RDBBF (RDBBF) Q4 2026 Earnings Report, Transcript and Summary

Thank you for making the time to be with us today. My name is Virginia Spring, and I'm responsible for Investor Relations at Articore. I am in our Melbourne office and joining us live from our New York office is Articore Group CEO and Managing Director, Vivek Kumar; and Group CFO, Derek Yung. Vivek and Derek will provide an overview of our FY '26 results shortly, and we will then open it up for questions. [Operator Instructions] The key information in today's call is contained in the ASX announcement and investor presentation released to the market this morning. I would like to call your attention to the safe harbor statement in our ASX release regarding forward-looking information. That safe harbor statement also applies to this webcast. This session is being recorded, and a transcript will be released to the ASX. I will now hand you over to Vivek.

Thank you, Virginia, and thank you all for joining us today. FY '26 was a transformative year for Articore. We delivered EBIT of $10.3 million, slightly above the top end of our guidance range and a $20.1 million turnaround year-on-year. Margin expansion has been meaningful and sustainable. Gross profit and gross profit after paid acquisition or GPAPA, both grew for the year, driven by supply chain efficiencies, pricing, paid marketing effectiveness and the new artist account fee structure that enhanced marketplace dynamics. Gross profit margin reached a record 49.6%, up 400 basis points and GPAPA margin improved to 28.6%, up 210 basis points. We also strengthened the balance sheet materially with underlying cash flow of $10.1 million and a closing cash balance of $40.5 million, giving us the flexibility to invest in future growth. This slide highlights the structural nature of the improvement over time. We have seen a consistent increase in our margin profile since FY '23 as the group prioritized improving margins and restoring profit. We have reduced operating expenses every year since FY '23 with OpEx falling from a peak of $129 million to $85 million this year, a 34% reduction. This has been achieved while continuing to invest in growth, including building Dashery from ground up and acquiring Frankly Wearing. Together, margin expansion and sustained cost discipline have driven the turnaround in EBIT you can see on this slide. 2026 was the first year Articore generated positive EBIT outside of the pandemic-driven spike in FY '21, a significant turnaround to profitability compared to all those years in the past. This reflects a sustainable and structural change in our business, in our margins and cost structure. We are confident that we can build on this momentum to ultimately deliver profitable revenue growth with strong cash generation. Before turning to the details behind these results, I'd like to provide an overview of the business today. Articore today owns and operates 2 established high-margin capital-light digital marketplaces, Redbubble and TeePublic, alongside 2 high-growth businesses, Dashery and Frankly Wearing. The flywheel remains central to our investment thesis. Creators upload designs to our marketplaces, customers purchase products printed on demand by third-party fulfillers and we charge service fees to provide tools and support for creators. Because creators only earn when they sell, the group benefits from an asset-light take rate business model. Greater volume drives fulfillment scale, efficiencies that lower unit costs and expands margins and stronger margins allow us to reinvest in customer acquisition and further accelerate the flywheel. When this flywheel gains momentum, it generates compounding benefits for creators, customers and shareholders alike. Building and sustaining that momentum towards profitable growth remains our core priority. Supporting our flywheel are 4 structural competitive advantages. First, scale of content, over 75 million designs with more than 10,000 added daily, creating one of the largest and most dynamic catalogs of unique user-generated content in the world. Second, fulfillment scale, a diversified global network of third-party sites, allowing us to flex volume, optimize cost and maintain efficient delivery for over 20 million units shipped in FY '26. Third, network effects. We have more than 3 million creators selling across the group. As more creators and customers participate, the platform becomes increasingly attractive to both sides. And fourth, operational leverage, a global team of around 200 people, generating approximately $1.8 million in revenue per employee. Together, these advantages make the model defensible, scalable and increasingly efficient as volume grows within a global print on-demand market that itself is growing quickly from around USD 11 billion in 2025 to a projected USD 58 billion by 2033, a 23.6% compound annual growth rate. Looking across our 2 established marketplaces, both delivered structural margin gains this year. TeePublic remains a strong contributor to the group with consistent growth since it was acquired in 2018. The trend continued this year. TeePublic grew marketplace revenue 2.8% in constant currency with gross profit up 10.9% in constant currency, driven by pricing and promotional optimization and ongoing supply chain efficiencies. This included more favorable costs on blanks, a shift towards more cost-effective