Universal Technical Institute Inc

Good day, and welcome to Universal Technical Institute's third quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the call over to your host today, Matt Kempton.

Please go ahead.

Hello and welcome to Universal Technical Institute's fiscal third quarter 2025 earnings call. Joining me today are our CEO, Jerome Grant, and CFO, Bruce Schumann. Following our prepared remarks, we will open the call for your questions. A replay of this call, its transcript, and our investor presentation will be archived on the investor relations section of our website at investor.uti.edu, along with our earnings release issued earlier today and furnished to the SEC. During this call, we may make comments that contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which, by their nature, address matters that are in the future and are uncertain. These statements reflect management's current beliefs and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. These factors include but are not limited to those discussed in our earnings release and SEC filings. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. We do not intend to update these forward-looking statements as a result of new information or future developments except as required by law. Please note, unless otherwise stated, All comparisons in this call will be against our results for the comparable period of fiscal 2024. The information presented today also includes non-GAAP financial measures. These should be viewed in addition to, and not as a substitute for, the company's reported results in accordance with U.S. GAAP. All non-GAAP financial measures referenced in today's call are reconciled in our earnings press release to the most directly comparable GAAP measure. For more information regarding definitions of our non-GAAP measures, please see our earnings release, financial supplement, and investor presentation. With that, I will turn the call over to Jerome Grant, CEO of Universal Technical Institute, for his prepared remarks. Jerome?

