worth of common stock during the quarter, which will be disclosed in our 10-Q that will be available tomorrow. On Slide 19, we update our guidance. We are raising our guidance across the board. We now expect revenue growth of 30% to 35%, adjusted net income of $180 million and adjusted net income per share of $5.10. Before passing the call over to the operator for Q&A, I want to remind investors of a few items. First, we target total revenue less transaction-related cost margin of 55% to 65%. And within this margin calculation, we target a provision for credit losses in the 2.5% to 3% of GMV range. Second, we expect to continue to leverage our nontransaction-related OpEx as we anticipate growth in the top line to outpace our spending. Third, do not forget about the seasonality in our business that I discussed earlier in the call. And last, this guidance does not reflect any projections for new products currently in development. With that, I would like to turn the call over to the operator for Q&A.

The first question comes from Mike Grondahl with Northland.

Congrats on the strong quarter and progress. I'm looking at Slide 6. Pay-in-5, virtual card in Canada, the mobile plan and enhanced long-term lending. Charlie, if you had to project out a year or guess, what do you think is going to be the most important out of those four? Or could you kind of rank them?

Yes, I would say Pay-in-5. Just because it's already proven to have results for us. I know many of the people on the call are not our target customer. But our target customer, Middle America, value-seeking consumers, we surveyed and asked, and even though Pay-in-5 seems to be that incremental change over Pay-in-4, there was a big demand among our consumer base for that incremental change, and we've seen it in the implementation. The virtual card in Canada is not quite fully launched. Our goal with that virtual card is to get it to truly anywhere. You can see in the subscript it's closed-end at the moment. As soon as that goes live, I would say that also has some serious potential, but it's in Canada, which is 10% of our volume. So it's going to help us, but it's 10% of the potential volume. The mobile plan and enhanced long-term lending are really early. The mobile plan is not really designed to drive revenue or gross margin; it's more designed to increase retention and deliver value to consumers. So financially it's not going to be delivering massive numbers for investors to look at in the near term. Enhanced long-term lending has always been more of a nice sidecar product for us; we've had it in our history and we're just making it better. It has never been a massive financial driver, but it's a product consumers do like.

Got it. And then maybe just a question on marketing. What channels or where are you getting the best returns there? And then what's kind of your outlook on marketing spend the rest of the year?

For marketing spend, we still have the Timberwolves sponsorship for another year. That's more of a brand awareness play. The actual channels that deliver results for us are advertising channels: web ads, social media ads, in-app ad networks. We're pushing more into connected TV and video platforms like YouTube, and we're testing across the board. Where we see better results, we allocate more spend. If you look at our results, you can basically see we keep feathering on the marketing spend as the performance continues to play out.

Yes, that's fair. That chart is helpful...

And Mike, I'll just add a little more color too on that marketing spend. If you look year-over-year in absolute terms, it's definitely up. But if you think about it as a percent of our revenue, it's fairly reasonable and actually slightly lower than where it was in Q2 last year. So we do have the ability to leverage that spend.

The next question comes from Kyle Peterson with Needham.

Really nice results. I wanted to start out on the credit costs. I appreciate the commentary and reminders of the seasonality. But I guess just looking at it, the losses as a percentage of GMV were still better than expected and down year-on-year. So how should we think about some of the puts and takes and what your expectations are of getting back to that 2.5% to 3% range, especially as Pay-in-5 and some of these other products scale? What's conservative versus mix and is there some potential upside to that number?

Kyle, I'll let Lee follow up, but part of the thing to consider is that the provision is a reconciliation of prior quarter estimates. Every quarter we post is an estimation of what the loans for that quarter will be in terms of their estimated loss rates. Sometimes there are overestimations or underestimations that leak in. In this case, we had some overestimation that affected the first quarter a bit. So it's helpful to look at trend lines on the provision because of that estimation aspect. We still expect to see 2.5% to 3% for the provision for the year. Part of that is because we're expanding our marketing spend. Marketing increases new users, and new users have higher provisions. Pay-in-5, one trade-off is that it logically has a slightly higher provision inherent to the idea. But the way we've designed the product mix, we account for that and think it financially plays out as a wash in many cases. So we feel comfortable with our projection. Provisioning is an estimation and will vary, but our plan remains consistent.

I'll just reemphasize what Charlie said. Q1 is typically the better quarter for collections and provision. We wouldn't want to annualize these results. As the year progresses and as we bring in new users, we expect to be a bit more conservative. Pay-in-5 is just getting started and could initially have higher loss rates, so we're very comfortable with our 2.5% to 3% target.

