OptimizeRx Corporation

Good afternoon, everyone, and thank you for joining OptumRx's third quarter fiscal year 2025 earnings conference call. With us today is Chief Executive Officer Steve Silvestro. He is joined by Chief Financial and Strategic Officer Ed Stilmach, Chief Legal and Administrative Officer Marion Odense-Ford, and Chief Business Officer Andrew DaSilva. At the conclusion of today's call, I will provide some important cautions regarding forward-looking statements made by management during today's call. The company will also be discussing certain non-GAAP financial measures, which it believes are useful in evaluating the company's operating results. A reconciliation of such non-GAAP financial measures is included in the earnings released the company issued this afternoon, as well as in the investor relations section of the company's website. I would like to remind everyone that today's call is being recorded and will be made available for replay on audio recording of the conference call on the investor relations section of the company's website. Now I would like to turn the call over to OptimRx's CEO, Steve Silvestro. Mr. Silvestro, please go ahead.

Thank you, Operator, and good afternoon to everyone joining our third quarter 2025 earnings call. We had a strong third quarter with results ahead of both consensus estimates and our internal expectations. Our Q3 revenues increased 22% year-over-year to $26.1 million, and our adjusted EBITDA was $5.1 million, an improvement of over $2 million from the same period last year. Our contracted revenue remains well ahead of last year's pace, underscoring the success of our focus on operational excellence, our dedication to delighting customers and deepening relationships with trusted partners. Before we move on, I want to take a moment to thank the OptimizeRx team. We deeply appreciate their dedication and hard work as we navigate an increasingly complex and rapidly evolving digital pharma marketing landscape. The industry is in the midst of a major transformation and the company's products and services are positioned to fundamentally redefine how pharmaceutical companies, patients, and prescribers connect. Our mission-driven culture fuels this progress and enables us to attract, retain, and strengthen the relationships that make us a trusted and enduring technology partner. With that said, I'm happy to report we are increasing our guidance for the year and are looking for revenue to come in between $105 and $109 million this with adjusted EBITDA to be between 16 and 19 million. Moreover, while it is still very early, we are seeing favorable RFP trends for 2026. As a result, we are introducing initial fiscal year guidance 2026 with revenue expected to be between 118 and 124 million and adjusted EBITDA expected to be between 19 and 22 million. In addition, subsequent to the end of our third quarter, we paid down an additional $2 million of our term loan principal on top of the debt payment schedule. At this time, given the cash flow we are seeing, we intend to continue to pay down our debt at an accelerated rate and do not believe we will need to access the equity capital markets for the foreseeable future. As evidenced by our strong results, we are firmly hitting our stride. Disciplined cost management and targeted cross-selling strategies grounded in enabling customers to optimize budget allocation and maximize script lift are driving sustained momentum into Q4 2025 and beyond. Our strong third quarter performance makes it clear that our goal of becoming a sustained rule of 40 company is within our sights. Perhaps most notably, average revenue for our five largest customers over the last 12 months continues to grow and now stands at over $11 million. We believe OptimizeRx is uniquely positioned to drive meaningful long-term growth and sustainable shareholder value. With one of the nation's largest point-of-care networks, we provide pharmaceutical manufacturers the ability to reach healthcare providers directly at the moments that matter most. Building on this foundation, we've developed a purpose-built omnichannel technology platform that integrates advanced patient-finding tools like DAP and micro-neighborhood targeting. These capabilities are redefining how pharmaceutical companies, physicians, and patients connect, communicate, and act. helping to improve patient outcomes while transforming engagement across the healthcare ecosystem. Our reach across both the point-of-care and direct-to-consumer channels provides a durable and defensible competitive advantage. OptimizerX is the only player with the scale, technology, and data integration to engage providers and patients seamlessly, enabling us to deliver the industry's most comprehensive commercialization platform. This allows us to support customers across the full product lifecycle, deepen client relationships, and capture greater share of long-term value. As we've discussed on previous calls, a key focus moving forward is to further showcase our reach, scalability, and our role as a trusted strategic partner, helping pharma manufacturers address some of their most pressing commercialization challenges. These include enhancing brand visibility, reducing script abandonment, improving interoperability, and supporting the growing shift toward complex specialty medications. I believe our success in helping our customers address these challenges is best evidenced by our strong ability to build on the relationships and increase our engagements with our largest customers. I'm confident that continued execution in these areas, combined with our ability to deliver strong ROI and drive impact and script lift for our customers, will translate into meaningful long-term shareholder value. We believe our momentum positions us to capture greater market share and expand our participation in the pharma industry's multibillion-dollar digital ecosystem. Our customers remain deeply connected with our integrated HCP and DTC offerings, and our goal is to keep them engaged across the full patient care journey. And with that, I'd like to turn the call over to our CFSO, Ed Stelmack, who will walk us through our financial results. Ed?

