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Operator: Good day, everyone, and welcome to the Century Casinos, Inc. Q4 2025 Earnings Call. At this time, all participants are in a listen-only mode. You may register to ask a question at any time by pressing star one on your phone. Please note this call is being recorded, and I will be standing by should you need assistance. I will now turn the call over to your host, Peter Hoetzinger. Please go ahead, Peter. Peter Hoetzinger: Good morning, everyone. Thank you for joining our earnings call. We'd like to remind everyone that we will be discussing forward-looking information under the safe harbor provisions of the U.S. federal securities laws. The company undertakes no obligation to update or revise the forward-looking statements, and actual results may differ from those projected. Throughout our call, we refer to several non-GAAP financial measures, including, but not limited to, adjusted EBITDAR. Reconciliations of our non-GAAP measures to the appropriate GAAP measures can be found in our news releases and SEC filings available in the Investors section of our website at cnty.com. With me today are my Co-CEO, Erwin Haitzmann, and our Chief Financial Officer, Margaret Stapleton. After our prepared remarks, we will open the call for questions from analysts. Century Casinos, Inc. delivered solid results in 2025, with full-year adjusted EBITDAR increasing 3% year over year. We achieved that growth despite the loss of sports betting income in Colorado and the significant licensing disruptions in Poland. Excluding the sports betting income in Colorado and the Poland impact, EBITDAR would have increased by 5%, driven by strong performances in Missouri, and a nice rebound at Mountaineer in West Virginia. Turning to the fourth quarter, net operating revenue was flat, impacted by unusually poor winter weather in December, but adjusted EBITDAR was up 13%. We delivered double-digit EBITDA growth at several of our casinos, including in Colorado, at Mountaineer, West Virginia, and in Caruthersville, Missouri. And at the Nugget in Reno, EBITDA was up 21%. Across the entire U.S. portfolio, the trend of strong play from our high-value and core customer segments continued, and we are also beginning to see improvements at the lower end of the database. While total rated GTR declined a bit, this was offset by growth in the retail segment. I will now turn the call over to Erwin for more color on our individual properties and markets. Erwin Haitzmann: Thank you, Peter, and good morning, everyone. Let me start with our results for the fourth quarter and full year 2025. Beginning in Missouri, our Century Casino and Hotel Caruthersville had a fantastic quarter and year. EBITDA in Q4 increased from $4.9 million to $6.1 million, and EBITDA in 2025 grew from $19 million to $24.4 million, a $5.4 million, or 28%, increase. Rent due to VICI was $7.5 million in 2024 and $11.6 million in 2025, a $4.1 million increase. A quick recap: We acquired Century Casino and Hotel Caruthersville, a $12 million EBITDA-per-year property, in December 2019, when the casino was still on a riverboat. With improvements to the gaming floor and the move to a temporary land-based facility, we grew the property to $19 million of EBITDA by 2023. With the transition to the permanent casino and hotel building accomplished in November 2024, Caruthersville is now an almost $25 million EBITDA property, effectively more than doubling EBITDA within the last six years. The success of this property comes from its ability to attract more customers from every direction. We see increases across all age groups, value segments, and distances. The biggest gains are coming from high-value customers, that is $400+ ADT, middle-aged customers aged between 40 and 59, and customers from more than 49 miles away. Building a right-sized, approachable, almost intimate casino paid off. Our investment in the property has been a success and sets us up for sustainable growth for the next several years. Now to Century Casino and Hotel Cape Girardeau. Our property in Cape Girardeau saw declines in both the quarter and the year. EBITDA in Q4 decreased from $6.8 million to $5.9 million, and EBITDA for all of 2025 decreased from $25.6 million to $24.7 million. In 2025, Century Casino Cape Girardeau lost some market share to our property in Caruthersville, which it gained in 2024 when Caruthersville was in a temporary facility with limited space and amenities. Both properties are only 85 miles apart. When we acquired Century Casino Cape Girardeau, also in December 2019, it was already a beautiful, financially successful property with a well-appointed gaming floor, restaurants, and a conference center. Annual EBITDA at that time was $19 million. The only amenity the property lacked was a hotel, so we built one. We opened the 69-room The Riverview in April 2024. Since then, we have also added a Starbucks cafe and a retail sportsbook. All these amenities complement Century Casino Cape Girardeau, which is without doubt one of the best small casino resorts in the United States. The 2025 EBITDA of $24.7 million was achieved despite a new competitor in one of Cape Girardeau’s feeder markets, Illinois, which opened in 2023. To sum it up, as we have already said on past earnings calls, we could not be happier with our Missouri properties, and we thank our Missouri leadership and their teams for their commitment, strong results, and loyalty. Now moving to Colorado. At Century Casino and Hotel Cripple Creek, EBITDAR in Q4 increased from $1.1 million to $1.5 million. EBITDA in all of 2025 decreased from $7.5 million to $6.3 million. The year-over-year EBITDA comparison, however, is skewed by a one-time termination payment of $1.1 million received from a sports betting provider in 2024. Therefore, without this, EBITDA at Cripple Creek would have been almost flat year over year. At Century Casino and Hotel Central City, EBITDA in Q4 increased from $0.5 million to $0.7 million. EBITDA in 2025 in total decreased from $4.9 million to $3 million. The year-over-year EBITDA comparison is also skewed by a one-time termination payment, in this case of $1.4 million, received from a sports betting provider in 2024. At the start of 2025, we eliminated table games at Century Casino Cripple Creek and Century Casino Central City. This turned out to be the right move. At both properties, the loss of the table games revenue was more than offset by payroll savings. Slot revenue did not suffer because of the removal of table games. Over the course of the year 2025, both properties gradually improved due to the efforts of our local management team and are off to a strong start to 2026. Now to the east, starting with Mountaineer in West Virginia. EBITDA in Q4 increased from $2.6 million to $3 million, and EBITDA in all of 2025 increased from $13.1 million to $14.1 million. Mountaineer’s full-year 2025 performance may be summarized as follows: The first four months were challenging due to unusually severe weather conditions. That was followed by seven strong months, and the year ended with further weather-related challenges in December. The drivers of the EBITDA increase were cost-saving initiatives. Overall, revenues were slightly down, except for iGaming. Mountaineer, situated in the Northern Panhandle of West Virginia, is the third asset we acquired in December 2019. It is our largest property by gaming revenue. It faces stiff competition from casinos in Pennsylvania and Ohio, where more than 85% of Mountaineer’s customers come from. The margins at this property have always been low, between 13–14%. This is due to West Virginia’s gaming taxes exceeding 50% and the thoroughbred horse track. Recent trends have been very positive, and we continue to invest in the property and expect to be able to drive continued growth at Mountaineer. Now we move on to the east to Rocky Gap. EBITDA at Rocky Gap in Q4 declined from $3.2 million to $2.9 million, and EBITDA in all of 2025 declined from $14 million to $13.2 million. Rocky Gap in western Maryland joined our portfolio in July 2023. It is in the most beautiful setting, situated in a state park next to a lake, and with a golf course designed by Jack Nicklaus. Rocky Gap is also one of the properties for which adverse weather conditions can have a substantial negative impact because it is not easily accessible to most of its customers under severe weather conditions. Unfortunately, in 2025, weather hit the property hard, with much of the bad weather occurring on weekends. On the other hand, the first two months of 2026 look very promising for us, and we are optimistic about Rocky Gap and hope for a great plan for 2026. Now to the west, at the Nugget Casino Resort in Reno-Sparks. EBITDA in Q4 increased from €1.1 million to €1.3 million, and EBITDA in all of 2025 declined from €9.7 million to €9.1 million. The Nugget joined our portfolio in April 2023. Since then, we have been focusing on further developing the mid-value customer segment. Over the past almost three years, we have significantly improved amenities at the Nugget and continue to do so. We reduced operating expenses where possible and revamped the marketing programs. As for 2025, we hope this was the last transitional year. For 2026, with an excellent lineup of concerts, including Brooks & Dunn, who have sold out already, Brad Paisley, Keith Urban, Shinedown, and Miranda Lambert. The changes to the loyalty program are showing improvements in customer return visits, and group business is rebounding. We also brought in a new GM with extensive experience, including in the Reno market. Now to Canada and Europe. Despite a slow start to the year due to extreme weather conditions, we saw solid performance at our Alberta operations in 2025. We recorded slightly higher results than the previous year, mainly driven by improved performance at our St. Albert property following the upgrade completed in the second quarter of the year and by disciplined cost management across all four sites. In 2025, the slot coin-in was up 4%, net operating revenue up 2% in local currency, and EBITDA up 1% to €20.3 million. In Q4, the slot coin-in was up 4%, net operating revenue up 5%, and EBITDAR up 5% to €4.9 million. In Poland, the challenging period marked by administrative delays in relocations has ended, and we can focus on improving overall results. Our second Brodnica location started operations in February 2026, further strengthening our position there. In the fourth quarter, net operating revenue is up 4%, and EBITDA is up 245% to €0.9 million. All current licenses are valid through at least 2028, and we expect stable operations going forward. With that, back to you, Peter. Margaret Stapleton: Thank you, and I will now go over some balance sheet items and share our outlook for 2026 with you. Our cash and cash equivalents as of December 31 were $69 million. We spent approximately $4.5 million in CapEx in the quarter, mainly for the new retail sportsbook at Cape Girardeau in Missouri, for gaming equipment and exterior upgrades at Mountaineer and Rocky Gap, as well as for the new casino in Poland. Total debt outstanding was $338 million, resulting in net debt of $269 million. At the end of the quarter, our net debt to EBITDA ratio remained unchanged at 6.9 times. On a lease-adjusted basis, the ratio was 7.6 times, again unchanged from the third quarter. Let me also note that we have no debt maturities for three years from now, that is until 2029. Looking ahead, we see a good path forward to higher EBITDAR and cash flow for 2026 and beyond. It is all about harvesting what we have invested over the last couple of years. We expect to benefit from a strong improvement at the Nugget and the continued ramp of the new land-based facility in Caruthersville. Consumer benefits from tax cuts in the BBB should be additional catalysts in 2026 to drive growth throughout the rest of the year. We also expect our cash flow to benefit from decreasing CapEx. Whilst we spent a total of €18 million of our cash in 2025, we expect that to come down to between €14 million and €15 million for this year. We are a couple of weeks away from the end of the first quarter, and we are really excited about our progress on all fronts. Net operating revenue and adjusted EBITDA are up significantly compared to last year. Every single property in the U.S. and Canada is showing double-digit EBITDA growth, especially highlighting great performances at both Colorado casinos, the Nugget, as well as Rocky Gap in Canada. I will give you a couple of examples. At Cape Girardeau, Missouri, net operating revenue in February was the highest total for any February in the property's history. The hotel there achieved its highest monthly occupancy rate since opening. Our sports betting partnership with BetMGM also started out really well. Statewide reports show that the BetMGM Sportsbook at Cape Girardeau