AMASS Brands (NASDAQ:AMSS) Q2 2026 Earnings Call

0:00 Greetings, and welcome to the AMASS Brands Second Quarter twenty twenty six Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Rob Kelly, Vice President, Investor Relations. Thank you. You may begin.

0:32 Good morning, everyone. Thank you all for participating in today's conference call. On the call with us today are Mark Thomas Lynn, Founder and Chief Executive Officer of AMASS Brands and Zach Ament, Chief Financial Officer. Earlier today, the company issued a press release announcing its financial results for the three and six month periods ended 06/30/2026. The release is available on the company's website and our quarterly report on Form 10 Q can be found both there and at www.sec.gov. We will begin with management's prepared remarks and then open the call to analyst questions. Before we begin, I want to remind everyone that today's call may include forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding our expected business performance, brand and category strategy, distribution and channel plans, revenue outlook, gross margin, liquidity and capital resources, and our plans to obtain additional financing.

1:30 Forward looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Important factors that could cause actual results to differ materially are described in today's earnings release and in the company's filings with the SEC, including the risk factors described in our perspective dated 05/18/2026, our quarterly report on Form 10 Q for the quarter ended 06/30/2026, and our subsequent filings. Those filings include disclosures regarding substantial doubt about the company's ability to continue as a going concern, our need to raise additional capital, and the notifications we received from NASDAQ on 07/22/2026 regarding its new listing requirements. We encourage you to review those disclosures in full.

2:16 Forward looking statements made on this call speak only as of today and AMASS undertakes no obligation to update them except as required by law. You may also disclose non GAAP financial measures on today's call, including gross profit by segment, by channel and by brand grouping and adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures are included in today's earnings release and our Form

2:38 10 Q. I would now like to turn the call over to Mark Thomas Lynn, Founder and Chief Executive Officer of AMASS Brands. Mark? Thank you, and thank you everybody for joining us. This is AMASS Brands first earnings call as a public company. So I want to start by stepping back from the quarterly numbers and explain what we believe is happening inside the business. Q2 was an inflection quarter for AMASS. During the quarter, we became a NASDAQ listed company. Our core brands grew double digits, our non alcoholic and functional business more than doubled, our direct to consumer business expanded significantly, and we continued simplifying the mass around the brands and categories we believe have the greatest opportunity to create long term shareholder value.

3:25 However, there is considerable noise in the reported financial results this quarter. We absorbed substantial costs associated with becoming a public company. We experienced short term margin compression and continued winding down or deprioritizing some of our legacy products. These factors affected both reported profitability and gross margin. But underneath them, we believe the shape of the future of AMASS is becoming significantly clearer. So there are five numbers I want investors to keep in mind throughout today's discussion. 132%, that's the year over year growth of our nonalcoholic and functional segment 480%, that's the approximate year over year increase in our direct to consumer and e commerce revenue 12%, that's the year over year growth of our core brands in Q2.

4:16 And 67%, that's the percentage of brand level revenue represented by our core brands in Q2, compared to 62% a year ago. And finally, 43.7%. That's the Q2 product margin generated by those core brands. So these numbers illustrate the business we are working to build, which is a more focused AMASS that concentrates capital behind the brands with the strongest growth and unit economics, while leveraging the beverage infrastructure we've already built across sales, distribution, supply chain, and retail. So rather than maintaining that infrastructure around every historical brand, we are becoming much more disciplined about where we invest using our shared platform to scale fewer, higher potential brands more efficiently, and all while trying to reduce costs and working capital elsewhere in the business.

5:09 So we believe this combination of greater focus and shared infrastructure can drive stronger growth, better margins and more capital efficient business over time. So to speak more on how we're refocusing the business. A more focused AMASS. So our four priority core brands today are Summerwater, Fizzolato Muse, Good Twin, and AMASS Electrolytes. Together, these brands generated approximately $3,900,000 of brand level revenue during the second quarter, which is an increase of 12%. For the first six months of twenty twenty six, core brand revenue grew 11%. At the same time, discontinued brand revenue declined 27% in Q2 and 52% during the first six months. That's very intentional.