Thanks, Steve, and good afternoon, everyone. The press release was issued with the financial results of our third quarter ended September 30th, 2025. A copy is available for viewing and may be downloaded from the investor relations section of our website. And additional information can be obtained through our forthcoming 10Q. Third quarter revenue was 26.1 million, an increase of 22% from 21.3 million during the same period in 2024. Gross margin for the quarter increased from 63.1% in the quarter ended September 30th, 2024 to 67.2% in the quarter ended September 30th, 2025. Year-on-year gross margin expansion is tied to a favorable product mix, economies of scale, as well as a favorable general partner mix. Our operating expenses for the quarter ended September 30th, 2025 decreased by $6.5 million year-over-year to $15.5 million, as this third quarter of last year was impacted by a $7.5 million impairment charge. Meanwhile, our cash APEX increased to $12.4 million from $10.8 million, largely due to higher bonus and commission payouts, which is directly tied to the company's strong year-to-day performance. As a result, we had a gap net income of 0.8 million or 4 cents per basic and fully diluted share for the three months ended September 30th, 2025, as compared to a gap net loss of 9.1 million or 50 cents per basic and fully diluted share for the same three month period in 2024. On a non-GAAP basis, our net income for the third quarter of 2025 was 3.9 million or 20 cents per fully diluted share outstanding as compared to a non-GAAP net income of 2.3 million or 12 cents per fully diluted share outstanding in the same year-ago period. Our adjusted EBITDA came in at 5.1 million for the third quarter of 2025 compared to $2.7 million during the third quarter of 2024. Operating cash flow was $11.6 million for the first nine months of 2025, and we ended the quarter with $19.5 million cash balance, as compared to $13.4 million on December 31, 2024. The remaining principal on our term loan debt financing at the end of the third quarter was $28.8 million. And subsequent to the quarter's end, we paid down an additional $2 million in principal, with our total principal paid down for the year standing at $7.5 million. At this time, we intend to pay down the principal on our term loan faster than originally expected as we look to continuously lower our cost of capital. With that said, We continue to believe that our healthy balance sheet will help us execute against our operational goals. Now let's turn to our KPIs for the third quarter of 2025. Average revenue per top 20 pharmaceutical manufacturers now stands at $3.1 million, as compared to $2.9 million for the third quarter of 2024. Net revenue retention rate remains strong at 120%. Meanwhile, revenue per FTE came in at $820,000, topping the $732,000 we posted in the third quarter of 2024. We're encouraged by the improvements of our KPIs as we continue to execute against their strategy of driving profitable growth as a leader in our space. Now with that, I'll turn the call back over to Steve. Steve?

Thank you, Ed. Operator, now let's move to Q&A.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If any time your question has been addressed and you would like to withdraw it, please press star then two. At this time, we will pause momentarily to assemble the roster. And the first question comes from Ryan Daniels with William Blair.

Please go ahead, Mr. Daniels. The line is live. Sorry, guys. Can you hear me now?

Yes. Can you guys hear me now?

We can hear you, Ryan.

Okay. Sorry about that. Yes. Yeah. Congrats on the strong print. I want to start with the 2026 outlook. It's nice to see that so early in the year, one of the few companies doing that. And I'm curious if you could just offer a little bit more color there on why you're providing it at this time. I assume it's due to some enhanced visibility with the contracts. And then maybe question number two, you mentioned the strong RFP activity being part of that. Are you just seeing more new clients? Is it more shift towards digital, more omni-channel, more shift towards HCP given some of the D2C challenges? Any color, what's driving that? Thanks so much, guys. Congrats again.

