Conference Transcript - STT 2026-09-14

Jason, Other

So moving right along, I'm very pleased to have State Street from the company, John Woods, Chief Financial Officer. You know, John did this conference last year with, you know, a week or two into the job. You know, this year is a year and two weeks into the job, so I get to grill him a bit And, John, maybe the best place to start, you know, in July you laid out, you know, new medium-term targets for State Street, 35% pre-tax margin, 20% ROTCE. As you think about the path to achieving those targets, what gives you confidence and ability to get there, and what did you see as the two or three most important drivers of success over the next several years?

John Woods, CFO

Yeah, thanks, Jason. Really great to be here. And just one year into the job, just an incredible platform that we can talk about, that we laid out our medium-term outlook in July. I mean, I think I'd start off with the global franchises that are part of State Street and drive State Street at scale. So whether it's the number two custodian in the world, number four asset manager in the world, number one FX provider to asset managers in the world as well and out of our markets business. So pretty incredible collection there that really drives it. And it all starts with that at the foundation and the core. I think the second one that I would highlight is, you know, some very distinctive strategic initiatives that we think will diversify and accelerate growth and returns over time. So, you know, we talked about our presence in the alternatives business, you know, what we've got going for us, you know, in terms of investing in digital and infrastructure and products. And then, you know, more recently, a lot of investment being put into the wealth services space. So, so that's the second one that comes to mind, just really strong strategic portfolio on top of the core. And then, you know, we did talk about transformation, which I think is something that allows us to invest in those strategic initiatives while still maintaining margins. You know, and I guess I'd hasten to also add, I mean, recent performance has been really strong. I mean, we, you know, after, you know, basically new leadership over the past, you know, some of that momentum really kicking in in terms of the investments that they've made and, you know, there were records set in the second quarter across all of our businesses, you know, in one way or another and that momentum has been really good and if you just take a little step back just a few years ago our pre-tax margin was in the mid-20s and, you know, when you look at where we are now, it's basically low-30s just significant progress in a short period of time and, you know, so I think you put all that together. And, you know, I'm feeling very, very good about our ability to deliver on those medium-term, you know, goals that we laid out in July. So, yeah, those are the top ones that come to mind.

Jason, Other

Maybe we could just double-click on a few topics you've mentioned, but wealth services, digital assets, and alternatives, you know, big strategic areas of focus for the firm. Just, you know, how are you positioning the business to capitalize on these initiatives and where you're seeing the strongest potential to drive growth over the medium term?

John Woods, CFO

Yeah, maybe I'll do that in reverse order. I think because in the near term, I would say alternatives is the one that really is delivering, right? So you've got 15 to 20% of our servicing fee revenues actually coming out of the alternatives business. And we're really investing to make that a platform business and improving capabilities along the way. So, you know, things like, you know, you know, leading and leading into a product where we would drive daily navs, as an example, in the alternative space, which is pretty typical in a traditional world, but not quite as typical in alternatives. So we're continuing to invest there. We've had a lot of success. The growth profile is attractive. The return profile is attractive. And so I'd say over the near term, that's the one that really contributes. The next one, if you think about digital products and infrastructure, from an infrastructure standpoint, we launched our digital asset platform earlier this year, and, you know, we're continuing to invest there from an infrastructure standpoint where, you know, we're heading into a multi-chain capability in digital. So by the end of the year, we'll be in a public permissioned space from a blockchain standpoint, and we'll have public permissionless, you know, to follow, but we'll be in a multi-chain infrastructure. And we sit at the center of our clients' workflows, managing that kind of on-ramp, off-ramp between the traditional world and the digital world. I think where you're going to see that contribute is really just being relevant to our asset manager clients around the world and continuing to see organic growth by making sure we can play that role over time. The last one that you mentioned, wealth, is the one that is really starting to gain momentum and gain steam. It's not, you know, a huge driver of profitability today, but I'd say over the, like alternatives is, but I'd say over the medium term, you can really keep an eye on wealth being a needle mover. We've, you know, we started off with our Apex, you know, investment, you know, late last year, and that was, you know, driving back office capabilities. We've recently announced, you know, a State Street integrated offering here in the U.S. and we've got a mandate from one of the largest RIAs in the U.S. to be an anchor client and our front-to-back wealth services offering. We're extremely excited about that. We've got a pipeline building behind that as well. So when you think about broadly the things that really drive that strategic initiatives portfolio is probably alternatives in the near term, digital throughout, and wealth picking up steam over the medium term.