5:55 We want a smaller number of brands accounting for an increasingly large percentage of our revenue, our marketing investment, and our management's attention. We believe that we can make AMASS simpler to operate, more capital efficient, and ultimately more scalable. Rather than trying to maximize the number of brands we own, we're focusing on maximizing the returns on the capital we deploy within those brands. As our core brands become a larger percentage of the business, we believe that should translate into stronger organic growth, improved margins and more capital efficient operating model. So our goal is to concentrate around these brands that we believe have the greatest potential to become substantially larger businesses. So within that, I'd like to speak about the non alcoholic and functional part of the business. So the second major development in this quarter was the continued emergence of this category.

6:45 Beginning in Q2, we began reporting wine and spirits and nonalcoholic and functional as two operate and distinct segments. We made the change because it increasingly reflects how we actually manage the company and allocate resources. And the early growth profile is noticeable. NA and functional revenue increased to approximately 409,000 in Q2. That's growth of 132%. For the first six months, revenue increased approximately 133% to roughly $933,000 That growth reflects continued expansion of Goodwin together with the Q2 launch of AMASS Electrolytes. So I want to speak a little bit more about AMASS Electrolytes. This was the first quarter the brand generated revenue, so we remained very early in the process.

7:34 But that said, the preliminary feedback from our distribution and retail partners together with early e commerce performance has increased our conviction in the opportunity massively. We believe the model can be particularly attractive at scale, with potential for strong gross margins, fast working capital terms, and a scalable e commerce business. We have now opened or have received commitments to open distribution in California, Colorado, Illinois, Michigan, Georgia, and finally New York. While it is still very early, we believe that initial performance is encouraging and supports our view that AMASS electrolytes can become a meaningful growth driver for the company. So now we're not providing brand level guidance today, but this has quickly become one of our highest conviction incubation opportunities.

8:23 Goodwin. Goodwin is another important part of our non alcoholic and functional strategy. The brand continued to grow in Q2 across wholesale and direct to consumer, and has become one of the fastest and best selling organic non alcoholic wine brands in The U. S. That growth created some short term margin pressure as faster sell through required expedited freight to maintain availability at certain retailers. We expect that pressure to ease as inventory planning, replenishment cadence and freight start to normalize. The focus is on supporting continued demand with better availability and improving unit economics. On to direct to consumer. This is another area where we saw meaningful progress

9:08 the last quarter. DTC and e commerce revenue increased to approximately $178,000 in Q2 from approximately $31,000 a year ago. For the first six months, increased to approximately 328,000 from approximately 78,000 previously. All of our DTC and e commerce revenue during the current quarter came from nonalcoholic products, Goodwin and AMASS electrolytes. It remains a small portion of consolidated AMASS revenue today, but strategically, we think the channels matter. Our traditional wholesale business gives us reach in distribution, And DTC gives us direct consumer relationships, a faster feedback loop, and greater control over demand generation and ability to learn quickly as we launch these new products. So as such, we plan to make meaningful investment behind this channel to facilitate that continued growth. And we think over time, the combination of DTC demand generation and traditional beverage distribution could become an important competitive advantage.

10:10 So on to wine and spirits. Revenue declined approximately 3% in Q2 and 5% for the first six months as we continue to rationalize the portfolio and reduce investment behind lower priority brands. But at the same time, we are seeing meaningful strength within our core portfolio there. So Muse reached number one, the number one position in The US organic sparkling wine category by dollar share, and distribution is now expanding across Whole Foods market nationwide. Our approach to wine and spirits is increasingly selective, manage certain legacy brands for cash flow while concentrating capital behind the brands where we see the strongest growth margins and return potential. So before I hand things over to Zach, I want to reiterate the financials this quarter reflect a business that's in transition, but they also reflect a portfolio that's becoming much more focused, higher quality, and better positioned for long term growth. We'll come back to our outlook and guidance later on the call, but I believe the underlying trends we're seeing today support the confidence that we have in the business going forward. With that, I'll turn the call over to Zach to walk you through the quarter in more detail.

11:21 Thanks, Mark. As Mark outlined, the second quarter reflects the business in transition. While our consolidated results include the impact of winding down lower priority brands and the costs associated with becoming a public company, the underlying trends in our core portfolio remain encouraging. Let me walk through the financial results in that context. Net revenue for the second quarter was approximately $5,600,000 which was an increase of 2%. For the first six months of the year, net revenue was approximately $9,700,000 compared to approximately $9,800,000 last year. As Mark discussed, the consolidated results only tell part of the story. Our core brands generated approximately $3,900,000 of revenue during the quarter, increasing 12% year over year.

