Thank you, and good morning, everyone. Welcome to Versant Media's second quarter 2026 operating and financial results conference call.

Joining us today are Mark Lazarus, Chief Executive Officer, and Anand Kini, Chief Financial Officer and Chief Operating Officer. Also with us are Jordan Fastbender, General Counsel, and Natalie Candela, Vice President of Investor Relations.

Before we begin, I'd like to remind you that certain statements made during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

For a discussion of these risks and uncertainties, please refer to Versant Media's filings with the SEC and today's earnings release. All forward-looking statements are made as of today, August 6, 2026, and we undertake no obligation to update them.

In addition, we may refer to certain non-GAAP financial measures. Information and reconciliations to the most directly comparable GAAP measures are included in today's earnings release and in the materials posted in the Investor Relations section of our website.

During today's call, all comparisons to the prior year are against stand-alone adjusted figures, which represent our estimated 2025 results as if Versant were already a separate, independent company. With that, I'll turn the call over to Mark.

Thank you, Wylie, and good morning, everybody. Our second quarter results reinforce the strength of our portfolio and the strategy that we're executing: to win with premium live content, extend the reach of our iconic brands, and accelerate growth across our platforms.

Across news, sports, and entertainment, our brands continue to grow audiences and engagement while delivering value for viewers, advertisers, and our distribution partners. Our TV portfolio now reaches more than 120 million viewers each month, with double-digit audience increases in aggregate across our networks.

We also recently completed multi-year renewals with two large pay-TV distribution partners, one in the US and one in Canada, further highlighting the value of our portfolio. That strength gives us confidence to invest where we see the greatest opportunities: growing our digital platforms, advancing our direct-to-consumer offerings, and deepening our audience relationships.

Together, these investments extend our audience reach and build upon the foundation of our iconic, highly cash-generative brands. Our performance this quarter demonstrated our strong execution of this strategy across the portfolio.

Let's walk through a few of the highlights. CNBC reinforced its position as the leading global business news brand.

During market hours, the network ranked among the top 10 cable networks for the fourth consecutive month and delivered its highest-rated quarter in more than 5 years. Coverage of the SpaceX IPO drove CNBC's highest-rated day during that same period.

CNBC continues to generate the most affluent and educated weekday daytime audience in all of television, a distinction it has maintained for 27 consecutive quarters. The network also featured exclusive interviews with business leaders and policymakers, including Jeff Bezos, whose appearance generated more than 100 million video views across all platforms.

MS NOW also built on its momentum, delivering its seventh consecutive month of audience growth in TV and expanding its reach on digital platforms. In June, viewers watched an average of 9 hours each week, the second highest level of engagement across all of television, and MS NOW saw a 14% increase in viewership in the second quarter versus last year.

That momentum extended well beyond television. Year-to-date, the network generated nearly 3 billion combined YouTube and TikTok views, and in June, ranked as the number one news organization on YouTube.

Podcasting engagement was also healthy, with more than 11 million audio downloads during the month. In July, we celebrated MS NOW's 30th anniversary, an important milestone for one of the country's leading news brands.

MS NOW continues to accelerate. Golf Channel also had an outstanding quarter.

The PGA Tour coverage delivered the network's most-watched second quarter since 2020, with comprehensive coverage across all of golf, including the Masters, PGA Championship, U.S. Open, and PGA Tour and its signature events.

In sports and entertainment, USA remained a top 5 entertainment network among key demographics, extending a track record of leadership spanning more than three decades. Live sports continue to drive large, highly engaged audiences.

In the WNBA's first season on USA, the network aired the three most-watched games across cable and streaming, while League One Volleyball increased viewership over its inaugural season, and the WWE continued to deliver large audiences. We're investing in sports where we believe we can create long-term value.

Last month, we announced a 5-year agreement with the Bundesliga, one of Europe's most renowned soccer leagues, known for passionate fans, iconic clubs and athletes, and global appeal. Beginning this season, we will broadcast more than 300 live matches annually, with at least 30 premium matches airing on USA Network and all remaining matches streaming for free on Fandango.

This agreement builds on our year-round sports offerings, expands our reach with soccer fans, and creates more opportunities to engage audiences across platforms. In addition to Bundesliga, the start of our NASCAR Cup Series coverage on USA Network begins this Sunday, and the return of the Premier League later this month provide a strong lineup of live sports as we enter the second half of the year.