Jason, Other

Got it. You've also spoken about, you know, the power of the core franchises across investment services, investment management markets, and the benefits of this one-state street. Just, you know, how does that show up in practice today, and where can connecting the businesses more tightly drive the greatest incremental value over the medium term?

John Woods, CFO

Yeah, I mean, the way I think about that is you think about our top three businesses, and I look at it as the intersection between those businesses and our top client segments. So you've got investment services, investment management and markets, and then you think about the client segments that we want to serve. It's asset managers, traditional and alternative asset owners, and wealth managers and intermediaries. And so, you know, when you think about asset managers, that's our, you know, kind of, you know, collaboration primarily between investment services and markets. So where you see investment services with the front-to-back capabilities serving asset managers, but institutional-grade markets capabilities from a liquidity and financing perspective where we go to market together. And, you know, there isn't, you know, investment management provides, you know, distribution capabilities as well as supporting fund launches for other asset managers. And so that's kind of an exciting way to think about on a day-to-day basis how we serve the asset manager. you know, client base. When I flip over to asset owners, you know, same capabilities poured over from investment services and investment management, but you think about from a one-state street standpoint where a bigger part of the story is the investment management, you know, capabilities where, you know, whether it's ETFs, portfolio construction, you know, you basically have indexing, multi-strategy, outsourced CIO, lots of a very rich, you know, portfolio of products that the investment management, you know, business provides to asset owners. But nevertheless, you know, we also can bring, again, institutional grade markets capabilities for liquidity and financing to the table at the same time. So on a day-to-day basis, you see that playing out with asset managers and asset owners. And I think the third one, and I've alluded to this a little earlier, the third one being wealth managers and intermediaries, I would look at that as not only a customer segment, but also, as I mentioned, one of our top initiatives. And it's probably one of the clearest examples of One State Street, really, and certainly one of the more recent, more exciting ones, where each of the businesses has a big role to play. And, you know, where investment services, you know, we're, as I mentioned, we've launched a front-to-back capability with CRD Wealth supporting the front office. We have the State Street capabilities in the back office, you know, where we have that resident within State Street, you know, proper, but also supported by Apex. So very exciting in terms of that investment services approach. But increasingly, these wealth intermediaries appreciate the institutional grade capabilities that we bring from a liquidity and financing perspective that we can at the same time support them with. And then all of the investment management products and the wealth space from a distribution standpoint and products. And I should hasten to add, I think approximately 30% of our investment management AUM outstanding comes from the wealth channel. So you look at that and it's really exciting from a one state street standpoint rounding things out you know i mean i'll circle back to alternatives where i already mentioned what we're doing from an investment services standpoint but investment management as well partnering with alternative asset managers to actually distribute you know private markets products and get greater access to that and in the digital space you know all the capabilities i already mentioned but i would Add to that investment management's, you know, tokenized money market fund launches that they recently did. And they also launched, you know, a stablecoin reserve money market fund that targets stablecoin issuers. So, I mean, just to wrap all that up, I mean, One State Street on a day-to-day basis is very exciting. But these recent initiatives are all examples of One State Street at work, whether it's alternatives, digital, or wealth. Very comprehensive.

Jason, Other

I'm excited about it. You talked about AI as an important part of the transformation agenda. Can you talk to where you are in terms of implementation, where you see the greatest opportunities to improve productivity, enhance client outcomes, and just create capacity for future growth?

