Codere Online (CDRO) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 12, 2026

CALL PARTICIPANTS

• Director of Investor Relations and Communications - Guillermo Lancha
• Chief Executive Officer - Aviv Sher
• Chief Financial Officer - Marcus Arildsson

TAKEAWAYS

• Total Revenue -- EUR 62.6 million, representing 31% growth driven by performance in the Mexico and Spain segments.
• Adjusted EBITDA -- EUR 4.2 million, an increase of 45% versus EUR 2.9 million in the prior-year period.
• Gaming Win -- EUR 67.1 million, up 30% year over year following the adoption of this key operating metric to replace net gaming revenue.
• Average Monthly Active Customers -- 167,000 players, growing 5% year over year despite a 3% decline in Mexico actives as the company prioritized customer quality.
• Average Monthly Spend Per Active -- EUR 134, an increase of 24% reflecting higher player values across the customer base.
• Mexico Revenue -- EUR 32.9 million, up 37% year over year and now representing the company's largest revenue-generating market.
• Mexico Gaming Win -- EUR 37.2 million, growing 39% or 26% on a constant-currency basis due to currency tailwinds earlier in the year.
• Spain Revenue -- EUR 24.8 million, up 13% year over year supported by a 5% increase in active customers.
• First-Time Depositors -- 91,000, representing a 7% increase versus last year.
• Cost Per Acquisition -- EUR 209 for the quarter, remaining stable on a last 12-month basis at EUR 196.
• Marketing Expenses -- EUR 25.2 million, rising 37% primarily due to seasonal impacts and the timing of expenses in Mexico.
• Gaming Taxes -- EUR 13.6 million, an increase of 55% driven by a tax increase implemented in Mexico in Jan. 2026.
• Personnel Costs -- EUR 5.2 million, up 13% but growing well below the rate of revenue expansion.
• Cash Position -- EUR 65.6 million in total cash as of Sept. 30, 2026, with EUR 61.0 million classified as available cash.
• Debt -- Zero financial debt reported on the balance sheet.
• Net Income -- EUR 11.1 million for the first nine months of 2026, compared to a net loss of EUR 1.7 million for the same period in 2025.
• Full-Year Gaming Win Guidance -- EUR 255 million to EUR 265 million, which management expects to reach in the upper part of the range.
• Full-Year Adjusted EBITDA Guidance -- EUR 20 million to EUR 25 million, reaffirmed following strong year-to-date performance.
• Mexico Segment Adjusted EBITDA -- EUR 1.7 million, slightly below the EUR 2.0 million reported in the prior-year period due to higher taxes and marketing spend.
• Other Markets Gaming Win -- EUR 5.2 million, representing 86% growth reflecting a more favorable tax environment in Colombia versus last year.

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RISKS

• Arildsson warned that new regulatory requirements in Spain regarding identification and deposit rules, which began at the end of October, are likely to cause some short-term friction to activity in the coming months.
• Arildsson stated, "In fact, the peso has already given back most of this year's gains against the euro since the end of the quarter," indicating that currency tailwinds seen earlier in 2026 have reversed.
• Sher noted that if Colombia reinstates a 19% VAT on deposits during 2027, the company will likely see a decrease in revenues and will scale down investment in that market.

SUMMARY

Codere Online Luxembourg, S.A. (NASDAQ:CDRO) reported third-quarter results marked by a 31% increase in revenue and a 45% rise in adjusted EBITDA. Management attributed the growth to improved player quality and spending, particularly in the Mexico market, which saw a 39% increase in gaming win. The company completed its transition to reporting gaming win as its primary operating metric following an SEC review. While the company maintained its full-year 2026 guidance, management projected single-digit growth for the fourth quarter due to the absence of World Cup events, a stronger prior-year comparison, and new regulatory constraints in Spain. The company remains debt-free with a cash balance of EUR 65.6 million.