In entertainment, we're driving viewership with a balanced portfolio of original programming and proven franchises. Our strategy is to build brands that engage audiences across multiple platforms for years to come, and that strategy is delivering results.

Everything on the Menu saw double-digit ratings growth in its second season, and we're excited to build on that momentum with our next generation of originals, including Anna Pigeon and The Golden Life, set to premiere this month and fall, respectively. Platforms continue to be an important part of our long-term strategy, and both Fandango and GolfNow delivered strong results.

We are evolving Fandango from a leading movie ticketing business into a comprehensive entertainment platform. A few weeks ago, we launched our new AVOD service, bringing ticketing, home entertainment, and free streaming together under the Fandango name.

AVOD is one of the fastest-growing areas in media, and we enjoy clear advantages from the well-known Fandango brand, broad connected TV distribution, rich first-party data, and unique and exclusive content, most recently with the addition of the upcoming live Bundesliga matches. The Fandango platform we're creating is anchored by a differentiated core business, as demonstrated by healthy ticketing volume growth.

In any given month, 50 million consumers visit either Fandango or Rotten Tomatoes to decide what to watch. Together, these platforms enjoy loyal customer relationships and support our long-term growth strategy.

GolfNow realized broad-based growth, including domestic rounds booked, global course relationships, payments volume, and GolfPass subscribers. We are further strengthening our leadership in golf and platforms with the acquisition of Full Swing.

Full Swing is a leading sports technology company serving one of the fastest-growing segments in the golf industry through immersive off-course golf experiences. The acquisition expands our portfolio with an interactive offering spanning immersive simulation, launch monitors, virtual greens, integrated software, and performance data.

As a trusted partner to many of the game's top players, Full Swing is growing rapidly, is profitable, and generates healthy recurring revenue. We believe Versant's leadership in golf uniquely positions us to accelerate adoption of Full Swing's technology across both consumer and commercial markets.

We believe there is meaningful upside in this market. Today, there are 38 million US off-course golfers, exceeding the number who play on traditional courses.

Since 2019, the number of off-course golfers grew more than 60%, and simulator golfers grew by more than 150%. More importantly, Full Swing will expand our golf ecosystem by broadening our relationship with the golf community.

Together with Golf Channel, GolfNow, and GolfPass, we are uniquely positioned to connect premium content, commerce, technology, and participation, creating more ways to engage golfers throughout their journey. There are also additional opportunities beyond golf, including baseball, where Full Swing's technology is already used by both college and professional teams.

We are also advancing our direct-to-consumer strategies around MS NOW, which will launch its direct-to-consumer experience ahead of the midterm elections, giving audiences new ways to engage with its hosts, programming, and community, while deepening engagement, strengthening the brand's relationships with viewers and fans. At CNBC, we're developing a next-generation digital platform that will combine CNBC's trusted journalism, exclusive access to leading voices in business, and AI-powered investing tools to become a premiere destination for investors.

Taking a step back, our accomplishments this quarter reinforced what we've believed since becoming an independent company just over 7 months ago: we continue to deliver premium content that expands our audiences, drove compelling results across pay-TV and platforms, renewed distribution agreements with valued partners, and advanced a strategic initiative that will further strengthen our leadership in golf. Looking ahead, we'll continue to invest where we see competitive advantages and clear returns, extending the reach of our brands while creating long-term value through scalable platforms.

Today's announcement of an additional $100 million accelerated share repurchase program alongside our quarterly dividend reflects our commitment to returning capital to shareholders, the enduring strength of our business, and the confidence in the opportunities ahead. With that, let me turn it over to Anand.

Thanks, Mark, and good morning, everyone. Our second quarter results reflect another quarter of disciplined execution of our strategy and progress toward our financial objectives.

We delivered EBITDA growth, strong margins, and meaningful free cash flow, while continuing to invest in the business to drive growth. Based on the strength of our first half performance and our expectations for the balance of the year, we are raising our full-year outlook for revenue from $6.15 to $6.4 billion to $6.2 to $6.45 billion, and for adjusted EBITDA from $1.85 to $2 billion to $1.9 to $2.05 billion.

On free cash flow, we are maintaining our prior expectation of $1 to $1.2 billion to account for natural quarterly fluctuations in working capital timing. Turning to our results, total revenue for the quarter was $1.64 billion, a decline of 4% compared to the prior year.