John Woods, CFO

Yeah, I put it in a couple of buckets. The first one that comes to mind would be the developer productivity from an AI standpoint. That was pretty straightforward and tangible. We've referenced 30% to 40% productivity expected out of the developer community within State Street. And that comes from cogeneration, modernizing legacy code, as well as vulnerability assessments, which is increasingly an incredibly important capability to have in-house. And so that's the first leg of it. I think the second leg, when I think about the rest of the employee base. We've invested in this in a significant way recently, and so much so that the AI-enabled workforce that we track, which is not just day-to-day access to things like CoPilot, but more sophisticated tools, has grown significantly over the last couple of quarters. I think we classify over 80% of our employees as being AI-enabled, And that's driving the ability to convert that into, you know, certainly more efficient knowledge retrieval, data extraction, analysis, et cetera. But it's playing out in products and client experiences as well when you put in, you know, the, you know, example. So from a product standpoint, I would say, you know, our data intelligence product price stats is now, you know, has AI-enriched data incorporated in it. It helps to anticipate inflation readings, increasingly important for our clients to think through. So that's AI-enabled from a product standpoint. And from other client experiences, I mean, we're a huge cash transaction processor, as you know, And we're ringing out a significant amount of manual interfaces where, you know, whether it's sanction screening or, you know, reconciliations and auto-matching, reducing manual interventions. So it increases controls and speed of delivery for clients. So that's very exciting. And maybe the last thing I'll close it out with is we did launch our Agentec platform internally earlier this year. that plus the end-to-end process redesign work that we're doing in the transformation space, that's underpinning the confidence in that transformation journey as well. So our transformation journey is process-led, but it is AI-enabled.

Jason, Other

And when we look at the market backdrop, we've seen a mix of market volatility, changing rate expectations, dynamic equity markets. I guess as we sit here today, how does the operating environment compare to expectations coming into the year? And what are you watching most closely as we head into year-end?

John Woods, CFO

Yeah, I mean, well, things have changed a fair bit. But, you know, when we were, you know, thinking about things at the end of 25, early 26, and just, you know, equity markets were around 6,800, 6,900. You know, our assumptions today, if you fast forward, are more like 7,600, 7,700 is, you know, end of August, where you look out the window here. It's about what our assumptions are for the rest of the year. So that's changed a lot. And I think outlooks from street firms, which I think kind of get updated, might even imply 8,000. But our assumption is 7,600, 7,700 in the equity markets. I've got to jump to the rate markets again.

Jason, Other

So earlier in the year, I think we were thinking about cuts.

John Woods, CFO

And you fast forward to where we are today, where there may be as many as three or four cuts. I'm sorry, hikes incorporated into the outlook for the Fed. And it's not just the Fed. The ECB is in a similar place. I think we had the ECB on hold this year, and they've already hiked once. And I think there's, you know, three more hikes, you know, in the outlook even for the ECB. So I think the idea that we would be continuing on the easing cycle has really pivoted to more of a higher for longer, you know, outlook, and not just on the short end. I mean, I think we had the 10-year coming in probably 10, 25 or so. I'm sorry, 425 or so at the end of 26, and it looks like that's over 5% today. So very different backdrop when it comes to the equity markets and rates. But I would say that those things tend to be tailwinds for us. I mean, higher equity markets, if you add in higher rates, we're asset sensitive, both within the U.S. and in Europe and outside the U.S. generally. And I'd also add that, you know, there's a lot going on, you know, that we're keeping an eye on for the rest of the year, volatility, midterms, keeping an eye on what's going on with, you know, geopolitics and all of that stuff. But the higher volatility tends to be, you know, somewhat of a tailwind for us as well. So, you know, kind of constructive outlook for the rest of the year.

Jason, Other

So, you know, the next question. You know, in July, right, you raised your outlook for 2026, following strong performance in the first half of the year. We're getting close to the end of the third quarter, you know, against the backdrop we're discussing. Just any thoughts on how the business is tracking relative to your expectations?

John Woods, CFO

Yeah, I mean, pretty good momentum there. I mean, things playing out, you know, very well, and I'll make a few comments about where we're seeing this come out. Just from a headline standpoint, I think about fee revenues, you know, I think we're going to see that come in, you know, basically a little better than where we had 2026 before. So maybe something along the lines of 13% to 14% range versus the original 12% to 13% from a fee standpoint. NII, we had it originally at around 14 to 15. I think we're going to see that coming in towards the upper end of that range. And so feeling very good on the revenue story, expenses come in slightly higher in reaction to some of that revenue and other factors. And when you put all that together for the year, I think in July we mentioned that we would come in around 500 basis points of operating leverage, that probably plays out to be slightly higher based upon those forces from a 2026 standpoint. Maybe just as what we're seeing in the quarter, I could add to that. I mean, in the quarter, I'd say that a good way to think about it is pretty stable quarter over quarter and somewhat across the board. So whether it's fees and I hired expenses, you could kind of look at 3Q versus 2Q, seeing stability there. And, you know, a couple of themes on the fee side of things, you know, I'm doing a little better in the servicing and management fee space, maybe as an offset to some moderation in the markets business. And those are a continuation of expectations that we had in July. and then, as I mentioned, stability on the expense side of things. And, you know, I'd articulate that 2Q was 10 quarters in a row, positive operating leverage, and 3Q is going to be the 11th. I'm very excited about that and feeling good about the outlook there.