• The company secured a multiyear agreement as the official betting partner of the NFL in Mexico, covering the 2026 Mexico City game and the Super Bowl.
• CFO Arildsson stated, "In Q4, we won't have either of those [World Cup or favorable FX] and we will start to see some transition effects from the new deposit and withdrawal requirements in Spain."
• Management is evaluating an expansion into prediction markets, specifically targeting the U.S. Spanish-speaking population, though no capital commitments have been made.
• CEO Sher noted that while player acquisition slowed seasonally in August and September, the return of major sports leagues stabilized acquisition rates by the end of the quarter.
• The company expects marketing spend to reach approximately EUR 100 million for the full year 2026, influenced by the strength of the Mexican peso earlier in the year.
• Management confirmed that 6.4 million public warrants are scheduled to expire at the end of Nov. 2026.
• CEO Sher indicated that established operators are better positioned to manage new regulatory deposit limits in Spain because they have the technology and VIP client relationships to mitigate friction.

INDUSTRY GLOSSARY

• Gaming Win: The amount retained from customer wagering (stakes minus prizes and promotional credits) before taxes and other levies.
• First-Time Deposits (FTD): New players who make their first financial deposit on the platform during a specific period.
• Cost Per Acquisition (CPA): Total direct marketing spend divided by the number of first-time depositors acquired.
• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for non-recurring items and non-cash expenses like the long-term incentive plan.
• IAS 29: An accounting standard for financial reporting in hyperinflationary economies, currently applied to the company's Argentina operations.
• LTM: Last 12 months.

Full Conference Call Transcript

Operator: Hello, everyone. Thank you for joining us, and welcome to Codere Online Third Quarter 2026 Results. [Operator Instructions] I will now hand the conference over to Guillermo Lancha, Director of Investor Relations and Communications. Please go ahead.

Guillermo Lancha: Thanks, operator, and welcome, everyone, to Codere Online'searnings callfor the third quarter of 2026. Today, you will hear from our CEO, Aviv Sher; and our CFO, Marcus Arildsson. Please note that the figures in today's presentation are preliminary and unaudited. They include certain non-IFRS financial measures, which should be considered in addition to our IFRS results as well as key operating metrics, including gaming win. Definitions and reconciliations are available in the disclaimers and the appendix. During this call, we will make forward-looking statements, which are subject to risks and uncertainties. While these statements reflect our current expectations, we undertake no obligation to update them after this call.

A replay of this call will be available at codereonline.com, where investors can also sign up for e-mail alerts. With that, I will pass the call on to Aviv.

Aviv Sher: Thanks, Guillermo, and thank you all for joining us today. The third quarter was another very strong quarter for Codere Online. Revenue grew 31% to EUR 62.6 million. Adjusted EBITDA grew 45% to EUR 4.2 million and gaming win grew 30% to EUR 67.1 million. You'll notice that we are now reporting gaming win in place of net gaming revenue. It is a key operating metric as opposed to a measure of revenue. Our historically presented figures for net gaming revenue are unchanged as its underlying calculation. Marcus will explain the background in a moment. Looking at the highlights on Page 7, casino accounted for 67% of gaming win in the quarter and sports betting for 33%.

Average monthly active customers reached approximately 167,000, up 50% versus Q3 last year and average monthly spend per active grew 24% to EUR 134. Most of our growth this quarter came from higher player value, which reflects the work we have been done on improving the quality of our customer base. On acquisition, we had 91,000 first-time depositors, a 7% more than a year ago, the cost per acquisition of EUR 209, which is in line with recent trends. During the quarter, we also became the official betting partner of the NFL in Mexico under a multiyear agreement, which includes the 2026 NFL Mexico City Game later this month and the Super Bowl in February.

Mexico has one of the NFL most passionate fan base. And this partnership strengthens our brand in our largest market and gives us a great platform to engage with our customers. Finally, we are reiterating our full year 2026 outlook of EUR 255 million to EUR 265 million of gaming win and EUR 20 million to EUR 25 million of adjusted EBITDA. Later, we will give some more color on the rest of the year. With that, I'll hand the call over to Marcus.

Marcus Arildsson: Thanks, Aviv, and hello, everyone. Before going into the numbers, a few words on gaming win. In connection with the SEC staff's review of our 2025 annual report on Form 20-F, which has now been completed, we're now presenting a key operating metric called gaming win as opposed to net gaming revenue. The related correspondence with the SEC will be made public in due course. For investors, nothing should change in terms of substance. Gaming win previously reported as net gaming revenue is what our gaming platforms record, amounts paid by customers on settled wagers, less prices and promotional credits before taxes and other costs.