12:08 Revenue from our non alcoholic and functional segment increased 132%, while our wine and spirits business remained relatively stable and continues to generate the majority of cash flow that supports investment in our newer growth categories. We believe those underlying trends provide a better indication of where the business is headed than the consolidated revenue growth alone. Gross margin reported for the quarter was 26.7%. It's not where we want to operate the business, but it's equally important to understand where the compression occurred. Our core brands generated a 43.7% product margin during the quarter, compared with 44.9% in the prior year period. Other brands and discontinued brands accounted for the majority of the compression with product margins of 28.114.2% respectively.

13:02 That's an important distinction because it demonstrates that the pressure this quarter was concentrated primarily in the brands we're intentionally exiting, not the brands we're investing behind.

13:13 There were four primary drivers of the year over year margin decline. First, our decision to accelerate the sale of slow moving inventory, including inventory sold below cost as part of our portfolio rationalizations. Changes in our product and channel mix, higher trade spending to drive future revenues and higher tariffs on imported wine and elevated freight costs. I'd like to spend a moment on those inventory actions because they were entirely intentional. We made a conscious decision to prioritize liquidity and simplify the portfolio rather than preserve accounting margins on products we've already decided to exit. As one example disclosed in the filing, we've sold certain aged inventory at a discount, in some cases below cost, and diverted into cash. That isn't how we intend to operate the business over the long term. It was a deliberate decision to monetize noncore inventory, improve working capital, and further simplify the portfolio.

14:14 Excluding inventory write downs and other comparable adjustments, adjusted gross margin was approximately 29.3%. As core brands continue representing a larger percentage of our revenue, we believe the underlying economics of the business will increasingly resemble the portfolio we're building rather than the portfolio we're exiting. Moving on to profitability. Gross profit for the quarter was approximately $1,500,000 loss from operations was approximately $5,900,000 and net loss was approximately $7,500,000 for the quarter. That being said, we made significant adjustments in the quarter to EBITDA to approximate how we view the business on a cash and ongoing basis. Adjusted EBITDA loss for the quarter was approximately 1,700,000 The reconciliation adds back approximately 4,300,000 in total. This includes approximately 1,400,000 of one off deal and direct listing costs, things such as the placement agent, listing legal fees and the initial NASDAQ listing payment.

15:18 Approximately 1,900,000 of banker and advisory fees settled in stock rather than cash and the remaining balance is largely the inventory write downs and other clearance related items I covered under gross profit, along with other smaller items included in the reconciliation. Additionally, we had approximately $1,000,000 related to non cash accounting charges associated with automatic conversion of our convertible notes into common stock upon our NASDAQ listing. We think it's important to distinguish between our underlying operating performance, one time costs of the company going public, including transaction costs, and these non cash accounting items when evaluating a quarter.

16:06 Our priorities are straightforward: continue growing the core brands, improve gross margin, reduce our corporate cost structure and allocate capital more selectively. With that, I'll turn the call back to Mark to discuss our outlook and priorities for the remainder of the year. Before I close, I want to walk through the outlook we introduced in today's release, our first financial guidance as a public company. As we've discussed throughout today's call, we believe the business is entering a different phase. Much of our recent work has focused on simplifying the portfolio, strengthening our operating platform, and concentrating investment behind the brands and categories where we see the greatest long term opportunity. We believe today's guidance reflects the early benefits of that work. Based on current trends and our operating plan, we expect a return to year over year growth in the second half of fiscal 'twenty six.

16:59 With second half net revenues of at least $8,700,000 up at least approximately 10% from the second half of fiscal 'twenty five, We expect to grow 10% year over year for both Q3 and Q4, which would put net revenue of at least 4.4 and 4,300,000 respectively. That puts full '26

17:21 net revenues at no less than 18,500,000, which is growth of approximately 4% over fiscal twenty five. And looking ahead, we are targeting net revenue growth of at least 20% for fiscal twenty seven over fiscal twenty six, which will put net revenues at a minimum of $22,200,000 We framed every guided period including '27 as a floor, numbers we genuinely expect to meet at a minimum.

