Aura Consolidated Group, Inc.

Ladies and gentlemen, thank you for joining us and welcome to Aura's Q2 2020 Cents earnings call. After today's prepared remarks, we will hold a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Kane Hannon, head of IR. Please go ahead.

Good morning and good evening, everyone. I'm Cole. Welcome to AURA's second quarter 2026 earnings conference call. All participants will be in a listen-only mode until the question and answer session. As a reminder, we will make certain statements that constitute forward-looking statements regarding future events and potential or assumed financial performance or potential growth of the company during this call, which are subject to material risks and uncertainties that can cause actual results, levels of activity, performance or achievements to differ materially from such statements. We will also present both GAAP and non-GAAP financial measures. These non-GAAP measures should not be considered in isolation or as alternatives to or substitutes for or superior to our GAAP financial data in our financial statements. We encourage you to consider all measures when analysing our performance. Please refer to our results presentation for the applicable reconciliations. We'd like to provide some context on the basis of presentation for today's results. Because the acquisition of Quoria closed after the end of Q2, our statutory financial statements reflect AURA on a standalone basis. To provide context on the company as it will operate going forward, we will reference unordered pro forma summary financial results for the Merge Group. The pro forma income statement information combines AURA's historical financial information with Quoria's historical financial information. The pro forma liquidity and net debt positions are stated as of the July 17 transaction completion, affecting cash and debt amounts as are all transaction expenses and the repayment of the Quoria Ashgrove facility took place at closing. Given the recency of the Quoria acquisition close, we have provided certain or a standalone operational metrics, but we will not provide pro forma operational metrics or certain supplemental financial measures this quarter. We expect to introduce the standardised combined operating KPIs set next quarter. As mentioned, we have posted the second quarter result presentation on our Investor Relations page, which was filed with the ASX this morning. We will begin with an overview of results and a business update from our Chief Executive Officer, Hari Ravichandran. Then our Chief Financial Officer, Brian DiCenzo, will walk through the Q2 2026 financials. Hari will return with final remarks before we open the call for Q&A. With that, I'll turn the call over to Hari.