third-party fulfillers and onboarding a new shipping carrier, which increased competition to offset rising U.S. shipping costs. Redbubble's improvements to unit economics largely offset softer marketplace revenue. The business delivered a record 55.2% quarterly gross profit margin in the fourth quarter, reflecting the new artist account fee structure and continued supply chain efficiencies. Turning now to our high-growth businesses, starting with Frankly Wearing. In May 2026, we completed the acquisition of Frankly Wearing, an Indian-based print on-demand marketplace. This acquisition advances our technology consolidation and establishes a Global Capability Center to drive operating efficiencies across the group. The acquisition opens access to the Indian print on-demand market worth more than USD 1 billion and growing around 25% annually. Since we acquired it just a few months ago, Frankly Wearing has delivered year-on-year triple-digit marketplace revenue growth. Integration is progressing well. India-based teams are already providing engineering and other functional support across the group, and we are targeting hiring more than 30 employees by the end of FY '27. Dashery is an emerging storefront platform for creators who want to monetize their existing audiences. FY '26 marked Dashery's first full financial year and the early signs are encouraging. The platform generated $4 million of GPS, Gross Process Sales, $2.4 million of MPR at a GPAPA margin of 36.5%, significantly above our established marketplaces as creators bring their own demand. What excites us most is that a number of creators have already passed $100,000 in gross sales in the first year alone, a strong signal of much higher lifetime value potential. Our current target customer profile is creators with 100,000 to 1 million followers, a segment we estimate at around 4 million creators globally. We are currently working with Shopify to launch an integrated offering to specifically broaden the target market to creators with millions of followers who have existing Shopify storefronts. AI is now embedded across the Articore flywheel, and we are continuing to expand into new use cases. On the creator side, our approval workflows are 100% AI-powered, which reduces manual review and improves both speed and consistency. On the customer side, our search is powered 100% by AI algorithms, combining vector search and machine learning ranking to improve relevance, discovery and conversion. AI also underpins our marketing from content creation through to campaign optimization. And across operations, AI is helping the business run more efficiently with approximately 80% of customer contacts touched by AI-powered chat, speeding up query resolution. We have also taken a significant step into AI commerce, launching an early advertising initiative with OpenAI's ChatGPT for TeePublic. Buying behavior is shifting from searching to asking, and we were already seeing revenue growth from AI sources, including ChatGPT, Gemini, Claude and others even before this launch. We see this becoming a growing revenue stream for the group. Our vision is to be the leading destination for customers to discover and buy unique design-first products driven by a global creator ecosystem built to turn passion into profits. We'll pursue this through 3 growth drivers, which focus on customers, creators and high-growth businesses. For customers, we will strengthen our competitive mode through content differentiation, build high-impact customer acquisition and retention engines and elevate the customer experience through AI-driven discovery and personalization. For creators, we are focused on generating higher value outcomes through incremental monetization opportunities. And we will continue to invest in our new high-growth businesses, including Dashery and Frankly Wearing, leveraging our strategic assets and existing capabilities. Underpinning all 3 growth drivers is a single unified platform. This slide sets out the specific initiatives we are prioritizing in FY '27 to unlock each of these key growth drivers. For customers, we are focused on 3 areas: acquiring and elevating pop culture, licensed and fan content, improving search, discovery and merchandising across both marketplaces and building personalization opportunities that let customers express their identity and fandom. For creators, we are looking to increase creator earnings in ways that will incentivize value-adding behavior, simplify the creator experience, including enabling designs to be uploaded once and used across multiple platforms and continuing to refine the artist account fee structure. For our high-growth businesses, we are expanding new revenue streams such as on-site advertising, adding new features and integrations to Dashery, including Shopify and leveraging group expertise and capabilities to accelerate Frankly Wearing's growth. We have already made good progress working towards operating on a single platform, which we will build on in FY '27. We are leveraging unified marketing technology across the group, integrating order management and fulfillment systems and consolidating our content uploader. Together, these initiatives are designed to build on the structural gains we made in FY '26 and support the group's return to profitable growth. I'll now hand it over to Derek to take you through the numbers in more details.