17:52 So I'm going to finish where I started. This was not a clean quarter. It was a quarter in which AMASS became public. It included significant costs associated with the direct listing. It included portfolio cleanup. It included inventory actions. It included some margin pressure, and it highlighted work we have ahead of us around profitability and liquidity. But it was also a quarter in which the future shape of AMASS and the business we're building became considerably more visible. Our nonalcoholic and functional business grew 132%. Our direct to consumer business expanded more than 480% year over year. Our core brands grew 12%. Our core brands increased to approximately 67% of brand level revenue, and those core brands generated a 43.7% product margin.

18:42 These are the numbers we believe matter when

18:44 assessing what the company can become. We believe AMASS is transitioning from a broad portfolio of beverage assets toward a more concentrated operating company, built around a smaller number of high conviction brands, non alcoholic and functional is increasingly central to that strategy, Goodwin is growing, AMASS Electrolytes has begun generating revenue, our direct to consumer relationship is developing, and our strongest brands are accounting for a larger percentage of the company.

19:11 Over the coming quarters, we intend to demonstrate three things. First, that our core brands can sustain attractive growth. Second, that increasing core brand mix and better operating execution can translate into materially improved margins. And third, that we can reduce the amount of corporate capital required to support that growth. We believe if we can execute against these priorities, AMASS will emerge as a simpler, faster growing and significantly more capital efficient beverage business. The next phase of growth is about execution. Grow what is working, fix or exit what is not, improve margins, reduce unnecessary costs, strengthen the balance sheet, and concentrate capital where we believe it can generate the highest return. We are early in that process, but we believe the direction is increasingly clear. We have a lot of work ahead of us. We believe the most valuable chapter of AMASS is still ahead.

20:07 Operator, with that, let's open it for questions. Thank Our first question comes from the line of Thomas Forte with Maxim Group. Please proceed with your question. Great. So Mark and Zach, congratulations on becoming a publicly traded company. I have one question, one follow-up. I'll go one at a time, and then I might get back in the queue for additional questions. So Mark, can you talk about your portfolio approach to the business and how you've made adjustments to your portfolio in the past, including both additions and subtractions, and how you intend to do so going forward?

21:04 Yeah, absolutely. So I think, you know, we're really focused on kind of rationalizing the portfolio down to, you know, brands that give us the highest potential with the best working capital and best margins. So as you can see kind of from the queue, we're investing heavily behind Goodwin and AMASS Electrolytes, at the same time kind of rationalizing and deprioritizing

21:36 and winding down lower priority brands. So this is obviously going to kind of create near term inefficiency because we're carrying the cost of building the future portfolio while still kind of absorbing some of the costs of the legacy assets. And you can kind of see this in this transition quarter. Adding resources behind the brands we believe can drive the next phase of growth while removing the complexity and costs from, you know, parts of the portfolio that really no longer meet the thresholds for the type of growth that we want to see. Excellent. All right. Second, can you discuss your efforts in the functional beverages category, including your line of electrolyte mixers, and how you intend to capitalize on the functional beverages opportunity in general?

22:27 Yes. So we're really, really excited about, you know, the shift into functional. Obviously, fast growing, you know, part of the market.

22:43 A good example of this is AMASS Electrolytes, which we just launched and started generating revenue in Q2, as well as obviously Good Twin, which is in the broader nonalcoholic and functional segment. Obviously, we're using our infrastructure that we already have, the distributor relationships, the retail access, the sales capabilities and product development and DTC to kind of launch and scale these products as efficiently as possible.

23:08 And obviously, we're early and not providing kind of line item guidance on electrolytes yet, but as you can see, the nonalcoholic and functional, you know, segment grew 132% in Q2. So it's obviously coming from a small base, but we believe that it's going to, you know, be a much more meaningful part of our revenue matrix as we go forward. So seeing very strong, you know, very strong response in expanding distribution, specifically with Electrolyte as well and, you know, actually Goodwin, too. You can see that some of the margin pressure actually in Q2 was from, you know, our need to expedite some freight around Goodwin. We received a large national retail placement that was, you know, we were hoping to land in, you know, Q1 or Q2 of next year, and that actually got moved up dramatically and that forced us to do some expedited freight to meet the demand of that big national retailer.