Good morning. Thank you for joining Aura's first quarterly earnings results call, where we'll be discussing the results of the second quarter of 2026. It has been a momentous few months for Aura. We posted very strong second quarter financial results on a performance basis, achieving 27% year-on-year ARR growth, while driving a 51% year-on-year improvement in adjusted EBITDA, demonstrating continued tangible progress towards our goal of being free cash flow positive annually going forward. We completed the previously announced acquisition of Quoria on July 17th, enhancing our mission to be a global leader in online safety. And on July 20th, Aura Securities began unrestricted trading on the ASX under the ticker symbol AXQ. These milestones align with our mission and strategic priorities and further the vision we have for this company. I could not be more proud of this position we are in and excited about the vision we have as we enter the second half of 2026. At Aura, our core belief is that every person deserves trusted digital protection that understands their needs and works proactively to keep them safe. Our strategic priorities as a company are to provide individuals and families the world's most proactive, intelligent digital safety tools. and integrate these tools across a unique ecosystem comprised of the most important context in their lives, home, school, and work. And to pursue this mission within a business that demonstrates financial excellence. Our acquisition of Quoria enhances our pursuit of E2B strategic priorities. It solidifies our position as a global leader in the online safety market, creating a significantly larger, more diversified business with global reach. It unites Aura's AI power suite of online safety and well-being tools with Coria's global connected schools ecosystem with its particularly extensive reach in the US and UK. And the addition of custodial product and global base of customers further bolsters our scale consumer platform. Combining these products and go-to-market channels will allow us to provide all-in-one protection for individuals, families, and enterprises worldwide, spanning the major aspects of digital lives from home to school to work. The Quoria acquisition also furthers our ambitions around financial performance. It enhances our revenue scale and diversity. And the sales efficiency of the K-12 schools channel and custodio, as well as the school-to-home customer acquisition motion, enhance our structural profit potential. Having completed this transaction, we have a very strong foundation from which to build and tremendous opportunity ahead. Tim, Crispin, the team at Quoria have built an impressive business that fits well together with what we have built at Aura. and we're thrilled to partner with them in this new chapter. We've already begun the process of functionally bringing two organizations together and expect to fully integrate the two companies by Q2 of 2027 across organizational structure, brand architecture unification, and systems integration. Having completed numerous acquisitions in my career, I know that these integration processes are complex and progress is rarely linear. As we complete this work, we are hyper-focused on streamlining the organization and achieving the right cost structure to achieve our ambitions for free cash flow, while not sacrificing our core priority of setting the organization up for durable growth and free cash flow at scale over the medium to long term. We are in the early days as a combined company, but acquiring Coria has accelerated our vision and provides us with a clear roadmap for the future. In addition to the many benefits provided by the query acquisition, we made numerous other important strides across our strategic priorities this quarter, beginning with product. We accelerated our development and implementation of an agentic intelligence layer that uses contextual reasoning to synthesize activity across the user's digital life to identify threats to safety and well-being much more accurately. We're already encouraged by the direction of these investments. We recently introduced several new and enhanced intelligence products, including Aura Intelligence, which is our AI intelligence layer, and new AI-powered family safety capabilities. Aura Intelligence continues to rapidly evolve, providing users with increasingly personalized insights, recaps, and recommendations. We are encouraged by early engagement trends, which suggests that users are finding meaningful value in these capabilities and deepening their interactions with the Aura experience. Our family safety capabilities, including proprietary digital well-being index, and we continue to advance our youth risk detection models, including the release of an updated self-harm detection model in July. These features, the digital well-being index, and our youth risk detection models will be critical in our integration of Custodio with our Aura Parents app, where we've developed a full integration roadmap and are targeted to launch the combined product in the first half of 2027. Product innovation is at the heart of everything we do. You can expect to see other new product offerings later this year as we continue to position Aura at the forefront of digital safety in an AI world. Turning to our unique go-to-market ecosystem, the Cordia acquisition provides us immediate scale in the school's channel, and in April, we enhanced our value to the workplace with the launch of Aura Business. Our business is an enterprise security solution designed to close the identity-based security gap in modern businesses. Enterprise attacks were once driven by software vulnerabilities, device compromise, and system weaknesses. But today, employee identity compromise represents a leading driver of breaches. In 2025, Palo Alto Networks found that 65% of the initial access began with identity-based security compromises such as phishing, social engineering, and credential misuse. Rather than focus solely on enterprise system access, our business aims to protect corporate IT environments by securing first the employee accessing the systems. Delivered through our new managed service provider channel, we're seeing encouraging early interest for this new product offering and look forward to seeing it begin to deliver financial results in 2027. We also made some key strategic hires in Q2 that bolstered critical capabilities across the global organization. Steven Young, formerly the CMO at Poshmark, was hired as Aura's Global Chief Marketing Officer. And Adam Medros, formerly Senior Vice President of Global Product at TripAdvisor, joined us as Chief Product Officer. These additions to Aura's executive team signal a bold investment in global leadership and product excellence combined with our existing investments in advanced AI to scale our platform and fuel growth worldwide. We're excited about the opportunity and vision we have for the business as we enter the second half of 2026. We solve urgent problems across our footprint. Online threats are growing in scale and sophistication, driving record cybercrime losses and increasing concern about digital well-being. In the US, cybercrime losses reached $20.9 billion in 2025, nearly 400% higher than in 2020. AI is accelerating these trends, reshaping how people interact online while enabling threat actors to operate with greater speed, scale, and sophistication than ever before. Attacks by AI-enabled adversaries increased 89% from 2024 to 2025. At the same time, the human impact of digital life is becoming increasingly clear, particularly among children. One in six kids say they've been cyber-bullied, and in the US, 40% of high school students report persistent feelings of sadness or hopelessness. We provide tools to help individuals, families, schools, and workplaces manage against all of these threats. Amidst this backdrop, the world of technology is moving very fast. So we proceed with a real sense of urgency to innovate our product, to keep families and individuals safe and well in a digital world, to win in market, and to streamline our organization to drive compelling financial performance. I'll now turn it over to our Chief Financial Officer, Brian DiCenzo, to outline our financial priorities and take us through the results of the quarter.