was the retail book with the highest handle volume in the entire state for the month of January. And in St. Albert, Canada, the coin-in and GTR were the highest total for any 29-day February in the property's history. So as of today, we see a strong growth trend across the entire portfolio in North America, and really look forward to telling you more about it in our next earnings call in mid-May. Finally, as you know, we are in the midst of a comprehensive strategic review process, but this process may very well lead to one or the other divestiture. No final decisions have been made, and there can be no assurance that the review will result in any transaction or particular change. We continue to make progress. Selected assets are under exclusivity agreements, hence, we cannot make public comments right now. With that, I ask for your understanding that we will not take questions on this topic in our Q&A session. All right, that concludes our prepared remarks. We will now open for questions. Elvis, go ahead please. Operator: Thank you, Peter. If you would like to ask a question, please press 1 on your phone now, and you will be placed in the queue in the order received. If we do not get to your question, please reach out to the company using the Investor Relations page at cnty.com. Again, that is 1 for a question, 1, and we will pause for you to form our queue. Our first question today comes from Jordan Maxwell Bender of Citizens Bank. Please go ahead. Jordan Maxwell Bender: Hey, everyone. Good morning, and thanks for the question. I want to start on comments around the green shoots that you are seeing in the retail player. Can you just maybe apply or elaborate on where you are seeing that? Is that specific properties? Any region of the country? That would be great. Thank you. Erwin Haitzmann: Thank you for the question, Jordan. Your question refers to retail customers across the board in the U.S.? Jordan Maxwell Bender: Yes. If you could just, yes, just kind of where are you seeing that strength? Is it related to certain properties? Or is it just kind of a general trend? Thank you. Erwin Haitzmann: No. Sorry, I understand. Yeah. I think we can say that the retail is coming back all across the board. We see increases in the retail performance, and that is not only true for the casino. That is the case in the hotels where we have hotel rooms, so we have increase in hotels on the retail side as well. Jordan Maxwell Bender: Perfect. Thank you. And then just maybe turning to Canada, as we look to kind of what oil prices and, I guess, gas prices are doing, have you seen any historical precedent that when we do see higher oil that those properties actually benefit during times like these? Erwin Haitzmann: Not necessarily. No. No, we have not. Neither did we see less business because of higher oil or gas prices, nor did we see—it is not going that directly. The oil price goes up, but it does not mean that salaries of the employees go up right away. Jordan Maxwell Bender: Okay. Perfect. Thank you very much. Erwin Haitzmann: Sure. Operator: Next, we have Ryan Sigdahl of Craig-Hallum Capital. Ryan Sigdahl: Hey, Peter, Erwin. Start with kind of the guidance for Q1. I think I caught it right that you said double-digit growth at every U.S. property. One, confirm that I heard that right. And then two, is there any reason to believe those trends should not continue through the rest of the year, or is there anything unusual happening in Q1? Erwin Haitzmann: The first question, yes, you heard right with double digits. And secondly, of course, nobody can tell for sure, but we see all signs positive. So if we had to make a guess, then we would say yes, we have no reason to believe that this should not continue until the rest of the year. Ryan Sigdahl: Great. And then on the Nugget, good to see the concert pipeline strong for this year and the pre-sales there. Curious on, as you think about kind of building the corporate pipeline there of conferences, how that looks, and then how that kind of looks over the next couple of years. Just an update from what you guys have done over the last couple of months. Erwin Haitzmann: Right. As you know, the large conferences have quite some lead time. So in this quarter, we were able to secure a few large conferences for the years 2030, 2031, and 2032, so it is really a longer perspective we are looking at. But it is still very good. It is good to know that there is still demand and that people like the property. They like it, particularly the large companies like them a lot. And that is a good sign for us. When it comes to the shorter-term bookings, so we call it in the year for the year, we already also see a very positive trend, and everything that we see now is what we have had so far and what we have seen with bookings coming in. It is, I think, fair to say that in the year for the year, we will be performing better than in 2025. At the moment, we are up by, like, 15% or so in the in-the-year-for-the-year, year over year. Margaret Stapleton: Helpful. Ryan Sigdahl: Thanks, guys. Good luck. Erwin Haitzmann: Thank you. Operator: Our next question comes from Chad C. Beynon of Macquarie Group. Chad C. Beynon: Hi. Good morning, Peter and Erwin. Thanks for all the commentary at the outset. Focusing on Missouri, great to see everything that has occurred there at Caruthersville on the revenue and EBITDA side. I know in February, there was a court ruling, or a federal ruling, against some of these video lottery terminal games that are fairly prevalent throughout Missouri. If those are removed, do you think you could see a benefit from that, or do you believe your customer is a different customer than those playing these unregulated games? Erwin Haitzmann: We think this will be definitely good for our casinos. No doubt about it. Chad C. Beynon: Okay. And do you have a sense of—are there a number of these machines just within proximity? I know Caruthersville is a farther out-reaching catchment area. But I am assuming there are games close in the 30-mile range. Is that, I guess, maybe just confirm that that is the case to your two properties? Erwin Haitzmann: Yes. That is the case for both properties. Chad C. Beynon: Okay. Great. And then wanted to ask about the promotional environment. You talked about West Virginia. Obviously, it has been very competitive against Pennsylvania and Ohio, and you mentioned the competitive nature at Cape Girardeau. What are you seeing in terms of promotions from some of the other land-based operators in the space? Has that changed? And if retail accelerates—if retail play accelerates—do you think that could accelerate? Thank you. Erwin Haitzmann: We do not see anything unusual with regard to promotion from them and also from us and also within the retail sector other than what we said earlier, that retail is getting strong everywhere. Nothing that would be worth pointing out that would be out of the, so to speak, ordinary. Chad C. Beynon: Okay. Great. Great to hear the progress in January and February. Thank you. Erwin Haitzmann: Thank you. Operator: From Stifel, we have Jeffrey Austin Stantial. Jeffrey Austin Stantial: Hey, good afternoon, Peter, Erwin. Thanks for taking our questions. Starting off on Missouri, Erwin, can you just give us an update or talk through some of the initiatives that are in place to sort of continue driving more trialing and repeat visitation from new carded play, whether that is further out over the border or even closer to the property. And then on the cost side of things, are you sort of at stabilized margin, staffing, those sorts of things, or is there still sort of optimization in the OpEx space that we should be contemplating? Erwin Haitzmann: Okay. Concerning the cost and stabilization, I think Caruthersville is a model property when it comes to cost. I mean, they have super high margins, and I think they are at a point where we cannot really squeeze more percentages out. However, a little bit might be possible in Cape Girardeau, but not a whole lot either. However, we see upside on the revenue side. We will continue to market hotel rooms. There is still some room for both properties in Missouri, and we are marketing those heavily. And if we just continue to do what we have been doing diligently, then there is no reason why we should not gain some more upside in the revenues on both casino and hotel. One thing that might be worth mentioning is that, as you know, we said that earlier, we have the sportsbook facility in Cape Girardeau that is so successful that, in itself, it helps a lot also to further solidify and have a round product in a resort area where players find everything they want. Jeffrey Austin Stantial: Thank you, Erwin. And then maybe just as a quick housekeeping item. Is there any chance—do you know off the top of your head how much of an impact weather had on revenues and EBITDA during the fourth quarter? And then, just to be clear, I did not hear it mentioned when you talked about operating trends, which are really quite healthy Q1 to date. Did you see much of an impact from any of the adverse weather across your portfolio? Erwin Haitzmann: In Q4, as we mentioned, a few properties were hit in December a little bit. And in the first quarter so far, not really anything to mention. Jeffrey Austin Stantial: Okay. So no number to share for Q4, but it sounds like it was relatively— Erwin Haitzmann: I cannot give you a number, but there was not a disaster. There is no weekend or so we did not have that, which is good. Jeffrey Austin Stantial: Perfect. That is all from us. Thanks, Peter. Thanks, everyone. Erwin Haitzmann: Thank you. Operator: Thank you, Jeff. Next, we have Connor Joseph Parks of CBRE Investment Bank. Connor Joseph Parks: Hey, everyone. Good morning. Thanks for taking my question. Maybe just a capital allocation one for me, maybe absent a strategic review that remains ongoing. I guess, what is the approach to share repurchases against debt paydown, or the view on the balance sheet for 2026 now that CapEx is stepping down a bit and it is maybe just maintenance from here? How are you looking at weighing share repo against the balance sheet at this point in time? Erwin Haitzmann: Sure. Thank you for the question, Connor. Peter, why do you not take that question, please? Peter Hoetzinger: Yes. Thanks, Connor. For 2026 and also looking into 2027, of course, subject to cash flow, operational performance, and divestitures, our main focus would be on debt paydown vis-à-vis share repurchases. We do not make any concrete amounts available on this call. As we said, we have some assets under exclusivity, so we expect decisions for divestitures fairly soon, and once we have that on the table, we will be able to share some more detailed info with you. But in terms of where the focus is, it is definitely on debt paydown. Connor Joseph Parks: Understood. Looking forward to hearing more on that. I will leave it at that. We covered a lot of ground here. So thank— Margaret Stapleton: Thanks, Connor. Operator: Thank you, Connor. This is all the time allotted for questions. Again, if we did not get to your question, please reach out to the company using the Investor Relations page at cnty.com. Peter, back over to you for any additional or closing comments. Peter Hoetzinger: Thanks, Elvis, and thanks, everybody. We appreciate you joining our call today. We will talk again in a couple of months when we will present Q1 results. Until then, thank you, and goodbye. Operator: That concludes our meeting today. You may now disconnect.
