Hello, and welcome, everyone, to the Advance Auto Parts Third Quarter 2025 Earnings Conference Call. I would now like to turn it over to Lavesh Hemnani, Vice President, Investor Relations.

Good morning, and thank you for participating in today's call. I'm joined by Shane O’'Kelly, President and Chief Executive Officer; and Ryan Grimsland, Executive Vice President and Chief Financial Officer. During today's call, we will be referencing slides, which have been posted to our Investor Relations website. Before we begin, please be advised that management's remarks today will contain forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements regarding initiatives, plans, projections, guidance and expectations for the future. Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information can be found under forward-looking statements in our earnings release and risk factors in our most recent Form 10-K and subsequent filings made with the SEC. Shane will begin today's call with an update on the business and our strategic priorities. Later, Ryan will discuss results for the third quarter and provide an update on full year guidance. Following management's prepared remarks, we will open the line for questions. Now let me turn the call over to our CEO, Shane O'Kelly. Shane?

Thank you, Lavesh, and good morning, everyone. I want to take a moment to acknowledge and thank the team for their hard work and dedication. Their unwavering focus on delivering exceptional customer service and advancing our strategic priorities helped us achieve our strongest quarter in over 2 years. For the third quarter, we reported comparable sales growth of 3% with both Pro and DIY channels delivering growth. Adjusted operating margin expanded by 370 basis points year-over-year to 4.4%, demonstrating progress on the execution of our strategic plan. During the quarter, we also strengthened our balance sheet by proactively reorganizing our debt capital structure. We raised nearly $2 billion in cash, which provides enhanced liquidity for the business as well as a path to return to an investment-grade credit rating in the future. As anticipated, tariff-related price increases have accelerated in the auto aftermarket. And in our view, the industry has been responding rationally by adjusting prices in response to rising product costs. We saw some variability in performance as prices moved higher during the quarter, although on a 2-year basis, both transaction and unit trends were relatively stable. As we look to the balance of the year, we believe there is potential for temporary volatility in sales trends as consumers manage household budgets in an inflationary backdrop. Our teams are prepared to navigate in this dynamic environment and provide consistent high-quality service to our customers. The long-term fundamental drivers of the industry remain healthy. More than 90% of our sales are driven by maintenance and break/fix repair, which gives us confidence for the long term. Based on our performance to date and expectations for the remainder of Q4, we have updated our full year guidance. We have reaffirmed the midpoint of our prior comparable sales growth and adjusted operating margin…

Thank you, Shane, and good morning, everyone. I want to begin by thanking our frontline associates for their commitment to serving our customers and delivering strong Q3 results. For the third quarter, net sales from continuing operations were $2 billion, which declined 5% compared to last year. This decline was mainly attributable to the store optimization activity that was completed during Q1. Comparable sales grew 3% during the quarter with positive weekly performance throughout the quarter. Sales trends were strongest during the first 4 weeks, followed by a moderation during the last 8 weeks. From a category perspective, brakes, undercar components and engine management led performance. We have made significant progress in improving our coverage and availability of hard parts, which is helping us deliver better service to customers. For the quarter, ticket was positive and largely driven by tariff-related price adjustments that expanded throughout the quarter. Our industry has been reacting rationally to rising product costs, and we have been adjusting prices in response to market dynamics. In aggregate, same SKU inflation was about 3% in Q3 compared to about 2% last quarter. Transactions were down but improved sequentially as we cycled through discrete events from last year. On a 2-year basis, transactions and unit productivity were relatively stable to last quarter, reflecting the team's continued focus on delivering consistent high-quality service. Now let's look at channel performance. Pro comps grew by just over 4% as we cycled through the softness from last year. On a 2-year basis, the Pro channel recorded its fifth consecutive quarter of positive performance and relatively consistent 2-year trends in each month. Our DIY channel delivered positive low single-digit comps in the quarter and improved sequentially on a 2-year basis. Moving to margins. Adjusted gross profit from continuing operations was $913 million or 44.8%…

Thank you, Ryan. We believe we have the right strategy centered on core retail fundamentals, along with a talented team driving execution of our strategic initiatives. We appreciate your interest in Advance Auto Parts and look forward to reconnecting in the new year. Thank you. Operator, we can now open the line for questions.

[Operator Instructions] Our first question today comes from Simeon Gutman from Morgan Stanley.