Thanks, Hari, and thanks, everyone, for joining the call today. As a reminder, the financials I'll be referencing today are unaudited for the second quarter, prepared on a pro forma basis unless otherwise noted, are based on U.S. GAAP accounting and denominated in U.S. dollars. Further, upon completion of the Coria transaction, we have standardized the definitions across all non-GAAP metrics to the definitions we have historically used at Aura. I will address certain methodologies employed in the course of my remarks and encourage everyone to review the presentation that accompanies this earnings announcement for more detail. Continuing from Harie's remarks, our third strategic priority is financial excellence, defined across three pillars. To rapidly grow and scale our customer base and revenue while maintaining discipline around unit economics, to generate free cash flow in each annual period, and to maintain a balance sheet that supports the growth ambitions of the business over the medium to long term. We demonstrated material progress against these first two pillars with our operating performance in the second quarter. And our subsequent transformational acquisition of Coria and ASX debut in July solidified our financial position with the completion of a $100 million equity raise in an upsized $100 million debt facility. These actions provide us the balance sheet strength we need to execute our vision for the business. Turning to second quarter performance, beginning with growth, We generated $85.1 million of pro forma gap revenue in the quarter, representing 27% year-over-year growth for the combined business. Regarding ARR, Aura uses a recurring gap revenue-based ARR definition, which is more conservative than the bookings-based definition Coria previously reported on. Using this methodology for this and prior periods, our Q2 exit ARR was $339.7 million, representing 27% year-over-year ARR growth. We've provided the definition as well as a breakdown of the differences in ARR calculated on each methodology for this and prior periods in the accompanying presentation. This quarter's year-over-year growth in ARR was broad-based, driven by the increased scale of our employee benefits business and K-12 customer base, as well as new customer acquisitions in our direct-to-consumer business. Sequential growth in ARR was largely driven by growth in our direct-to-consumer business, as the impact of growth in employee benefits is almost all captured in the first quarter and, under the ORA ARR definition, The growth in K-12 will mostly be captured in the third quarter. The revenue mix for the quarter was 54% from our direct-to-consumer channel, which includes the ORA direct-to-consumer business, Custodio, and the community offering. Performance in this channel was right in line with our budgeted expectations. We saw continued strength in average order value, which was similar to our first quarter results, and sequential improvement in our performance CAC. Subscriber growth continued in the second quarter. However, the quantum of growth was impacted with the $5 million sequential reduction in performance marketing consistent with the cost savings plans we have communicated. The remaining 46% of revenue for the quarter came from our enterprise channel, which includes K12, employee benefits, Aura Business, and other partnerships. The U.S. was the growth engine for the period, now comprising 87% of the group's revenue. Shifting to costs, our efforts to drive operational efficiencies across the combined group bore fruit. Adjusted EBITDA was negative $12.6 million for the period, which represents a 47% sequential improvement and a 51% improvement year over year. The improvement was driven by the expanded top line, sequential improvement in our direct to consumer customer acquisition costs, and the deliberate cost actions we announced in Q1. When we announced the transaction, we announced our intention to reduce our cost footprint by $55 million year over year in pursuit of our guidance to be free cashflow positive from completion through the end of 2026. We specified at that time our expectation that the improvement would be driven by a $25 million reduction in direct and operating costs across the combined group and a $30 million reduction in brand and performance marketing spend at Aura. In March, we provided the market with a progress update that between Aura and Coria, we had actioned $17.8 million in direct and operating cost reduction. I'm pleased to announce today that we have now expanded that savings through cost actions taken between March and June that will result in a further reduction of $9 million to our annualized run rate direct and operating costs. That brings the annualized run rate direct and operating cost reduction to approximately $27 million action year to date, exceeding our target of $25 million. Many of these cost savings are beginning to be realized with the full run rate impact felt by the beginning of 2027. In addition, in the first half of 2026, we were able to achieve a $7 million reduction in brand and performance marketing spend versus the first half of 2025. We have a further $28 million reduction in year-over-year performance marketing spend budgeted for the second half in service of our stated free cash flow guidance. While this appears to be a large pullback, it's worth highlighting that the second half of 2025 was a period of higher performance marketing spend for us, as we tested a variety of go-to-market strategies that resulted in elevated spend and less favorable unit economics than what we have seen in 2026. We expect our second half performance marketing spend to be broadly consistent with our Q2 level. And to the extent that we are able to achieve better than expected unit economics, as we did in the first half, we will reinvest a portion of that budgeted savings in a new customer acquisition to drive further compounding growth within the business. The cost reduction that drove the improved adjusted EBITDA was broad-based, with sequential and year-over-year improvements in cost as a percentage of revenue for all four spend categories. Moving to our liquidity position, the closing of the Coria transaction after quarter end solidified our financial position with the completion of the $100 million equity raise and the upsizing of our Bank of California facility from $50 to $100 million. We also repaid in full Correa's term loan with Ashgrove, which was both high coupon and, as a term loan versus the Bank of California Revolver, reduced our ongoing balance sheet and interest expense flexibility. These changes leave us very well capitalized against our business plan, where we intend to produce free cash flow in each annual period going forward. Net debt at transaction close was $9.9 million. This is higher than our previous estimates, due mainly to the one-time items of the cost to retire the Ashgrove facility and higher than expected transaction costs. In addition, the transaction closed six weeks later than our original expectation when we published our estimate in February, with the burn experience during this period broadly in line with expectations. We remain well capitalized. As of transaction close, we have $124 million of available liquidity. We replaced an onerous expensive term loan with cash and a flexible cost-effective revolver, and we are heading into our seasonally strongest cash collection period, providing us with ample liquidity to pursue our vision and flexibility to manage interest costs. To close, when we announced the transaction in February, we provided guidance on three financial targets for 2026. These are to grow ARR by 20% for 2026, to be free cash flow positive from closing through the end of 2026, and to take the cost actions, both run rate and one time in nature, to achieve this free cash flow target and set the business up for free cash flow generation in the future. Today, we reiterate that guidance. The 27% ARR growth the business has delivered to June 30th puts us on track to deliver on our 20% growth guidance, as ARR growth in the second half of the year will benefit from the conversion of the contracted K-12 revenues and continued growth in our direct-to-consumer business, albeit at a more moderate pace than in prior quarters, owing to our pullback in performance marketing spend. Further, we expect to achieve our stated free cash flow goals, and we have already actioned or planned approximately 13% more than the $55 million year-over-year cost reduction target we established, with additional run rate savings possible via synergies now that the transaction has closed. With that, I will turn it back over to Hari to wrap up.