Thanks, Vivek, and hello to everyone joining us today. FY '26 was a strong year of execution. We expanded margins, kept a tight rein on costs and meaningfully strengthened the balance sheet. Starting with the P&L. As Vivek highlighted, the group delivered record margins this year, both gross profit and gross profit after paid acquisition grew in absolute value, offsetting a decline in MPR. Fulfiller pricing was a key driver of our record margin improvement this year. We negotiated pricing based on combined volume from Redbubble and TeePublic and directed more volume to fulfillers to offer better pricing. Operating expenses declined 6.9% to $85 million, reflecting continued discipline across the cost base, including a reduction in employment, web hosting and software costs. Depreciation and amortization declined 57.8% year-on-year following the streamlined capitalization approach we introduced towards the end of FY '25, which better aligns reported EBIT with underlying cash flow. All this flowed through to EBIT of $10.3 million for the year, up from a loss of $9.8 million in FY '25. It's worth noting that the U.S. dollar declined 4.8% against the Australian dollar year-on-year, but this had limited impact to the EBIT level as 72% of the group's revenue and 75% of its costs are denominated in USD, providing an embedded operational hedge. Vivek has taken you through a substantial improvement in margins across both marketplaces. What's clear from the results is a divergence in top line performance. TeePublic's marketplace revenue continued to grow, up 2.8% in constant currency, while Redbubble's marketplace revenue declined 11.1% in constant currency, though substantial margin expansion largely offset the softer top line. Returning group MPR to profitable growth remains a key priority. Vivek outlined the key initiatives we're investing in to drive that outcome center around the 3 pillars: customers, creators and high-growth businesses. Our cash position and balance sheet improved significantly this year, providing financial flexibility. Underlying cash flow improved from $0.6 million in FY '25 to $10.1 million this year, and our closing cash balance grew 42% to $40.5 million, up from $28.4 million. We achieved this while returning capital to shareholders, buying back more than 2 million shares during the year and without compromising investment in Dashery or the Frankly Wearing acquisition. One clear sign of the financial improvement shows up in returns on shareholder capital. The return on equity turned from negative 22.8% in FY '25 to positive 21.8% in FY '26. The group enters FY '27 in a strong position to return to profitable growth. Its core marketplace business is profitable and generating cash, has renewed focus on cost discipline and it is investing in 2 high-growth businesses, Dashery and Frankly Wearing. For FY '27, the group expects to build on the structural change to its performance delivered in FY '26. We're guiding to a GPAPA margin of 27% to 30%, a further step down in operating expenses to $79 million to $85 million and an operating EBITDA of $17 million to $23 million. Thank you for joining us today. We will now open up the webcast to questions. If you have a question, please add it in the chat box and Virginia will relay it on your behalf.

Thanks, Derek and Vivek. We received a number of questions from Wei-Weng Chen at RBC. I'll start with Wei-Weng's first question. Now that you have proved out the economics of your business model, how will you avoid the common growth versus earning trade-off of e-commerce companies? It seems like a lot of companies can only achieve one or the other, but not both concurrently.