Excluding the impact of the SportsEngine divestiture, revenue declined 3%. Our performance reflects the resilience of our brands, strong audience engagement, and continued momentum in platforms, mitigating the secular changes in pay-TV.

Turning now to the components of revenue, linear distribution revenue was $954 million, down 6% year-over-year, reflecting subscriber declines that were partially offset by contractual rate increases. These trends were consistent with the prior year's performance.

Advertising revenue was $423 million, reflecting a slight 0.6% decline year-over-year compared with a 13% decline in the prior-year period. The improvement was driven by strong demand across our news and sports portfolio, favorable network ratings, and additional revenue from our acquisition of Free TV Networks.

Platforms was the fastest-growing part of Versant, with revenue increasing to $225 million in the quarter. It continues to play an important role in evolving our revenue base.

Excluding the impact of the SportsEngine divestiture, revenue increased 9%, driven by momentum at both Fandango and GolfNow. Fandango generated solid growth in tickets sold, video-on-demand transactions, and sales of our new cinema operating platform, while GolfNow delivered increases in US bookings, payments processed, and GolfPass subscriptions.

We are encouraged by the performance and continued progress in scaling platforms. Content licensing and other revenue was $43 million, which was flat year-over-year following the sharp uptick in the first quarter.

As we've discussed previously, this category can fluctuate from quarter to quarter based on the timing of licensing agreements. We view content licensing as a growth area over time, as there's continued demand for our owned programming and library.

Adjusted EBITDA for the quarter was $624 million, an increase of 3%, and reflects the breadth and depth of our audience, continued platforms growth, and disciplined expense management. Our margins remain above 30%.

Turning to expenses, we are focused on managing costs while investing behind our strategic priorities. Programming and production costs were $522 million, down 9% from prior year, as we continue to deliver premium content in a cost-efficient manner.

Programming costs fluctuate throughout the year, largely based on the timing of sports events. As we shared on the first quarter call, we expect sports rights costs to meaningfully increase in the second half, further impacted by an increase in NASCAR races this year, our first season with the WNBA, and golf events.

Each of these reflects the strength of our sports portfolio and breadth of audience. In light of this, we expect second-half programming costs to increase year-over-year, and in turn, adjusted EBITDA for Q3 and Q4 is unlikely to demonstrate growth versus the prior year.

Other costs of revenue were $128 million, $1 million higher than in the prior-year quarter. Increased costs due to higher transactional volumes related to our digital platforms and from our acquisition of Indie Cinema, now rebranded Fandango One, were largely offset by decreased costs from our divestiture of SportsEngine.

Total cost of revenue, representing the sum of programming and production costs and other costs of revenue, was $650 million, down 7% from the prior year. Selling, general, and administrative expenses were $369 million, a decrease of 8% compared to the prior year.

Looking ahead, we expect modest increases in SG&A as we support our growth initiatives, including the development of the upcoming MS NOW and CNBC direct-to-consumer offerings. We are focused on identifying efficiencies across our organization that will benefit 2026 and beyond, such as by optimizing our infrastructure and deploying technology to streamline workflows and improve productivity.

Finally, with regard to cash generation, liquidity, and capital allocation, free cash flow totaled $350 million during the quarter. As we've noted before, the timing of working capital and tax payments can create quarterly variability in free cash flow, and we anticipate higher capex in the second half of the year, largely associated with construction at our New York office facility.

As with adjusted EBITDA, we continue to anticipate that second-half free cash flow will be lower than the first half. Despite these timing distinctions, our business model delivers strong cash conversion on an annual run-rate basis.

We ended the quarter with approximately $1.5 billion of cash, which, together with our strong free cash flow generation, supports our capital allocation priorities of investing in the business, returning capital to shareholders, and maintaining a strong balance sheet. Demonstrating our commitment to returning capital to shareholders, we repurchased $100 million of stock in the second quarter under the previously announced accelerated share repurchase transaction.

Through today, we have returned $305 million to shareholders this year through $200 million of share repurchases and $105 million in dividends. This morning, we also announced our intention to commence an additional $100 million ASR during the third quarter.

At the same time, we're deploying capital into long-term growth areas with investments in the MS NOW and CNBC D2C offerings, the Fandango AVOD, and on disciplined M&A, such as the recent acquisition of Full Swing. We believe Full Swing, with its clear alignment and synergy with our leading golf brands, will generate attractive financial returns and value for shareholders.

