Dolphin Entertainment - Earnings Call - Q2 2025

Executive Summary

• Revenue of $14.1M grew 23% YoY and exceeded S&P Global consensus of $12.5M; adjusted operating income was positive at ~$0.63M with a 4.5% adjusted operating margin, driven by broad-based subsidiary strength. Revenue Consensus Mean: $12.5M*.
• EPS was a loss of $0.13 vs consensus loss of $0.05, reflecting investment spend in women’s sports (Always Alpha) and affiliate marketing, higher operating expenses, and interest expense; net loss narrowed YoY to $1.4M. Primary EPS Consensus Mean: -$0.05*.
• Management reiterated a path to margin expansion driven by tapering investment spend in 2026, lease expirations in NYC (2026) and LA (2027), and term loans rolling off by Sept-2028, freeing up cash flow; CEO purchased >1% of outstanding shares since April 2025, underscoring confidence.
• Optionality: Youngblood selection for TIFF and IMAX follow-up ambition offer potential upside without capital deployment, alongside ventures like Staple Gin.

What Went Well and What Went Wrong

What Went Well

• Broad-based revenue outperformance: Q2 revenue $14.1M (+23% YoY) from subsidiary strength alone, with adjusted operating income ~$0.63M and 4.5% margin; management emphasized no contribution from ventures/productions (e.g., Blue Angels).
• Strategic integration and new offerings: Launch of Tastemakers integrating The Digital Dept. and The Door to create a “new service category,” early traction with creators and cross-selling flywheel across agencies.
• Shareholder-aligned actions and pipeline: CEO share purchases (>1% since April), Youngblood premiering at TIFF with co-selling via CAA and 42West; potential for IMAX follow-up in 2026.

What Went Wrong

• EPS miss: GAAP EPS of -$0.13 vs consensus -$0.05 amid higher OpEx and interest expense; net loss -$1.4M (vs -$1.6M YoY) signals ongoing profitability headwinds despite revenue beat. Primary EPS Consensus Mean: -$0.05*.
• Elevated investment spend depresses near-term profitability: Women’s sports (Always Alpha) and affiliate marketing investments continue through 2H25, pressuring adjusted operating income despite positive Q2.
• Cost structure still heavy: Operating expenses were $14.1M; interest expense ~$0.56M; margin recovery relies on future lease expirations and debt run-off (multi-year timing).

Transcript

Speaker 3

Welcome to the Dolphin Entertainment second quarter 2025 earnings call. At this time, all participants are on a listen-only mode, and a question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. James Carbonara of Hayden IR. Sir, the floor is yours.

Speaker 0

Thank you, Operator. Good afternoon. Before we begin, I'd like to remind everyone that during the course of this conference call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could differ materially from actual events. Please refer to cautionary text, forward-looking statements contained in the earnings release published today, as well as the most recent SEC filings and reports. During the call today, management will also discuss non-GAAP financial measures, including adjusted operating income or loss. The company believes that these will provide helpful information for investors. Reconciliations to the most comparable GAAP measures are provided in the earnings release. Now, I would like to turn the call over to Bill O’Dowd, Chief Executive Officer at Dolphin Entertainment. Bill, please go ahead.

Speaker 2

Thanks, James, and welcome, everyone. As usual, I'll start by reviewing some of the key financial and operating highlights from our second quarter, and then Mirta will provide a more detailed financial overview before we open it up for Q&A. I am definitely going to steal Mirta's thunder because starting with the financials, as we just saw in the earnings release we put out, total revenue came in at a second quarter record, $14.1 million, which represents an increase of 23% year over year. On the bottom line, we reported adjusted operating income, again, the measure, how we measure ourselves, of approximately $628,000 as compared, excuse me, to an adjusted operating loss of $137,000 from the same period in 2024. Obviously, we are extremely pleased with those two results.

I would like to point out also that these results were fueled solely by the strength of our subsidiary portfolio without benefiting from the contributions of ventures or productions such as the impact of 2024's documentary Blue Angels. We believe our growth to a 4.5% adjusted operating income margin this quarter is just the beginning. We believe that we will free up significant free cash flow steadily over the next three years for three reasons, in addition, of course, to our subsidiaries continuing to grow. First, next year in 2026, we believe the investment phase in Always Alpha and affiliate marketing will greatly reduce. Those results we just talked about come with those investments being made here in the second quarter. Second, our expensive long-term leases in both New York and Los Angeles will expire.