Thanks, Ryan. Good to hear your voice. So start with the first one. You know, we've been really articulating to the street and also to our clients and investors that we're going to give more visibility on our visibility into the future as we've been migrating more toward a predictive model. We've quoted in the past descriptive momentum. And so we're going to continue to push that throughout the remainder of the year. And as a result of that, we're now getting more visibility into the out years, including 2026. In terms of the RFP situation, Ryan, RFP season's been very strong for the business. We do see more people coming into the digital space and making investments on the client side. And we're seeing equal parts HCP and DTC at this point interest in the RFP cycle. I would say the parts of DTC that we cover at OptimizeRx are CPV, ATV, the pieces that you're aware of. And in the event that we have a linear television ban or reduction or any of those pieces, our view and thesis is that our solution set will continue to benefit disproportionately from those types of moves. So I would say at this point, both DTC and HCP are looking very healthy. I appreciate the question.

Perfect. Thank you so much. I'll hop back in the queue. You got it. Thanks, man.

Thank you. And the next question comes from Richard Baldrige with Roth Capital.

Thanks. When you look at the implied guidance for fourth quarter revenue, it'd be actually slightly down year over year at the top end of guidance. Talk about either any one-time year-ago issues or other things, because your net retention would argue that that's sort of difficult to do.

Yeah, thanks for the question, Rich. Good to hear from you. So, I mean, what we're looking at is really a full year guide at this point and trying to give a good range of what we believe will come in at. We moved away from quoting pipeline, as everybody on the call knows, and have moved principally toward contracted revenue and what our real visibility is. And so the new guidance that we've updated with is truly what our visibility is. It doesn't count bluebirds that might happen, buy-ups that might happen that are not accounted for right now or we don't have visibility. In years past, we would have thought about that more in terms of pipeline and probabilities. But what you're seeing in the guidance now is, I think, reflective of our true visibility that we know we can deliver on. And again, we're going to continue to be very transparent, very conservative, not sandbagging, but look to beat the numbers that we put out there every time. So hopefully you appreciate the transparency and conservatism.

Just to add to that a little bit, as Steve said, I think we do need to look at it on a full-year basis rather than a quarter-by-quarter. As you know, Q1, Q2, and Q3 have been extremely strong. So it is more of a smoother sort of a phasing this year than it was in the past. So again, I would just encourage you to look at the full-year performance versus last year.

And part of it is the enhancement to the revenue model, right, Rich? Part of it is we've been successful at migrating away from, you know, periodic revenue drops and getting to a more smooth revenue model. And so that's what Ed is referring to there.

Got it. It's, you know, just implicitly a little hard to look at it as a full year. We only have 90 days left. So the same question, I think I'm going to get a similar answer, but If you look at the adjusted EBITDA guidance, you'd have, you know, an up revenue quarter, maybe 10% plus sequentially, but the adjusted EBITDA will either be slightly down to narrowly possibly up. Again, is there any, like, one-time expenses, year-end, you know, things that true up higher that create more of a headwind? Because it wouldn't – it'd still be down year over year as well. Thanks.

Sure.

Ed, do you want to take that one?

Yeah, I can take that one. Yeah. Yeah, look, I mean, we're assuming a conservative gross margin number. There's nothing really in the operating expense line that's going to pop. So it's more of just being a little bit more conservative on what we think is going to happen with the channel and product mix.

We do believe that we're shooting for hitting or beating the top end of the range.

Got it. Thanks.

Thanks, Rich. Appreciate the support.

Thank you. And the next question comes from David Grossman with Stiefel Financial.

Great. Thanks. Hey, guys. Maybe we could just expand a little bit on the line of questioning you just went through. And maybe, Steve, take a minute just to remind us of fundamentally what may be going on in the business that maybe smoothing out the quarters or maybe giving you better visibility and then i have another question after that but just curious again fundamentally some of the changes that you guys have made that may be creating you know a little better visibility and again giving you the confidence for example to guide to 2026 at this point sure yeah happy to talk to it and then andy and ed can chime in also but