24:16 But obviously, that created some margin compression in Q2, but we think it was ultimately the right thing to do because that's going be a a very long term and kind of prestigious relationship for the company to have. So, you know, I think it's keep, you know, keep concentrating resources behind the functional products and we're excited to be able to see where what that looks like in terms of the matrix going into Q3 and Q4 here.

24:50 Great. So I'll step aside and then re queue for follow ups in case others have questions. Thank you. Thank you. Our next question will be a follow-up from the line of Thomas Forte with Maxim Group. Please proceed with your question.

25:16 Great. Thanks. Alright. So for my follow-up questions, I wanted to go high level. So, Mark, I really think that you've built AMASS to take advantage of the current and future opportunities in the beverage market. Can you talk about the secular shifts just as far as the changing drinking habits of younger consumers and how you've positioned AMASS to capitalize on those secular shifts?

25:44 Yeah, absolutely. So, you know, obviously, it's been a very, you know, a very interesting time specifically in kind of, you know, the beverage alcohol space. You saw, you know, massive demand through COVID. And then there's this kind of wholesale, you know, shift in how younger consumers have been,

26:07 you know, have been thinking about this category. So they're increasingly kind of moderating alcohol consumption and looking for beverages that provide something beyond kind of refreshment. So that's like whether that's hydration or functionality or energy or just really a sophisticated nonalcoholic, you know, alternative.

26:30 And that's a major reason that we're obviously moving and shifting into a lot of our resources and kind of North Star growth into nonalcoholic and functional, because we don't really view this as a short term trend. We look at this as kind of a secular shift. But with that said, it doesn't mean that beverage alcohol is dead. And if you look at our if you look at the matrix of our portfolio, you know, we are even within the beverage alcohol space, we're obviously focused on the areas of that space that are meeting the consumers where they are today. So, you know, organic, non you know, organic, biodynamic, no sugar added, you know, all of these things where people when they are drinking, they're being more conscientious about what they're actually putting in their bodies and what, you know, they're essentially reading the label, you know. And so, you know, I think we're very well positioned within our core bev alc portfolio, and we are in the right areas and the growth areas of beverage alcohol.

27:39 But we really want the business to be, you know, positioned to participate in the shift to these alternative products and the two kind of North Star, you know, brands within that segment today are Goodwin and AMASS. So but, you know, our leading core brands on the ALK space, obviously, we have Summerwater, which is actually a zero sugar, you know, Rose, which just won 92 points this year from wine enthusiasts, which we're very excited about. So very, you know, very good value for money. It's the best selling domestic premium rose in The U. S. Pizzolato

28:25 is obviously, you know, growing very, very nicely, and that's the number one organic sparkling in The U. S. So I mean, we are in the right growth areas within BevElk and not as susceptible, we believe, to the same pressure that some of the other legacy, you know, legacy categories have there. But we see, you know, tremendous amount of growth coming from the nonalcoholic and functional segments going forward. Great. And then next, you have two small bets but very interesting bets in emerging categories, one in THC and one in essentially like protein water. Can you high level those investments?

29:12 Yeah. So the I'll start with the protein water. So we acquired a controlling stake in a brand called HBO, and that would be our first kind of fully, you know, functional brand. And it's basically a hydrolyzed pea protein sparkling water. And, you know, as what, you know, one of the major reasons that you're seeing a little bit of a downtick in alcohol other than just the, you know, younger people is actually the shift to people with, you know, taking GLP-1s. I believe one in eight Americans is on GLP-1s today. And, you know, all of those customers need more protein and they need incremental ways to get it into their diet. And so HBO is a really delightful way to bring, you know, smaller amounts of protein but on regular cadence through your day. So if you're somebody like myself who drinks a lot of sparkling water, you can get kind of an incremental maybe 20 to 30 grams of protein without, you know, without sacrificing the flavor of the you know, of your favorite brands.

30:24 So, you know, once again, that's a small bet today, but we believe that that brand has enormous potential. And then secondly, you know, in the hemp THC space, you know, if you've been following the regulatory environment, it's very exhilarating, shall we say. But, you know, that category has been operating under an exemption from the 2018, I believe, Farm Bill. There is a looming ban that was supposed to come in November that has now been pushed by Congress to December to allow them to, you know, create enough of a window to potentially put a regulatory environment that would allow that category to be treated like beverage alcohol.