In the second quarter, we executed and advanced our strategic priorities with financial discipline, positioning us well for the balance of the year and beyond. With that, I'll turn it back to the operator for Q&A.

Hi, good morning, all. I wondered if you could discuss your affiliate renewals and what, if anything, about those negotiations was different than the tone of negotiations under Comcast.

Then, if you could answer a second question, it'd be about the direct-to-consumer expansions of MS NOW and CNBC. I wonder what data or perspective you might have on the latent demand for those brands outside of the pay-TV subscriber base of today.

Thank you.

Thanks, Peter. I'll touch on the affiliate side.

We did some deals while we were still part of NBCU in 2025, and then we have a few deals up this year. There was really no change in how we approached it or how the distributors approached it.

We had very similar conversations. It was really about the value of our brands, the strength of our brands, and what it does for them to keep their subscribers happy.

The fact that we have a lot of live news and sports, we have some strong entertainment content, and that we are able to deliver audiences to our distribution partners made these conversations quite similar to anything we've experienced in the past. Really, I'll call it business as usual.

It was different because we were a different company, but very similar conversations. I think we had outcomes that both we and the distributors feel very good about that have long-term partnerships.

As it relates to the D2C, MS and CNBC are very strong brands with highly engaged audiences. We are creating direct-to-consumer products, not streaming products, because it is a much broader than just streaming what we do on television.

It is about serving those engaged audiences with content that is not just replicative of what we do on television. The strength of MS's highly engaged audience, and again, already watching 9 hours a week of our network, but also the size and scale of the audience that may or may not be watching us each and every day, who's interested in the point of view that MS has, I think we will be able to have a strong marketplace as we enter it.

CNBC already has direct-to-consumer businesses. We know that there's a demand.

We're simply reimagining and making them stronger and creating a destination for retail investors with a toolkit. Yeah.

Just to add on, Peter, there's a couple kind of indicators, too, that just reinforce what Mark said. As we've mentioned before, that MS has one of the biggest YouTube and TikTok presences.

Outside of pay-TV, we're already amassing big audiences. We have a big live events business that CNBC has had for some time and MS NOW has as well.

Then also we have two publishing businesses, the kind of the website and the apps for both MS and CNBC that are amassed big audiences as well. It's kind of everything Mark said, and both the CNBC subscription services and all those other things I just mentioned demonstrate there's a lot of appeal for those brands and for those businesses outside of pay-TV.

Good stuff. Thank you.

Hey, good morning. I have two questions as well.

Just the first on SportsEngine and Full Swing. Very encouraging to see the upgrade in revenue and EBITDA, despite the disposition of SportsEngine, which I think is about a $90 million headwind to full-year revenue.

My question is how much of the guidance increase was related to Full Swing contributions, kind of net of the SportsEngine disposition versus improvements in the underlying business? Then secondly, I was just wondering if you could talk about the ASR and what that means for your appetite for additional M&A if there's any relationship there.

Thank you.

Sure. Thanks, Mike.

On both questions, first, let me start with our guidance, and your point on Full Swing. Just to be very clear, our updated guidance is not because of the acquisition of Full Swing.

As we're getting a partial period here given we just closed the acquisition, and we established taking our kind of outlook up was based on the entirety of the portfolio. As there's a lot of ins and outs as you just mentioned, the SportsEngine divestiture, that comes out, Full Swing comes in, but no, it was not because of that.

It was just much more reflecting the confidence we have in the business going forward, not only second half of the year, but going forward after that. All the results we just talked about, the momentum we have in the first half and we see that continuing.

On the second question, on the ASR and M&A, we view our capital allocation policy, and I think we've demonstrated that, and we're going to continue to demonstrate it, is that these are ands, meaning we're going to invest to grow the business, we're going to return capital to shareholders, and we're going to maintain a healthy balance sheet. I think this quarter where we executed the Full Swing transaction and we're kind of again returning capital to shareholders in terms of the dividend and share buybacks demonstrates that, and our balance sheet remains very healthy.

That principle is what we're going to continue to run this business on, kind of now and going forward.

Great. Thank you very much.

Very clear.

Hi, thanks for taking the question. I bought a new Sony TV the other day, and when I was setting it up, I had, I don't know, 10 or 15 apps that were pre-installed that had asked me whether I wanted to add to my new TV setup with Google TV.