The historical figures are exactly the same and remains the key performance metric we use to run the business and compare our markets because gaming taxes are structured very differently from country to country. What changes in the presentation? IFRS revenue is presented separately first and then gaming win is shown separately as a key operating metric. Now turning to Page 9. Revenue for the quarter was EUR 62.6 million, up 31% year-over-year. Adjusted EBITDA reached EUR 4.2 million, up 45% from EUR 2.9 million in Q3 2025 and EUR 16.1 million for the first 9 months, more than double the prior year. Gaming win in Q3 was EUR 67.1 million, up 30%.

In Spain, revenue was EUR 24.8 million, up 13% and adjusted EBITDA was EUR 7.2 million, up 24%. Gaming win was EUR 24.8 million as well. In Mexico, revenue was EUR 32.9 million, up 37% and gaming win EUR 37.2 million, up 39%, whilst adjusted EBITDA was EUR 1.7 million, slightly below last year, reflecting higher gaming taxes and higher marketing investment due to timing of certain provisions and expenses. Our other markets, Colombia, Panama and the City of Buenos Aires generated EUR 5.2 million of gaming win in Q3, up 86%, mostly due to the more benign tax environment in Colombia, where customers faced a 19% tax on deposits last year.

I would also highlight a good performance in Panama. On Page 10, you'll see our operating expenses by category. Total operating expenses grew 29% in the quarter, just slightly below revenue. Marketing grew 37% in the quarter due to the seasonal impacts I just mentioned, but remained well below revenue growth in both the year-to-date and LTM period. Gaming taxes grew 55%, driven mainly by the tax increase in Mexico in place since January. And at the same time, platform and content costs grew approximately 10% and personnel 13%, well below revenue growth as we continue to benefit from certain scale. On Page 11, -- let's see if Page 11 comes up. Okay.

On Page 11, Gaming win grew 30% year-over-year, driven by a 5% increase in active customers and a 24% increase in spend per active. I point out that currency helped this quarter as it has during most of 2026 so far. At constant currency, which mostly strips out the strength of the Mexican peso, gaming win grew 23%. First-time depositors grew 7% to EUR 91,000 and our cost per acquisition on a last 12-month basis remained stable at around EUR 196. Turning to the performance metrics for Spain on Page #12. Gaming win grew 13% with active customers up 5% and spend per active up 7%. Looking ahead, Spain is introducing new requirements that apply to all licensed operators.

No identification and deposit rules, including nominative payment methods from the end of October already applied to new customers and will extend to existing customers in April 2027. And joint deposit limits across operators will take effect in March 2027. As customers and operators adapt, we're likely to see some short-term friction to activity in the coming months. In our experience, however, changes like these tend to favor established operators with the scale and technology to implement them well as well -- and we are as well prepared and working hard to meet these new requirements. Now moving to performance metrics for Mexico on Page 13. Gaming win grew 39% or 26% at constant currency.

Active customers were 3% lower year-over-year as we continue to focus on customer quality. So growth was driven by spend per active, which rose 43%. Mexico remains our main growth engine, but the stronger peso was a meaningful tailwind this year and we don't expect the same support going forward. In fact, the peso has already given back most of this year's gains against the euro since the end of the quarter. Turning now to the balance sheet on Page 14. We closed the quarter with approximately EUR 66 million of total cash, of which EUR 61 million was available, and we have no financial debt.

Our structural negative working capital position stood at approximately EUR 25 million, in line with recent quarters. Then on Page 15, we generated EUR 3 million of cash flow in the quarter. And cumulatively, we generated EUR 16.4 million during the first 9 months of the year, in line with adjusted EBITDA at EUR 16.1 million. Net income for the first 9 months was EUR 11.1 million compared to a net loss of EUR 1.7 million last year and included a EUR 2.3 million noncash gain from the lower fair value of our warrant liability. As a reminder, our 6.4 million public warrants expire at the end of this month, November. Turning to our outlook on Page 17.

Following a strong third quarter, we remain confident about meeting the upper part of our full year 2026 outlook of EUR 255 million to EUR 265 million of gaming win as well as the EUR 20 million to EUR 25 million of adjusted EBITDA for the full year. I'll also give you some context on the fourth quarter. Q3 was very strong, helped by particularly an exceptional July with the World Cup and by favorable exchange rates. In Q4, we won't have either of those and we will start to see some transition effects from the new deposit and withdrawal requirements in Spain.