31:18 And there's a lot of lobbying on, you know, on both sides. But if things go in the right, you know, in the right direction there and it, you know, it gets broadly legalized, it will be legalized in a very similar way to alcohol operating through beverage alcohol distributors and sold through retailers that currently carry beverage alcohol. So you will have seen over the last couple of months, even massive retailers like Target have been expanding and experimenting in this space. So my local Target actually has these products on shelf, the hemp THC products. And so if sensible regulatory regime comes into place that has, you know, age gating and dosage requirements and things like that, that could be an absolutely massive category with huge asymmetric upside.

32:10 And we would have a view that it would be a very compelling and exciting place to participate, you know, if those changes come into effect. So we wanted to have line of sight of a horse in that race if, you know, if the regulatory environment goes the right way. Excellent. All right. Last question for me. Can we zero in on the success of Good Twin? Can you talk about how you've been able to ramp the distribution for that over time? And I've noticed anecdotally you have multiple SKUs, not just Good Twin but others in Whole Foods. But can you talk about I think Good Twin's a great example of, something you identified as an opportunity. It's been incredibly successful and it's clearly growing.

32:55 Demand was so strong, as you pointed out, you had to airfreight or you had to expedite product. So, can we zero in on Goodwin? Sure. Sure. So, I mean, Goodwin is a, you know, a premium nonalcoholic sparkling wine made in Tradiso, Italy. And I think it really just demonstrates that consumers are actively looking for, like, premium adult non alcoholic drinking occasions. And so, we're really focused now on, you know, improving, obviously, the forecasting and making sure we can maintain the ability and scaling that brand, you know, with better unit economics. But it has become, you know, one of the leading organic non alcoholic sparkling wine brands in The U. S. I think we've been jockeying between the first and second position there.

33:48 And what's kind of particularly important is that the, you know, the growth has been strong enough to create inventory pressure, right? So it's been explosive. And that was an internal incubation, you know, that was a brand that we launched, I believe, a little over twenty four months ago. And so that kind of shows the capacity for us to do, you know, innovation, you know, within the portfolio and go from kind of an idea to a market leading brand in a very short amount of time. And so I think that that's kind of one of the big call outs. So as we think about our journey here over the next, you know, the next several quarters and several years, we want to be able to, you know, to continue to show that muscle memory of being able to identify trends early, get that initial market feedback, and then be able to scale to a leading national product very aggressively and very quickly.

34:50 And so, yeah, it's a very exciting product. Okay. So Mark your answer inspired me for one more. So can you talk then about how quickly you were able to identify the opportunity with the electrolyte mixers and turn that from an idea to a product on the shelves? Yes. So once again, you know, internal incubation, we started ideating, you know, around that trend in January of this year. And that, you know, the brand launched in Q2 at the end of Q2. I think we, you know, we announced that we had, you know, had hit about a $36,000 you know, revenue right at the end of the quarter. So I mean, it was a very, very small amount of revenue, you know, in the quarter. But if you look at that kind of annualized and consider that the brand was just a, you know, a twinkle in our eye at the start of the year, you know, we think it demonstrates, you know, another incredibly high conviction, you know, high conviction bet. And the initial response from both customers and distributors has been, you know, resoundingly positive.

36:19 And we think that that brand, you know, is going to be a very exciting part of the AMASS future because it kind of lends itself, you know, in a myriad of different ways to, you know, allow us to sell through not only all of the retail relationships that we have, but it's also an incredible product for direct to consumer because obviously the sachets are much lighter and easier to ship and at scale have very, very strong gross margins. More broadly, the working capital of that category is, you know, it's made domestically and you can scale essentially on demand. So we think that that's a, you know, very exciting place within company's, you know, new segment.

37:15 Excellent. Thank you, Mark. Thank you, Zach. Thanks for taking all my questions. I appreciate it. Thank you, Tom. Yeah. Thanks, Tom. Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I'll turn the floor back to Mr. Lynn for final comments. Thank you. And thanks, everyone, for joining today. Just to recall out, obviously, we're really focused on execution, growing the core brands, you know, improving margins, allocating capital behind the opportunities where we see the greatest potential. And so, you know, we do believe the company is becoming a simpler, stronger business, And we look forward to updating you all next quarter with those results. Thank you.

38:03 Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.