Asure Software Inc

Good afternoon, and welcome to Assure's third quarter 2025 earnings conference call. Joining us today's call are Chairman and CEO Pat Keppel, Chief Financial Officer John Pence, and Vice President of Investor Relations Patrick McKillop. Following their prepared remarks, there will be a question and answer session for the analysts and the investors. I would now like to turn the call over to Patrick McKillop for introductory remarks. Please go ahead, sir.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Assure's third quarter 2025 earnings results call. Following the close of the markets, we released our financial results. The earnings release is available on the SEC's website and our investor relations website at investor.assuresoftware.com, where you can also find the investor presentation. During our call today, we will reference non-GAAP financial measures, which we believe to be useful to investors and exclude the impact of certain items. A description and timing of these items along with a reconciliation of non-GAAP measures to their most comparable GAAP measures can be found in our earnings release. Today's call will also contain forward-looking statements that refer to future events and as such involve some risks. We use words such as expects, believes, and may to indicate forward-looking statements. And we encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our current expectations. I will hand the call over to Pat in a moment, but I just wanted to take a moment to remind people of our upcoming investor relations activities. During the month of November, we will be attending the following conferences. On November 18th, the Craig Hallam Alpha Select Conference in New York. On November 19th, the Roth Technology Conference in New York, and the Stevens Conference in Nashville. On November 20th, we will attend the Needham Technology Conference in New York. On December 16th, we will participate in the Northland World Conference, which is being held virtually. We also expect to schedule some additional non-deal roadshows. Investor outreach is very important to assure, and I would like to thank all of those that assist us in our efforts to connect with investors. Finally, I would like to remind everyone that this call is being recorded. and it will be made available for replay via a link available on the Arrest Your Relations section of our website. With that, I would now like to turn the call over to Pat Geffel, Chairman and CEO. Pat?

Thank you, Patrick, and welcome, everyone, to Assure Software's third quarter 2025 earnings results call. I am joined on this call by our CFO, John Petz, and we will provide a business update for our third quarter 2025 results, as well as our outlook for the remainder of 2025, plus our initial guidance for 2026. Following our remarks, we'll be available to answer your questions. We're pleased to report that our third quarter revenues were very strong, coming in at $36.3 million. 24% increase versus the prior year third quarter. Our revenues reflect what we believe is an inflection point of increasing growth, which was broadly based across all our product lines, such as payroll, benefits, recruiting, time and attendance, as well as our payroll tax management business. Organic growth in the third quarter improved sequentially from the second quarter, and we're forecasting continued improvement in the future. Our performance this quarter is reflective of what we believe is strong demand for human capital management products from business owners of all sizes. Our recent acquisition of Latham Time is also performing well, and our team is continuing to work on achieving revenue and cost synergies going forward, which we believe can be obtained over the next 12 months. As a reminder, we believe the addition of Latham will further increase cross-selling opportunities for us and quicken the pace of which we can get new payroll clients started. As we have discussed during the past Earnings Calls, We have made investments in order to improve our technology as well as integrate the different point solutions we have acquired over the past few years. Today, we are excited to announce that we recently launched a new client interface, which we call Assure Central. Assure Central will offer clients a new experience with a brand new look and feel and improve their workflow as well as enable us to amplify items such as event-driven marketing efforts. We believe that this new client experience will also further accelerate the rate at which we can drive our cross-selling or attach rates with more than our 100,000 clients going forward. Our team has just started this rollout in the past week with our direct clients, and we plan to introduce it to our indirect clients soon. Our bookings for the third quarter declined by 41%. versus a year ago due to large enterprise deals, which were booked in the third quarter of 2024. Excluding those deals, from the comparison, our bookings were up 21%. Now, I would like to hand it off to John to discuss our financial results in more detail, as well as our guidance. John?