And we will be comparing ourselves against a very strong fourth quarter last year when gaming win was EUR 60.7 million. So while we expect continued growth, we expect Q4 growth to be more in the single-digit region. And with regards to 2027, we plan on providing our outlook together with our full year results in February as we usually do. And as we have done many times before, we will adapt to regulatory changes, including in Colombia, where the 19% VAT on deposits that applied in 2025 could be reinstated during 2027, potentially for the full year. In any event, the fundamentals of the business remain strong.

We have a growing customer base, healthy player values and increasing profitability and a strong debt-free balance sheet. That's all from my end. I'll hand it back now to Aviv for closing remarks.

Aviv Sher: Thank you, Marcus. Before we move to the Q&A, I'd like to thank all Codere Online employees for their hard work and dedication. This quarter results are a direct reflection of their effort across all our markets. I'd like also to thank our shareholders and analysts for their continued support. With that, operator, please open the line for questions.

Operator: [Operator Instructions] Your first question is from the line of Jeff Stantial from Stifel.

Jeffrey Stantial: Maybe I'll start on the quarter. So FTDs were up 7% year-on-year despite a very difficult comp. Aviv or Marcus, can you just maybe add a little bit more color in terms of what you're seeing right now for user acquisition trends post World Cup across your 2 core markets? And then I recognize the commentary at the end that you're still in the planning stage for 2027. But if this sort of underlying user acquisition environment sort of holds into next year, high level, how are you thinking about the right balance between marketing investment and then try to drive a little bit more profitability in the model?

Aviv Sher: Yes. So thanks for the question. Basically, we continue to see -- let's treat the World Cup as an anomaly outside of our regular plans. But if you look on the trend since we started, we are consistently buying new players on the same CPA, let's call it, quite flat. And we see good returns, excluding the World Cup that was extra good returns and of course, a little bit of favorable FX that help us generate more revenues. Looking into that, we see that we continue to buy FTDs on the same rate and the same speed. And we are facing now, let's call it, momentarily or a little bit problems with a few new rules in Spain.

So we are seeing a slowdown due to new regulation, not coming from the gaming regulation, coming from AML. We think that the technology required for that will catch up in the next few months, and we will be able to return to the same rate and speed of acquiring new customers. Right now, it slows us down a little bit. But overall, our plans for next year doesn't change. So we will continue to buy at the same rate and the same speed. Of course, after -- directly after the World Cup during August and even September, we saw some slowdown, but this is seasonality. It was expected when the leagues return, we saw players coming back.

And then there were international break that also slowed us down. So it's a little bit bumpy start, but not outside of our plans and forecast.

Jeffrey Stantial: That's great. And then maybe sticking on one of the points you just made there, the regulatory changes that are forthcoming in Spain. I guess focusing on the deposit limits, can you just -- Marcus or Aviv, whoever wants to take this, can you -- is there anything you could provide us to help frame how material that could be, whether that's sort of like percentage of your user base that typically or historically has exceeded these deposit limits or percentage of NGR? Is there anything sort of just frame overall how material of a constraint those specific restrictions could be?

Aviv Sher: Yes. So to our understanding, the deposit limits is not exactly like what you are seeing in other markets. It's a default -- let's call it, a default deposit limit that each player is getting. He can change them and even remove them if he's doing the right process. We are expecting some slowdown. But as long as all the competitors and all the market will have the same limits, our best guess is that either player will move between operators or it will remove or change the default deposit limits. We are not forecasting any huge change, maybe just some slowdown until the players understand how to work with it and use it to their benefit.

So there are limits. We are not worried by a lot. We are not changing the prediction based on that. We think we will be able to mitigate or help the customers achieve the limits that they want to use.

Marcus Arildsson: Just to add to that, Aviv, of course, for our best clients, we, of course, have direct communication with them. So it's more of a client relationship that we have with them. So more VIP type of customers. As we progress in the next few months, for sure, there is some education that we will do directly with them so that they can continue to participate and be active as they have been in the past by the effects of what Aviv was mentioning in terms of proactively changing your own limits, et cetera.

Jeffrey Stantial: Right. That's helpful. And then switching gears here, Aviv, earlier this month, you were mentioning in a media interview that potentially there could be strategic interest in expanding into prediction markets, I think, particularly or specifically to go after some of that Southern U.S. Spanish-speaking potential player base that you've talked about before in the past as a long-term opportunity. Can you just add a little bit of color here on sort of how you think about expansion into predictions or potential expansion in the context of your broader capital allocation framework?