I want to ask first about elasticity of demand, the health of the consumer and then maybe even throwing something about weather. Can you put all together because it sounds like your quarter started off strong and then deceled and now it sounds a little soft. And it makes sense given price has come up, not just in this category, but across the board. But how much also is weather a factor? And then can you talk about the things you're doing, the internal initiatives, how you can see and measure progress in those outside of these variables?

Simeon, thanks for the question. I'll start, and let me start with the consumer because I think it's important. In general, we're keeping an eye on the overall health of the low end -- low to mid-end consumer where -- that's where our customer base is. Broadly, you see some data points that suggest that they may be depressing their spend in aggregate across general merchandise and think about that as the subprime auto market, the general consumer sentiment, where discretionary spend is going, credit cards. And so that impacts how they spend. The good news about our industry is that the car is the linchpin of how they get to work and their social activities and much of what we sell is break fix and nondiscretionary. So I think that's important. But I do think consumers are adjusting their budgets in response to the inflationary environment. And I think the cost of some routine jobs has moved up a bit, which may make them reconsider some of their intervals in which they do maintenance with us. But I would describe it as a noisy situation for them. But long term, feel good about what's going on in our industry and what we're doing. So to the second part of your question, then turn it over to Ryan for sort of the elasticity specifically. We've got a lot going on as it relates to what we're doing in our stores to create an environment that's positive for DIY. And what we found is we were over tasking our stores with a lot of tasks that took them away from being attentive to customers as they come in. And I got a great note actually last night from a customer said, "Hey, I came in your store, I was greeted right away." Our team member took the time to diagnose what their situation was, spend an additional 20 minutes going through what the options and then ultimately selling a part. And so we need to be there for our customers. And so freeing up their time so that each visit results in a more likely conversion to a transaction, that's what we're doing. Ryan, on the specifics?

Yes. On the elasticity piece, it's still early for us to gauge exactly what the impact is on the consumer. But more broadly, we see the consumer impacted across retail. And more recently, we've heard from other retailers, how much of that is the government shutdown and that impact? How much of that is price inflation that you see in the industry. We're still trying to understand that. I think the industry is still trying to understand that, but we're watching it closely. The one thing you did ask was how do we measure our initiatives in the midst of this stuff going on around us. And the way we do that is we take a very measured approach to that by looking at test versus control. So when we go out and roll out whether that's the assortment work or looking at our market hubs, we look at how these perform versus like stores that performed similarly in the past. And we're able to gauge the success of those and the traction of that and get learnings from that before we roll out. So we do test and control here around our initiatives before we start rolling things out more broadly, and that helps us better understand whether it's working, what is working, what's not working as we roll those things out. So that helps a little bit because the pricing piece is more macro across our store fleet, and we're able to isolate the discrete initiatives that we're putting in place.

And my quick follow-up is on inventory. Shane, can you talk about where you are versus where you want to be? It sounds like you pivoted a little bit in '25. You bought more than I think you were expecting. You can clarify if that's the case. And why wouldn't that make sense to do in '26? I know you talked about driving free cash flow, but why wouldn't it make sense to invest more in inventory to drive the business?

Well, just as a reminder, we're doing our assortment rollout. So there's a lot of activities going on here. And we're pleased that we've got all 50 DMAs that we originally planned to do done. And if you think about that, there are hundreds of SKUs coming in and out of stores. And so we want to make sure that we've got the right amount of product going into those stores. Keep in mind also that in the tariff environment, we bought ahead. We wanted to make sure that we had the inventory we needed perfectly at the price pre-moves so that we could be in good position. So we're focusing on having the part for our customer, which means investing to get it in our system, both at the DC and the store level.

Yes. And I'll just add, we're really focused on the breadth. I think the depth is one that we've been really hitting on and getting the right depth. But now it's the number of SKUs and making sure that we've got the right assortment at the different levels within the supply chain echelon. So I think that inventory can come down and then some inventory investment will be needed, but that's more of a mix as we get the right depth and breadth for the consumer. So not a big investment needed going into next year. We've already made some pretty big investments. Now it's managing through that. We'll have some sell-through with that earlier buys that we made and the assortment work we've done, and that will afford us the ability to invest in the other areas of breadth that we need.

The next question comes from Chris Horvers from JPMorgan.