Operator: Greetings, and welcome to The Oncology Institute Fourth Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark Hueppelsheuser, General Counsel. Thank you, sir. You may begin. Mark Hueppelsheuser: The press release announcing The Oncology Institute's results for the fourth quarter of 2025 are available at the Investors section of the company's website, theoncologyinstitute.com. A replay of this call will also be available at the company's website after the conclusion of this call. Before we get started, I would like to remind you of the company's safe harbor language included within the company's press release for the fourth quarter of 2025. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC. This call will also discuss non-GAAP financial measures such as adjusted EBITDA and free cash flow. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release furnished to the SEC and available on our website. Joining me on the call today are our CEO, Daniel Virnich; and our CFO, Rob Carter. Following our prepared remarks, we'll open up the call for your questions. With that, I'll turn the call over to Dan. Daniel Virnich: Thank you, Mark. Good afternoon, everyone, and thank you for joining our fourth quarter and full year 2025 earnings call. Before getting into the results, I want to start by thanking our physicians, clinicians and employees across The Oncology Institute. Their continued focus on delivering high-quality oncology care in the community is what drives the progress we are seeing across the business. Most importantly, the fourth quarter marked an important milestone being our first profitable quarter as a public company from an adjusted EBITDA perspective. Based on the momentum that we have built, we are reaffirming our expectation to achieve full year positive adjusted EBITDA in 2026. The biggest driver of this progress continues to be the expansion of our capitated care model, particularly through our delegated arrangements, which enables us to manage the oncology benefit more comprehensively while aligning incentives with our payer partners across markets and delivering quality clinical outcomes to the patients that we serve. Stepping back, 2025 was a very productive year for TOI and one where we made progress across multiple areas of the organization. From a financial perspective, we delivered strong top line growth with revenue increasing approximately 28% year-over-year and surpassing $500 million for the first time in our history. We continued expanding our capitated footprint, initiating 9 new capitated contracts during 2025 in California, Florida and Nevada, representing approximately 260,000 additional patient lives under management. Another key contributor to this growth was our Part D dispensing platform, which remains an important part of our integrated care model as we continue to increase prescription volumes and attachment rates within our network. This segment of our business reached almost $270 million in total revenue and contributed close to $50 million in gross profit for the full year. From an operating standpoint, we continue improving efficiency across the organization. SG&A declined 2% year-over-year, demonstrating the leverage in our model as we scale. During the year, we also outsourced our clinical trials operations, allowing our physicians and care teams to remain focused on delivering high-quality clinical care while still being able to direct our patients to the trials they need in our clinics and supporting more rapid growth and multi-market scalability. And finally, we strengthened our balance sheet during the year. We reduced debt on our convertible preferred note by $24 million and ended the year with $33.6 million in cash after experiencing positive free cash flow in Q4, giving us additional flexibility as we continue to grow the platform. Operationally, we also made meaningful progress expanding our care model. Our delegated capitation partnership with Elevance in Florida continued to ramp during the fourth quarter and remains on track to continue expansion across the state in 2026, which would more than double the current partnership. Today, we have approximately 70,000 lives under capitated arrangements within this partnership. Given the economics of our delegated model, it's also worth highlighting that delegated members represented less than 5% of total capitated lives at the end of 2025, but account for approximately 1/3 of our run rate capitated revenue, reflecting the higher PMPM structure associated with these arrangements and the high utilizing populations they service. In addition to Elevance, we also initiated capitation agreements with Humana and CarePlus in Florida during the fourth quarter, further expanding payer partnerships and representing approximately 22,000 additional MA lives in South Florida. Our Florida Oncology network platform also continued to grow with the number of participating providers increasing to approximately 207 physicians and advanced practice providers across our network, supporting what we refer to as our hybrid model of patient care, which allows us to treat our managed populations at a combination of TOI-affiliated as well as independent clinics and our employed clinics under our fully delegated network umbrella. Finally, from an organizational standpoint, we strengthened the leadership team substantially in 2025, with the additions of Jeffrey Langsam as Chief Clinical Officer; and Kristin England as Chief Administrative Officer. Both bring significant experience scaling healthcare organizations and will play an important role as we continue expanding our platform and executing on our growth strategy. As we move into 2026, our focus remains on continuing to scale and drive profitability in our value-based care platform so that we can serve more patients and payers across the country with high-quality oncology care while improving access to therapeutics and reducing the financial burden of that care. First, we expect continued strong growth in our delegated capitation model, having guided in January to over 80% growth in capitated revenue for the year. Second, we are preparing to launch a proprietary new network portal in Q2, which will further strengthen engagement with both our affiliated and independent providers. The platform will improve visibility into the utilization management pathways, support formulary adherence and help drive continued improvement in our medical loss ratio. Importantly, it will also help enable ancillary services engagement such as Part D dispensing adoption across our independent network providers, which remains a meaningful opportunity for incremental growth. Finally, we strengthened our Board of Directors in Q1 with the additions of Mark Stolper and Kim Tzoumakas. Mark brings significant financial leadership and public markets experience as the long-time CFO of RadNet, while Kim brings deep expertise in oncology and pharmacy services through her prior leadership roles as CEO of VytlOne and 21st Century Oncology, respectively. We believe both will add valuable perspectives as we continue scaling the organization. In summary, 2025 was a foundational year for TOI. We showed our ability to grow and manage industry-leading MLR performance under our delegated capitation model in Florida, set records in Part D pharmacy growth, derisked our balance sheet and recorded our first positive adjusted EBITDA quarter as a public company in the fourth quarter. As we enter 2026, our focus is on execution, and we believe we are well positioned to further expand payer partnerships and deliver sustainable profitability over the long term. With that, I'll turn the call over to Rob to review our financial results. Rob? Rob Carter: Thanks, Dan, and good afternoon, everyone. I want to echo Dan's comments on what was a significant year for TOI. In the fourth quarter, we continued to build momentum across both our fee-for-service and capitation businesses as well as dispensing while at the same time moving toward positive adjusted EBITDA. On today's call, I'll start by addressing the expected impact of the Inflation Reduction Act, then review our key financial highlights for 2025, walk through our fourth quarter results and finally discuss our guidance and outlook for 2026 and beyond. Regarding the Inflation Reduction Act, we expect the impact to IMBRUVICA in 2026 to be minor, representing an unfavorable impact of less than 1% of total pharmacy revenue and gross margin. Importantly, as IMBRUVICA and additional drugs are subject to maximum fair price negotiations under the IRA, we have multiple levers available to help offset this impact, including, but not limited to, optimization of our pharmacy mix via increased utilization of alternative therapies, a function which TOI has significant control over through our centralized utilization management process. Additionally, the reimbursement shift in certain disease state categories introduced by the IRA allows TOI an opportunity to leverage relationships with drug manufacturers and distributors to reassess category economics, discussions which are benefited by TOI's improving purchasing power as we scale as a drug purchasing organization. As a result of the foregoing, we do not expect the IRA specifically to materially alter the long-term economics or trajectory of our platform. Turning to full year 2025. The year marked meaningful operational and financial progress for TOI. We delivered revenue growth of approximately 27.8% year-over-year from $393.4 million to $502.7 million, driven by continued expansion in both patient volumes and services per patient. Our fee-for-service business grew 9% year-over-year, from $136.2 million to $148.5 million, while our capitation business grew 17.2% year-over-year, from $68.7 million to $80.5 million, driven primarily by the launch of our new delegation model in Florida, which I will expand on more in a moment. Pharmacy revenue grew 49.6% year-over-year, from $179.9 million to $269.2 million, primarily the result of improved attachment of prescriptions to our provider visits in both fee-for-service and capitation populations as well as reduced leakage of prescriptions written by TOI providers to outside specialty pharmacies. The successful launch of our new delegation model in Florida produced over $10 million in new capitated revenue in 2025 with an annualized run rate of approximately $50 million as we enter 2026. We believe this new delegated model enhances TOI's ability to efficiently scale in new markets while retaining our ability to both directly control clinical utilization as well as deliver our comprehensive oncology model to populations under the delegated contracts. We accomplished this by serving patients at a mix of network providers and TOI clinics, a dynamic you will hear us refer to as our hybrid model, because it utilizes both independent and captive providers in a hybridized deployment. This hybrid model allows us to optimize for MLR while balancing capital efficiency and operating leverage, all while delivering maximum savings and minimum time-to-launch and network disruption to our payer partners. Most importantly, we ended the year with positive adjusted EBITDA in the fourth quarter, reflecting the operating leverage embedded in our model and the progress we've made towards sustainable profitability. Turning to the fourth quarter. Results were consistent with the trends we've discussed throughout the year. Total revenue for the fourth quarter was $142 million compared to $100.3 million in the prior year period, representing a 41.6% year-over-year growth that was driven by continued patient growth and pharmacy contribution. Patient services revenue, which includes both capitation and fee-for-service arrangements, totaled $59.8 million, or 42.2% of total revenue and increased 19.2% year-over-year. Within the segment, fee-for-service contributed roughly 25.6% of total revenue and capitation accounted for 16.6%, reflecting the significant recurring nature of patient services revenue and steady patient volumes on which we layer new capitation contracts as well as a continuous expansion of our fee-for-service referral base. Pharmacy revenue was $81.4 million, representing 57.4% of total revenue and increased 71.1% year-over-year, driven by higher prescription volumes and expanded pharmacy attachment within our clinics, which was a key operational focus for us over the course of the year. Turning to gross profit. We reported $22.7 million for the quarter compared to $14.6 million in the fourth quarter of 2024. Gross margin was 16% versus 14.6% in the prior year period, reflecting a year-over-year margin increase of approximately 140 basis points. Patient services gross profit was $7.1 million, up from $4.5 million a year ago, representing a 59.5% year-over-year increase with a gross margin of 11.9%, up from 8.9% in the prior year. Pharmacy gross profit totaled $14.9 million compared to $8.1 million in the fourth quarter of 2024, an 84.7% year-over-year increase, driven by higher dispensing volumes and improved drug purchasing. Pharmacy gross margin increased over 130 basis points from the prior year to 18.3%, reflecting ongoing optimization in commercial drug procurement, reflecting a focus on leveraging TOI's increasing scale in supply chain operations. Turning to operating expenses. Excluding depreciation and amortization, the total SG&A was $28 million, or 19.7% of revenue compared to 24.8% of revenue, a reduction of over 500 basis points versus a year ago. The decrease in SG&A reflects continued cost discipline and operating leverage inherent in our model. Adjusted EBITDA was $147,000, improving from negative $7.8 million in the fourth quarter of 2024. We achieved positive adjusted EBITDA in the fourth quarter, a key milestone as we exit 2025. Turning to the balance sheet and cash flow. We ended the quarter with $33.6 million in cash and cash equivalents. Operating cash flow for the quarter was a positive $3.2 million, reflecting investments in drug inventory and working capital to support our scaling dispensing activity. Now turning to guidance. For full year 2026, we are reiterating guidance provided in January 2026 as follows: revenue in the range of $630 million to $650 million, approximately $150 million of