New York by the end of next year, 2026, and Los Angeles by the end of the following year, 2027, thereby significantly reducing our overhead costs. Third, our commercial bank loans will be repaid in full in September of 2028. These term loans, used to fund our acquisition strategy and complete our marketing supergroup, currently represent approximately $2.2 million per year in principal and interest. We will no longer need to pay that after September of 2028. Thus, even without the revenue and profit growth we expect to experience in the coming quarters and years, we expect to free up significant free cash flow throughout the next three years, which we believe provides us a clear path to improving our margins.

Beyond this core trajectory, we believe our films, such as Youngblood, and our venture portfolio, including Staple Gin, offer tremendous optionality, especially when comparing potential upside in success against our current market capitalization. More to come on these two topics later in my prepared remarks. First, let's turn our attention to this morning's news. As you saw in the announcement, we've taken another significant step in expanding our integrated services model with the creation of our Tastemakers division. I want to spend a few minutes discussing why this matters strategically and how it exemplifies our broader growth strategy. I'll address what makes this offering compelling. Bringing together the exceptional capabilities of two of our subsidiaries, the digital department's talent management expertise in the creator economy, and The Door's unmatched lifestyle and hospitality PR prowess. This isn't simply about collaboration.

It's about creating an entirely new service category that doesn't exist elsewhere in the market. Think about the traditional landscape. Creators and lifestyle icons typically engage separate firms for representation and publicity, often leading to disconnected strategies and missed opportunities. We've eliminated that friction. Our teams now work as one unit from the outset, crafting cohesive strategies that maximize both commercial opportunities and cultural relevance. Let me put it even more simply. The Door's PR campaigns keep these talent top of mind for both brand managers and the public at large, while the digital department monetizes that cultural cachet for the talent through brand partnerships and endorsements. This creates a virtuous flywheel for the talent. More visibility through PR and earned media leads to the ability to capitalize on greater endorsement potential.

Longtime listeners remember how excited we were for the acquisitions of Be Social and Socialite, the two influencer marketing companies we purchased in 2020 and 2022, respectively, and that we merged to create the digital department in late 2023. These were highly strategic acquisitions to marry with our industry-leading PR firms in a combination we called the equivalent of peanut butter and jelly. How has Tastemakers been received, even in these very early days? The initial response has been remarkable. We've already assembled a great roster of creators spanning culinary, wellness, and lifestyle sectors, like Josh Scherer from Mythical Kitchen, my personal favorite culinary influencer. He's just a great guy. Janine D’Onofrio, who's built Love and Lemons into a powerhouse brand, and Jessica Buie, who's transformed home design content. These creators understand how to connect with modern audiences and drive engagement across platforms.

All of these icons, personalities, and creators are excited by the prospect of increased exposure through PR, leading to additional money and endorsement opportunities through influencer marketing. What excites me most is how this initiative demonstrates the multiplier effect of our ecosystem. These creators aren't just getting management and PR. They're gaining access to our entire suite of capabilities. When one of our talent wants to launch her next pod, excuse me, her next product line, we have the infrastructure. When another one needs production support for his next series, we're ready. This is precisely the kind of value creation we've been discussing with you throughout the years. Now that we've reached horizontal scale across the supergroup, we're innovating within our existing portfolio to generate new revenue streams and deepen client relationships. Every creator we sign opens doors to brand partnerships, content opportunities, and cross-pollination across our other divisions.

Looking ahead, Tastemakers represents a blueprint for future initiatives. We're actively exploring similar integrated models in other verticals, where our agencies' combined expertise can create differentiated offerings. The market is clearly moving towards comprehensive solutions, and we're positioning ourselves at the forefront of that evolution. Moving along, each of Dolphin's subsidiaries brings something unique to the table, but together they create something far greater than the sum of their parts. We believe this collective strength is what makes Dolphin a leader across the pop culture landscape. Furthermore, these cross-selling initiatives help fuel organic growth within our companies, and as we do so, we believe that our adjusted operating income margin will continue to grow. I should point out, is this a good point to mention 23% year over year revenue growth and positive adjusted operating income of over $600,000? Probably it's a good point to insert that again.