In the near term, we're laser focused on execution. on achieving the financial targets Brian just outlined, on driving product innovation and integration across the Aura and Coria technology stack, on unlocking the interconnectedness of our unique go-to-market ecosystem, and on creating the organizational and cost structure that can unlock profitable growth. As we look ahead, we believe that we have all the components required to achieve our vision and reach our medium-term financial goals anchored in Rule of 40 with a tilt towards growth and a healthy balance sheet to further our ambitions. We're excited to start that journey. This concludes our prepared remarks, and now we'll turn the call over to Kane, who will manage the question-and-answer portion of this call.

Thanks, Hari. We'll now begin the question-and-answer session. If you'd like to ask a question, please press star 1 to raise your hand. To withdraw your question, press start one again. We ask that you ask your questions one by one. Please stand by while we will compile the Q&A roster. Our first question will be from Owen at Canaccord.

Can you hear me okay?

Yep.

Well done on the results. Sounds like there's lots going on in the business, lots of moving parts, but I guess the bottom line is revenue continues to grow strongly. On the aura business, from what we can see, the unit economics appears to be improving in the quarter. ARR grew at four and a half odd mil while sales and marketing were down materially. I guess the question here is how much of the improvement in the unit economics has been driven by your cost out versus an improvement in the market?

I think in general, we've been seeing this trend from the beginning of the year as we sort of updated folks as we went along, where as we sort of reduced the brand spend that we talked about, but continue to be very focused on the performance marketing efficient spend, I'd say a large portion of it at this point is probably more aura-driven, though we are seeing more and more tailwinds from the broad market because a lot of the AI-driven scares that families have at the moment seem to be driving a lot more awareness of the issue, and folks are much more worried about safety for themselves and their families as well. So we are starting to see those trends as well, but we're happy with the execution that we've seen so far in the company.

Can you talk through what the CAC kind of reduced to? I mean, the last quarter was $169 and the PCP was $218.

Sorry, can you say that again? The line is a bit choppy.

Can you say that again? The CAC for the performance... I'm just saying the CAC for the... Can you talk through what the CAC was for performance marketing during the quarter, noting the second quarter... The second quarter was, the first quarter was $169,000 and the PCP was $218,000.

So I think you're asking about the trends of the performance marketing CAC that we sort of provided after Q1 update. So that trend continues on. We see the same kind of trajectory in Q2 that we did in Q1. There's been no erosion. There's still some amount of experimentation going on. We feel like there's some opportunity here going forward because in the original guide that we provided, The marketing burn number in the synergies was meant to accelerate. I mean, the marketing burn reduction was meant to accelerate post the closing for the second half of the year. And we've been taking a glide path into that where we wanted to make sure we were testing, checking to make sure that by the time we got to this point, we would not have to give up on growth by the time that we are making the marketing changes. Because again, it'd be worrisome to get to a point in time and then make a big change. versus testing our way into what we've been doing for the last couple of quarters. So that's why we feel very comfortable reaffirming the recalculable numbers for the second half weeks.