capitated revenue; gross profit in the range of $97 million to $107 million; and adjusted EBITDA in the range of $0 million to $9 million; and free cash flow in the range of negative $15 million to $5 million. I want to highlight that the first quarter is seasonally our lowest due to patient deductible resets and annual drug price increases that are not immediately reflected in reimbursement rates as pharmaceutical reimbursement adjustments operate on a lagged basis for pricing. While we always worked hard to mitigate these 2 factors, naturally lead us to anticipate an adjusted EBITDA loss for the first quarter. Based on these factors, we anticipate first quarter adjusted EBITDA to be between a loss of $3 million to $1 million with continued momentum over the course of the year. On a year-over-year comparison basis, the first quarter of 2025 included a onetime benefit of $1.6 million based on a renegotiated drug distribution agreement. On the pharmacy side, we are assuming performance in line with the second half 2025 revenue run rate of approximately $27 million per month, plus a modest incremental growth of 3% to 5% from attachment to new capitation lives we are capturing in TOI clinics through 2026. We believe this capture of capitation lives in TOI clinics is the beginning of a multiyear penetration narrative as we optimize TOI's captive clinic footprint relative to network providers for populations managed under our delegated model, as previously discussed, as part of our hybrid strategy. With respect to overall capitation growth, our outlook remains measured and does not include any contribution from new go-get contract wins. Gross profit is expected to grow slightly ahead of revenue, with gross margins improving by 100 to 200 basis points, primarily the result of improving direct medical expenses in relation to revenue, which is principally supported by improvement in drug spend, the result of our focus on both commercial procurement and clinical utilization management. SG&A is expected to trend down modestly as a percentage of revenue to approximately 16%, reflecting operating leverage, though we will continue to prioritize our growth initiatives. As we invest for growth, we remain focused on capital discipline and cash generation. We expect to achieve free cash flow positivity by end of 2026, supported by EBITDA growth and improving working capital dynamics. With that, I'll turn the call over to Dan for closing remarks. Daniel Virnich: Thanks, Rob. In closing, 2025 represented an important step forward for TOI. We delivered impressive growth, strengthened our balance sheet and exited the year with positive adjusted EBITDA while expanding the number of patients across the country that come to us for high-quality cancer care in the communities that we serve. As we look ahead, our guidance reflects a prudent and disciplined approach while still positioning the company to invest in growth and unlock the long-term value of our platform. With that, I'll turn the call back to the operator for questions. Operator? Operator: [Operator Instructions] The first question comes from David Larsen with BTIG. David Larsen: Congratulations on the good quarter and year. I guess for your dispensing revenue in the quarter, it came in a lot higher than what we were modeling. Just any thoughts or color around the driver of that and what we should expect for '26? Daniel Virnich: Dave, thanks for the great question. Yes, the fourth quarter was a very strong quarter in terms of dispensing revenue and performance, and that was really driven by 2 things. One was ongoing operational execution in terms of mitigating leakage of scripts outside of our pharmacies and dispensaries where we could still be medication. Two was very strong patient encounter growth related to our capitated contract growth across markets. David Larsen: Okay. And then did I hear you say that you're going to double the size of your Elevance contract in the state of Florida in '26? Daniel Virnich: Yes, that's our goal. David Larsen: Okay. And then is the Humana contract, is that a new contract signed in the fourth quarter or in the first quarter? You did not have a deal with Humana previously. Is that correct? Daniel Virnich: Yes, that went effective in the fourth quarter, and that was for both Humana and CarePlus for Medicare Advantage lives in South Florida on behalf of risk-bearing medical groups that they partner with. David Larsen: Could you just give us a sense for the size of, I guess, the TAM for Elevance or Humana? Like how much revenue or how many lives could you potentially grow into in those states for Elevance and Humana alone? I would imagine it's pretty significant. Daniel Virnich: Yes. I mean there's publicly available data on MA penetration in Florida by payer, which, if you look at that versus our current capitated book across the payers that we partner with in that state, is many multiples of our current capitated revenue. So just tremendous opportunity. And really what excites us a lot about that market is many, many years ahead of growth for TOI as we continue to execute. David Larsen: Okay. And then just one more quick one for me before I hop back in the queue. For the capitated revenue, how are your margins looking? And how are volumes and cost trend looking relative to expectations, I guess, for both the fourth quarter and the first couple of months of '26? Rob Carter: Dave, it's Rob. Performance, both in terms of volume and MLR is coming in exactly as we expect it to be. As you know, we have real-time views into our claims. And so our ability to manage that MLR is materially higher than what you see in the market. So no surprises right now, things are looking quite good. David Larsen: And then for the lives that started in 4Q of '25, would you expect to get to, say, an 85% MLR by late '26? Is that fair? Rob Carter: So we have 2 types of contracts. For the delegated contracts that launched in Florida, yes, I think that's fair, 85% MLR. Within the contracts that launched were also some narrow network contracts in California, and we would expect, as we mentioned in our earnings material, a lower MLR with a slightly faster ramp to that MLR as well. David Larsen: And then do the plans prefer the narrow networks or the broader networks? Do they have a preference? Just any color there would be helpful. Daniel Virnich: Yes, absolutely. It's really 2 different customer types. So plans, for the most part, is our delegated capitation model where they prefer a network that is open, inclusive of both our TOI employed clinics as well as the oncology network that we contract and own after delegation. The narrow network legacy capitation model really applies to our customers that are risk-bearing medical groups with the Knox-Keene license that, again, for fully narrowing the network to one oncology provider. Operator: The next question comes from Yuan Zhi with B. Riley. Yuan Zhi: Rob or Dan, based on the guidance, you will have a meaningful growth in the capitated contracts in 2026, almost double there. As you ramp up the capitated contracts in delegated network, should we anticipate a dip in profit margin in mid-2026 because of this patient transition period? Daniel Virnich: Yes. Rob, could you try that? Rob Carter: Yes. Yuan, it's Rob. Yes, specific to the delegated contracts, yes. Yes. You'll probably see a slightly higher MLR, again, just specific to those contracts. As it relates to total weighted gross margin percentage, no, I don't think that you're going to see a dip at that aggregate level. Yuan Zhi: Got it. And then on the press release, I think the latest number of affiliated and network clinics are 146. Can you share more details of that? I think the last number we saw was 86. Daniel Virnich: Yes. So yes, absolutely. So we got our 80 employed sites of care across 5 states. The network is actually larger than that. So it's over 200 by headcount in the network in Florida now, brings our total up close to 300 combined. Yuan Zhi: Got it. And then one last question related to the CAR T. I think in last June, the FDA removed the Risk Evaluation and Mitigation Strategy, the REMS, requirements for all currently approved CAR T therapies. Is your -- so in your next contract updating and signing, do you think or do you anticipate that you will need to add CAR T into your treatment offerings or contracts? Or have you thought about that? Daniel Virnich: No. We across the board do not take risk on CAR T simply because it is a very low incidence therapy and then not offered currently in a high number of locations in the community. There are some interesting businesses out there that are trying to develop models for CAR T therapy in the community. We view that as very positive for patients if that were to happen in the future. And certainly expanding access if the utilization and indications for that therapy grow over time, is definitely something we would consider adding to our value-based contracting platform. But as of right now, we do not take risk on CAR T. Operator: The next question comes from Matthew Shea with Needham & Company. Matthew Shea: Congrats on a strong finish to the year here. Wanted to start with maybe double-clicking on the wins in the quarter. So one of the deals with Humana and CarePlus. Anything you can share on those deals? Were those competitive processes? And I believe Humana represents an expansion deal. So any commentary on how success with the prior markets led to expansion would be helpful. And for CarePlus, I believe that's a net new logo. So I would love to hear if they were managing -- or how they were managing oncology prior? And ultimately, how do they land on TOI? Daniel Virnich: Yes. Matt, thanks for -- that's a great question. Yes. So both actually -- the patients that we have now capitated through Humana and CarePlus are net new payer partner adds. They're both in Florida, in South Florida specifically. Those are Medicare Advantage populations delegated to risk-bearing medical groups that they partner with in that market. And as far as the incumbent oncology provider for those populations, we can't really comment on that, but I will say that the reason why we were able to win that business was again sort of our reputation for providing access and high-quality care and really coordinating closely with referring primary care physicians, which is what led to sort of the initial outreach. But we're really excited about both of those relationships and our partnerships with their risk-bearing medical group constituents in that market. Matthew Shea: Got it. Appreciate that. Maybe hitting on AI. Last quarter, you laid out the 3 buckets of RCM, prior auth and patient call center. And it sounds like prior auth is the furthest along with your early estimates suggesting $2 million, I believe, in operating expense efficiencies. What are you assuming in terms in the 2026 guide in terms of AI-related efficiencies? And should we expect majority of the near-term unlock to remain focused on prior auth? Or any update on RCM or call center? Daniel Virnich: Yes. Yes, absolutely. Thanks. That's a great question. So as we mentioned in our last earnings call, we expect in 2026, the impact of AI-related efficiencies across prior authorization, call center and RCM to generate about $2 million in SG&A savings specific to the portions of those departments that they are going to help augment. We really believe we're just starting to scratch the surface on the use cases and capabilities of agentic AI in our business model, which is just very well suited to integration in a number of different aspects. So that savings and efficiency generate over time is going to expand. We're also seeing some tremendous results in terms of metrics that impact patient care and deliver, frankly, better, more error-free patient care as it relates to things like prior authorization, turnaround time, call center responsiveness and key call center KPIs, et cetera. So it's really exciting. It's on track and sort of our 2026 estimates in terms of savings impact are on track and haven't changed. Matthew Shea: Okay. Great. Maybe last one for me, and then I'll hop back in the queue. I appreciate you laying out the building blocks for the guidance. I guess as we're thinking about next year, as we distill the pieces you gave us, we have $150 million of capitated revenue. And then using the $27 million per month for pharmacy with modest growth, you get to like $330 million and change for dispensary, which leaves about $150 million of change -- or $150 million in change for fee-for-service revenue, which, based on where you finished 2025, implies effectively like flat to low single-digit fee-for-service growth. And I know in the past, you've talked about this segment growing in line with the market, call it, high single digits. So maybe just help us unpack the assumptions in the fee-for-service revenue outlook. Rob Carter: Yes. Matt, it's Rob. So I think the dynamic that you're seeing here is really about the sheer volume of capitated lives that are coming under management. With that and especially in markets like Florida, there's going to be some minor cannibalization of fee-for-service volumes. And so that's a little bit of the impact that you see there. Beyond that, we do expect to continue to see organic growth from our own practice efforts. A lot of the growth that we saw in 2025 was driven by ramping new markets like Florida and Oregon. And so as Florida and Oregon continue to mature, some of that organic growth is going to erode slightly. But the main area of focus continues to be the capitated revenue line as well as the attachment from pharmacy, and we're very excited about the growth there. Operator: The next question is a follow-up from David Larsen with BTIG. David Larsen: Can you talk a little bit about your expectations for SG&A in 2026? It looks like for the year, as a percentage of revenue, it improved by 642 basis points. Just any thoughts on how SG&A should trend in '26 as a percentage of revenue? Should we see another significant improvement there? Rob Carter: You will see improvement, not to that degree. As we talked about in the script, there is some investments going on for growth. The level of risk that we're taking at this point as measured by lives under management, which is represented by that significant percent growth in the capitated revenue line, requires some growth. But yes, you'll continue to see the scale there. That's something that Dan and I are keenly focused on and aware of, and you'll continue to see our discipline in that area. David Larsen: And free cash flow is expected to be positive in '26? Rob Carter: Exiting and second half of the year, yes. David Larsen: Okay. And then the fee-for-service revenue... [Technical Difficulty] Daniel Virnich: Dave, are you still there? I think we might have lost audio on Dave. Operator: Okay. The next question comes from Yuan Zhi with B. Riley. Yuan Zhi: So for your $150 million revenue guidance for the capitated contract, can you talk about the underlying assumptions there? So right now, you are in 5 markets in Florida. Are you expanding to expand further? And how the delegated model there will contribute to this growth -- meaningful growth in 2026? Rob Carter: Yes. So as we commented on the script, we've got about $50 million of run rate revenue coming from our Florida-based delegated contracts. So beyond that, we have a healthy pipeline within existing markets. And so the simple answer is no, we don't need to expand beyond the markets we're in to hit that number. We are opportunistic about growth. And so if the right opportunity comes for that expansion, then we'll obviously take a very serious look at that. Operator: [Operator Instructions] The next question is a follow-up question from Matthew Shea with Needham & Company. Matthew Shea: I wanted to maybe take a step back and just ask a bit of a higher-level question. With the Medicare Advantage rate notice for 2027, we effectively saw the whole value-based care sell off, yourselves included, although to a lesser extent. Maybe just speak to TOI's positioning in a potentially lower rate environment. Obviously, payers have already been struggling with oncology trends. So I would expect demand would only accelerate in a time when margins are tighter, but would love to kind of get your thoughts on that topic. Daniel Virnich: Yes, absolutely. Thanks, Matt. That's actually a very important question and something that we continue to try to drive clarity with our investors on, which is the MA rate cycle and sort of pressure that you've seen health plans and full risk, medical groups that are getting a percent of premium face is actually a tailwind for TOI. Our top line Medicare Advantage reimbursement is not a percent of total premium. It's not impacted by risk adjustment. In fact, pressure on the top line for payers generally causes them to reach out more proactively when it comes to seeking opportunities to provide great care for their patients and good access while also driving improvement in utilization. And so from that perspective, that actually helps our growth. So we tend to get lumped into some of those macro issues with payers, but I just want to make it very clear that, that is actually probably a good thing for TOI. Matthew Shea: Okay. And then maybe just a quick follow-up on that. We get a lot of investor questions about this. It's just like the converse side of that. Demand is higher, but what happens to margins? And I know you just alluded to this about how pricing is effectively independent of rate cycles. But if the pie is shrinking, there's a thesis out there that it does hit providers somewhere. Maybe just speak to how you can protect contract terms in a potentially lower rate environment. So as we see that higher demand for your offerings come on that we don't need to be concerned about, any contract structures loosening or any contracts going underwater, if you will? Daniel Virnich: Yes, absolutely. I think at this point in time, it's really important to keep in mind that we've got a very unique care model in terms of our combination of both employed and network providers in markets where we're taking population level Part B capitation. That's both good for patients because it means better access because of our employed clinic model, high-level ancillary services in the community. But it also means we've got much stronger control over the practice patterns of the physicians since a good chunk of them are employed by us, and we own the network of contracted providers. That means we're able to control care delivery and price contracts more competitively, we believe, than anybody else in the market at this point in time. So from that perspective, we are truly the best alternative for a payer, both from a pricing perspective as well as just a care delivery and coordination perspective. Operator: Thank you. At this time, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.
Operator: Good morning, and welcome to the VAALCO Energy Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator. Please go ahead. Al Petrie: Thank you, operator, and welcome to VAALCO Energy's Fourth Quarter and Full Year 2025 Conference Call. After I cover the forward-looking statements, George Maxwell, our CEO, will review key highlights of the fourth quarter. Ron Bain, our CFO, will then provide a more in-depth financial review. George will then return for some closing comments before we take your questions. [Operator Instructions] I'd like to point out that we posted a supplemental investor deck on our website that has additional financial analysis, comparison and guidance that should be helpful. With that, let me proceed with our forward-looking statement comments. During the course of this conference call, the company will be making forward-looking statements within the meaning of federal securities laws. As a reminder, these statements are based upon our current beliefs, as well as certain assumptions and information currently available to us as we discuss in more detail in our fourth quarter and year-end 2025 earnings release and our Form 10-K for the year ended 2025 we expect to file on and before March 16, 2026. Investors are cautioned that forward-looking statements are not guarantees of future performance, and those actual results or developments may differ materially from those projected in the forward-looking statements. VAALCO disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in our earnings release, the presentation posted on our website and the reports we file with the SEC, including our Form 10-K. We will also refer to certain non-GAAP financial measures, including adjusted EBITDAX, whose reconciliation you will find in the fourth quarter and year-end 2025 earnings release and in our slide deck. Please note that this conference call is being recorded, and let me turn the call over to George. George Maxwell: Thank you, Al. Good morning, everyone, and welcome to our fourth quarter and full year 2025 earnings conference call. Over the past 3 years, we have delivered outstanding operational and financial results, including generating over $750 million in adjusted EBITDAX while meeting or exceeding our quarterly guidance targets. Maintaining operational excellence and consistent production across our portfolio is essential to increasing our adjusted EBITDAX, which has allowed us to expand our portfolio and also to fund organic growth initiatives, better positioning VAALCO for the future. We recently divested all of our Canadian assets, and we added to our Cote d'Ivoire position by being named operator with a 60% working interest in the Kossipo field on Block CI-40. Last year, we added an exploration block, CI-705, in Cote d'Ivoire and are working with our partners on the seismic acquisition and processing at Niosi Marin and Guduma Marin blocks offshore Gabon. In addition, we drilled our first exploration well in Gabon since 2013 during Q1 2026. And although unsuccessful, combined with the new exploration portfolio in Gabon and CDI, we have created a more balanced portfolio between production, development and high-quality prospective assets. We have accomplished many things in these past 5 years, growing VAALCO from a single asset delivering around 5,000 barrels a day to a diversified multi-country operator, well on our way to achieving our goal of 50,000 barrels of oil equivalent per day. We have, over the past several years, in addition to growing production, reserves and adjusted EBITDAX, has been a sustained commitment to returning cash to shareholders. In 2025, we returned another $26.5 million in dividends. And since Q4 2021, we have returned over $115 million to our shareholders through dividends and share buybacks. As we discuss our operational and financial results today, it is important to remember that 2025 was a transitional year for VAALCO as production came offline in Q1 at Cote d'Ivoire due to the FPSO project, and we did not start the drilling campaign in Gabon until late Q4. This means that the meaningful production uplift we are projecting from these major projects won't begin until later this year and into 2027. I would now like to go through and provide a quick update on our diverse portfolio of high-quality assets, beginning with Cote d'Ivoire. I'd like to remind you that we had no production or interest in Cote d'Ivoire prior to April 2024, when we made the Svenska acquisition, securing a valuable asset with Baobab on the CI-40 block. In line with the project time line, the FPSO at Baobab ceased hydrocarbon operations as scheduled on January 31, 2025, with the final lifting of crude from the vessel occurring in early February. The vessel departed from the field in late March and arrived in the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO refurbishment went very well, and the FPSO departed Dubai in early February 2026 on route back to Cote d'Ivoire. The vessel is currently off the coast of South Africa and continues to be on track to return to Baobab, with the field restarting in Q2 2026. Significant development drilling is expected to begin later this year after the FPSO returns to service with a drilling program which includes 3 producers, 2 to 3 injectors and 2 workovers providing potential meaningful additions to production from the main Baobab field, where we have a 10-year extension to the license to 2038. The current drilling plan on Baobab is to begin drilling on a batch basis, the top hole sections of all 5 wells. The completions will then be commenced, and we expect at least 1 well to be on full production by year-end. In March 2025, we announced a farm-in agreement for the CI -705 block offshore Cote d'Ivoire, where we will operate with a 70% working interest and a 100% paying interest through the seismic reprocessing and interpretation stages and potentially drilling up to 2 exploration wells. The block is favorably located in a proven hydrocarbon system and is approximately 70 kilometers to the west of our CI-40 block, which contains 1.2 billion barrels of oil equivalent of [ stope ]. We received seismic data for the block, and we are conducting a detailed integrated geological analysis to assess and mature our understanding of the block's overall prospectivity, as well as the basin's overall potential. In accordance with the CI-40 PSC, VAALCO and PetroCI elected a sole risk development of the Kossipo field. In February 2026, VAALCO was confirmed as operator with a 60% working interest in the Kossipo field on the CI-40 block, just 8 kilometers from Baobab field. We are now working on a field development plan using new ocean bottom node seismic data that is expected to help derisk and enhance our evaluation and development plan. The Kossipo field was discovered in 2002 with the Kossipo-1X well and later appraised in 