Okay. Great. That's really helpful color. As a follow-up, I wanted to ask about the partnership you guys announced with Pagaya. Is this a way to get into more longer-term lending? How will this partnership scale and be funded? Are you contributing anything there? And what's your path to monetization as that scales?

Good question. In terms of monetization, it's really a take rate on the volume that flows through; we're not sharing in the credit risk on that product. We're trying to help Pagaya optimize results because they're a partner, but it's really a fee-based relationship. For the company, the primary value is helping us win merchant deals. Merchants with higher average order values want to see that we can support larger-ticket items, and this partnership helps our sales team win those deals. We'll also mix this into some of our D2C products. We prefer staying in shorter-term products and partnering on longer-term lending with specialists like Pagaya.

The next question comes from Hal Goetsch with B. Riley Securities.

Could you give us some color on any middle market merchants or enterprise customers? Are you generally just seeing broad new merchants coming from subscribers who are taking their virtual cards and their Anywhere subscriptions to many more merchants? Could you give us any color on that?

We're seeing a continued trend toward more direct-to-consumer and more open-loop usage. The industry started more closed-loop and will gradually move to more open-loop. Our consumers are using Sezzle at more general-purpose locations like grocery and general merchandisers. Our sales team is still out there and we have new products and features that help them land enterprise merchants. This transition to open-loop could take five to ten years, but in the meantime we continue to deliver value to merchants. On-demand now allows merchants with thinner margins to pass fees to consumers, which is helping us win deals. The Pagaya partnership also helps sales. So we'll continue to grow the merchant channel, but it's not growing as fast as our D2C channel right now.

I'd add that we view merchants primarily as a customer acquisition channel. As we've pushed into marketing channels like social and app store advertising, merchants remain a strong channel to acquire new customers. We'll continue selling into merchants, but it's becoming a less important part of our overall business mix.

Terrific. On the marketing and advertising, you showed a nice commitment to spending growth year-over-year and sequentially from Q1 of last year and Q4. Would you expect the level of dollar spending to move incrementally higher from here or be flattish quarter-over-quarter? What are your thoughts on the spending commitment in marketing this year?

We expect marketing spend to continue to rise quarter-over-quarter. The team is finding more places to place ads, and our guidance to them is: if you can find placements that meet our return criteria, we want you to spend there. Their job is to hunt for additional high-return channels, and if they find them, we will increase spend.

Excellent. Last question for me: can you just give us your thoughts on the macro? You're a value-focused company and there's been a lot of discussion about affordability and higher gas prices. What are you seeing in real time in the business?

In terms of our customer base, outside of COVID-related distortions historically, we really haven't picked up clear macro signals in the data. We're not seeing anything now that stands out. People ask about gas prices hitting mid- to low-income consumers more, but when we look at our numbers, our customers look healthy. We haven't observed a material impact in the metrics we monitor.

The next question comes from Rayna Kumar with Oppenheimer.

This is Anthony Cyganovich filling in for Rayna. I was curious if you could talk about some of the drivers of what might be accelerating revenue from the 29% that you reported in the first quarter to that 30% to 35% range that you guide to. Are you including any uplift from Sezzle Mobile or Pay-in-5 this year?

Pay-in-5 is included now because it's part of our existing product mix. Sezzle Mobile just launched and isn't something we're projecting significant revenue from at this point. We're seeing strong momentum in subscriber growth. On-demand is down quarter-over-quarter, partly seasonality and partly our renewed emphasis on subscribers. We like focusing on subscribers because they build a rolling snowball effect, increasing engagement and retention, which is likely a primary reason for our guidance raise.

That's spot on. Another factor is some seasonality and choppiness in revenue yield relative to GMV due to comps; this quarter's comp was tougher. We expect some smoothing across the year, and that will support the guidance as well.

As a follow-up, on Slide 8 you listed many new products. Can you help us think about a timeline to become this kind of all-in-one services platform? And are you utilizing AI to help develop any of these financial tools to gain more operating leverage?

Based on the items we've outlined, we expect many of them to be completed, launched and scaling by the end of 2027. We may continue to innovate beyond that, but by the end of 2027 we expect a much more fully featured offering, including deposit accounts. Regarding AI: absolutely. Some of our products have been developed with heavy AI assistance. Our product team has used AI on visualization, flows and code; a significant portion of our code is developed with AI assistance and then reviewed by our engineers. We view AI as a productivity multiplier. We're embedding it across the company to speed product development, improve quality and scale output. Leaders who don't embrace AI won't fit our culture going forward; we are mandating its use to supercharge our teams.