Thanks, Pat. As Patrick mentioned at the beginning of this call, several of the financial figures discussed today are given on a non-GAAP or adjusted basis. You will find a description of these GAAP to non-GAAP reconciliations in the earnings release that was made available earlier today. The reconciliations themselves are also included on our most recent investor presentation posted in the investor relations section of our website at investor.assuresoftware.com. Now onto the third quarter results. Third quarter total revenue was $36.3 million, increasing by 24% compared to the prior year period. Recurring revenues for the third quarter grew 11% versus prior year to $31.8 million. Our professional services and hardware revenue was $4.4 million in the quarter compared to $700,000 in the third quarter of last year. A majority of the revenue growth in this category was driven by hardware sales tied to our recent acquisition of Latham Time. Our organic growth improved sequentially to approximately 4% in the third quarter compared to 1% in the second quarter. The impact of HRC ERTC-related churn in the second quarter was 4%, and in the third quarter, it was 3%. So in summary, our organic growth excluding HRC, ERTC-related churn in the third quarter was 7% compared to 5% in the second quarter. Float revenue was down slightly versus prior year due to previous rate reductions made to the federal funds rate, partially offset by an increase in client funds. Regarding our outlook for interest rates, yesterday the Federal Reserve cut rates by a quarter point And we are now modeling another quarter point interest rate cut in the remainder of this year. We believe that as our client fund balances increase, this will help offset some of these rate cuts. Our cross-selling effort showed good results this quarter with our attach rates, which measure clients that take more than one product continuing to move higher sequentially in the low single digits versus second quarter. Gross profit for the third quarter increased to $23.1 million versus $19.7 million in the prior year third quarter. Gross margins for the third quarter were 64% compared with prior year at 67%. Non-GAAP gross margins for the third quarter were 70% compared to the third quarter of the prior year at 73%. Our overall gross margins were down due to revenue mix as we experienced an increase in lower margin non-recurring sales primarily driven by the recent Latham acquisition. Net loss for the third quarter was 5.4 million versus a net loss of 3.9 million during the prior year. EBITDA for the third quarter was 3.9 million, up from 2.2 million in the prior year. Adjusted EBITDA for the third quarter increased 49% to 8.1 million from 5.4 million in the prior year, and our adjusted EBITDA margin was 22%, an increase of 300 basis points compared to 19% in the prior year. Turning now to the balance sheet, we ended the third quarter with cash and cash equivalents of 21.5 million, and we have debt of 70.4 million as of September 30, 2025. As we discussed on prior earnings calls during 2025, we have and continue to invest in our technology and our product offerings to achieve our continued revenue growth and improve profitability goals. We continue to model for a relatively stable cost structure for the remainder of this year and into 2026. Our fourth quarter and 2025 full-year preliminary 2026 guidance is based on continued positive momentum in our business. Now, in terms of guidance for the fourth quarter of 2025, we are expecting fourth quarter revenues to be in the range of $38 million to $40 million. And adjusted EBITDA for the fourth quarter is expected to be between $10 million and $12 million. Therefore, our full year 2025 results should be between $139 million to $141 million in revenue, with adjusted EBITDA margins up between 22% and 23%. Today, we are also providing our initial view on 2026 revenue, which we believe will be between 158 million and 162 million, with adjusted EBITDA margins of between 23% to 25%. Our belief is that at these higher revenue levels, combined with a consistent cost structure, we will begin to deliver consistent GAAP profitability. In conclusion, We are excited about the remainder of 2025 and look forward to 2026 being an inflection point for Assure's business. With that, I will turn the call back to Pat for closing remarks.

Thanks, Sean. We are pleased to have delivered strong results in the third quarter of 2025. Our business has performed well during the first nine months of the year, and we're excited about the future. We believe that we're apt and an inflection point in the business With all the hard work we've done to improve our product offerings, invest in our technology, and integrate acquisitions, we will continue to increase our growth organically while potentially being GAAP profitable in Q4 of 2025 and for the year 2026, both of which are important milestones for the business. As we look forward to 2026, We'll continue to grow organically, invest in sales and marketing, roll out technology, and look to acquire value-creating opportunities. We're not slowing down. Our guidance for 2026 implies continued improving organic growth and margin improvement. We're well on our way to our medium-term plan of between $180 million to $200 million in revenues. where we believe we can achieve adjusted EBITDA margins of 30% plus. We are super excited about the launch of Assure Central, which we believe is going to be a major enhancement to our client experience. Our R&D team has spent an enormous amount of time on this development, and I would like to thank them for their efforts. Assure Central is the latest in this list of the many accomplishments we achieved during this past year. In summary, we're very pleased to have delivered a strong performance in quarter three. The outlook for a combination of improved organic growth, more free cash flow, and potential gap profitability we believe is a great recipe for success. We continue to work diligently on creating increased value for our shareholders and our stakeholders. We'll continue to provide innovative human capital management solutions that help businesses thrive, human capital management providers grow their base, and large enterprise is streamlining their tax compliance. Thank you for listening to our prepared remarks. So with that, I will send a call back to the operator for the Q&A session. Operator?