Thank you, Matt. Good afternoon, everyone, and thank you for joining us to discuss our results for the third quarter of 2025. We're excited to be with you today and to share another quarter of strong performance driven by a keen focus on strategic execution. Before delving into our results for Q3, I want to touch on some of the legislative and regulatory factors we have all been keeping a close eye on that may be impacting certain segments of the broader education space and the landscape we are currently navigating. Let's start with the general operating environment. We see the current federal regulatory environment as conducive to our mission and model. We're executing in a macro landscape that's increasingly supportive of skilled trades. we're having more meaningful conversations with policymakers and employers than ever before, a clear sign of growing momentum. Notably, we are successfully engaging with the Department of Education and other Trump administration offices to explore new avenues for advancing skilled trade growth as they are focused on bringing more jobs to America. With our North Star strategy closely aligned with the operating landscape, our confidence in the next four years is strong. Turning now to developments on the legislative side, most notably, I'd like to provide some clarity around how we're looking at the passing of One Big Beautiful Bill Act. While this legislation introduces significant changes for higher education broadly, many of the limitations mainly focus on more costly four-year and graduate programs that we do not offer. Recent discussions that I had in DC show that there's strong support for accelerating our efforts to address the skilled labor shortage in the US. For example, the bill has created new opportunities for some of our students, particularly our short course programs, which may now become Pell eligible. These courses, while currently not significant driver of our revenue, serve as a jumping off points for students to dive deeper into UTI and Congress full-time programs. This new legislation, provides us with the opportunity to move more aggressively into the short-term credential space. Holistically, the regulatory environment and this administration's priorities reinforce the appreciation for technical education and further validates the foundation we have built to deliver value to our students and employers alike. Now, turning to the results for the third quarter. We delivered another strong quarter in Q3, reflecting the consistency of our execution and the resilience of our model. Our results were driven by continued demand for skilled-collar jobs and strategic investment to grow our reach. We remain focused on scaling our new programs, optimizing student outcomes, and investing in our long-term growth strategy, delivering results that continue to meet and exceed expectations. Revenue for the first quarter exceeded expectations, increasing 15% year-over-year to $204.3 million. Net income increased roughly 114% year-over-year to $10.7 million, with diluted earnings per share of 19 cents. Adjusted EBITDA grew over 37% year-over-year to $25.3 million. Average full-time active students grew nearly 13% year-over-year to 23,757 students, with total new student starts increasing approximately 3% year-over-year in the quarter. Throughout this quarter, we continue to see validation around the importance of and our impact in skilled trades education. This year, we marked a major milestone by celebrating UTI's 60th anniversary and six decades of training America's workforce. As part of that celebration, we had the honor of ringing the opening bell at the New York Stock Exchange this past May. UTI also continues to be featured in prominent media outlets like Forbes, USA Today, and CNBC's Mad Money. Each of these pieces reflects a shared theme. People are reevaluating the ROI of traditional college degrees and increasingly recognizing the value of skilled trades and other healthcare education. These stories highlight the lives we're changing and reinforce the broader societal shift towards the kinds of careers we train for. On our last call, we announced that our executive leadership team was now fully built out to lead the company through this exciting growth phase. With that, we shifted our focus to opportunistic talent investments in our commercial engine. As a result of this, we bolstered our ranks by hiring seasoned divisional leadership to oversee marketing, admissions, and business development across both UTI and Concord divisions. These revenue-driving positions further prepare us to reach our fullest potential as we execute on this next phase of our North Star strategy. Now, let's take a closer look at the division-specific highlights for the quarter. Our Concord Career Colleges Division maintained its strong top-line and student performance in Q3, benefiting from sustained demand for careers in allied health and nursing and continued operational excellence across our marketing investments. Concord continues to outpace our expectations, and its performance only serves to bolster our anticipation of meeting or exceeding expectations when they move into the post-growth restrictions era. The program initiatives we previously announced are progressing as planned and remain on track for 2025. To reiterate, these initiatives include increasing the Dallas nursing program capacity by an additional 60 students, launching a new nursing program in Jacksonville, Florida, and rolling out 10 non-Title IV short course programs across the Concord campuses. The Heartland co-branded campus also remains on track to open in early fiscal 2026. As you will recall, these campuses are projected to reach an annual revenue run rate of over $4 million once scaled and will serve as a model for future strategic partnerships. Regarding our optimization efforts, construction is underway for our new 60,000 square foot Denver location, where the Aurora campus will be relocated. This reimagined campus is scheduled to open in early 2026 and will feature larger simulation facilities expand dental hygiene capacity, and even space for future program expansions. Now shifting to the UTI division, the UTI division continued to experience strong year-over-year growth in average full-time students, driven by program expansions and the robust market demand. While new student growth softened this quarter, as previously expected, we anticipate a strong fourth quarter as our high school population prepares to begin their studies. Now remember, Nearly half of UTI's division starts come in the fourth quarter, and they remain on track for their overall target. Our efforts to optimize existing UTI campuses and expand UTI's campus footprint are underway and on track for Fiscals 2025, 2026, and 2027. Our eight program expansions launching in 2025 are on track and performing to plan. Most notably, this quarter we added HVACR programs to both Rancho Cucamonga and the Miramar campuses. This brings the HVACR program's footprint to 11 campuses across seven states. This quarter, we also reached a meaningful milestone in our aviation program. We proudly graduated our first class from our aviation maintenance programs in Avondale and Long Beach campuses. Just as exciting, our Houston-based aviation students took home first place at the 2025 Aerospace Maintenance Competition, which is a national event that tests both technical skill and teamwork against top training institutions in the country. These achievements reflect not just the excellence of our aviation programs, but the caliber of the students we continue to attract. As far as campus launches, we previously announced that we have two new UTI campuses set to open in 2026, pending regulatory approvals. The first being a fully optimized Atlanta campus, which will offer a comprehensive set of programs, and second, our inaugural skilled trades focus campus in San Antonio. Both are on schedule and on budget. Once fully ramped, these campuses should contribute significantly to margins, as well as generate upwards of $45 million and $23 million in revenue, respectively. Finally, I'm pleased to say that we've identified the fiscal 2027 UTI campus locations and fiscal 2026 UTI program types for our next tranche of expansions. While we won't be providing the specifics on this call, these plans are in place and I look forward to updating everyone very soon. With another quarter of strong execution and a favorable operating environment, I'm pleased to share that we are raising the low end of our fiscal 2025 guidance ranges for both revenue and new student starts. We now anticipate consolidated revenue between $830 and $835 million, reflecting approximately 14% year-over-year growth at the midpoint. And new student starts should range between $29,500 and $30,000. With that, I'll turn the call over to Bruce, our CFO, to review our third quarter financial results and talk through our guidance in more depth.