Anyway, back to the prepared remarks. This is the first half of the better mousetrap that we believe we are building. Those who have followed our story from the very beginning know that our idea to create this unique collection of best-in-class entertainment marketing companies was so that we could create a solid foundation of revenue and profit from our core activities and then have the upside of transformational optionality represented by productions and ventures that we can own or co-own and wherein our form of marketing will give us a greater likelihood of success. In other words, we believe that our core business will provide both stability and continuous growth to the top and bottom line, as we just saw here in Q2, and that our ventures into content, consumer products, and live events will provide us with tremendous upside, disproportionate to our core business.

With that said, we shared exciting news on our latest production venture yesterday. The feature film adaptation of Youngblood has been selected to premiere at the Toronto International Film Festival next month. This is a tremendous honor, and we hope it will provide a springboard for us to successfully sell the project to a theatrical distributor or streaming service. We are also hoping lightning strikes twice, as it was at the Toronto International Film Festival where we premiered the first footage of Blue Angels, which led to our highly successful sale of the streaming rights for that movie to Amazon Prime. Fingers crossed we will enjoy the same level of success this year. I'll certainly be able to provide updates on our next earnings call. Toronto, for those who don't know, is always the week after Labor Day.

To conclude, I'd like to highlight how our achievements from the launch of Tastemakers to leading global sales for Youngblood exemplify the strength and innovation of our diversified portfolio. Additionally, my continued personal investment in Dolphin Entertainment, including the purchase since just this April of an additional 1% of all common stock outstanding, underscores my confidence in the exceptional value we are building for shareholders. Thank you for your time and attention today, and with that, I'll turn it over to Mirta for a deeper dive into the financials.

Speaker 1

Thank you, Bill, and good afternoon, everyone. Let me walk you through our financial results for the second quarter of 2025. Total revenue for the quarter ended June 30, 2025, was approximately $14.1 million, an increase of 23% from $11.4 million in the same period of the prior year. Operating loss was approximately $57,000 for the three months ended June 30, 2025, compared to an operating loss of $1.1 million for the three months ended June 30, 2024. Adjusted operating income was $600,000 for the three months ended June 30, 2025, as compared to an adjusted operating loss of $137,000 for the same period in 2024. Operating expenses for the second quarter of 2025 were approximately $14.1 million, including depreciation and amortization of approximately $600,000 and non-recurring or non-cash expenses of approximately $90,000.

This compares to operating expenses of $12.6 million in the second quarter of 2024, including depreciation and amortization of $600,000 and non-recurring or non-cash expenses of $400,000. Net loss for the second quarter of 2025 was approximately $1.4 million, including depreciation and amortization of $600,000 and non-recurring or non-cash expenses of approximately $900,000. This compares to a net loss of $1.6 million for the second quarter of 2024, including depreciation and amortization of $600,000 and non-recurring or non-cash expenses of $400,000. Net loss per share was $0.13 per share, based on 11,168,572 weighted average shares for the basic loss per share and 11,232,511 weighted average shares for diluted loss per share for the three months ended June 30, 2025. Net loss was $0.17 per share, based on 9,723,155 and 9,787,094, respectively, weighted average shares outstanding for basic and fully diluted loss per share for the quarter ended June 30, 2024.

With that, I'll now turn it back to the operator to open the floor for questions. Operator, would you please poll for questions?

Speaker 3

Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue, and you may press *2 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 * keys. One moment, please, while we pull for questions. Thank you. Our first question is coming from Alan T. with Maxim Group. Your line is live.

Speaker 4

Hi. Congrats on the strong results. For revenue, where would you say the upside came in for your revenue in the quarter?

Speaker 2

Yeah, thanks, Alan. It was broad is the answer. Each of our operating subsidiaries, you know, we have seven marketing companies. I think they all had a, you know, just steady growth during the quarter. I know we really exceeded the revenue expectation for Q2, and it was building throughout the quarter. June was stronger than April. Special Projects, our event company, had a particularly good quarter. They're having a particularly good year. The second half of the year is going to be better than the first half of the year for them. The Door's been very strong. They're continuing that throughout the whole summer, so is Shore Fire, our music PR firm. I'd say we're blessed to have really strong results across multiple of the subsidiaries. There was no one reason or one silver bullet, if you will.