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that analysts limit themselves to one question and a follow-up so that others may have an opportunity to ask questions as well. One moment, please, while we poll for questions. Our first question comes from Joshua Riley with Needham & Co. Please proceed with your question.

All right, great. Thanks for taking my questions and nice job on the quarter here. I just wanted to hit on the 2026 outlook to start with here and get a better understanding of what are you assuming in terms of the traditional organic growth and enhanced organic growth assumed in the trend there? And then along with that, how are you thinking about where the balance sheet is at today to kind of continue the reseller acquisitions at a pace that you have been going at in the first half of this year and what you were doing in 2024?

Yeah, I'll answer that. Hey, Josh, this is John. I'll go first and let Pat kind of annotate. I think we feel pretty good about where the balance sheet sits right now. We'll be opportunistic like we always are in terms of doing the tuck-in deals. We have not modeled anything extraordinary in terms of the enhanced organic going into the next year. Really, it's just the runoff of what we've previously purchased that's currently in our estimation for next year. In terms of capacity, one of the reasons we chose MidCap, now we've used up the current committed facility, but obviously they've got the wherewithal to support us if we find things that are interesting. So long-winded answer to say not a lot played in for enhanced outside of what's already been acquired, and we feel like with our lending partner, if we do find something that's pretty large, that we can tap them to help us with those extra large deals. So I'll give it to Pat.

Yeah, Josh, I think we're at an inflection point. Second quarter was an inflection point. Organic growth, you know, we're going to end the year with each quarter increasing more and more on organic growth, and that won't slow down in 26th. I think you're going to see is the 26 guide. What we have visibility, especially in the first half year, is to continued organic growth increases. So, you know, the 160 would imply somewhere around 7% or so, but, you know, we're continuing to have confidence. And the way we've thought about the year is the stuff that's already baked and we have visibility to. And I think towards the second half of 26, we have the ability then to you know, as those plans continue to crystallize to increase it. As far as profitability, you know, we're at a point now where we can start throwing off cash. So from a lending perspective, you know, the nice thing about it is we, you know, have some cash in the balance sheet, but we're also generating cash and we'll have that available. And then as John stated, you know, from a mid cap perspective, if you need to expand the line, we'll do that. But I really feel like we have increasing momentum here. The inflection point was the second quarter, and I think you're going to see both in gap profitability as well as organic growth that we're in a position to keep increasing here. And then from an enhanced perspective, I think we will have opportunities as we go into the year, but we don't have anything extraordinarily planned right now.

Gotcha. And then just one follow-up on the – 7% adjusted organic for the ERTC HR compliance item there. How much of that, that's a little better run rate than what we've seen recently. How much of that is from cross-sell versus net new units to the business? Any color there would be helpful. Thank you.

Yeah, what I would say our cross-sell results were up 7% quarter over quarter. And that's without Assure Central. And Assure Central brings all the products and solutions together under one common UI. The other thing to point to that, which is really exciting, is the fastest growing of the sequential growth is in three, four, five products. So people are wanting to buy the whole solution. And from a technology and a delivery perspective, we're increasingly capable of of setting that up for clients and really leaning into that. So I think you're going to see that be a big driver and a big theme into next year. And like I said, I think Q2 was the inflection point, a down payment here in Q3. You'll see an increase in Q4. You'll start to see an increase in Q1. We really have some pretty good momentum in this area. And then, you know, we've been planning for it in the entire organization. whether it's technology, sales, marketing, implementation. We're bringing all these products together from point solutions to a solution for the entire business. And that's really exciting.

And I think just to your point on ERTC and, you know, we believe that, you know, there's probably another 1% maybe impact in the fourth quarter and then we'll never have to talk about it again. So I think we're getting pretty close to having an ERTC and Compares and and talking about that out of our talk track.

Great. Thank you, guys.

Our next question comes from Brian DeGreen with TD Cone. Please proceed with your question.

Hi. This is actually Jared Levine on for Brian tonight. To start, can you talk about sales cycles and pipeline views across your key offerings? Has anything kind of materially changed since last quarter?