Thank you, Jerome. Our financial performance in Q3 reflects continued solid execution on our strategy as a company. For the third quarter, average full-time active students increased 12.7% year-over-year to 23,757 students. New student starts increased 2.8% year-over-year to 5,721 starts. The Concord division delivered an 18.8% increase in average full-time active students compared to Q3-24, while new student starts for the third quarter grew 9.1% year-over-year. The strong year-over-year growth was primarily a result of sustained investments in marketing and admissions, as well as the team's strong lead conversions. The UCI division drove an 8.9% year-over-year increase in average full-time active students for Q3. New student starts declined slightly in the third quarter, reflecting a 3% year-over-year decrease. The year-over-year growth in average full-time active students reflects the strong demand for skilled collar graduates and our team's ability to convert leads. New student starts were softer in Q3 as expected due to having one less start instance in the quarter compared to the prior year period, and we continue to remain confident in our ability to achieve our full year starts guidance as outlined. Shifting to our financial performance, third quarter revenue on a consolidated basis grew 15.1% year over year to $204.3 million. Concord contributed $72.8 million, an increase of 20.7% over the prior year quarter, while the UTI division contributed $131.5 million, an increase of 12.2% over the prior year quarter. Looking at profitability, consolidated net income for the third quarter was $10.7 million, or 19 cents per diluted share. Adjusted EBITDA for the third quarter increased 37.3% year-over-year to $25.3 million. These results included $1.7 million in growth investment spend related to new program launches and new campus build-outs. Growth investment spend for the year to date is $2.2 million. At the end of the quarter, we had 54.4 million shares outstanding. Total available liquidity at the end of the third quarter was $236.9 million, including $47.2 million of short-term investments and $119 million of remaining capacity on our revolving credit facility. We also had a net pay down of $20 million on our revolving credit facility, and we'll continue to closely manage the use of our revolver going forward. Year-to-date operating cash flow was $40.2 million, and adjusted free cash flow was $15 million. Year-to-date capital expenditures were $25.5 million, reflecting investments in our program and campus expansion initiatives. Driven by our strong third quarter top-line performance and sustained operational execution, we are raising our fiscal 2025 guidance ranges for revenue and starts and reiterating our expectations for all other key metrics. Beginning with revenue, we now expect to generate between $830 and $835 million of revenue for fiscal 2025, or approximately 14% year-over-year growth at the midpoint. Total new student starts in fiscal 2025 are now anticipated to range between 29,500 and 30,000. This updated outlook reflects the strong performance in both divisions, the continued scaling of new programs, and sustained demand across the skilled trades and allied health sectors. We are reaffirming the remainder of our fiscal 2025 guidance ranges. To reiterate, net income is anticipated to be between $56 and $60 million, with diluted earnings per share of $1 to $1.08 for the year. Full year adjusted EBITDA is expected to be between $124 and $128 million, or around a 23% year-over-year increase at the midpoint. And lastly, full year 2025 adjusted free cash flow is anticipated to range between $62 and $68 million. In line with historical timing, we expect the majority of our cash generation and year-over-year increase to happen in Q4. In addition to today's earnings call transcript, we encourage everyone to review our press release, financial supplement, investor presentation, and the upcoming 10Q filing. These materials provide the latest updates on our consolidated and segment results, strategic initiatives, and guidance. As always, thank you to our team members, students, partners, and shareholders for your unwavering support. I'll now turn the call back over to Jerome for his closing remarks.