And I guess, more specifically, if you do go down this route, how do you think about sort of optimal licensing tech and sort of the scale of capital that you'd be willing to commit to this opportunity?

Aviv Sher: Yes. So important to say that right now, we have nothing concrete. It's something that we are closely looking into it. We think it's an interesting opportunity for us. Of course, monitoring closely, let's say, the situation in the United States with elections and regulatory framework that it fits our needs. I think it's a good product, an interesting product. From a technology point of view, I don't -- I think that we prove that we know to work on a white label solution similar to what we are doing in Mexico. So I think we know how to operate a new product in new markets, but we are still examining it.

And I think it's a little bit too early to give more into how much capital and so on we are going to invest into that. But we do think it's an interesting opportunity and we keep on monitoring it very closely.

Operator: Your next question is from the line of Ryan Sigdahl from Craig-Hallum Capital Group.

Will Yager: This is Will on for Ryan. First, I wanted to touch on the guidance. You reiterated your gaming win guide given the strength in the quarter. But curious if you could maybe dig in more on what you've seen in Q4 and whether that impact is more in Mexico or Spain?

Marcus Arildsson: A few comments on that. So, so far, we see that this quarter, we're a little bit more -- little bit more conservative this quarter, both in terms of FX, in terms of margin, a little bit on sports. So what we're seeing, as we mentioned, at this stage, we're looking at sort of coming in somewhere close to the high end of the top end of the range. That's what we're seeing at this time. Nothing specific to mention just in Spain versus Mexico, but it's just a little bit more of a slower pace of growth during this last quarter in terms of NGR -- sorry, gaming win.

I don't know if there's any other issue you want to mention, Aviv?

Aviv Sher: No, I think -- yes, I think consistently, Ryan, we were conservative with our approach. I think here facing the last quarter, looking at the problems we are facing in Spain, some headwinds from the FX, we continue to be conservative. As much as I would like to give amazing news, I'm still staying in the range that we said at the middle of the year. And I think we will continue to be conservative in our approach to the numbers and try to beat them or to get closer to the higher end. And this is the situation where we are at this moment.

Will Yager: That's great. And then maybe one more for me. On Colombia, it's not been confirmed yet, but obviously, the deposit tax might come back. You guys scaled back investment there. Curious in the event that it does get added, would you guys consider exiting that market? Or what does the future look like there?

Aviv Sher: Yes. Yes, yes, very unfortunate, very unfortunate because we just scaled up, as you said, and you can see it in the numbers. We bounced back quite nicely. We will go back to the previous approach that we had, which is cash flow 0, trying to maintain the license and trying to work with what we have, hoping for better news and keep it as an asset. If it will materialize, then we are trying very hard to discuss with the regulators and other parties to try and mitigate it and move it back to where it is right now.

But if it will happen as they say, unfortunately, I think we will need to see again some decrease in the revenues over there and our investment going down, we will not exit the market. We will stay there and see how it moves forward.

Operator: Your next question comes from the line of George Proost from NOBLE Capital Markets.

George Proost: This is George Proost filling in for Mike Kupinski. Congratulations on the quarter. The first question I want to touch on is with the game in Mexico City this month and Super Bowl in February, how much of your NFL spend falls in Q4 versus in Q1 of '27? And is that all in the current guidance?

Aviv Sher: Yes. I think it's all in current guidance. I have to be honest that in order for really the sponsorship to kick in, so we'll see an effect, I think it will take us more than this season, right? It's very hard to activate it super well, although we are doing super well, you can follow us on the social networks and see our work with that. It takes time. Sponsorship takes time. It is within our current guidance, but it's not something -- I don't think we will see a huge effect immediately. With sponsorship, it takes time, maybe this season, the next season to be able to associate Codere with a huge brand like NFL, it takes time.

So it's not that we put more money. We have more visibility and more association, but I don't think we have any effect per se to see in this season. It will take a couple of more seasons to see it.

George Proost: And then Marcus, you called out Panama. I was wondering if you could provide a little bit more color around like what's working there? And is it the model for other smaller markets?