No, I think from a small business perspective, I think in some cases, decisions are quick. In some cases, I would say there might be multi-solution deals that take a little bit extra long. But in the segment of the market we play, which is largely in the small business, medium-sized business market, we're not seeing too much slowdown, if you will. On the large enterprise deals, you may see an extra 30 days of measuring once or measuring twice, cutting once, but nothing material for us to talk about today. I think it's really business as usual in the small business area, despite what happens in the broader macro environment.

What about those pipeline views as well?

Pipeline views look pretty strong. I do think you're going to see us lean in more to marketing in 26, and that was implied in our guide already that, you know, we'll continue to look. We think there's opportunities to continue to market and sell to that base. As far as the pipeline this year, pipeline's up quite a bit.

Got it. And then in terms of that 7% organic growth assumed by 526, just want to double click on this. Can you highlight What are the key drivers underlying this, and whether that's kind of key offerings within the business there? And then how much of a headwind will float revenue be to that organic growth rate?

Yeah, from a float revenue perspective, we've modeled two more cuts in 26, and we think that we'll be somewhere between 3 and 325 at the low point. Now, we also believe account balances going up will – partially offset that. And then as you know, in our queue, we have roughly $90 million or so that is in long term. So that protects that float quite a bit. So really, we're probably a small degradation planned in next year. But we're hopeful that that gets minimized by some of the things we talked about. We model kind of flat employment, if you will, nothing heroic there. And as far as the solution offering, and the reason we're so excited about it, Assure Central, is as we bring these solutions together, the ability to sell, let's say, an ASO offering with multiple products and services similar to, let's say, a PEO without the PEO kind of insurance policies, et cetera, or employee leasing. And it allows us really to be a back office for a small business and be compliant across all products and services, whether it's HR, payroll, tax filing. We think that's a winning proposition, and that's the one we're going to lean into in general. Some of our point solutions will continue to grow as well. And then obviously with the acquisition of Latham, we think the attached rates of time to payroll will continue to grow up as part of those offerings. Great. Thank you.

Our next question comes from Eric Martinuzzi with Lake Street. Please proceed with your question.

Regarding the Latham time, you had said last quarter that you were anticipating about a $15 million revenue contribution over the 12-month period from July through the end of June of 2026. Is that still an accurate number?

Yeah, I mean, I think this quarter, for example, the net impact before the acquisition was roughly 4.7 or 4.6 million. It's in the kind of bridge of the 24%. And the composition of that is roughly 40% hardware or non-recurring, and the rest is recurring. So about 2.7 or so of that 4.7, 4.6 is recurring. The recurring is pretty easy to predict, right? So take that 2.7, 2.5, that's 10. So it'll be 10 of recurring contribution over an annual period for Latham. And then the question mark really is what's the velocity of the hardware sales? You know, I think the 15 is probably not unreasonable. It could be a little bit higher if we have some windfalls. But what you got to remember is what we're going to do ultimately with Latham is change their business model a little bit. Historically, what they were doing is they'd sell hardware have a one-time event and then upsell the software or the solution. We're going to probably do more of a bundling approach, especially as we start to offer payroll with it and some other products. So I think that that's where I'm a little bit hesitant to say, I think 15 is fair. That might be a little bit more, but ultimately we're going to change a little bit of their business model to go to market strategy. So that's why I think that's probably not an accurate view of kind of Latham over time.

The other point I'd say is the integration is right on schedule as far as bringing Assure and Latham together. Latham has some areas where they have channel partners, et cetera, and we're not going to change too much of that model. But as we integrate the offering between Assure Payroll and Latham, You know, I think we've already seen some pretty good synergy from a revenue perspective coming together in our offerings. So excited about the possibilities for 26.

Yeah, and the way I think about it, too, just as another point on it, Eric, you know, they have 15,000 customers right now that are on. using their time and attendance solutions that don't have a connection with us in terms of payroll. So when we look at that business, yes, they brought us the customers, but we're going to take credit for when we start to sell the payroll into them. So that's where we see a lot of growth. It's going to be into that Latham base, but it's going to be our product on top of that Latham base.

And if I could follow up on the hardware, obviously you had a higher number in Q3 because of Latham. That 4.4 million number for professional services and hardware, is that kind of a safe new run rate for that portion of the revenue?

I think about three, honestly. You know, I think probably fair for the near term to think about 2 million of hardware for sure, at least for the next 12 months. And I think a fair number for professional service is probably a million. Now, it might be higher or lower. The variability on professional service is going to come in as as we're doing some work for these large tax deals, that can vary decently between quarters as they're going up and live. So I think you saw a little bit of that last year in the fourth quarter where we had a pretty heavy install, which makes sense right around year end. So I think you'll see some dynamic in the professional services, but in general, I think two and one between those two over the year is probably a fair way to start. Is that a good proof of that?