Thank you, Bruce. As we move into the remainder of fiscal 2025, our operational goals remain the same. In addition to maintaining a keen focus on finishing the year strong, organically, we're continuing our planning and execution on expanding our campus footprint into greenfield locations, broadening the reach of our existing programs and adding new in-demand offerings, as well as deepening industry relationships and growing our partner networks. Inorganically, we continue to be open to considering acquisitions that both align with our second phase of our North Star Strategy and provide meaningful value to our shareholders. I want to finish today's call by both sharing some exciting news and reiterating the operational and financial aspects of phase two of our North Star Strategy. We are pleased to announce that following discussions with the Department of Education, we were able to satisfy the agency's requirements for lifting the core growth restrictions that have restricted our Concord Career College's division's growth since the acquisition. We are now in a position to seek the department's approval to proceed with our expansion efforts for Concord. This is a significant moment for us and enables the company to accelerate Concord's program and campus growth starting next fiscal year, which is one full year ahead of plan. As we noted previously, adjusted EBITDA margins in fiscal 2026 and 2027 will reflect the impact of deliberate investment to support our expanded campus footprint and program portfolio. Although these investments are expected to temporarily moderate margin growth for the next two years, they are foundational to our long-term growth strategy. While we won't be providing formal guidance on the call today beyond 2025, I think it's safe to say that with our ability to move forward early with Concord's growth initiatives, we expect to see even stronger ramp in revenue and margin expansion beginning in fiscal 2028 and accelerating through 2029 and beyond. North Star Strategy Phase 2 currently outlines achieving over $1 billion in yearly revenue and approaching $200 million in adjusted EBITDA by fiscal 2029. With our growth platform now fully unlocked, We're confident in our ability to achieve and, yes, even exceed those targets. As we close out Q3, I want to underscore how excited we are about what lies ahead. The combination of a supportive regulatory environment, renewed public enthusiasm for skilled trades, and growing employer engagement positions the company at the center of national workforce transformation. With a robust portfolio of new programs and campuses in development, and a leadership team built for growth, diversification, and optimization, we believe we are just scratching the surface of what our company will achieve. Thank you for your continued support. We're excited about the momentum we're building and look forward to keeping you informed as we execute on our accelerated growth, diversification, and optimization strategy. We encourage everyone to visit one of our 32 campuses. So if you're interested, please just let us know. We'll be happy to host you. I'd now like to turn the call over to the operator for Q&A. Operator?

Yes, thank you. As mentioned, we will now begin the question and answer session. To ask a question, you may press star then 1 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 2. This time we will pause momentarily to assemble the roster.

And the first question comes from Mike Grondahl with Northland Securities.

Hey, thanks, guys. Hey, Jerome, I wanted to start with Concord. Congrats on getting that approval. There's been a lot of demand there, a lot of growth. What could Concord look like in three to five years? And can you move quick enough to get a couple incremental campuses, new campuses there?

at concord next year yeah yeah mike can you can you hear me mike yes okay good we're having some technical difficulties here in the conference room so i wanted to make sure uh you could hear me it's it's it's a great question i think um you know really what what the uh agreement we came to the department of education does is accelerates our plans by a year really you know we expected the growth restrictions to come off next summer we've got them off this summer And I think probably the best way to think about it is what it really means is we're going to be able to get, say, another half a dozen or so, maybe more programs out into the market next year in 2026 when our plan had none. And over the life of the plan, the five-year plan, this means a couple of more campuses on the conference side. Can we get them all in in 26? That's debatable, right? You know, we're starting our approval process right now. We've been doing site selection for quite some time in anticipation of this happening, and we're going to work as hard as we can. But really, the sum total of the upside to this, to the five-year plan that we put out, was, you know, a year's worth of program launches.

Hello? Yeah, I'm still here.

I don't know who that was.

That was Matt. Sorry. And a couple of more campuses that we put into it. You know, we're working through the approval process right now. And what that means is, you know, by the time we get to guidance in November when we report at the end of the fourth quarter, guidance for 26, we'll revise that guidance and we'll give you our targets at that time.

Fair. That's good. And as we're thinking about 26 and 27, I think you're saying EBITDA margin expansion will be muted because of all the investment. But I don't think we're going backwards on those in gross dollars. Is that fair? How do you want people to think about that?

Yeah, I mean, we haven't given any numbers past 2025, so I want to make sure that you understand that our guidance hasn't been out there. Now, the analysts have taken it upon themselves to put some models out there that had the EBITDA margins roughly flat, a slight increase in 2026, and we think the job they did is admirable. there is an opportunity in 2026 should we invest more aggressively in launching campuses and programs that we wouldn't achieve the same EBITDA in 26 as we did in 25. And really, remember, that all has to do with the sort of change in accounting practice where we no longer take those one-time costs out of our adjusted EBITDA. So we'll be clear on what our strategic investments are going to be in 26 when we give guidance, just as we were clear in 25 when we said, you know, the second half of the year we're going to spend about $6 million, which previously we would have adjusted out of our adjusted EBITDA, but this year we're not. So next year we'll be clear about that as well.

Perfect. Hey, sounds good, and thanks.