So my first question is on the inflation front. So can you talk about what did the exit look like on inflation in the quarter? Is it still your expectation we get to the higher end of the mid-single digits in the fourth quarter? And there's a big debate out there amongst investors when that inflation -- year-over-year inflation benefit peaks. One of your peers is saying it's in the fourth quarter. Another one of your peers are saying, "Hey, we don't we turn inventory every 10 months." So it wouldn't be until the spring. So could you help us out with that mystery as well?

Yes. Absolutely, Chris. Thanks, it's Ryan. On the inflationary front, we finished Q3 just under 3%, so close to 3%. Q4, we expect it to be around 4% but going into, say, Q1 of next year, we expect that to increase slightly, but not at the same rate of increase. And then by that point in time, I think we'll be getting more to a normalized state. Obviously, there's a lot that can play out. I mean we just had a China deal overnight that we still have to think through. So this thing is ever evolving. But for the most part, we are substantially done with the negotiations with our vendors around that, a few left. So substantially done. And as those have gone into the system, the prices are going into the system. So I would expect there's some balance between what our peers are saying and somewhere in between there is probably where we reached the peak. But obviously, it's an evolving landscape. But we're thinking 4% in Q4 and then a slight increase in Q1 of next year.

Got it. That is super helpful. And then as we think about the path to the 7% operating margin, can you help us maybe on the linearity of that? And as a part of the question, it's always hard to put a LIFO question into the call, but what is sort of the net LIFO headwind in '25 between LIFO and the capitalized inventory costs? And how do you think about the recapture of that next year and then more broadly that the linearity of the path to 7% by '27?

Yes. Just quickly, Chris, on the strategy, we think we've got the right strategy for the company. We've got the right focus areas. And our goal is unchanged for 2027. Having said that, there's a lot of space between now and then. And you use the word linear. I would say turnarounds are nonlinear in terms of how things go. There's puts and takes. Some initiatives go faster, some go slower, market receptivity. So we view '25 and '26 as building block years. And if you look at what's happened this year, I mean just think about it, 2 quarters ago, we were closing stores, exiting California. We were going through the Worldpac TSA transitions, doing our assortment. This year, we'll go from 28 to 16 DCs. I mean these are huge muscle mover activities and '26 will feature a lot of building block tough things that we're doing to continue forward. So we're really pleased with the progress, really pleased with the team, and we're focused on closing 2025 strong. But as we go forward, 2026 is a building block year, and I would emphasize the nonlinear nature of turnarounds. As for LIFO, I'm going to go over to Ryan for that.

Chris, yes, so just to give you net of the warehouse capitalization costs, obviously, that netted out some of it. LIFO was still a headwind. It's roughly 60 to 80 basis points. We expect it to be by the end of the year, 60 to 80 basis points of headwind in 2025. I hope that's helpful for you.

The next question comes from Bret Jordan from Jefferies.

One quick question on the working capital programs, it doesn't sound from channel checks like there's any contraction in availability. But have you seen any increase in risk spreads in the short term related to that particular supplier issue?

No. Actually, we haven't seen any change in the risk spreads there. Our supply chain finance program, if you're talking about the supply chain finance program rates they're getting, obviously, that's a decision between the banks and the vendor, but the work we did this summer created a lot of stability within that program, and it's been a very positive movement. We've had positive discussions with the banks around rates, not ready to provide any further information around that, but we haven't seen the spreads increase. We've had positive discussions around probably the other side of that. Given the stability of this program now with the structure that we put in place, we're supporting that program with the cash and assets on our balance sheet, which provides a risk or downward risk pressure for the banks for that program, kind of unique relative to the other programs in the industry right now as we're bridging ourselves back to investment grade.

Just to add in that, as Ryan said, we're really pleased with how we've got supply chain financing set up with the capital raise we did with the cash support we provide for it. But as it relates to that vendor in particular, because I do think it's a one-off situation. First, merchandising excellence is a key pillar for us. Bruce Starnes and his team, they've introduced the PLR process and real rigor as it relates to how we develop plans and partnerships with vendors. And so they had engaged with this vendor long before these current circumstances. And as a result of that, had started to move certain product categories away to other vendors. And so COGS exposure, pretty small, 2%, maybe a little under 2%. Now we're still in active dialogue with them. And so -- and we'll continue the relationship and wish them well. And if they come through, then I think there'll be continued relationships there. But in general, across merchandising and that emphasis we have alternative sources of supply is also a key tenant. So for anything we buy, we look to say, "Hey, where else would we buy it? Where else should we buy it?" And that would apply with this vendor as well.