Yeah, no, I think that's exactly right, and I think the two-in-one is pretty safe, and there might be some upside down the line, but right now that's a great place to model.

Got it. Thanks for taking my question.

Our next question comes from Richard Baldry with Roth Capital Partners. Please proceed with your question.

Thanks. I'm curious if Assure Central, the rollout of that, will cut any of your sort of legacy technology stack support costs and whether it already includes as a front end for Latham or if that's sort of a near-term thing that will develop.

Yeah, Rich, great question. First of all, from a legacy development, we're already seeing some pretty good cost initiatives around some of our costs, you know, the newer products and services that we've rolled out, you know, significantly are cheaper. We're also, from a development cycle, you know, spending less money on maintenance and more money on new, and that continues to grow over the past couple years as we, you know, kind of have an eye towards the future, and we've been able to stabilize and improved the back end quite a bit now the front end and as we look at uh some of the you know new development costs and the new products uh they're definitely lower on maintenance so really excited about that as far as latham we're in the uh we're in the uh you know i'll call it months not years uh we're uh really really close to integrating that uh with the sure central uh all most of the other products uh are either online or or going to be online uh within this quarter so uh you know Latham probably targeted towards first quarter but um you know we're well on our way to doing that and great um were you seeing the improvement in the organic growth can you talk about sort of

what's the underlying drivers there? Is it, you know, sales headcount improvements? Is it sales efficiencies? Is it sort of unit driven or ARPU driven? Just sort of the pieces underlying that. Thanks.

Yeah, Rich, you know, we said earlier in the year that attach rates and, you know, are going to be kind of a driver and the 7% sequential, you know, we think is a pretty good proof point from second to third quarter. And then if I dive into those numbers, which is two or more products, if I look at three, four, and five products, that's the fastest growing. So I think as we look at this year, we've been kind of run rating it. As you look at 2026, I think you're going to see us spend more money in sales. and marketing that's implicit in the guide. We're also, you know, bringing online the technology development really that we've been building towards for the last couple years. So you'll continue to roll that out. That's in the guide. I think we really are sitting on, you know, an opportunity to really grow exponentially here as we bring all these point solutions together. Now, Anytime you're bringing them together, you know, it's kind of crawl, walk, run. You know, I would say we're walking fast, and we'll continue to do that and get momentum here, not only this quarter as we've done, you know, in third quarter, but fourth quarter will be increased, first quarter will be increased. And we anticipate each quarter in 26 to continue for us to get better at selling, implementing, servicing, multi-product installations, and we anticipate that area to grow.

The last for me would be, with the rollout of some of the newer AI-driven development tools, but other agentic things to help back offices be more efficient, how do you think about the connection or leverage on top-line growth versus operating expense growth? sort of near-term, long-term now.

Thanks. Yeah. And, and, you know, John's done a nice job and, and we've done a nice job internally around growing scale. If you can think of about, you know, let's say, uh, 2021, you know, we were somewhere around 76 million with about adjusted EBITDA of eight. You know, our long-term goal here is 180 to 200 medium-term goal and to get the 30% margins. This year implicit in our guide for 26 is 23 to 25. So we're continuing to just grow profitability. On the revenue side, and by the way, on the profitability, our headcount has been relatively flat. We've added marketing and sales, but operations and some of the G&A have really been relatively flat during this period of time. So we're getting scale. And then from a revenue perspective, what we've been leaning into is, you know, software and multi-product software gives you all kinds of advantages, but with the AI workflow and we have Luna as our agent and then we have her actually connecting to other agents. We think we have the ability to really control the narrative, not only in software, but also workflow with the software. And we think that there's all kinds of opportunities in that area. And then for us, we're going to lean into that compliance area. So if you think of a business with 20 employees that now has to report to COBRA, the system can kind of really tell the client that at 20 employees, they have to report COBRA. And then we can go out and do it for them with their permission. That kind of experience is an AI experience that drives revenue. And it also drives workflow on costs. So you're going to see a lot of examples in that over the upcoming year. Great, thanks.

As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad. Our next question comes from Greg Gibbous with Northland Securities. Please proceed with your question.