I mean, if you think about our business, David, the way that we've talked about it, you know, over time, you've got our audience businesses, which is GAP principally, and then you've got micro-neighborhood audience, which is, you know, that targeting capability for DTC. Both of those are data-driven technologies that lend themselves to becoming more subscriptive in nature. Then you've got our execution functions, both at point of care and the other omni-channel components there. for HCP and you've got that for DTC. And those are obviously going to be transactional largely because that's the way that component of not just our business, but the ecosystem operates. And so what we've seen is outsized growth in DAP, like we've talked about in months past, and we've seen a resurgence of micro neighborhood audience growth. And so those pieces not only give us a smoothing of the revenue because of the revenue models, but they also give us a renewable view into what 2026 will look like, and those contracts start earlier than we would normally do for transaction-level contracting. So that's the big part of it. Andy, Ed, feel free to chime in if you want to add more.

Yeah, I mean, it's really – go ahead, Ed. No, I was going to say, I mean, as you guys know, I mean, the vast majority of our business, comes from renewals. So if you take that into account and then add some of the successes that drove this year, on top of it, with more visibility into next year in terms of signed contracts, as we see here today, we feel like we're in a position to say, all right, looking at next year, we can start to make at least a general guide around bookends that we're going to shoot for And as things progress forward, we'll continue to tighten that range. Go ahead, Andy, you can answer that.

No, you got it. You nailed it.

So thanks for all those details. So if I recall, like last quarter, we talked about these managed services type of contracts that come in. How much of that was present in the third quarter? And are you kind of making the same assumption that you did last quarter where you're not assuming any of that comes to bear in the fourth quarter in terms of the guidance that you provided, as well as the outlook for 26. Is that the way to think about it? Yeah. Andy, why don't you take that one?

Yeah. So it went back to more of a normalized rate in the third quarter as it relates to that managed services business. The only thing that we're including in the forecast period for managed services is stuff that we've already won and is starting to burn into revenue right now. We're not really including anything that's, you know, in pipeline and we don't have visibility to. So, again, we're taking a very conservative approach to providing guidance with, you know, bookends that we feel very comfortable with.

Right. So, as we kind of think of your guidance for 26, can you help us, you know, kind of bracket, you know, the kind of retention, you know, that is the baseline, if you will, to achieve that range?

Yeah, so historically, between 5% and 15% of our business comes from new logos every year. So the remaining would be what you would consider net revenue retention on a normalized basis.

Okay, and that's the assumption underlying your 26 guidance? It is.

Yeah, we don't really guide based on net revenue retention, but that's kind of how it just shakes out as every year progresses. Got it. Great.

And on that note, David... On that note, just one other quick bullet for you, and you and I spoke about this last time we were together. We are seeing a good growth in the mid-tier segment of our business, meaning the mid-tier segment of clients coming to the table who may not be in that top 20, 25, 30 manufacturers that are coming in with outsized spend, mostly because we're able to provide capabilities that can supplement, not just supplement, frankly, replace a lot of the stuff that they can't afford to do internally. Whereas the big manufacturers might have kind of Cadillac support, so to speak, the mid-tier businesses do not. But using the technology that we've got allows them to compete on level ground. And so that's why we're seeing such a drive there. And our commercial organization that Therese is leading has done a wonderful job of driving that. So just wanted to call that out as a key point.

Got it. All very helpful. Thanks very much. Appreciate it. You got it. Great to hear your voice. We'll talk soon.

Yep. Thank you. And the next question comes from Eric Martinuzzi with Lake Street.

Yeah, I wanted to dive in on the RFP trends. You talked about they're improved. I was just curious to know, is that your win rate is the same and the number of RFPs is improved? Or is your win rate improving on a flat RFP trend? What can you tell us there?

Yeah, I'll start and then I'll have Andy chime in too. But all of the above, Eric, we're seeing more RFPs come in. The RFPs are more directly pointed at what we want them to be, which I think is good. The market is seeing what we're shifting the business model to over time. So the RFPs are definitely reflective of what we're providing the market, providing our clients. And I would say our win rate as a result of that is getting better. Again, I want to give some credit to our commercial team. They're doing an excellent job of getting out ahead of all of this stuff and engaging with clients. And when you're engaging with clients more intimately, you can tend to drive the crafting of the RFPs so that they get written at an appropriate level to something that you can respond versus just a random spray and pray request for information. And when we get those, the hit rate will be lower because there was no prior engagement. So hats off to Jen Dwyer, Teresa Greco, and the entire commercial team for doing a great job there.