Great. And then a quick question on the Atlanta hub greenfield. Could you give us color sort of as to the performance of stores in that market? I mean, as you build the perfect hub, what's the outcome? And sort of what's the timing on developing further greenfield hubs like that one?

Yes. So great question. So it's open. So -- and by the way, our market hubs open with a store nested inside. As a reminder, 75,000 to 85,000 SKUs. In aggregate, we view it as a 100 basis point lift play for the supported stores. And then the Market Hub typically in and of itself drives as a store just because you have literally all that inventory sitting on site. So we really like what we're doing with the market hubs. We originally planned for 29 this year, the idea that we said this is a good thing. We want to keep accelerating. So we'll get to 33. We're now moving past the phase of where we were doing -- we did some smaller DC conversions. We're moving past that phase to where we're now greenfielding, and we've got 4 greenfield market hubs. You'll start to see that be more prominent in the opening paradigm. And there's a lot of excitement around that because instead of repurposing something, we can now specifically pick where we need it to best support the stores and our real estate team has been digging in to start identifying those sites, so it doesn't create a slower trajectory. So 100 basis points is what we see as the network. We'll keep you apprised as to if that goes up or down and then more greenfields going forward and real estate looking to keep that tempo moving. 60 in mid-'27 is where we want to be, and we'll keep you updated on that as well.

The next question comes from Steven Forbes from Guggenheim.

Just a follow-up question on gross margin. I think it was Chris' question. I think if you back out the LIFO charge in the quarter, you guys are sort of exceeding that mid-40% range that underpins the long-term guide here. So curious just if there is a takeaway for us today on some of the structural gains that you're capturing on the back of your initiatives or if that sort of mid-40-ish level is still where you guys see the business trending to over the next couple of years here?

Yes, it's a good question. Yes, in Q3 tends to be a little bit better rate as well, just seasonality-wise. We'll see that come down a little bit in Q4. Our goals are still the same long term. We still like that spot long term, and we're making good progress. The merchant team has done an excellent job this year making progress towards that. We still are on a journey. '25 and '26 are build years as we're building against that. So I wouldn't say it's perfectly linear. You can see that in our Q4. We're going to have some LIFO expense that's going to have an impact on it. But net-net, we are happy with the progress we're making, still committed to that goal. We think that's a good strategic long-term play for us and where we want to be from a gross margin perspective.

And then just another follow-up on really sort of the comp message this morning. So we think about like-for-like inflation, same SKU inflation going to 4%, maybe 4.5% in the first quarter of next year. The guidance for the fourth quarter, the implied comp guide is 1% to 3%. And so what is the sort of takeaway today around transactions? Are you guys seeing weakness in Pro transaction? Or is sort of the spread and moderation expected between same SKU inflation and the consolidated comp really just DIY related? Any sort of color on sort of comp complexion and message around that for the fourth quarter specifically?

Yes. I think in Q4, moderating both of them, both Pro and DIY, but we are seeing a little bit more on the DIY side. We kind of talked about some pressure we think the consumer is feeling right now and still trying to understand is this short term in nature? What could be some of the drivers? Is it price elasticity? I think we've heard from -- in the industry, there's some questions around that as well, but more on the DIY side, but we're seeing moderation in both of them going into Q4. Also, Q4 is the most volatile quarter of the year. You've got a lot of weather that impacts that quarter. We see it every year from a seasonality standpoint. And when it's colder out there, people are less have to do their oil change, just natural of the seasonality. So we expect it to be a little volatile. We've seen a little softness. We've seen both moderate, but more pressure on the DIY side in the quarter. But still, all those scenarios play out within the guidance we just provided.

The next question comes from Michael Lasser from UBS.

To what extent did the decision to trade some margin for sales or vice versa impact the quarter, meaning you've foregone some lower-margin business that could have negatively impacted your sales but boosted your gross margin. If you could quantify any of those actions in the third quarter and to the degree to which it might impact your fourth quarter, that would be super helpful.