I can take that. Thank you, Wei-Weng, for your question. And you're absolutely right. It is critical balance that companies have to strike between profitability and growth. And that is why we are squarely focused on profitable revenue growth for FY '27 and FY '26 as well. And I would add to that, that structurally, our business has certain inherent advantages. We have a flywheel that works. We have a business model where -- which is asset-light and have working capital advantages. So we don't need a lot of investment upfront. To add to that, we have shown we have very strong discipline on both operating costs as well as we have already achieved record margins in FY '26. We continue to remain disciplined in those 2 areas as well as we have a marketing engine, which is very efficient. So if you combine all the advantages of the business model, the discipline and the performance that we have shown in FY '26, we intend to continue to build on that in FY '27 and beyond and drive profitable revenue growth for the business, which we have already started to make significant progress towards. Next question, please. You're on mute, Virginia, I think.

Sorry about that. The next question is, where will year-on-year OpEx savings come from?

I can take that one. So 4 main areas, all of which are continuation from efforts that started in fiscal '26. So first would be continued leverage of AI in all areas of the company, and Vivek had shared some of the successes that we've had already, especially around customer service. The second area is our continued effort for technology platform consolidation. In FY '26, that effort yielded $3 million in savings year-on-year, and we expect that will continue to bear fruit in FY '27. Third is getting cost leverage from building out our India operations with the Global Capability Center. So that started in FY '26 and will scale quite significantly more, as Vivek had talked about in the New Year. And then lastly, we expect that we'll continue to have a strong culture of cost discipline and look to continue to reduce overhead costs in things like facilities and leases and so on.

Wei-Weng's third question is, can you speak to any events, cultural points in time during the year, which saw sales spikes? How nimble is your ability to market and capture these demand events?

I'll take that one. It's a great question. And all our marketplaces get significant revenue from social, political or cultural events happening around us every single day. And the spikes that we saw this year were centered around towards the World Cup, the soccer World Cup that was happening, and it was really fascinating to see how the trends changed as different players and different teams are progressing through the tournament. NBA, the basketball, was another key moment for the group where New York Knicks won the championship after 53 years, and we saw a lot of activity around that. Just this week, just a couple of days back, we had the unfortunate sad news of Dolly Parton passing, and we are seeing some serious activity around that on our content as well. So just to give you a few examples of how quickly the marketplaces respond to things that are happening in the social, cultural, political space. And our marketing is quite nimble. Our marketing in real time adapts and activates the content that we see on our platforms. There is -- we have fine-tuned our marketing engines and the algorithms in a way that the content very quickly goes to all the platforms where we are operating, whether it's Meta or Google or others, and start to really create that flywheel effect of getting more sales on these key trends. So definitely something that we want to continue amplifying in FY '27 and beyond.

And the final question from Wei-Weng is, how should we think about the first half, second half EBITDA skew?

Great question, and thank you for that. I'll take that one. So we -- our business is seasonal, given the super majority of our sales is U.S.-centric, and we expect it to be continued seasonal. So first half has been and will continue to be a greater share of the profit and EBITDA generation. So fiscal '26 is a more extreme example of that where the first half operating EBITDA was predominantly almost entire year's operating EBITDA, but our second half operating EBITDA was profitable. So that is a good milestone. As we grow again, we do expect that skewing to be kind of less out of balance and getting more into balance, and we expect that to happen in FY '27.

The next question we've received from a shareholder is, do you envisage paying dividends in the future? And if so, when?

We look at it and the Board looks at it from multiple different angles and capital allocation is definitely a key consideration for the Board. We look at it every 6 months in terms of whether the right use of the group's capital is in paying dividends or other uses. The Board has decided that right now, there are -- we continue with the on-market buyback as well as investing in the growth for the group, and that's a better use of the capital that we have at the moment.

So the next question we received is from a shareholder. Given the current market valuation, returning to a solid growth trajectory is top of mind for investors. What are the core pillars of Articore's long-term growth plan? And what specific near-term milestones should shareholders be watching for proof of execution?