All right. And then you talked about the smoothing of the business. Maybe I could use a brief tutorial on the transactional where you said that those started later in the year as opposed to the DAP and the micro-neighborhood that are more sort of level-loaded. The kickoffs to each of those types of campaigns.

Sure. Yeah, happy to talk about it. I mean, you know, you think about what DAP and what M&T or M&A does, it's principally audience creation and it's the data that drives all of the campaigns, right? It's the technology that's producing, finding those patients wherever they're going to be. And so because that is more of a software-like play that lends itself to a normal planning cycle where renewals are going to happen earlier, that's just the way pharma manages that segment of their budget. And then the transactional components, which is typically message distribution, whether it's at an HCP level or if it's something that's going through a DSP, like a trading desk or some other way, typically is budgeted and accounted for on a quarterly basis. And it's based on performance and driven that way. So bringing DAP to the table and getting it more mature, which we've been working very hard on, as you know, over the last several years since we launched it, and now bringing in what we acquired through the Medix acquisition with M&T, that has really started to transform the profile of the business. And that's what you're seeing reflected in the performance of this year as well. You're seeing it front and center, but it will reflect into 2026 as well. That's given us great visibility. I think everyone feels better about what we're doing there. We're significantly up year over year on visibility for next year.

Is there a... What's the right way to think about the percentage of the revenue in 2025 versus the percentage of the revenue in 2026 between those two buckets?

We don't break it out. We don't break it out at a product level.

Okay. Thanks for taking my questions.

You got it. Great questions. Thanks.

Thank you. And the next question comes from Madison Schrock with I.B. Riley Securities.

Hi, thank you for taking the questions and congratulations on another really strong quarter. So first, could you provide some color on the partnership with Lamar Advertising and on the size of the opportunity here? And I guess, will this gradually roll out in specific regions or is this going live across their entire national inventory?

Yeah, happy to talk about it. Great to hear from you. So the whole idea with Lamar is they're looking to transform their business model, right? And their current business model is billboards. And one of the things that OptimizeRx does really well, which you're acutely aware of, is patient finding and an ability to be more precise in the way that we deploy messages across our omnichannel ecosystem. So think about the capability of doing that to enable a screen that's in a desperate location that might move from a random billboard to maybe a digital screen that's large, right? And that's really what Lamar is after there. The size of the opportunity is very large. I'm not going to take a stab at the temp because it's not mine to take a stab at. It's really theirs. But the partnership is going to start rolling out pretty rapidly, I would say. And it's still early for us to start quoting projections on what we think it'll do. It's really piloting at this point. But we're feeling pretty optimistic about the initial testing that we've done. And we'll release more information on it as we get some more results. But early stages look pretty encouraging.

Okay, got it. And then I guess is current guidance that you've provided for 2026 factor in any contributions from this partnership?

No, zero, nothing. Too early for us to start factoring into forecasts. We're not going to do it yet. Great question, though. Yep.

And then could you talk about the gross margin expansion in the third quarter? What really drove this and how should we be thinking about margins going forward in the fourth quarter and also into 2026? Sure.

Ed, do you want to take that one?

Yeah, sure. Yeah, so it's typically driven by our product mix or solution mix and the channel partner mix. As we said before, as we scale the business, we have much more Ability to negotiate more favorable deals with our channel partners, so that's reflecting itself in the numbers, as well as growth in DAP and the GTC platform. So those two things together contributed to where we are right now for the year and the Q4. Going forward, I would say we're kind of stabilizing in that upper 50s to low 60s range from a guidance perspective. but you can see that it's certainly upside to that number as the year progresses. Okay, got it.

I'll add just one quick thing to that there, Anderson. So we also, in the third quarter, had a lot more, or in the second quarter, had a lot more managed services revenue, and we did not have nearly as much in the third quarter, and managed services revenue is our lowest margin product.

Okay, got it. Thank you for that, and congrats again on the great quarter. Thank you.

Thanks. Great to hear from you.

Thank you.

And once again, please press star, then 1 if you would like to ask a question. And the next question comes from Jeff Garrow with Stevens.