Yes, Mike, I appreciate the question. So what we're doing from just a pricing standpoint, I just want to talk about our strategy around pricing. We are going to remain a competitively priced business here. We're not trying to be low in the market. We're not trying to be higher in the market. So we're not trying to find ways to get margin out of that. So we're staying competitively priced. We like our pricing position. We think we are a fast follower in the market. So not trying to harvest margin not in an appropriate way. We're sticking to that strategy going forward. So we're not doing that. There are some areas of our business that we will look to make more profitable and look at certain accounts, et cetera, that we're working through. And I'll let Shane talk a little bit more about that. But we're going to stick to our strategy, which is we're going to be competitively priced in the market. We're a fast follower, and that's what we're continuing to do.

Michael, just touching on the Pro side, we think our biggest opportunity is with Main Street. So those are smaller accounts. Typically, the margin is a little bit higher. We certainly appreciate our national account and larger customers, and we're working closely with them, and we've got a series of initiatives. But we don't want that to come at the expense of seeing the small 2 or 3 bay garage at the end of Main Street. And so we're making sure that our outside sales team members aren't skipping by those accounts, and we're making sure that as we interact with them, they understand the breadth of capabilities that we offer to include things like our TechNet services. And so as we do that, we're gaining traction. So that's something we will look to do going forward and as a current emphasis as well.

My follow-up question is, Shane, you consistently and repeatedly used the term nonlinear to describe the path forward for Advanced Auto Parts. How should we interpret that from a numbers perspective? Does that mean there'll be some quarters maybe when it's hot on the East Coast and there's outperformance in those markets that Advance can rip off a 3 comp and report several hundred basis points of gross margin expansion and then vice versa. The next quarter, it might be a flat to 1 and far less gross margin expansion. How would you characterize that nonlinearity that you would use to describe how the path forward might look over the next couple of years?

Yes. I think -- if you're okay, Michael, I'm going to talk about sort of tangible activities. So think about if you close a DC and you'd say, okay, if I'm going to combine this DC with that DC, there ought to be x dollars of value that comes from it. But when we start to do that process, we anticipate what the closure expenses will be. But we might take several hundred stores of replenishment from the old DC to the new DC. And there's cost there. There's friction in terms of getting the routing set up. Maybe there's particular products that the closing DC had that would need to get sourced. And so it's lumpy. It's not something where we say, okay, we could take the cost of the $100, we'll say it's $20 a month over the next 5 months. We may have more costs sooner. We may have costs that emerge at the end. Similarly, the benefits may not endure at the tempo that we've indicated. So there's a sort of micro example. Now imagine you're undertaking big moves like that across everything we do. Maybe there's a big software implementation that we want to do as part of routing. And so that might take months to implement and then months past that. As we do the assortment, we like the lift we've got. But reminder, we're changing out hard parts across the network. And so some of these are slower-term products. It takes time for it to infuse. We're going to Main Street customers. But the first time you walk in, if they're working with another supplier, they may be happy to see us, but maybe it takes 4 visits, 5 visits, 10 visits before they say, "Hey, we'll give you a try." So discrete predictability on exactly what the cost will be and when the benefit comes is hard. And so we end up with fits and starts. There are periods where we've got benefit that comes at a quicker tempo. There are situations where we have costs that are less or more. And so that's why I emphasize the nonlinear part of it. What we are pleased with, though, is when you look back over periods of time, you can see clear progress on those 3 strategic pillars. We think we've got the right pillars. We think we have the right subset of activities, and we're setting against it. And if you know the strategy is right, if you know you've got the large muscle mover activities and if you know the industry backdrop is a good one, then we're going to keep at it.

And Mike, I'll just add just tangible ones that have happened this year, big initiatives. We accelerated the assortment work as we saw [indiscernible]. So that's acceleration. But then on the store operating model, we paused to test longer and further to learn more than what we really -- so we knew when we roll it out, we've got the right operating model. Now that didn't go with our plan. And the stores and the teams had to overcome the challenges in productivity that we would have likewise had seen if we would have rolled it out earlier with the right model. So it's not perfectly linear because we're testing our way into things, and some are going to be delayed, and we're purposely delaying them for the right reasons. And some of them will accelerate when we can. And so that's some of the nuance that we're talking about. less about weather, more about the initiatives, the rollout of those and to Shane's point, when do we move up the call list with the Pro.

The next question comes from Michael Baker from D.A. Davidson & Co.