Marcus Arildsson: Yes. Well, Panama, generally speaking, for the last many quarters now have been performing very well with strong growth, et cetera. We don't break it out on an individual basis, but the performance in Panama has been quite -- has been very positive for the last couple of quarters. So we're very happy. I mean it's a very stable environment so far. As you know, I haven't been around for too long, but from what I've seen, the environment is quite stable. It's an attractive market as a relatively positive picture in terms of tax. We added, as you may recall, a little bit more in terms of payment methods, et cetera, for the customers.

And that really gave us a good boost when that happened and subsequently to that. And so the business continues to perform quite well. I don't know, Aviv, if you want to add anything to it on the...

Aviv Sher: No, I think Panama is a small, very nice market with unfortunately, a cap to how much market share we can get there. We like this market. It's good regulation, good regulation framework. And we will continue to grow there as much as we can, but the ability to capitalize on such a small place is limited, unfortunately. I wish we had more Panamas.

Operator: Your next question is from the line of Arthur Roulac from Three Court, LP.

Arthur Roulac: First question, Marcus, can you help us model what we should think about for marketing for the full year? I think we're EUR 76 million roughly through 3 quarters. I think last year was EUR 86 million for the whole year. What do you expect for the whole year and what ballpark that's going along with the marketing -- or excuse me, with the guidance you provided?

Marcus Arildsson: Yes. So this year, we'll probably end up close to EUR 100 million for the full year, taking into account that depending a little bit how the FX turns out. But so far, we probably have between EUR 3 million, EUR 4 million approximately in effect from the strength of the peso during this year, meaning so the local currency marketing expense we have in Mexico when translated back to euros are more euros effectively. So that has an effect of a couple of million. And in total, we're a bit above where we were last year. Last year, as you mentioned, we were at EUR 86 million, including these approximately EUR 3 million, EUR 4 million from FX.

We'll probably be in the high-90s, close to EUR 100 million, somewhere in that range for this year.

Arthur Roulac: And how do we think about next year? Is that going to return back to the mid-80s baseline or something lower than that, I guess, is Europe at whatever, 37% at EUR 100 million roughly on the guide as a percentage. I mean, still fairly high. Is the thought that you would then migrate back down to like in the 80s next year or keep it at EUR 100 million or go higher?

Marcus Arildsson: Well, we haven't -- to be honest, we haven't finished up all the work around the budget for next year. We continue to see good growth opportunities at this stage, we would anticipate that we will probably continue in the region of having a similar level of marketing in terms of euros and that the percentage as a percentage of gaming win will probably come down a little bit for next year. But I wouldn't expect there will be massive differences in the absolute number.

Aviv Sher: Yes. By the way, I think that it's good that we are able to maintain this level of marketing, although it's an expense of the EBITDA because our CPA is still within the range that we see good returns and we want to continue and invest and to be able to maintain our market share and to continue the growth in revenues as we did so far with double-digit growth year-over-year. So I'm fighting for marketing money, right? I'm fighting for that.

Arthur Roulac: And can you give us an update on Uruguay in terms of an expansion market and when you think that may or may not come online?

Aviv Sher: Well, Uruguay, we are in discussions since the group is very active there and been active for many years. They have good relationship. They are in talks. I think for the past 3 years, we hear that it's going to come online. But I think this year, maybe it will happen. I think it's getting closer. Of course, once it is happening, it's a very interesting market for us. We have a very strong position in the retail. To be honest, it's the same answer I could give you a year ago. We think it will happen. We hear good things. We hear a lot of positive feedback from the government. So we are still with high hopes.

And if it will happen, for sure, we will be there.

Moshe Edree: I'd just like to add -- it's Moshe here. I'd like to add something that we've been asked in the past a lot of questions about entering to new markets and we were very, very careful about how we approach it. And I think that Brazil is a good example that in our scale, while we see it can grow and to show some substantial growth in the existing market, we prefer to see that before we enter to a new market, leave aside Uruguay, but let's talk about Peru and other markets in Latin America that before we do so, we'd like to feel very, very comfortable about the regulation and about the stability of the country.

So we are very cautious about it. And I think that Brazil is a good example.

Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call back over to Guillermo for closing remarks.

Guillermo Lancha: Thank you. If anyone has any follow-ups, feel free to reach out to Marcus or myself, and we will be speaking again at the end of February with our Q4 earnings. Thank you, everyone, for joining.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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