The next question comes from Ryan Tomasello with KBW.

In terms of the product pipeline, I think you previously alluded to a cash advance product in the works. I was hoping you could give us an update on that rollout. Anything you can share on engagement, pricing and underwriting? Particularly on underwriting, do you envision an opportunity to push more into direct cash-flow-linked underwriting to support that rollout and potentially the broader BNPL credit product as well?

We're testing variations of the cash-flow management product and have seen great engagement; customers like it. Because of the regulatory environment, we're cautious on the launch. The current plan is for the product to mimic BNPL terms—similar to a Pay-in-4 or Pay-in-5 structure—and probably be limited to subscribers as another benefit. We expect it to be a lower-cost cash management tool for qualified subscribers. Small-scale testing shows it increases engagement and retention. We plan to roll it out more seriously in the next few months—likely within about three months.

Great. Sticking on the product pipeline, regarding the checking product, can you talk about timing and how you envision going to market? Any incentives you might offer to drive uptake, and how much marketing investment will be needed for awareness and adoption?

The checking product is another item coming in the next few months, likely by the end of Q3. We don't have concrete details yet on offers or integrations, but the idea is to make Sezzle a one-stop shop and create compelling reasons for consumers to opt in. We'll evaluate incentives and bundling when we finalize the go-to-market plan. Deposit accounts are a strong retention mechanism and we'll design the offering to maximize consumer value and engagement.

The next question comes from Huang Lin with TD Cowen.

Congratulations on the quarter. I want to ask on the revenue less transaction cost margin since you've been doing so well over the past couple of years and it looks like it keeps increasing. In 1Q this year it's up about four points versus last year. Is something making your margin structurally higher year-over-year, and what levers can you continue to pull to further improve margin?

Some of the improvement is driven by scale. Transaction expense benefits from scale and from driving consumers to lower-cost payment channels like ACH. Net interest expense improves as we have more cash generation and lower borrowing; we have room to lower costs further when we refinance our credit facility. Provision benefits from repeat customers who have better loss rates. On the revenue side, subscription products drive recurring benefits. But a reminder: the 74% gross margin in Q1 shouldn't be annualized because of seasonality. Q1 benefits from revenue spillover from Q4 and from better provision dynamics. Those seasonal patterns can inflate Q1 margins relative to other quarters.

I'd emphasize our target of 55% to 65% for revenue less transaction-related costs and that we've been trending on the higher end, around 60% to 65%. The three key areas to improve are processing (more ACH), interest expense (we expect improvement when we refinance our facility), and provision (which can swing). The Q1 year-over-year improvement in provision was a major driver, but we aren't necessarily booking the same outperformance every quarter going forward.

One more on the bank charter: one benefit could be launching more products that you can't currently launch with bank partners. What products would your own bank charter allow you to launch that you can't do today?

You can already launch most products with existing bank partners in today's model, so the bank charter isn't about enabling products per se. It's about regulatory defensibility and moving some variable costs to fixed costs. A charter provides more regulatory clarity and makes us less exposed to potential changes in the bank partnership model. Over time, as volumes grow, operating your own bank can reduce costs versus paying a variable percentage to a partner. It may also speed product launches by simplifying regulatory conversations, but it's primarily about defensibility and cost structure.

This concludes our question-and-answer session. I would like to turn the conference back over to Charles Youakim for any closing remarks.

Thank you, operator. I'd like to leave with something Charlie Munger said that stuck with me. He said, 'I think you can try to make your money in this world by selling other people things that are good for them.' I think that's a fair description of what we're doing at Sezzle. We're a company that thinks about this all the time. We believe our core products are much safer and less costly than existing financial products. We also go out of our way to find ways to help our consumers save money. We're helping our customers, and that feels good. The growth, the margins and the cash generation we walked through today are the downstream effects of getting that right. Customers who improve their financial lives come back. They refer their friends, and they graduate up the platform through Sezzle Up. That's the flywheel. And it only spins with alignment if the alignment with the consumer is real. We've got a long way to go and the environment around us is dynamic, and we're going to keep on earning our place one consumer at a time. Finally, a big thank you to the team for another quarter of disciplined execution, and thank you to our shareholders for the trust you continue to place in us. We'll talk to you next quarter. Thanks.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.