That was a point I was trying to make in the prepared remarks that, you know, this is a quarter we didn't put out a movie. We didn't get the big hit like we did in Q1 of last year for the Blue Angels. This is just our blocking and tackling, our core companies doing well. You know, we're continuing to grow them, and they're getting better and better at selling with each other. This Tastemakers division is a good example of that. To answer your question succinctly, it was broad. It was a broad revenue growth.

Speaker 4

That's great. I know that one of your big investment focuses is Always Alpha and your affiliate marketing. Can you talk a little about how you're making out in the investments and to grow those businesses?

Speaker 2

Yeah. Happy to. You know, the adjusted operating income, again, the measure by which we measure ourselves, you know, what's our operating income when you strip out the non-cash amortization and other one-time non-cash expenses and things like that. We made over $600,000 in the quarter, which is fantastic. We were very close to Q2 last year. I think we lost a little over $100,000 in the quarter. We obviously exceeded $600,000 this time. That $600,000 is depressed, if you want to think of it that way, by the investments we're making in women's sports and affiliate marketing. We know how they're going to pay off in 2026 and beyond. We're continuing to make those investments in Q3. Q3 will have the same level, if not more, a little bit up in those areas, as we build Always Alpha. I'll start there. We're blessed.

We brought in two very senior talent managers for us, Malia Hodson and Tracy Hughes. That will give us entry points into women's basketball in a big way, as well as further Olympic athletes and soccer players. They joined us in July, and as we build up their roster of clients and as we ramp up, that's an investment you make now. We'll see the benefits of the starter revenue in Q4, but it really is a play into 2026. In success, it's going to be highly profitable for us, and we're building a beautiful company there. It's completely an investment year this year with that company. Affiliate marketing inside the digital department is similar. It's a little bit broader in the cost. You can build teams of talent for less cost per team, but you can have more teams, if that makes sense.

We'll build that through the end of this year. That investment will probably slow down tremendously after these next six months. We expect it to build a nice return for us. These results are happening while we're making those investments. The sports investment in particular is highly strategic. In addition to what a great opportunity in a moment in time, as you've heard me say before, to be an early pioneer in women's sports. I think it's beyond a moment. It's a movement, as they say, and feeling like we've got the right leader for it with Cosette Chaped and Alison Felix, of course. It's strategic for us because it plays across our other companies. Imagine the events we can do in the women's sports world, and with our ability to bring celebrities to those events.

We're in active conversations now on that and with multiple parties, and there's just so much excitement from both brands and others of getting in on that space. Imagine the consumer products we could launch together with female athletes. It's more than just, you know, that one company is like a little microcosm of the greater Dolphin investment thesis. We expect that company to be profitable. We're building towards that and continue to grow profits year over year. They give us a springboard into our ventures. The consumer products and the events, it opens up entirely new consumer products and entirely new events because we have access to the sports world to go with our already market-leading access to the entertainment world. We're very excited. This quarter exceeded anyone's expectations, and we hope to build on it. While we're making those investments, it's great.

Speaker 4

Thank you. Switching to Youngblood, remind us, can you give us a sense of how much you think it's going to cost to produce? Does that, just remind me, the accounting, does that show up as like capitalized costs on the cash flow statement, not on the income statement, and then sort of how that works, and then when you recognize that or when it's sold, or just if you could go through that. Thank you.

Speaker 2

Sure. The Dolphin studio, the original Dolphin before I took it public, what I did for 20 years, it's really a bridge company for us to help you think about it too, because while it's been a part of my life for 30 years, almost each of these films is like its own little mini venture. You're putting a consumer product out in the market. This is one of those types of deals that I know others are very fond of, because we didn't put up any capital. We produced the movie in partnership with our Canadian partner, Aircraft Pictures, longtime friend Anthony Leo, who was a board member of Dolphin for many years. Oscar-nominated, Emmy-nominated production company. We're blessed to have made the remake of Youngblood, of course.