Fandango, interestingly, was one of those 15 along with other very much more high-profile apps, which certainly surprised me. You've rolled out this Rotten Tomatoes app, and you've announced a Fandango kind of AVOD to sort of take on what Tubi's done, now we've got Pluto replicating Tubi with on-demand.

It seems like there's some larger strategy that you're kind of noodling on around the movie entertainment business and how you monetize it, similar to sort of the golf vertical that you've gone really deep in or the finance vertical that you're going deeper and deeper into. I guess could you sort of lay out what you're thinking vision-wise or are there assets that you need to acquire to build this out?

Is it all internal? Just give us sort of a peek into what you're thinking about, because I feel like there's something there.

Sure. Thanks.

I hope you clicked yes and installed that.

I did, Mark. I did click yes.

I did, I promise.

Thank you. Listen, we start with Fandango as a very strong brand, right?

It's been widely known mostly as a movie ticket buying service. We start with a strong brand, and as you just experienced and articulated, a large install base in the connected TV world.

It pre-exists. That's a strong base to start on.

Where we aspire to move this, and we touched on it in our remarks, is to really create a comprehensive entertainment platform where consumers, under one brand, can find out where movies are, buy tickets to theaters, rent or buy films or TV series, watch for free at home with differentiated and exclusive content. With Rotten Tomatoes, it's really a great discovery platform.

We have 50 million people coming through the Fandango Rotten Tomatoes door in any given month, and the ability for us to have exposed them and transact with them on all three of those levels, free AVOD, buy or rent TV and movies, or purchase movie tickets, we think is unique that we have all three of those wrapped into one. The strength of our ability to work with all studios as an independent company, we think is also unique as others dabble in a variety of those areas.

What differentiates you from Pluto or Tubi? There's a lot of players.

Disney yesterday said they're launching an AVOD service. Paramount said they're thinking of it for Paramount or Paramount+, what makes Fandango unique from a product standpoint?

I think some of the main things. Some of it will end up being content for for each of us, and I think, our our deal with the Bundesliga where 270 Bundesliga matches will be exclusive to Fandango Stream is gives us a unique selling proposition.

Brought more broadly than just content, we, we have we have some deals in windows for movies and TV series, content will be one, but everyone will have a an angle on that. I think our ability, because of the transactional business around movie tickets and buying and renting film, films and TV series, our ability to target content and target advertising will will be distinct.

Again, that I think attached to our large install base and our independence away from all studios and our ability to work with all studios gives us a gives us a clear advantage.

Thank you.

Thanks, Rich.

Good morning, thank you. Your linear distribution growth firmed a bit relative to last quarter.

Is this seasonality, but trends on pay-TV or something specific to your deals? Second question, can you discuss the better trends in advertising?

What networks are driving this? Is it mainly about ratings?

There is also mentioned a recent acquisition, which we assume is Free TV Networks. Can you maybe frame the contribution and how that's performing to date?

Thank you.

I'll take the first one on the linear distribution. We have long-term deals with most of the operators, or all the operators.

We just finished two more. We are not blind to the normal headwinds that everyone in the industry is facing, but we are able to strike deals that allow us to mitigate some of those headwinds.

Then the rest of that mitigation will come by our capital allocation and investing in our businesses, both organically and with strategic and disciplined M&A. Again, not blind to what's going on in the distribution world, but our strategy is to be able to mitigate that, and we believe we're making significant headway.

Great. On the advertising question, a couple things.

The strength was pretty broad-based. Now, one of our kind of hallmarks is we have a very sports and news and live event focused kind of programming.

It's about 60% of our audience. That's the kind of programming that's resonating very well.

Mark went through the rating success we've had kind of across the board, a lot of it in those areas, and it's with that engagement, it has a lot of demand from marketers. I think that's a big driver, it's pretty widespread in terms of there's not one specific network or asset that's driving our strength, and we're proud it's broad-based.

Second part is in terms of kind of an acquisition adding to it, and the business here is Free TV Networks. The underlying organic growth is what kind of drove the kind of trend improvements.

Sure, Free TV Networks is a business we really like and it's contributing, but that's not the driver as to why you saw the significant improvement from the prior period.

Great, and maybe a follow-up on Bundesliga rights. It's a novel approach to use sports mostly for a FAST channel.