I'd also touch on the prior period that you referenced. So the period Q2 of 2025, we've talked about this on prior calls. That was the period of probably the most disruption of AI generated search versus more traditional search. And so, you know, we and many other performance marketing type companies saw elevated CACs during that period. So I would view that prior period as being anomalous and the sequential improvement that we saw in the second quarter over the first quarter this year as being more indicative of where we see the market today.

Just on Coria's like-for-like quarterly ARR edition appears to have moderated versus the PCP, which is typically higher, even if you adjust for the methodology change. You guys talked about less discounting. Can you just kind of go through what's happening with new logo wins, renewal rates, any competitive losses? Just kind of give us an understanding of what's going on within this business because we've always been kind of been trained to learn that the second quarter is normally a big step up period.

Yeah, so I think the way to think about that going forward with the movement of the Coria numbers to the AOR definition is that you'll really see the impact of the K-12 business take hold in the third quarter. Under the Coria definition, you'd have bookings for deals that were contracted but hadn't yet started that would have flowed through the Q2 numbers. Under the Aura definition, we only really start counting ARR once something falls into gap revenue, so the service is turned on. So you'll be able to see the sequential growth and really the year-over-year growth of what that business performs when we announce Q3 numbers because things that were signed up in Q2 And frankly, some things that will be signed up in Q3, they will turn the service on in Q3 and hit ARR then. So I think one thing that's interesting to highlight here is if you think about the portfolio of businesses that we have under the overall company umbrella, we've talked historically about the Aura D2C business being pretty unseasonable with a few elements of seasonality over the course of the year around tax season, around the holiday period, etc. And then the Aura employee benefits business seeing a very large step up every year in the first quarter when you've basically turned on the service for an entire annual cohort of customers from the prior year's selling season. And so if you think about this mix of businesses going forward, I think what you'll see is the first half of the year will be driven more so by the legacy aura businesses, the employee benefits business and the direct-to-consumer business. And then the second half of the business, and this should be familiar with people that have followed Coria for a while, with that third quarter or the September quarter, I should say, being the strongest quarter of the year. Going forward, the ARR step up will really happen in that quarter as all of the new logo wins from the selling season. The service will turn on in Q3, hit gap revenue, and then translate into ARR.

Thanks very much, Owen. We'll now move to James from Unified Capital Partners.

James?

Hold on there. So first one from me, I think Brian, yes, have you got me?

Yeah, now we have you.

Go ahead. Perfect. Thank you for saying congrats on the results and the power of work in terms of getting a transaction over the line. We'll see a lot of work going on there and plenty more to come. Just a few questions from me. Maybe firstly for Brian, I think you touched on this as part of the presentation a little bit, but just keen in terms of fleshing out maybe the PCP ARR ad and just thinking about seasonality in the business and I guess this quarter compared to last year in terms of nominal numbers.

Yeah, so we were pleased with the ARR ad, again, with this being probably the lowest quarter in terms of ARR ad across the year, given the dynamics that I just described that exist in the employee benefits business and the K-12 business. We were actually able to see a step up in year-over-year ARR on the Oradita C-side in light of the lower marketing spend. And some of that's driven by the historical reasons that I referenced earlier and also just more efficient spend that we've been able to unlock So, again, I think it was about $6 million quarter-over-quarter ARR step-up. On the Oradita C-side, that's stronger than it was year-over-year. It was a little bit less on a like-for-like basis on the Coria side. But, again, I think we see the momentum on the Coria businesses as we head into the second half of the year.

I think if I can add... the business is always on a year-on-year basis for the quarter because sequential quarter changes, given some of the dynamics that Brian talked about for the aura business and the second half of the year dynamics for the quarry business, make it a little tricky where it doesn't look like that steady even change quarter-on-quarter. So looking at the prior year is how we tend to look at it within the business.

Yeah.

That makes sense because just looking at the 20% growth guidance that you've got and the kind of numbers you need to do in the second half to get there, it feels like sort of a pretty conservative hurdle for you to jump over, especially because you've got some of the K-12 dynamics and the change in the methodology coming through there. So just that's the reason for the question and being interested there. Maybe next one from me, just in terms of the capital available to the business. So you've got 124 million bucks. You're going towards free cash flow positive this half and then talking towards rule of 40 as well. So looking out to FY27, how should we think about growth and profitability and kind of the strategic direction given the strength and the balance sheet of the business?