Jason, Other

A lot to unpack. Let's start on NAI, continue to outperform expectations. Maybe delve in a bit and just talk about deposits, you know, what you're seeing there, and just kind of what gives you confidence in the durability of the trends we've seen, and maybe just the most importance of drivers of NII performance this year, and just how you're thinking about, you know, getting into next year.

John Woods, CFO

Yeah, just to maybe unpack that, starting with balance sheet and, you know, interest earning assets tends to grow, you know, highly correlated with deposit growth. And so we saw pretty strong deposit growth in the second quarter versus the first quarter and articulated an expectation of deposits being, you know, in the neighborhood of $270 billion for the year. I mean, I think that's still a pretty good number. You know, that does imply growth in the second half compared to the first half. And, you know, we're seeing good trends in the deposit, you know, portfolio, you know, that really allows us to think about interest earning asset growth in 26 being a tailwind for NII. And so that's really the main driver and contributor to the upper end of the range of getting closer to 15%. You know, net interest margin is going to be range-bound in the 110% to 115% basis point range. And so those are some of the, I think, forces you'll see play out that are supporting that upper end of 14% to 15% from an NII standpoint. And, you know, broadly, you know, the expectation over time and over the medium term is for, you know, that growth to continue on the interest-earning asset side of things and for that interest margin to really, you know, migrate towards the higher end of that 110 to 115 range over the medium term.

Jason, Other

You know, you mentioned Apex earlier. you have a minority investment and partnership with and I think this quarter you announced an acquisition to expand your servicing business in Latin America just as you think about future opportunities you know what makes an acquisition or partnership attractive to State Street you know what role does M&A play and maybe just talk about your appetite for Boltons and larger things yeah I mean Yeah, you know, really, I'll comment on this, too.

John Woods, CFO

I mean, I will start that when we think about, you know, capital, allocating capital, we start with the strategy roadmap. That's where it all begins. And the emphasis there is to allocate capital to organic deployment for driving that strategic roadmap over time. And I talked about the things that we're excited about, you know, whether it's alts, digital, wealth, and, you know, also supporting our global network. So it begins there, but from time to time when we see the opportunity to actually accelerate capabilities, we'll think about some transactions to help move us down that path in an attractive manner. And so starting with Apex, we're really excited about the wealth services opportunity and serving the wealth intermediary and wealth manager client segment. And so the ability to create a digitally native front-to-back capability to support that customer segment was really exciting. And so the first step in that was creating that partnership with Apex. The next step in that was really what I mentioned earlier in terms of integrating that within State Street. So now that's an integrated State Street offering that we lead with and signing up an anchor client there. So very excited about that. And so it's all part of a combination of organic and some inorganic activity to actually move that strategic roadmap down the path. And then, yes, we are excited about the transaction we announced with Santander and Casais to acquire their joint venture in Latin America. Our global asset management clients have business operations around the world, including Latin America, and, you know, we weren't at scale down there. And this creates a scaled, you know, servicing capability that is attractive and accretive from a growth and return standpoint. And so from that standpoint, we feel really good about that puzzle piece as part of the global network and infrastructure. But broadly, we start off with the focus on organic deployment of capital and being very disciplined when it comes to smaller transactions like Boltons.

Jason, Other

You've certainly talked to 80% payout ratio. You've talked about it for this year as well. As well as looking out, just given strong capital ratios, this improving regulatory backdrop, You know, is 80% the right level for State Street? And just how do you think about prioritizing capital deployment plus dividend, share buyback, bringing reinvestment into businesses and some of these strategic opportunities you just talked about?