2019 with the Kossipo-2A well, which tested at over 7,000 barrels of oil per day. Our current assessment has a field with an estimated gross 2C resources of approximately 102 million barrels of oil equivalent and 293 million of barrel of oil equivalent in place. So in less than 2 years, we have established a sizable position in Cote d'Ivoire with considerable upside potential to help us achieve our production growth targets in a significant and high-demand hydrocarbon basin. We have demonstrated our ability to acquire, develop and enhance value through accretive acquisitions, and we are excited about the prospects in Cote d'Ivoire. Moving to Gabon. Given that we haven't drilled a well in Gabon in over 3 years, we are pleased with the overall positive production results we saw in 2025. In July 2025, we successfully completed a planned full field maintenance shutdown of the Gabon platforms to perform safety inspections and necessary maintenance. This is the first time that we have had to perform a full field shutdown at Gabon since the FSO was brought online in 2022. In the fourth quarter of 2025, we began our Phase 3 drilling program in Gabon with the drilling of 2 pilot wells in the Etame field. Based on the pilot well results, we proceeded with the drilling of the Etame 15H-ST development well on the 1V block of Etame in December 2025. The rig remained on the Etame platform to drill an exploration prospect in West Etame. While the well encountered 10 meters of high-quality Gamba sands, the target zone was water-bearing and noncommercial. The lower portion of the well will be plugged and abandoned, but the wellbore will be utilized and sidetracked in the upper portion of the well to drill the ET-14H development well in the main fault block of Etame that was derisked from the results of the earlier pilot wells. When we committed to drilling the Etame West exploration well, we knew there was geological risk of not encountering commercial sands, but the size of the potential resource made it a risk worth taking. Furthermore, we purposely designed the well so we could still utilize the wellbore to drill a development well into a nonproductive area if the sands were noncommercial. We are now working to drill the sidetrack well, which should be completed in April. After completing our program at the Etame platform, we expect to move the drill rig to the SEENT and Ebouri platforms, where we have several wells and workovers planned to enhance production, lower costs and potentially add reserves. Regarding our exploration blocks in Gabon, the Niosi Marin and Guduma Marin, we are working with our partners and the operator on plans for the 2 blocks moving forward. We commenced a seismic survey in November of 2025, which was completed in the first quarter of 2026. This survey completed part of the exploration work program commitment for these blocks. Further evaluation and interpretation of the results are expected to continue into the second and third quarters of 2026. Given the proximity of these blocks to the prolific producing fields of Etame and Dussafu, we are excited about the future possibilities for these blocks. Turning to Egypt. For the past year, we had contracted a rig and drilled 20 wells across a drilling campaign that helped to increase production year-over-year in 2025. We are very pleased with the operational performance and efficiency of the drilling program, which contributes to minimizing costs. We have been able to drill 8 extra wells faster and cheaper than what we had budgeted for the same amount of capital, which has also positively impacted production. In conjunction with our drilling program, we also continue to perform production optimizations, workovers and recompletions that have significantly improved our production performance. While we wrapped up the drilling program in the fourth quarter of 2025, the very good results drilled at the end of the year have resulted in Q1 2026 producing consistently above 11,000 barrels of oil per day and well above our budget of 10,700 barrels of oil per day. We plan to continue optimizations, workovers and recompletions in 2026, focused on production enhancement, while we finalize our development and exploration opportunities for the upcoming drilling campaign. In the Western Desert, work is ongoing to evaluate and integrate the results of our last exploration well in South Ghazalat. This well has confirmed the presence of both oil and gas. The long-term test and pressure monitoring that we have carried out has confirmed the connection of the oil-bearing zone to a larger volume. Based on this, we are updating our subsurface mapping, prospective evaluation and volume estimation in order to put together the appropriate economic field development plan for our acreage. We are particularly pleased with the progress our team made in our Egyptian receivables in 2025. Ron will discuss this in more detail, but we are now essentially on a current billing basis with EGPC. On February 5, 2026, we announced an agreement for the sale of all of our Canadian assets to a third party for approximately $25.5 million, which equates to 2.7x our trailing 12 months operational cash flow. The Canadian properties were producing approximately 1,850 barrels of oil per day at the time of sale, and the sale closed in February 2026 as expected. As Ron reviews our production guidance for 2026, keep in mind that our first quarter and full year 2026 results will only include January and a prorated February through the 19th Canadian production and financial results. We believe we have extracted significant value from the Canadian assets, including almost $65 million in operating cash flow since their acquisition. While we believe the Canadian assets are solid, we decided to focus on our core assets and their significant upside potential. With all of the large-scale drilling campaigns underway or planned in those areas, we determined that now was the right time to sell. Turning to Equatorial Guinea. In March 2024, we announced the finalization documents of the Equatorial Guinea related to the Venus Block P plan of development. Last summer, we began our front-end engineering design or FEED study. The FEED is complete and confirms the technical viability of our plan of development, but also highlights some of the risks and challenges on the shelf location. We have expanded this review to explore more efficient development opportunities through a subsea development versus the original shelf development, which would also significantly simplify the drilling operations and well design, and this evaluation is currently underway. We're excited to proceed with our plans to develop, operate and begin producing from the discovery in Block P offshore Equatorial Guinea in the next few years. Before I turn the call over to Ron, I would like to highlight some positives with our 2025 year-end reserve results. Our SEC reserves were prepared by NSAI, an independent third-party engineering firm that has provided annual independent estimates of VAALCO's year-end SEC reserves for over 16 years. While SEC proved reserves at year-end decreased modestly year-over-year by 5% to 43 million barrels of oil equivalent, we did see 4 million barrels of oil equivalent of positive revisions, additions and extensions, which replaced 2/3 of our 2025 production of 6 million barrels of oil equivalent. Also, with the Phase 3 drilling program in Gabon starting near the end of 2025 and the FPSO returning and drilling at Baobab starting in 2026, we expect to see more additions and extensions related to our organic drilling program in 2026 and 2027. Additionally, despite lower average SEC pricing of around $70 per barrel, our SEC proved reserve PV-10 increased 8% from $379 million to $410 million due to positive revisions, offset by widening differentials in Gabon and a decrease in year-over-year SEC prices. Year-end 2025 SEC reserves included a 17.5 million barrel of oil equivalent in proved developed reserves and 25.5 million barrels of oil equivalent in proved undeveloped reserves. Turning to our 2P CPR estimate, which includes proven and probable reserves. Using VAALCO's management's assumptions for future pricing and costs reported on a working interest basis prior to deduction of government royalties, we also saw a small year-over-year decrease of 6% to 73.7 million barrels of oil equivalent. Despite this, the 2P CPR and PV-10 saw a 26% increase to $859 million at year-end 2025. We have a strong runway of opportunities that will continue to add value. And as you can see from our SEC proved reserves, 2P CPR reserves and corresponding PV-10 values compared to our current market cap, our stock price remains undervalued. In closing, we have an outstanding diversified portfolio of assets that have significant upside opportunities. We remain focused on growing production, reserves and value for our shareholders. I'd like to thank our hard-working team who continue to operate and execute our plans. Over the past several years, we have significantly diversified our portfolio, enhancing our capacity to generate operational cash flow and adjusted EBITDAX while returning capital to shareholders and increasing our credit facility capacity. We are well positioned to execute the projects in our enhanced portfolio, and our proven track record of success these past few years should instill confidence for our future. With that, I would like to turn the call over to Ron to share our financial results. Ronald Bain: Thank you, George, and good morning, everyone. I will provide some insight into the drivers for our financial results with a focus on the key points and give additional insight into our 2026 Q1 and full year guidance. Let me first echo George's comments about our continued success and our ongoing ability to meet or exceed our quarterly and annual sales, production and cost guidance, leading to consistent operational and financial results. I want to remind you that in 2025, at midyear, we increased the midpoint of our full year production and sales guidance. Even with these higher targets, we were able to deliver 17,452 net revenue interest barrels of oil equivalent per day of sales in 2025, above the high end of our increased guidance. We also delivered production of 16,556 net revenue interest barrel of oil equivalent per day or 21,160 working interest barrels of oil equivalent per day, both above the midpoint of VAALCO's increased guidance. These strong sales numbers helped us generate adjusted EBITDAX of $173.4 million and net cash from operating activities of $212.7 million for the full year of 2025. In the fourth quarter, we reported a net loss of $58.6 million or $0.56 per diluted share, which was driven primarily by a noncash impairment charge of $67.2 million due to the sale of our Canadian assets. This impacted our full year net income, as well as pushing it into a net loss. After generating $17.2 million of net income in the first 9 months of 2025, we ended the year with a net loss of $41.4 million, driven by the fourth quarter and the noncash impairment charge. Turning to costs. Our production costs for 2025 were in line with guidance, both on an absolute basis and on a per barrel basis. With the lower sales in 2025, we were down on an absolute basis, but slightly higher on a per barrel basis year-over-year. For the full year 2025, absolute expense was $158 million and on a per barrel basis was $24.89. For the full year 2024, while the absolute costs were up by about $10 million, our per barrel costs were slightly lower at $22.48. Cash G&A costs were below the low end of guidance for the fourth quarter and for the full year 2025. Our focus remains on keeping our costs low to enable us to maximize margins and increase our cash flow. Exploration expense for the fourth quarter was $6 million, and was primarily attributable to the purchase of 3D seismic costs associated with Niosi and Guduma blocks in Gabon, as well as costs associated with an Egyptian exploration well in South Ghazalat determined to be currently not commercially viable. The well confirmed the presence of hydrocarbons, and the team are updating their mapping, prospect evaluation and volume estimation in order to put together the appropriate economic field development plan to present to both our partner and the state. Moving to taxes. In the fourth quarter, we reported an income tax benefit of $4.6 million, which was comprised of a $5.2 million current tax expense, offset by a deferred tax benefit of $9.8 million. Income tax benefit includes a $7.3 million favorable oil price adjustment as a result of the change in the value of the government of Gabon's allocation of profit oil between the time it was produced and the time it was taken in kind. For the full year 2025, income tax expense was $14.8 million, which included a deferred tax benefit of $29.4 million. As I've previously stated, in Gabon, Egypt and Cote