Without getting into the total budget of the film, which we obviously don't disclose for other reasons, let's just say it was a solid independent film budget of north of $5 million and less than $15 million. We're going to go sell it. If we can sell it for what we sold Blue Angels for, everyone's going to be extremely happy. If we can sell it for $2 million to $3 million and Dolphin has financial results in the range of $0.5 million to $1 million from that, then I think, without putting up any capital, that's a pretty good win. $1 million is just under 10% of our entire market capitalization today, which is a crazy thought, right? If we sell for Blue Angels, you're tripling that number, quadrupling that number. We're going to go into Toronto with fingers crossed and hoping for the best result.

We're proud of the film, and we're going to have some exciting announcements about the film to make ahead of our next earnings call already with some of the partnerships we can create, we think. We're excited for it. That's why we think of films like that or Blue Angels as lottery tickets, as some people call them, or optionality, as other people call them, because if you're risking little to no capital and you have the upside of that, and we've got the industry's best film marketing company in 42West helping us with it, and as you saw in the press release, by the way, we're co-selling it with CAA. You can't do better than that. That's the same group. We put the band back together; it's the same group we sold Blue Angels with, right?

I mean, you've got the world's most powerful PR agency in film with the world's most powerful talent agency in film, with Dolphin selling the film at Toronto. That's how we sold Blue Angels. I'm hoping lightning strikes twice.

Speaker 4

The reason why you put no capital up is because you're offering the PR marketing?

Speaker 2

No, no. What we did there and what was very exciting about that film, and it was, you know, we're making a movie and not making a, you know, a balance sheet or something, but I'm proud of this structure. We, the aircraft, we optioned the film, optioned the rights to the film with us, and we were able to make it as Canadian content. As many people know that follow films, we were blessed to bring in Telefilm Canada as a partner. Canada will provide credits for shooting in Canada. Telefilm will make investments in films they feel have strong commercial potential. They came in as a partner against the Canadian rights.

We were able to get a bank loan against the remainder secured just by the copyright in the film, the remaining part of the budget because so much of the film was being covered by Canada that the rest of the world seemed like a safe bet. It's very, very rare that you can completely finance a film that way. These people believed in the commercial potential of Youngblood, and as a result, we didn't put up capital to make the film. Hopefully, we can get a good sale and everyone feels great about the end result.

Speaker 4

Interesting. Thank you. You talked about earlier that different legacy things that could go away and you could benefit from that. Could you just go through some of the numbers for them again? You mentioned some of it, but it's the only way you could.

Speaker 2

Sure.

Speaker 4

Thank you.

Speaker 2

Yeah, this falls squarely into the not as sexy realm, but in operating a business, it's this level of blocking and tackling that matters to investors in Dolphin at this stage, right? I think we're at the point where we're just going to keep talking about it, because it's not that far away. Dolphin today, when we acquired those companies, all these companies over the years, you inherit their leases, right? Even today, we have three offices in New York City. We don't need three offices in New York City, and we have more space than is being used because, of course, those leases were signed pre-COVID. We anticipate, when those leases are all up next year, the big one expires next December.

As we go into 2027, we're going to save real money, and without trying to commit to a hard number, but if it was $500,000 a year or more in New York, I think that's safe, or we certainly would hope so. Probably even more in Los Angeles. We inherited those leases. They're up in 2027. As you get out of the New York leases, you get out of multiple leases in Los Angeles, you're saving real cash. Obviously, too, the biggest amount of cash will be saved because we took out the term loans with Bank United to help us make the acquisitions. I think when we started the process, it was with Bank Prop. It was a six-year, or it would have been a six-year process. Next month marks the halfway point, three years.

When we hit the halfway point, we said we'll start talking about it so people in the market understand that on September 29, 2028, not that I've got the date stamped on my forehead, we're out of the last of the commercial bank loans, right? We pay right now, and happily, they got us the companies we wanted to form this group. We pay about $2.2 million a year of principal and interest. You combine that with, let's say, $1 million plus of lease savings we hope to make, between New York and Los Angeles. We go three years from now on a roll forward basis. We're saving over $3 million, $3.25 million of cash if our companies don't grow at all, if we just stay flat. While $3.25 million is meaningful, I hope, to anybody, I'll remind everyone of our market capitalization. Today it is $13 million.

That's 25% of our market cap. It's freeing up in cash with no growth, you know, three years from now, and along the way, too, some of it's being freed up along the way. It is just one of the reasons why we think we're severely undervalued today and why I've been purchasing stock under the 10B5-1 plan and even outside the 10B5 when I'm in an open window, to show, try and signal to the market just one of the reasons why we think we're undervalued. Results like today certainly add to that narrative, I hope.