Thank you for the question. And as outlined in our prepared remarks, we have made great progress this year on returning the group towards growth trajectory. The group has moderated revenue declines to low single digits this year versus declines of 12% that the group saw over the last preceding 2 years. We are focused on bringing the group to profitable MPR growth, and we are confident that we can build on this momentum. Our long-term growth plan is focused on the 6 growth pillars that was outlined in the presentation centered around customers, creators and our high-growth businesses. What I would also add is what's new in FY '27 is our engineering capability in India, giving us the capacity to accelerate our tech road map and unlock these drivers more quickly. And to answer your second part of the question for FY '27, the milestones that you should track are the ones in our guidance, GPAPA margin, OpEx and operating EBITDA.

The next question we've received from a shareholder is, can you please provide the revenue and estimated cash burn for both Dashery and Frankly Wearing?

Yes, I can take that one. So we're excited about our high focus businesses, which are Dashery and Frankly Wearing. As you can see they are still rather small. And so while they're growing over triple digits year-on-year, still not a significant portion of the business as of now. So we're not disclosing specifically kind of what the revenue targets are other than we continue to see the progress that we expect, and we'll invest in those. For Dashery in particular, last year, we invested about $3.5 million in Dashery. We expect that investment to continue into FY '27 at about the same level. The EBITDA loss on Dashery will decrease because the business is growing and generating good GPAPA and GPAPA margin. So it will be less from that perspective. But in terms of overall investment, it will be consistent. Frankly Wearing at the time of acquisition, it was a profitable business. And we are doing a lot, as you've heard just in the kind of the first few months of acquisition to get more leverage from the group to help that business, and it's working well. And we are targeting a rough breakeven year for that business even with high growth.

The next question we've received is from Owen Humphries at Canaccord. For FY '27 OpEx to further step down, what's your plan investing in the Indian tech hub? Will there be increased capitalized product development as H2 product development CapEx seems to be higher already?

Yes, I can take that one as well. So a great question. Thank you for the question, Owen. Absolutely, as I mentioned earlier in the prepared remarks, the GCC, Global Capability Center, is an important component of our operating expense plan. There are actually 2 sides to that, though, that's both of them which are important. One is what you're commenting and asking about relative to the cost leverage. Just as important, I would say, is our ability to actually invest in more engineering capacity for us to be able to do the enhancements and to make more progress on technology consolidation that will provide overall leverage across the whole entire group that Vivek painted in terms of our vision and growth drivers. And then on the second half of your question around the capitalized product development, yes, because of the increased capacity of engineering and also because of the type of initiatives that we're investing into with technology, we do expect more of those efforts and just more in general in absolute terms of amount to be capitalized. It's not significantly more than this past year. I'd say roughly 15% to 20% higher than what we saw in FY '26, but it will be higher.

The next question we've received is from a shareholder. It looks like the share count is about 301 million shares. What is the fully diluted share count?

The 300 million sounds a bit high to me. I think the fully diluted share count in our FY '26 report shows 295 million, if I'm correct. But we can follow up on that based on that question maybe someone is seeing something that we're not.

The next question we've received is, these are great results. The only concern we are seeing so far is the drop in MPR. You expect an increase in MPR for Dashery and Frankly Wearing, but what about for Redbubble and TeePublic?

I'll take that one. Thank you for the question. And absolutely, I think the key focus for the group remains profitable revenue growth. And as you can see, we have already made great strides in getting the revenue growth -- revenue -- moderating revenue decline to low single digits for the full year versus negative 12% for the 2 years preceding. The last couple of quarters were in the negative 1% to 2% range, so almost flat to last year. And this is for the entire group, of course, Redbubble and TeePublic are the established marketplaces and the key -- the main revenue drivers for the group. So we'll continue to work towards getting the group back to profitable revenue growth, focusing on the strategy that we have laid out centered around creators, customers and our high-growth businesses. And just to add, the short-term incentive for the KMPs this year has an MPR growth component as well, which, again, is a strong signal of how much focus we as a company are on generating profitable growth.

The next question we've received is from a shareholder. What is the cash net of debt?