Sure. Thank you. And the next question comes from Raj Sharma with Texas Capital.

thank you for taking my questions again you know solid continued execution um love it congratulations yeah sure um just on continuing on the concord um acceleration of growth and restrictions being lifted can you kind of comment on the uti's readiness around you know faculty hiring sort of You've already talked about regulatory approvals and just sort of, you know, site development. How's that going?

Yeah, I mean, we've been working pretty closely since the administration changed with them on, you know, building a model for progressing forward. So we've moved pretty far forward in terms of site selection for the first campuses. And our program portfolio was already built for assuming we were going to be able to launch them in 2027. So the number of programs that we'll launch on the Concord campuses, which we'll announce as we secure approvals for those, was already in place. So we feel pretty good that we're hitting the ground running here as fast as we can because, you know, we've been in negotiations with them for quite some time.

Right. Thank you. Thank you for that. And then on the starts, just quickly, I know the Q3 was softer, but your overall yearly starts, you know, are fine in line. So you're saying Q4 is going to be, you know, as strong or if not stronger than you had expected. Is that still, so is that the correct understanding?

Yeah, I mean, thanks for asking about it. I think the way to think about it, number one, in terms of looking at starts for Q3, the hard part about looking at starts in any given quarter is that we don't have the same number of starts in every quarter every year. And for instance, at UTI, there was one large start that we didn't have this quarter. The opportunity was not there for upwards of 500 students. And we had hoped to be able to fill that gap with more high school students starting earlier, but our start in June was too early in June. Our large start in June was too early in June to capture that many more high school students. That being said, we've already got our visibility into what's going on in the fourth quarter, and that's why we felt good about clipping the bottom end of our range and saying that we're going to be closer to that 30,000 than 29 where we had before. So we're feeling good about the strong double-digit you know, almost mid-teen growth rate for the group as a whole, which propels us really nicely into 26. Got it. Got it.

And then, you know, your capital allocation, you're generating really good free cash flow. You've got greater liquidity. You know, it seems like a, so you, then, you know, we're not, we're never happy with what's going on. What's next in terms of have you thought of, or can you give us your thoughts on, you know, beyond campus expansion, how are you thinking about capital deployment? Any thoughts on sort of buybacks, you know, M&A, debt pay down?

Right now, I mean, we're very, very focused on generating value through launching campuses and programs. I mean, we've already announced two new campuses on the UTI side. It's in 2026. We're working very diligently on the first set of campuses for Concord now, which actually could increase that either in 26 or early 27. So, you know, right now, most of our capital deployment is really focused on generating and even accelerating the organic growth to get that 28, 29 tail on the North Star plan even larger than what we put out in the market.

Yeah, Roger, this is Bruce. The only thing I would add to that, you see that commitment to growth even in our CapEx forecast. You know, a full $55 million is invested this year. The majority of that is really focused on that growth span, new campuses, new programs to make sure we can execute in 26.

Right. You know, like I said, we're never happy with what's happening, and then we go into the next level of problems. What's next on your free cash flow? But thank you so much for taking my questions, and again, Fantastic job. Fantastic continued execution.

Thank you, Raj.

Thanks.

Sure.

Look forward to talking to you.

Thank you. And the next question comes from Jess for a bit with Truist.

Hey, good afternoon, everyone. Maybe following up on the new starts, just hoping you can provide a bit more detail on what you're seeing as far as student interest levels in the fourth quarter to date. And the high school students that are coming in now, is that still pretty heavily skewed for the diesel or you get more traction with HVAC and some of the other skilled trades there?

So I think the thing to remember, which I said in my comments, is that, you know, truly 50% of UTI divisions starts come in the fourth quarter because about 40, mid 40% of the UTI population is high school students who are coming right out of high school. The high school students coming right out of high school predominantly go into auto diesel. Frankly, in high school, they don't know that much about what skilled trades means in terms of being an electrician or HVAC tech or etc. They tend to know, I'd like to fix cars. And so, you know, still a large portion of the high school students are going into auto diesel and they're filling in quite nicely. You know, we're seeing what we expected to see from them in the fourth quarter. You know, the timing of starts gave us that hiccup of why we thought we would moderate in the third quarter. But, you know, we feel strong enough that we're still in that mid-teens range for the whole company for the rest of the year to raise the low end of our guidance there as well.