Great. Good afternoon, Pat and John. Thank you for taking the questions. Could you maybe speak to attach rates, the trends you're seeing there? You know, you mentioned, I think, 400 basis points of year-over-year improvement last quarter. Wondering if that trend remained relatively consistent.

Yeah, I think what I said in my prepared statements, I think Pat just made a comment to it as well. I mean, it's single digits sequentially increasing. So, I think he said seven. I think that's about right. It's somewhere in that range sequentially in terms of the improvement quarter to quarter.

Got it. And then to follow up, just to clarify, you know, you mentioned about I think 7% implied organic growth in 2026. Is that consistent with your expectations for Q4 of this year?

Yeah, I think so. I think, you know, we did that in Q3. So we expect, I think, maybe a little bit of a tick up based on the fourth quarter just implied in the guide. This has to come basically from organic, you know, other place for it to come from.

Fair enough. Um, and I guess lastly, um, as it relates to integration plans, uh, with latent time, um, you know, relatively early still, but, uh, could you maybe discuss, you know, further integration plans that are maybe currently underway?

I mean, I think there's some really exciting things like, you know, we've talked in the past about the assure pay card, which we're still in the early stages of, but imagine what they've got is they've got a time clock, right? So pretty simple. You go when you, you wand in with a badge to, uh, to log in and clock your time in and clock out. Well, what we can do and what they're working on is another integration point is using a SurePay as that wanding device. So you've got in the hand of the employee, you've got a device not only that allows them to clock in and clock out, but also as a way to get paid. That can be the vehicle that they're going to get their paycheck. So that's just one example. We feel like there's a lot of potential with that deal. Okay, great. Thank you.

Yeah, and Greg, just on that, you know, their client base and our direct client base, you know, jointly have 30,000 clients. You know, the ability to work together is improved book to bill on all those products. You know, we talked a little bit about integration. And then, you know, back office systems, you know, we have opportunities to get integration really through the, all the way through 26. So, Really excited about it. Really good people. We're excited about the movement, both from a revenue perspective as well as a scale and efficiency perspective. Got it. Thanks, Ken.

Our next question comes from Alex Newman with Stevens. Please proceed with your question.

Hi. Could you talk a little bit more about Shorst? central, just what are the major difference here in the new platform? And then just secondly, how do you feel about the upgrade platform from a competitive standpoint and if you're expecting any uplift in price from it?

Yeah, I think from us over time, and we'll talk about in 26 is some of the, not only the attach rates, but the ARPU, or revenue per unit you know we do anticipate upticks we're kind of showing that or proving that out and you know you'll see more than 2026 but if you think about you know just in q2 with in q3 we had a seven percent improvement and uh in in unit volume and and we really didn't have a sure central yet so you know we believe that that common look and feel across all products and services will drive more adoption of our cross-sell and in turn that revenue opportunity. We're really excited about that. I think we'll get a little bit more firm data on the ARPU in 26. But for right now, we see evidence that it's happening. We're rolling this out in all avenues of the business from marketing, implementation, sales, operations, and technology. So we know, and in my past life, I've had this kind of experience before. We think we're really at an inflection point, and bringing these point solutions together will do that. And then from efficiency perspective, the idea to get to event-driven marketing will make it degrees of difficulty easier to cross-sell and implement faster. So, you know, we'll use our data and reach into AI to enable that to grow faster. And our guide reflects, you know, high single digits or so. You know, I think we have an ability to beat that as we go. But, you know, that's a story for more, you know, more proof points along the way. And each quarter, we'll have an opportunity to talk about that. Great. Thanks, Pat.

There are no further questions at this time, so I would now like to turn the floor back over to Pat Capel for closing comments.

Yeah, I really appreciate everybody's interest today. Like I said, I think it's a, we're at an inflection point. We hit that in the second quarter. We're growing. We're bringing every, you know, everything together here that we've been working on for multiple years, all our products and point solutions. integrating them together. You know, we've had really good growth in areas. We've had really good progress in our money movement and our tax filing business that will continue as well. So, you know, we think we're at the verge of increasing results and you'll see that through the end of 25 as well as 26. And we really appreciate your support. Patrick mentioned that we'll be out on some roadshows and and some client events and and investor conferences and we look forward to telling that story and and seeing you out there thanks for your time today and again really appreciate it take care this concludes today's teleconference you may now disconnect your lines thank you for your participation