We don't have any debt on the balance sheet. So our cash balance net of debt would be our cash balance, $40.5 million.

The next question we've received from a shareholder is, are you expecting overall growth in sales for FY '27?

We are not specifically guiding towards an MPR number in our guidance. But as Derek and I mentioned previously in the earlier questions, we are absolutely focused on MPR profitable growth for FY '27 and beyond.

The next question we've received is, could you comment a bit about the major geography from where your revenues are derived?

Yes, I'll take that one because that one is the easiest one because we have a slide for that in the investor presentation. So if you go to the appendix, the second slide, I believe, shows a sales contribution by geography, at least by continent. And you can see that for the most part, we're still North America and when we say North America, it's mostly U.S., although we do have some Canadian sales. We don't expect this to change much in FY '27 other than, of course, with the addition of Frankly Wearing, we do see that, that will obviously add to sales in India.

The next question we've received is, in projecting the FY '27 guidance, do you expect MPR growth in FY '27? What's the assumed contribution from Frankly Wearing in FY '27 on top line and earnings?

Yes, I can take that one, Vivek. So our focus for FY '27 is MPR growth, in particular, profitable growth. So we have developed a guidance that aims specifically at that with the GPAPA margin, where it's at that in terms of -- compared to FY '26 and also obviously operating EBITDA growth. In terms of Frankly Wearing and also just high-growth businesses in general for FY '27, you see that in FY '26, it was less than 5% of MPR. While we expect that to grow significantly in FY '27, it will still be below 5% of overall MPR.

The next question we've received is, what is the Board's capital management priorities?

I can take that one. So as I mentioned earlier in the question around dividends, the Board is absolutely focused on the capital allocation and capital management. At this moment, the Board has decided to continue with the on-market buyback. The program remains on foot as well as continuing to invest in the growth for the group, including our high-growth businesses, Dashery and Frankly Wearing and remain focused on bringing that to a positive profitable growth.

The next question we have received is, as you head into the holiday season, what are you seeing in terms of demand in the U.S. market as compared to last year?

So overall, there are definitely, as you can see, a lot of macro events happening that could impact consumer demand. We are continuing to stay focused on executing against our strategy as well as focusing on the 6 core pillars that we have defined and outlined in our investor presentation. But definitely, with a lot of the macro events happening around the globe, it's something that we are staying on top of from a consumer discretionary spending as well as consumer sentiment standpoint.

The next question is, what part of the company is domiciled and run from Australia and what part is managed out of the U.S.?

So we have one group. We have integrated the group into Articore. Historically, Australia and San Francisco were the Redbubble operation and New York was TeePublic. But over the last 12 to 18 months, we now have one group. We have integrated teams across different domains like marketing, supply chain. Technology teams are now integrated. So it's one technology team where teams are distributed across Australia, New York, San Francisco, Berlin as well as now India. So we work effectively across all these geographies and consider this to be a key strength as outlined in our 4 key competitive advantages that we have a global team of 200 generating $1.8 million revenue per employee.

The next question is, well done on the turnaround. In your opinion, do these results vindicate the strategic review path, e.g., most compelling path to long-term shareholder value?

Maybe I can start with that. I think vindication is for others to opine on and not for -- necessarily for management. I think that we believe that FY '26 was a transformative year for us in terms of demonstrating that we have a profitable business model with economics that can scale. And we look forward to FY '27 being a year where we do more of that and in a profitable growth manner.

The next question is, who are your major competitors in the legacy businesses and the new businesses?

Yes. We are -- we definitely consider ourselves to be bringing something unique to the customers. The catalog of 75 million designs as well as 2 million creators as well as the velocity at which we are able to get designs on our platform gives us a unique competitive advantage. We do compete overall with the other established marketplaces. Apparel and T-shirts are sold at a lot of places across the Internet or even offline retail. So there's definitely -- but also it's a big market. And same goes for Frankly Wearing. The Frankly Wearing is one of the emerging marketplaces in India, which is an artist, creator-driven marketplace. And same with Dashery. Our competitive advantage in Dashery is platform -- a merch platform for creators, which makes it really easy for creators to launch their merch business. And there are very few, if any, hardly any competitors that are really focused on that creator segment and giving creators the ability to create their storefronts with such ease. So yes.