Maybe following up on Mike Lasser's question. You used the language a couple of times of 2025 and 2026 being build years. What does build years mean? Does that mean in a way, obviously, margins are expanding already, but are you still investing more? And then the idea is that it really -- the margin expansion really kicks in more in 2027. Is that the right way to interpret build year?

Yes. So by build year, it means we're still doing large-scale activities to set the company up for success. So let's do an example. So Market Hubs we didn't have any. And so we'll end the year with 33, but that's half of what we envision having by mid-2027. So there's going to be a ton of activity in the real estate team around making that happen. So that's a good example. On our DC consolidation, we're continuing now as we move to the smaller network, how do we optimize that? How do we optimize our routing? How do we optimize our lines per hour? On our new store opening, we put out 30 NSOs, but we want to continue to amplify the number that we do for that. And so by the way, if you want to open a single store, you got to go prospect 10 sites. So there's huge activity going on in each of the pillars to get to more of what that run rate will be longer term, and that's really what creates that nonlinear dimension.

Yes. I think it's the initiatives that we've laid out, the 3 pillars we've laid out was not a 2025 and done and then see the benefit. It is a 3-year plan that we've laid out. That strategy unchanged, and we're going to continue to execute against that. I think of -- we just talked about the operating model being one in our stores that we're going to start rolling out in Q4, which will roll out into next year. And that's getting our assets right, the trucks in the right place, the hours to meet the demand in our stores. There's technology build. We're building different technology capabilities. Think of our pricing tools that are coming later this year and into next year. We're partnering with Palantir as part of some of the AI work that we're implementing. A lot of that technology takes time to build, and that will start building into next year as well. So the build over the next 2 years is as we ramp up our strategy in these 3 pillars, it's not a 12 months and done, It's going to be a 2-year plan to really start to see the fruits of it.

Okay. That makes sense. And if I could ask one more follow-up and maybe not a fair question for you guys. So if not, feel free to pass. But for whatever it's worth, the consensus estimates aren't even close to a 7% margin in 2027. In all your conversations with investors or analysts, what do you think people are missing relative to your plan?

Well, I'll start, and I'll let Shane jump in. I'll just say the first thing is our strategy is unchanged. It's still our goal, but it is early. We're 2 quarters away from when we closed our stores. So we're still early in this turn. And so I think there's a need to see proof points, and that's why we are giving more metrics and data around what we're seeing as we're going through this process. And to be 2 quarters past closing all of our stores and the decisions that we've made around accelerating the assortments work, accelerating market hubs, we brought in -- we're opening more market hubs this year. We're trying to give proof points of how things are working. Now we have to show it in our numbers, and it's still, to me, early, but you'll have to ask everyone else why they don't believe in that goal. But I think to us, this is a build.

Yes. And again, I don't know what goes into any analysts specific assessment. But as leaders and as a company, we have to build a track record. We have to demonstrate what the say-do ratio is. And so early on, our pledge is we're focusing on auto parts. We're an auto parts retailer. Second is we're trying to create a clear strategy that fits that and that's understandable externally. More importantly, it's understandable internally and by our customer. Third, we're being decisive in our approach in getting there. And we'll make tough decisions, and we'll do those things again, what would an auto parts retailer do to be successful in a particular situation. And then lastly, we'll be transparent. We'll share with you what our progress is. You guys have to then take all of that and say, "Hey, to what degree do I think that that's going to occur or not" and then put it in the long-term perspective. But we'll be out here doing that each and every day and notably in our footprint, now where we're 1 or 2 in terms of store density, getting our stores better. That's really -- we're operating under the mantra of an inverted pyramid, which our customers come first and then, by the way, everything runs through the front line. And so we'll keep doing that and focusing on auto parts with decisive activities. And hopefully, there'll be some closure in terms of what you guys think and what we're saying, and we look forward to sharing that along the way.

Thank you. That does conclude our Q&A session for today. So I'll hand back over to the CEO, Shane O'Kelly, for closing remarks.

We want to thank everybody. In particular, thank the men and women of Advance Auto Parts for what they're doing as we complete this turnaround journey, and we'll look forward to sharing additional updates on both the closeout of the year and what we see for 2026 in our end of year call in February. So we appreciate you joining us today. Thanks very much. Take care. Bye-bye.

Thank you. This does conclude today's call. Thank you for joining. You may now disconnect your lines.