Speaker 4

Yeah, no, this is great. Can you just remind us if there's any typical seasonality in your business?

Speaker 2

Sure, yeah. Some of the companies, not each, may have some seasonality. Typically, Q1 is our hardest quarter. Q4 is our strongest quarter. That's partly because our two biggest subsidiaries by revenue would be 42West, and of course, going through the fall, they typically get a lot of independent films and business as we gear up into award season. Obviously, the digital department, our influencer marketing company, is weighted towards Labor Day through Thanksgiving for holiday season. They do a disproportionate amount of revenue in those months versus any other time of the year. That's typical. Their business is typically slowest in July and August. It tends to balance a little bit. Q3 could be down for them. Otherwise, our summers are strong for The Door and Shore Fire Media and, you know, Impact PR. 42West still can often have strong summers going into their main selling season of fall.

As a general rule, Q1's our worst quarter, Q4's our strongest. As a general rule, the second half of the year is slightly better than the first half. Q3 and Q2 tend to mirror each other somewhat, but that's a little bit of our seasonality. That's in the core business. Now, if you have a movie or a venture or something, obviously that could, like we had in Q1 last year, make Q1 shoot through the roof when we had Blue Angels. If you don't have that, then that's the best I can answer that question, I think.

Speaker 4

Okay. My last question would be just related to your IMAX partnership. Do you think it's possible that there might be something in 2026 that could be announced related to that?

Speaker 2

Alan, I would like nothing more. I don't think I've wanted, I don't think I even wanted a pony at age six more than I want that. We're actively negotiating to have a follow-up to Blue Angels. IMAX very much wants us to have a follow-up to Blue Angels. I'll go to church on Sunday and pray for that follow-up to Blue Angels. We've got that as a focus. In the meantime, Youngblood represents a second front, if you will, of productions for us. Blue Angels put us back in the documentary business and restarted that. I wish I had another documentary for 2025. We expect to have one in 2026. Youngblood here this year was our reentry into scripted films. Obviously, that's what we did more of when it was a private company and production company. We were known for our scripted.

Youngblood's important to us because, and the fact that it got into a film festival is incredible as a sports movie, a real tribute to, we think, hey, some people out there think this is a pretty good movie, right? It announces that Dolphin Entertainment is in that business again as well. It gives us a couple different ways to have a film, either documentary or scripted. We're going to ride the Youngblood wave this fall, and hopefully it leads us to have a follow-up project we can announce as soon as possible.

Speaker 4

That's great. Okay, thank you so much. Congratulations.

Speaker 2

No, thank you, Alan. It feels very, very good this quarter.

Speaker 3

Thank you, ladies and gentlemen. As we have no further questions on the lines at this time, I would like to hand it back to management for any closing remarks.

Speaker 2

Oh, gosh, it always comes so sudden. Thank you, everybody, for listening. Obviously, I think the highlight for us, you know, the numbers speak for themselves. I don't, please don't anticipate 23% year over year every quarter, but we are growing. Again, I point everyone to how we measure ourselves. You know, we're blessed to have a quarter that has positive adjusted operating income. Again, it's not Q4. If we do it again in Q3, and if we can do it again in Q4, you know, obviously, we knew we were shooting this year to have it for a full calendar year. We were able to do so last year because of Blue Angels. We'll do it this year without a Blue Angels. You know, our company's growing.

The better mousetrap I spoke about in the prepared remarks, you know, we're shooting to, we're working every day to have growing revenues, get to the point of creating free cash flow, meaningful free cash flow, and then, you know, have our upside, have the ventures, have the films, have the things that could be, in success could result in numbers that are larger than our entire market cap. That's the investment thesis for Dolphin Entertainment. We're excited about where we are, and the longtime followers have seen that progress step by step and brick by brick over the years. Kudos to the supergroup. I mean, it's the collective group that got to this quarter, and it'll be the collective group that creates the results we'll announce in three months for Q3. Very proud of the team. Thank you, everybody, and look forward to talking again in November.

Speaker 3

Thank you, ladies and gentlemen. This does conclude today's conference, and you may disconnect your lines at this time. We thank you for your participation.