John Woods, CFO

Yeah, I think it's a good point. I mean, roughly 80% is a good, you know, yardstick that we plan against. And, you know, we mentioned that that would be, that was the planning expectation, you know, not only for 2026, but also over the medium term. I think what it does is that it starts off with the expectation that we're going to return a majority of the capital generated in any given year to our investors, so first and foremost. The reason why we're leaving that capacity there, that other 20%, is just to reflect the fact that we have very attractive opportunities in a number of our businesses to deploy capital for the benefit of our client segments and our customers. So, for example, in the markets business, we have a leading FX capability that does absorb capital, but being the number one FX provider to asset managers and continuing down that path does have some capital needs, that capital that gets deployed is accreted from a return standpoint and is really part of the overall ecosystem in terms of supporting asset managers. The other side of the ledger, you know, we have, you know, some attractive opportunities from a lending perspective. And so you see, you know, we will also support the asset management space, both traditional and alternative, in providing access to the balance sheet connected with our servicing capabilities. That ecosystem is also very accretive. And so just having a growth mindset and staying on the path to continuing to grow the platform, we think that it's valuable to have some ability to use some of that capital strength in order to support customers. And then lastly, from time to time, as you mentioned, we'll see the opportunity for some bolt-ons. And so, you know, that's why we tend to use that 80-20 as a good, you know, planning expectation in any given year, which could deviate depending upon, you know, the opportunities that may have in flow, you know, that I articulated.

Jason, Other

You mentioned earlier that this third quarter will be the 11th straight quarter of positive operating leverage. You're going to exceed 500 basis points of positive operating leverage for the year. Or just as you kind of put together the kind of 2027 budget and thinking at expenses, maybe just talk to how you balance kind of investing for the future, driving further profitability improvement. You know, how are you thinking about operating leverage target for next year? And then, right, things are really good. How do you kind of pivot if maybe next year the environment becomes less favorable?

John Woods, CFO

You know, we do – so broadly, we have scenario-based planning. You know, so if, you know, if we see some base case expectations, I think we talked about in July in terms of making progress over time. We talked about the transformation program, you know, supporting our strategic initiatives, as well as allowing us to continue to contribute to pre-tax margin, you know, over the medium term. The scenario-based planning, whether it's a blue sky outcome where we might, you know, maybe lean in a bit. We also have gray sky scenarios that would allow us to nevertheless continue to invest in the crown jewel strategic initiatives through downturns, because we do think that's important, that when and if you have a downturn, you may tap the brakes on certain marginal investing, but you really need to protect the core so that you have momentum coming out of those downturns and don't see yourself in an air pocket of strategic capabilities. as things become a little better and those downturns pass. So we do the scenario-based planning. I think you'd see us leaning in on transformation-related capacity to invest in order to continue to have an attractive margin progression over time, delivering against that medium-term outlook that we articulated.

Jason, Other

I guess you talked about this billion-dollar transformation benefits on the last quarter's earnings call. Is that the right number? What should we be watching to see if you're on target for that? Maybe expand upon the biggest pieces of it, and how did you come up with it?

John Woods, CFO

Yeah, I mean, I think when you look at that over a three- or four-year period and break that down, that's a pretty solid mid- to high-single-digit creation of productivity based upon the expense base. And I think that's the, we said we would get to that level by the end of 2029. So on a run rate basis, you start seeing that, you know, in a year four of an outlook. And so pretty solid productivity expectation when you think about it top down. We did build it bottoms up across, you know, four overall pillars. The first is an end-to-end process redesign of our business processes and our supporting operating model across the whole company. So we're migrating to a product platform approach, which is very cross-functionally driven and underpinned by an agile delivery mechanism. So that's the first pillar of it, And you're going to see reengineering and significant, you know, efficiencies and productivity coming out of that first pillar. The second one is, you know, technology modernization, you know, fewer applications, you know, bigger footprint in the cloud. And then the third is data, you know, fewer data lakes and much more efficient access to data, you know, throughout the platform. And the last one is more of the, you know, traditional kind of blocking and tackling from an efficiency perspective, third-party spend, you know, managing through organizational design and those kinds of things. So those are the four pillars that underpin the billion dollars, $750 of that's on the productivity side, you know, coming out of expenses, and then you have the $250 coming out of revenue in terms of product launches and, you know, that kind of thing as well. So feeling good about that calibration and seeing that productivity begin to ramp over the medium term is what would give you the signal that we're on track to deliver by the end of 2029.

Jason, Other

Got it. And earlier we were talking about digital assets. Maybe we spend a little bit more on that. I think it's something that, you know, we're trying to, I guess, continue to grapple with as it's, you know, still in the early stages. You know, just as you look out, you know, I guess what are you hearing from clients? Where's demand? You know, I know we're in the early innings. You know, I guess how do you just see this evolving? And then, you know, what are the biggest opportunities for State Street?