d'Ivoire, our foreign income taxes are settled by the government through oil liftings in Gabon and Cote d'Ivoire and the government taking their share in Egypt. Turning now to the balance sheet and our cash flow statement. Unrestricted cash at the end of the fourth quarter increased by nearly $35 million to $58.9 million at December 31, 2025 while continuing to fund VAALCO's capital program with no draws against the company's RBL in the fourth quarter. We are particularly pleased with the progress our team have made in our Egyptian receivables in 2025. Collections from the Egyptian General Petroleum Corporation accelerated in 2025, and all of our aged receivables are now current. At the start of 2025, our outstanding accounts receivable for EGPC amounted to $113 million. And at year-end 2025, this balance had fallen to $31 million, even after invoicing over $129 million in revenue for the year. We collected over $210 million in 2025, boosted by an industry payment of $40 million received in the last week of the year. Additionally, we continue to see collections exceeding revenue through quarter 1 of 2026 In 2025, we entered into a new reserves-based lending facility with an initial commitment of $190 million and the ability to grow to $300 million. The facility has a current commitment level of $255 million and only $60 million drawn at year-end 2025. This facility is helping to supplement our internally generated cash flow and cash balance to fund our active capital programs in Gabon and Cote d'Ivoire. As expected, during the first quarter of 2026, we expect to make additional draws against our RBL for our 2026 capital program. We anticipate a substantial part of the interest we incur this year will be capitalized and have been taken into our capital guidance. In Q4 2025, VAALCO paid a quarterly cash dividend of $0.0625 per common share or $6.5 million. And in 2025, we returned $26.5 million to shareholders through dividends. We also announced the first dividend payment of 2026, which will be paid later this month. Turning to hedging. Earlier this year, prior to the Iran conflict, we saw opportunities to get better pricing for our hedging portfolio and took advantage of the market at that time. We were able to secure collars that have a floor of about $65 per barrel for the balance of 2026 for about 50% of our production with ceilings as high as the market allowed when the hedges were put in place. The market is very volatile right now, but we will continue to monitor the situation and hedge on any geopolitical shock or spike where we can. Our full quarterly hedge positions are disclosed in the earnings release. Let me now turn to guidance, where I'll give you some key highlights and updates. I want to remind you that guidance for 2026 has the Canadian assets for only a portion of the first quarter, with the sale closing in the middle of February, and we are forecasting the Baobab field in Cote d'Ivoire coming back online in Q2. So there are some ups and downs in production and sales for the first half of 2026, but we expect both to increase materially in the second half of 2026 when the FPSO is back online and the full impact of the Gabon drilling campaign is realized. Our full guidance breakout is in the earnings release and in our supplemental slide deck on our website with our production breakout of both working interest and net revenue interest by asset area. For the total company, we are forecasting Q1 2026 production to be between 18,700 and 20,600 working interest barrels of oil equivalent per day and between 14,200 and 16,000 net revenue interest barrels of oil equivalent per day. This takes into account the Canadian asset sale, the continued FPSO project and natural decline. We expect our first quarter 2026 net revenue interest sales volumes to range between 11,200 and 12,900 barrels of oil equivalent per day. For the full year 2026, we are forecasting a production range for the total company to be between 20,100 and 22,400 working interest barrels of oil equivalent per day and between 16,100 and 17,950 net revenue interest barrels of oil equivalent per day. Our expected full year 2026 net revenue interest sales volumes are 14,900 to 18,050 barrels of oil equivalent per day. For the first quarter, we are forecasting our sales to be lower than our production, driven by a single state lifting in Gabon. With a substantial capital and operational program in 2026 for Gabon, we forecast this state lift should be the only state lifting in 2026. We are projecting 5 optimized liftings in the year, with the timing of 1 every other month beginning with April. We expect our absolute operating cost to be in line with 2025. And with our sales also in line with 2025, we are projecting our 2026 per barrel of oil expense to be in the range of $23.50 and $31 per net revenue interest barrels of oil equivalent. We are also expecting slightly higher absolute cash G&A in 2026. For our exploration expense, taking into account the seismic work in Gabon and Cote d'Ivoire, along with the West Etame exploration well, we are forecasting exploration expense to be between $30 million and $35 million for 2026, with a midpoint of approximately $29 million for the first quarter, when we expect most of the expense to occur. Finally, looking at CapEx. Our 2026 capital spend is projected to be between $290 million and $360 million as we continue the drilling campaign in Gabon, complete the FPSO refurbishment and begin drilling at the Baobab field in Cote d'Ivoire, continue recompletions in Egypt and begin spending in Kossipo. George outlined the multiple programs across our assets, as we believe that our efforts in 2025 and 2026 are building the foundation for another step change in production in the future. For the first quarter, we are expecting a range of between $90 million and $110 million for our CapEx. Our first quarter guidance includes about $3 million in capitalized interest, while the full year 2026 includes about $22 million to $24 million in capitalized interest, all of which relates to our large capital investment program this year. In closing, we are well positioned to continue executing our strategy of growing production and reserves while adding meaningful value. We have a long track record of successfully delivering results that meet or exceed expectations. We've achieved many things these past few years, and 2026 looks like it will be another strong operational and financial year. Despite all of this, we continue to trade at a low multiple of EBITDAX. And with a robust organic capital program of high-return growth opportunities, we are forecasting substantial increases in sales and adjusted EBITDAX in the future. We've delivered and very well positioned to continue to execute at a high level across our diversified assets over the next several years. With that, I'll now turn the call back over to George. George Maxwell: Thanks, Ron. As you have heard this morning, we have successfully delivered strong operational and financial results for the past several years by successfully executing on our diversification and growth strategy. In these past 5 years, we have achieved so many milestones that reflect the efforts and hard work of our employees in making the company that you see today. We have successfully grown VAALCO from a single asset delivering around 5,000 barrels of oil per day to a diversified multi-country operator, well on our way to achieving our goal of 50,000 barrels of oil equivalent per day. Our strategy remains unchanged. Operate efficiently, invest prudently, maximize our asset base and look for accretive opportunities. This continues to deliver for our shareholders, partners and all stakeholders in VAALCO Energy. We have rationalized our portfolio, adding high upside opportunities at good prices, and we are poised to deliver meaningful organic growth in the future. Looking across our asset base, we have a multitude of projects to execute. In Gabon, we have an extensive drilling campaign underway at Etame that should add reserves and production. The FPSO at Baobab is nearly back in Cote d'Ivoire, and the field is expected to be back online in the next couple of months as we work with the operator on the 5-well development drilling program that is scheduled to begin later this year. At Kossipo, we are very excited to be named operator with a 60% working interest, and we are working on a field development plan that is being driven by new seismic, and we're looking to utilize existing infrastructure already in place. Also in Cote d'Ivoire, we're acquiring additional regional well data, licensing seismic data and conducting further geological evaluations to our new exploration block, CI-705, where we are the operator with a 70% working interest. In Egypt, we have an ongoing production optimization workover and recompletion program, and we're examining drilling additional wells. In Equatorial Guinea, we have completed the initial front-end engineering and design study that confirmed the viability of the development concept and are currently evaluating alternative technical solutions which may deliver enhanced economic value. Our entire organization is actively working to deliver sustainable growth and strong results to continue funding our capital programs while also returning value to our shareholders through our top quartile dividend. I believe we have gained credibility over the past 3 years, having delivered on our commitments to the market and to our shareholders, and we will continue to deliver with the exciting slate of projects we have over the next few years. We are in an enviable financial position with a much stronger and diverse portfolio of producing assets with significant future upside potential. Our disciplined approach to maximizing value for our shareholders by delivering growth in production, reserves and cash flow has not been fully reflected in our stock price, but we believe we will see the market begin to properly value VAALCO as we execute on our organic opportunities over the next few years. Thank you. And with that, operator, we're ready to take questions. Operator: [Operator Instructions] Our first question today is from Stephane Foucaud with Auctus Advisors. Stephane Guy Foucaud: So I've got a question around CapEx in Cote d'Ivoire. And perhaps if you could provide a bit more granularity on how it is split? In other words, what's FPSO, what's drilling, what's maybe Kossipo? And more importantly, how much CapEx you would expect or residual CapEx you would expect in '27 for this drilling program that you would start in '26 in Cote d'Ivoire? And then I would have a follow-up on Kossipo. George Maxwell: Thank you, Stephane. Well, obviously, the guidance we've been giving for Q1 in relating to the CapEx, the majority of that is split between the drilling program in Gabon and the hookup for the FPSO in Cote d'Ivoire. So at that point, we expect around about 50% of the CapEx will be for Q1 is linked to the Gabon drilling program, with the balance primarily being in the FPSO finalization and towards the hookup. On Kossipo, for the full year, we're really -- the CapEx is kind of limited to just looking at preparation and development of the field development plan for submission. So that's really a limited amount of around $10 million. There's no -- until we get the field development plan in and approved, the future CapEx positions for Kossipo will then be established based on the approved field development plan. Stephane Guy Foucaud: And for the residual CapEx for drilling in Cote d'Ivoire in '27? George Maxwell: Yes. That is really down. And as I mentioned in my statement, we commenced the drilling in September with the batch setting of the top hole section. And then we're going to drill 1 well that we hope to have drilled and completed by late November in Q4. So the CapEx position for those batch drillings is going to be somewhere in the region of between $30 million and $45 million. Stephane Guy Foucaud: Remaining? George Maxwell: No, no. In Q4. In Q4. That would be our CapEx position for Q4 for that drilling program, the working interest for us. Stephane Guy Foucaud: I see. But then on those 6 wells and a few workovers you plan, there will be -- I'm just trying to equate what production could be looking like with remaining CapEx in '27 for that program. So I assume there will be still some completion work to be due in '27. Won't there be -- will there not be? George Maxwell: Absolutely. We've got a 5-well program. We'll only have 1 well down and in production in '26. The other 4 wells, bottom hole sections will be drilled in 2027. Thor Pruckl: And injectors. George Maxwell: Yes. Sorry, Thor's reminded me, we've also got 3 injectors to do as well. Stephane Guy Foucaud: I see. So assuming, say, $40 million per well gross, something like that? George Maxwell: No, we're probably closer to [indiscernible] per well gross. And obviously, we're 