The next question comes from Owen Humphries at Canaccord. Redbubble margins were abnormally high in the fourth quarter. What was the contribution from the membership fees? And is margin sustainable going forward?

Yes, I can take that one. So optimizing the artist fees was an important component of our gross profit margin improvements year-on-year. In total, for the whole company, it was roughly about 100 basis points of the 400 basis point improvement. So a big component, but not actually the biggest component, right? The other components that we had talked about, which were bigger in impact in terms of year-on-year improvements were the supply chain enhancements and also pricing. But on the second part of the question around sustainable margin going forward, for sure, we have seen stability in the artist community after this change and in many ways, actually have enhanced the marketplace dynamics. As you heard in our prepared remarks, the focus -- we feel good about the structure now. The focus is to work with the artists to incent behaviors that will grow the business and grow their business and their earnings in FY '27.

The next question we've received from a shareholder. When TeePublic was acquired, it was a small fraction of Redbubble. Today, it is on par. Can you comment on why TeePublic has outperformed Redbubble so much over the years? And what can Redbubble learn from TeePublic?

It's a great question, and thank you for the question. It's absolutely right. TeePublic has seen consistent growth since it was acquired and is now at par with Redbubble. From an MPR standpoint, Redbubble is still a significant driver of GPAPA dollars. The 2 marketplaces, even though they are similar in their business model and the flywheels have some fundamental operational differences as to how TeePublic and Redbubble activate and really leverage the content libraries. Also, TeePublic has been a lot more focused on e-commerce fundamentals as well as performance marketing from day 1, given it was -- did not have the same advantages in SEO that Redbubble had. We have been applying learnings from TeePublic to Redbubble and vice versa. A lot of the turnaround that you see in FY '26 has been an outcome of applying those learnings to both businesses. And we continue to do so. As I was saying, we have now one team. The same team can now very quickly do experiments across one marketplace and apply it to the other and apply the -- not just even shared, they just applied cross-platform learnings from one platform to the other. So that is definitely a huge lever that we have been pulling over the last 12 months.

The next question we received is, has the Board received any interest from potential acquirers?

The Board will continue to keep the shareholders updated for any updates as they come and when they come.

The next question we've received from a shareholder. Any further intention of bolting on acquisitions to your Frankly Wearing acquisition?

You want me to take that.

Yes.

Yes. So we talked a bit in our prepared remarks around capital allocation and how we think about that. And certainly, one element of that is to be -- continue to be opportunistic in terms of strategic M&A. So I think, Frankly Wearing was a very good example in that regard in terms of entering in a new market that is large and growing. And then secondly, of course, building a Global Capability Center as we have already commented around the importance of that particular example. So going forward, the strategic M&A will have a strong filter to ensure that it is not really M&A for the sake of M&A, but it would actually help us accelerate the strategies and the growth drivers that Vivek outlined.

And this is the final question that we've received today. The U.S. is by far your biggest market. How can you also build awareness among U.S. investors?

Yes, I can start. So if this was a question from a U.S. investor, so then part of what we're doing here today, I think, is helping with that. Over time, we have shifted more attention to U.S. investors, and some of that is investing in specific efforts with outreach. My hiring to Articore was an important signal in terms of how important the U.S. investors can be for us going forward. So it is something that we're very much working on and appreciate someone asking that question, especially if they are a U.S.-based investor.

That's it, Vivek. We haven't received any more questions.

Great. Thank you for your time and engagement today. Any further questions, we are available to speak directly. We appreciate your continued interest and look forward to updating you on our progress in the year ahead. Thank you.