Yeah, look, I don't think we're prepared to comment in any level of detail on 2027 today. I think we put out the commentary around Rule of 40, and as Harish said towards the end of the call, with the tilt towards growth, it's always going to be our bias as we want to scale this company and the revenue base. as long as we're seeing good unit economics. The other thing that we mentioned on the call is our ambition is to be free cash flow positive on an annual basis. And so I think you can think about those comments as being indicative of where we want to take this business in 2027. But I wouldn't get much more specific than that at this point in time.

Certainly. Okay. And then maybe just last one on the Custodio and Aura Parents integration being underway. That's great to see. And you're also talking towards the cross-sell campaign planning as well. So are there any more details you can provide in terms of launch and what kind of ramp-up we could see in terms of those initiatives moving forward?

Sure. I think we've got a few in the works there. I think the initial one is getting the products integrated because there are features – in the current custodial product that are very accretive for the oral for parents customers, including things around MDM-based management, better app identification, et cetera, that the custodial team has done a phenomenal job with. And on the other side of it, integrating in the aura balance features, which are much more the behavioral trend management and understanding sentiment for kids, et cetera, inside the Consolidated product is part of that kind of first wave of releases that we're coming up with. So we're pretty excited about that. And then the second part there, I would say that we addressed a little bit in the comments were around the school-to-home motion, which is how do we leverage this massive base of parents that trust the parents Their schools and the schools trust us to be able to keep them safe. How do you sort of leverage that relationship to perhaps kind of build up more of a channel there where the Corey team obviously has done a great job on the community side over many years, but we think there's some acceleration opportunities there because with all of the Aura products that are available, you can make a paid version of community much more robust. versus simply having a simple paywall that doesn't have a lot behind it or have to debate between what goes in front of the paywall or behind the paywall.

Certainly feels like there's a lot of latent value in that part of the business. So I appreciate you taking my questions and congrats on the results. Thank you. Thank you.

Thank you. Our next question is from Peter from Blue Ocean Equities.

Well done on the quarterly result, guys, and maintaining your targets. I just wanted to double-check, because the cost reductions step up from here, but were you saying that the performance marketing spend for the remaining quarters of this year is broadly similar to Q2 because of the reduction on the PCP?

Yeah, you should. Hari alluded to this earlier. You know, we didn't do sort of a step down in performance marketing spend at any point in time. We sort of ramped down over the course of the first quarter and into the second quarter. So as you think about the aggregate spend levels in Q3 and then in Q4, they're actually broadly similar to what we would have spent in the second quarter. Okay.

Yeah. Okay. So you've already kind of tested the lows of performance marketing spend and the subscribers still grew on the D2C side. So is that a bit of a de-risking point in terms of what the cost reduction strategy is?

Yeah, I think we'd probably say a couple of things there. One is we're very pleased with the performance that we experienced in the second quarter. I mentioned it on the call, both AOV and so average order value and CACs were Consolidated Group, Inc. Again, I think you have the third quarter and the fourth quarter from a spend perspective will look roughly similar to what we had in the second quarter. I think you can anticipate that you'll see a growth in D2C ARR in that half of the year with those spend levels.

I think the one small thing I would add to Brian's note there, I think your observation that A lot of the spend testing and the spend reduction has been sort of working its way down from the beginning of the year to now, and we're still adding customers is sort of our sentiment as well. And that's part of the reason why we're reaffirming both the FCF number and the growth rate number, because we now feel like we've done enough testing where it's not like we have to go in and Q3 and do a hard switch of something. It's been well tested as we can enter into the second half of the year.

Yeah, that's great. And I was just confirming the cost synergies are in addition to the cost savings, aren't they? They haven't been... They're not part of the 62. Is that correct?

That's right. So there are very specific rules around what can be accomplished before the transaction closes. So we've been in, frankly, months of planning at this point around integration and synergy planning. But none of that would have flown through at this point since we only closed the transaction recently. two weeks ago or so. And, you know, we would anticipate having an update on how the integration and overall synergy potential is shaping up on the next quarterly earnings call.

Okay, terrific. Thanks very much, guys.

Thank you.

Thank you.

Awesome. Well, thank you, everyone, for joining the call. We look forward to speaking with many of you in the days ahead. That concludes our conference call this morning.