Thanks.

And then can you maybe talk about how large the exposure is to short-term training programs that could benefit from some of the Pell changes you talked about in the prepared remarks? I know it's not probably huge, but maybe just like a percent of revenue or something could help contextualize it for us.

You know, it's very, very small, right, right now. And the reason it's very, very small right now is because none of it was Pell-eligible, and therefore we didn't move aggressively into short-term credential spaces, different types of welding certificates or smaller portions of the healthcare spaces, is that not being Pell-eligible, those sorts of certificates are We didn't move into it. What I was really trying to underscore in my comments was it gives us an opportunity now beyond what's on our roadmap to start thinking about shorter bespoke programs that people can get aid on. And therefore, we would be able to move quickly into delivering subsets of our curriculum in a full-time setting, but just shorter durations that would be palatable.

No, that makes sense. Last one for me, can you maybe update us on where you are as far as capacity at Concord and whether some of your programs, maybe dental comes to mind or being capacity limited at certain campuses now and whether the growth restrictions left out there?

Yeah, you know, what I said last quarter is exactly what happened in this quarter, which is we've lapped ourselves a year. We had a project over the last year, now a year and a quarter. of really looking at the clinical capacities and making sure that we were moving as far towards that 100% placement as we could in that year timeframe. Because in many of these cases, you need to fill to your capacities, and then you can apply to get the caps lifted. These are soft caps that then can be lifted. And that's where we found ourselves as we hit the third quarter. As I said in the second quarter, which was You know, we are approaching the caps in many of them. That doesn't necessarily mean it's capacity. It means that, you know, we were granted the right to have that many students in a course. And now we are aggressively moving forward to get all those caps raised, right? And so that's going to give us a new growth opportunity as we move forward for Concord as well. There are very few markets and very few courses where we think there's any notion of capacity. where the jobs are not there in that specific geography for that specific area. I still think there's a lot of opportunity. And now what we've proven is that we can fill to the opportunity that's been giving us. So now we're going to raise them.

Sounds good. Thank you for taking the questions. Thanks, Jasper.

Thank you. And as a reminder, please press star and then one if you would like to ask a question. And the next question comes from Bruce Goldfarb with Lake Street Capital Markets.

Thanks for taking my call. Jerome, Bruce, congratulations on the great execution. My first question is, where are you on potentially consolidating UTI and Concord systems, ERP systems and learning systems?

Well, that's great. I mean, one of the things I announced on our last call, not this one, was that we had brought in a new CIO and really focusing on those four big systems, our ERP system, our SIS, our LMS, and our CRM, because that's a phase of the integration that we have not yet undertaken. And, you know, work is happening in earnest. This isn't something that happens over a year or, you know, it's probably a multi-year, three-, four-year process to get all four systems aligned. But we'll begin to see those efficiencies as we align those systems. And that work's happening in ours right now.

Great. And then in terms of the big, beautiful bill, I mean, you talked a little bit, I think, about the Pell Grants. But any other impacts are positive for UTI or how it's going to change the way you guys operate?

I actually think, you know, in my conversations in Washington where we were asked for the very first time, how do we get more interest in the skilled trades? One of the things that we made very clear was we need to get more financial support to students for certificate programs, non-degree programs, non-traditional four-year education. And, you know, for the Pell eligibility on short courses gets the conversation going even more. Um, and, and so we're, we're real happy with what we've seen in that front. Um, you know, as far as any other, any other programs, it wasn't really part of the big, beautiful bill act. I think now as they move into the 2026 budget, uh, votes in their, in their next session, I think, um, that's the next opportunity to see more enhancements, um, uh, or, or, um, speak with their uh you know with their legislation to their urge to get more people into the trade so our work continues great thank you thanks for uh taking my questions thank you thank you and this concludes the question and answer session i would like to return the floor to rome grant for any closing comments Thank you very much, Operator. Well, I'd like to thank everyone who attended today. As always, Bruce, Matt, and I are available for follow-up questions over the next few days. And we look forward to speaking with all of you, our investors and analysts, when we report our fourth quarter fiscal 2025 results in mid-November. So back to you, Operator.

Thank you. The conference has now concluded. Thank you for attending today's presentation. We now disconnect your lines.