Can you speak a bit to your strategy here? Yeah.

For

for us and and it was a a unique opportunity to work with them. We we've had a lot of success over the years in our previous experience, but even continuing in as Versant with the Premier League and with sports to drive adoption of platforms.

The Bundesliga was an opportunity that we saw to create, at scale, live sports content, a a significant number of hours, 6 or 700 hours of live sports, and be able to both serve our pay-TV customers with premium matches on USA, and create a new marketplace for ourselves in free AVOD, and and bring in a new group of people who may not have experienced Fandango for the services and the content that sits there now, but trying to to build circulation. Sports has been one of those those things in the industry that has done that, and we decided that this was a a smart investment in in a sport that we know has a very loyal and engaged fan base.

Thank you.

Thank you. Just a little bit more on the pending direct-to-consumer launches.

Given that there's a lot of fluidity in bundling, packaging platforms, integrating other entities, what is your view on your strategy there? Would you be looking to partner to help drive the subscriptions?

How much do you want to lean into Peacock since they do need some more scale? Then also on the advertising side, what are you doing to help with the NBC ad sales thing, and when would you want to be taking that back in-house?

Thank you.

On the D2C, we're going to launch them independently to start. We do have some of our deals with our MVPD and partners allows for us to be bundled into what they're doing for customers, and we think that's an opportunity to quickly gain more subscribers and usage.

We are open and having active discussions across the industry on where bundles might make sense. We think it's one of the advantages that we have as a new independent company is we're not beholden to any specific company for distribution.

We can work with any and everyone, and I think over time you will see us doing just that.

I think the next one's on Mark, on the CSA. Oh,

on the CSA, sorry, I lost track. On our deal with NBC has been going very well, and I think if you looked at the advertising trends of what we're seeing, it's hard to deny that.

We've had a very strong relationship there. It does have a time.

It was a 2-year deal. At the appropriate time, both sides will determine whether it makes sense to continue on or whether we should make another plan or do it ourselves.

For right now, we're very much focused on partnering with them. They've been great sellers and stewards of our brand.

We're going to support that, and together we'll sit down with them and each party will determine if it's in our best interest. We're months if not a year away from that determination.

Appreciate the color. Thank you.

Thanks.

Hey, good morning, everyone. Thanks for taking the questions.

First one for me, what's the biggest synergy opportunity you see in Full Swing? Clearly, it fits within a portfolio of golf businesses, but can you just help us understand in practical terms, what are the biggest benefits by being under the Versant roof?

I think quite simply, first, golf participation is growing. Our golf ecosystem of Channel, GolfNow, and GolfPass, we can really accelerate the adoption.

It comes in a couple of forms, right? First will be just marketing.

We'll be able to market the product both to commercial entities and to consumer users, very simply through Golf Channel, GolfNow, GolfPass. Second big piece would be we have a massive GolfNow sales force who talk to golf courses and golfers every single day, and they will now have another product that they can sell into those establishments.

Those are things that Full Swing, as successful as it is and excited as we are, we can instantaneously add to their exposure and their sales team. We're very excited about that sort of opportunity, and, oftentimes in M&A, people talk about synergy being about cost.

For us, this is about revenue synergy. Got it.

You all continue to execute on these M&A opportunities. Is there a limit on size you're willing to entertain for M&A?

Mark earlier used the word disciplined, and you all have been committed to leverage levels, but if something larger comes up, what's the willingness either through the balance sheet or through equity to take advantage of that? I think

on the question, Brent, as capital allocation, we've talked about our leverage, 1 2 5, that ratio being our North Star. Anything we do, if we were to be below or above it, you would expect us, and we expect ourselves to kind of get back to that in relatively quick order.

I think again, that question about, we would never say we're going to exclude considering something, it would have to go through our disciplined process, make sure it adds value to shareholders, that we're going to be a great buyer, some of the synergies, for example, that Mark talked about in Full Swing. We look at that about the unique value we add on any potential deal we do.

Then in terms of kind of capital structure and capital allocation, again, it's going to have to align with those three principles about growing our business, evolving our business model, enabling us to maintain a healthy balance sheet, and most importantly, driving value to shareholders and enabling us to return capital to shareholders as well.

I think hopefully, we've proven that, and we have capacity because of the way we've managed to date.

All right, thanks, guys.

Thank you.