John Woods, CFO

Yeah, I mean, I think, as I mentioned, we think about being at the intersection of all of these workflows for our clients. and, you know, providing that seamless on-ramp and off-ramp between the traditional world and the digital world. Where we're seeing our clients get really excited is in the early use cases is really around collateral management and unlocking, you know, the economic value of collateral movement and flexibility. So, you know, tokenized money market funds. Where money market funds are often not, you know, are not eligible collateral, This unlocks that on behalf of our clients, number one. And I think, secondly, the other big one that we think about is facilitating new distribution channels for our asset managers where on-chain distribution of assets for a customer base that prefers to operate or have the flexibility to operate in the digital world and on blockchain is the second big one that we're following our clients and being the infrastructure that allows them to do that seamlessly. And as I mentioned, this is just going to be table stakes. So the asset management space is going to need to operate in all likelihood for the foreseeable future in a hybrid approach from both traditional rails and on digital rails, and we're going to be there to support them in doing that. And it's going to be quite some time before, you know, we see how that plays out in terms of, you know, digital versus traditional rails. But we think it's a hybrid approach for the foreseeable future, and we're investing in the infrastructure and product capability to power it.

Jason, Other

And, you know, we've talked about at the onset we started with kind of your medium targets, and I know they're kind of three- to five-year targets. but just what are the most important milestones we should watch over the next 12 to 18 months as maybe leading indicators that you're on track to achieve that 35% pre-tax margin, mid-20s, ROTC?

John Woods, CFO

Yeah, I mean, I would say I would go back to the core franchise again and keep an eye on organic fee growth is an important driver of where we were. And if you look at item I may reference, if you're looking at the second quarter, And if you strip out market tailwinds and FX tailwinds from where things are going, and we certainly benefit from all that. But even if you exclude all of that, you look at that operating leverage. And I talked in July about over time 100 to 150 basis points is what we're talking about in terms of over the medium term to deliver that 35% pre-tax margin. Well, we delivered exactly that in the second quarter, stripping out all of the market stuff. And so I think keeping an eye on our organic fee growth is one of the important drivers, XMarkets. I think the other one is continuing to see the benefits of NII as an important part of that story. And as I mentioned, we expect NII to grow in the low single digits range over the medium term, driven by the expected growth that we'll see in deposits, et cetera. But, yeah, I should correct that. And I would expect it's low to mid-single digits. The balance sheet growth is low single digits. But keeping an eye on continuing to grow deposits over time, as well as seeing our net interest margin starting to migrate towards the upper end of that range, That's the revenue story. And on the expense side of things, just seeing us continuing to be able to advance our capabilities from a strategic initiatives portfolio perspective while still growing that productivity and getting to that $750 million of productivity that underpins that billion. And those are the things that we are excited about that I think will remain – will be emblematic of being able to provide that positive operating leverage, even X markets, you know, that will underpin, you know, getting to that medium-term outlook that we're excited about from July.

Jason, Other

In the waning minutes, you've been in State Street a year. Biggest positive surprise? Biggest, I don't want to say negative surprise, but biggest not positive surprise?

John Woods, CFO

You know, I mean, maybe they'll positive surprise. I mean, the global presence and the interconnected businesses that we have around the world and the quality of our customer base is just incredible. So 95 of the top 100 asset managers in the world are clients of State Street. 85 of the top 100 asset owners are clients of State Street around the world. It's just really impressive. And just a premier client base with an incredible global network. From outside the building, and we all look at State Street, you can think about it in one way. And so after a year of being inside the building and seeing it operate, it's just an incredibly positive feeling to be part of this franchise. So that's the first one. I'd say that on the other side of the ledger, and I think that quickly becomes a positive, as these often do, I mean, the opportunity from a strategic initiative's perspective and from a transformation's perspective is probably a little bigger than I thought it was going to be. And, you know, we grabbed the wheel on that and leaned in and, you know, and put a transformation acceleration program together to basically pull that lever over the medium term. But, yeah, that was probably, you know, a little bit of a surprise in terms of how big that opportunity was going to be, you know, coming in from a year ago.

Operator

Great.

Jason, Other

On that note, please join me in thanking John for his time today.