Yeah, good afternoon. Thanks for taking the question. I want to ask on the 2026 guide and the profitability side, If I calculate it right at the midpoints, I see about 60 basis points of EBITDA margin expansion. I was hoping you could talk about the mix of gross margin expansion, maybe dependent on channel mix versus operating leverage, and then any areas of potential variability that could lead to more or less margin expansion than what we see at the midpoint there. Thanks.

Yeah, Jeff, I'm happy to answer it topically, and we won't get too deep into 2026, but happy to answer it topically. And what Andy just said is really a clear articulation of the dynamics of the business that really govern it, right? So as we continue to see our audiences grow over time through the DAP and M&T products, margin expansion will continue to be front and center. We will also manage the channel partner mix on the other side of that, looking for optimal margin, and that gives us the dynamic of being able to continue to improve over time. Execution will be what it's going to be, as you know from this business, and that's fairly predictable on the highs and lows. But those are the dynamics that are sort of shaping how we're thinking about 2026 gross margin expansion opportunities and where we've landed. Hopefully that's helpful.

Yeah, maybe a follow-up on the operating leverage side of things. You're certainly seeing, I think, a quarter-over-quarter decline in adjusted operating expenses this quarter, seeing really good leverage, and maybe not expecting that to be the persistent trend over the next five or so quarters. But just a little more color commentary on your ability to drive additional operating leverage in the business would be helpful. Thanks.

Yeah. Yeah. No problem. We're going to consistently go ahead. Yeah. Why don't you take it? Yeah.

Yeah. So Apex, um, as I said before, I mean, we have a highly leverageable business model as it is now. So as I said, on a cash basis, there was actually a bit of an increase about $2 million versus last year. And that most of that is driven by the fact that our bonuses and variable comp are tracking our overperformance on the top line this year. So once you dial that back, you can pretty much assume a relatively stable operating expense run rate on a cash basis.

Understood. Thanks for taking the questions, guys.

Congrats again. Thank you.

Thank you. And this concludes our question and answer session. I will turn the conference back over to Steve Silvestro for any closing comments.

Thank you, Operator, and thank you all for joining us today. We're pleased to be building on a strong operational and financial momentum. Our foundation is solid, our patient-focused strategy is working, and we're confident in the path ahead. What you heard today reinforces our belief in our ability to achieve both our near-term goals and our long-term growth objectives. I remain deeply optimistic about the future of our business and the opportunities before us. We look forward to speaking with all of you again on the next earnings call and meeting many of you in the upcoming investor conferences and one-on-one meetings in the coming weeks. Wishing everyone a wonderful rest of your day and a wonderful holiday season with your families and friends.

Thank you, Mr. Silvestro. Before we conclude today's call, I would like to provide the company's safe harbor statement that includes important cautions regarding forward-looking statements made during today's call. Statements made by management during today's call may conclude forward-looking statements within the definition of Section 27A and the Securities Act of 1983 as amended and Section 21E of the Securities Act of 1934 as amended. These forward-looking statements should not be used to make investment decisions. The words anticipate, estimate, expect, possible, and seeking and similar expressions identify forward-looking statements This may speak only to the date that such statements are made. Forward-looking statements in this column include statements made defining how pharmaceutical companies, patients, and prescribers connect, our growth plans, creating shareholder value, becoming a rural 40-company, estimated 2025 revenue, and adjusted EBITDA ranges, capturing greater market share, expanding our participation in the pharma industry's digital ecosystem, our technology and growth opportunities, and building a strong operational and financial momentum. Forward-looking statements also include the management's expectations for the rest of the year. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth and contemplated by or underlying these forward-looking statements. The risks and uncertainties to which the four looking statements are subject to include, but are not limited to, the effects of government regulation, compensation, dependence on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contacts with electronic prescription platforms and electronic health records networks, and the material risks discussed in the company's annual report form 10-K for the year ended December 31, 2024, and other companies the company has made and may make with the SEC in the future. These filings, when made, are available on the company's website and on the SEC website at sec.gov. Before we end today's conference, I would like to remind everyone that an audio recording of this conference call will be available for your replay starting later this evening, running through for a year on the Investor Select section of the company's website. Thank you for joining us today. This concludes today's conference, and you may now disconnect your lines.