1/3 of that. Stephane Guy Foucaud: Yes. Okay. Okay. And my follow-up is a quick one is on Kossipo. So when would you see the big CapEx starting on Kossipo? Is that a '27 event, '28, later? I know first oil is in 2030. George Maxwell: It's going to be 2028. If you think of how we -- I mean, this is obviously a reasonable deepwater development and somewhere around 400, 500 meters of water depth. So when we get the field development plan, we're planning to have that submitted before the end of the year. One of the big issues here, if we can successfully get it submitted before the end of the year, that 2C contingent resource automatically drops into a 2P position for us on reserves. By the time we submit that plan and get it approved, we then can start the engineering phase. And the engineering phase will take probably at least between 6 to 12 months before we start any major CapEx commitments on equipment delivery. And obviously, at the same time, we then look to source a rig for the drilling activity. We also have to look at the position of how we're going to develop this field. At the moment, there's the opportunity to tie back into Baobab. So if we tie back into Baobab, we then got to take considerations for a suitable [ haulage ] in Baobab, the MV-10 production facilities. So it really is kind of -- we're looking at all the optionality right now as to how this fits in with the existing production profile of Baobab or if there's an accelerant opportunity on a stand-alone position on Kossipo. But that will all come out in the field development plan this year. Operator: The next question is from Jeff Robertson with Water Tower Research. Jeffrey Robertson: Ron, a question on the guidance. Can you talk about the base Brent price forecast that's embedded in the NRI volume assumptions? And then just given the extreme volatility in crude prices, can you provide a bit of a refresher on how that flows through the PSCs with respect to NRI volumes and cost recovery? Ronald Bain: Yes, I can do that. Underlying Brent assumptions that we assumed for 2026 was a baseline of $65, per Brent. And obviously, we got our differentials off of that. With regards to upside on that, obviously, the PSCs, the West Africa PSCs are very much a profit oil split. So we benefit from the rise in prices to the extent we have the hedges in place. Outside of that, Egypt, obviously, that PSC is somewhat very protective on lower oil prices. But on upper oil prices, the split between the excess cost oil that goes to the government versus the contractor is 85% to the state, 15% to the contractor. So the upside is somewhat limited in relation to the Egyptian barrels, although there is upside, but very, very weighted towards the contractor on the West Africa side. Jeffrey Robertson: And a question on Kossipo, George. And I guess on CI -705 as well. As you advance those projects, would you expect to maintain VAALCO's current working interest? Or at some point, would you get to a point where you'd consider trying to bring in another party to take a share of that risk? George Maxwell: Okay. On Kossipo, right now, we're more than comfortable at our 60% working interest and operatorship, and we've got an excellent relationship with our partner, PetroCI. So at this point, that's not currently in our plans, a farm-down position. I mean we have to bear in mind, we're looking at this opportunity, as we mentioned that in our releases that the appraisal well delivered over 7,000 barrels a day. So the size of the prize is very large for us. So obviously, it's going to be based upon the ranking of our investment opportunities and what comes out of the field development plan. On that basis, if it does look like it's going to be a rather heavily punitive CapEx position or it's going to have an elongated time line, we do take account of how long we have to invest the dollar before it comes back out of the ground, and that may drive a different decision-making process than we have currently planned. On CI-705, we have started the analysis on the prospectivity. We've -- we're working that up this year. We are very encouraged by what we see. What we have to bear in mind with CI-705 is that we have a block that's just under 2,500 square kilometers. It goes from the beach right through into water depths of in excess of 1,000 to 1,500 meters. So depending on where we see the most attractive targets -- and we see targets right now at the 200-meter level, and we see targets at the 1,300, 1,400-meter level. And it will really depend on which targets we want to exploit because obviously, the deeper we go, the more expensive it becomes. But if we're looking at the shallower targets as our first exploitation, I'm fairly confident we would keep that in-house. If it's a deeper target, then we'd certainly talk about farming out some of that position so we share the risk. The key here for us is we've built a position, as I mentioned earlier in today's call, in Cote d'Ivoire, a very hot area of activity, particularly by some of the IOCs, and we've got ourselves exceptionally well placed in those areas. Operator: The next question is from Chris Wheaton with Stifel. Christopher Wheaton: Two questions, if I may. Firstly, the roughly $150 million plus CapEx in Cote d'Ivoire this year, could you help break that down between what's left on the FPSO refurb project and the recommissioning, but then also the planned drilling later in the year? The second question was on free cash flow and your uses of free cash flow. If prices stay elevated and you do get -- I won't use the word windfall for obvious reasons -- you do get an extra $30 million to $40 million of, say, of free cash flow generated in the year, where do you apply that? How much could you actually reinvest quickly? How much would you want to keep on balance sheet given the volatility in prices and the fact -- and you've got a big CapEx program coming up? And how much might possibly be returned to shareholders? I'm interested in that sort of balance sheet sensitivity if you do get that higher free cash flows than originally planned for 2026. Those are my questions. George Maxwell: Okay. I'll take the CapEx flip one on the project. So as you know, the vessel is currently just rounding the Cape in South Africa. We've -- we're very pleased with the progress of that project. As you're all aware, the vessel sailed out of a rather hot area right now right before those activities kicked off, and we're very pleased that the vessel was well clear of those areas in a timely manner. With that, as we come around the Cape, we've got to put it back up on towards the Ivory Coast. And at that point, we've got basically the hookup and recommissioning to do on the vessel. So our position on that from where we are with the project right now is probably around about $50 million of that would be our share between the hookup and the recommissioning and getting the anchor changed and everything down on the vessel, with the balance being on the topside holes and the completion of the first well. Ronald Bain: It's Ron, Chris. On the free cash flow question, obviously, when we talk about pay down debt, I mean, if we've got more free cash flow than we're projecting this year if oil prices remain high. But my aspect on that would be that we would not draw down as much, more than anything else. It's effectively, we would use that cash to not draw on the facility. So I don't think necessarily that we're looking to enhance the returns this year with our shareholders. We do have a high capital commitment. We're very much on track in these projects. And it's very much a story of growth into 2027. With the batch drilling, you're not going to see all of that production that CDI is going to give us until probably the end of Q1 into Q2 of next year. So very much, the free cash flow incremental will be used effectively not to draw as much debt. Christopher Wheaton: Okay. That's great. Can I just have one follow-up, please, which is on Equatorial Guinea. If you do achieve FID this year, say, 4Q, which is what I think you've said, does that -- do you still leave you on track for first production by the end of 2028? Or does that slip into 2029, do you think? George Maxwell: I think currently on -- and I've got to be careful here because we haven't got to the full technical evaluation. But now that we're trying to understand the benefits of a vertical solution rather than one off the shelf, when we look at what's available in the marketplace to execute that solution, I'm still pretty comfortable that we will still be on track as we outlined in our Capital Markets Day for Equatorial Guinea development and production. Operator: The next question is from Charlie Sharp with Canaccord. Charlie Sharp: I hate to do this, but I'd like to go back to the CapEx, if I may, and ask the question in a slightly different way. There are so many moving parts that it's difficult, at least for me, to kind of grasp exactly where you are on that. And I guess the question, therefore, I have is, in the [indiscernible] CMD, you indicated exactly what you expected the cost of the FPSO refurbishment, the Baobab Phase 5 drilling and the Gabon drilling programs to be net to yourselves. Nearly a year on from there. Can you quantify where those sit today and where the deltas are compared to what you said last year? And just also a little follow-up on -- I think Stephane asked about the spillover, if you like, into '27, and you went through that in terms of Cote d'Ivoire drilling. Is there going to be any spillover of the program in Gabon into next year, do you think? Ronald Bain: Okay, Charlie, it's Ron here. So I think to give a bit more color on the CapEx side of things, the Baobab Ivorian FPSO rebuild, we kept it on schedule, as you know. Costs have increased in relation to the amount of steel work predominantly on that vessel. And I would say the gross costs that we've got predicted really for that with the operator is roughly about $80 million to $100 million higher than it was originally planned. George Maxwell: Of course, our share of that is 1/3. Ronald Bain: Outside of that, the drilling is very much -- certainly from a CDI perspective, it's very much on what we said for the Capital Markets Day. In Gabon, obviously, we're a lot later in starting the program than we had expected when we did the Capital Markets Day back in May. That -- and we said it in the last call -- probably moved about $40 million to $50 million from 2025 into 2026. So there is a bit of a timing element there. The CapEx is the CapEx. Obviously, we've got an exploration expense in relation to the West Etame well, which was an exploration. Effectively, it was water wet. So we'll have that expense in Q1 of 2026. George Maxwell: On your second part of the question, Charlie, is -- no. Do we expect to see a rollover of the Gabon drilling program into 2027? That's an absolute no. We will have completed this program most likely in the early third quarter of 2026. And although Ron was mentioning on the exploration well, we -- I mean, that certainly has had a cash impact, but not on the CapEx side. But I mean, when we looked at the opportunity for that exploration well, it was definitely the right decision. And as I said earlier today, we optimized that well design to be able to reuse the top hole section to go back and drill the development well that we derisked on the pilots in December. Charlie Sharp: That's great. And one very short follow-up, if I may. Given the expectation for a second half weighted production uplift, could you give us some idea of where you see year-end '26 exit production at? George Maxwell: I think Ron's got the guidance, he's just looking at it now. Ronald Bain: Charlie, again, we've only got the 1 well coming in from CDI in 2026 because obviously, they're batch drilling. But our working interest numbers will be somewhere between 25,000 and 26,000 barrels of oil equivalent on that exit rate. Operator: The next question is from Bill Dezellem with Tieton Capital Management. William Dezellem: Let me start just from a big picture perspective with the Iran conflict. Is there any additional advantage in any way to having your production in West Africa, specifically Gabon, at this point? George Maxwell: That's an easy one. Obviously, our routes to monetize the crude in the export markets remain uninhibited by that particular activity and that conflict. So the advantage we would actually see is that what you're seeing reflective in the spot pricing for crude. Now as you're aware, our crude is based on Brent spot pricing. We have -- as Ron mentioned earlier today, we made sure we started to take advantage. And you've seen us do this many, many times in the previous years where we do have heavy CapEx programs. We do go out and protect our cash flow positions as best we can on a costless collar basis with the hedges. So ahead of this conflict in the Middle East, we -- Ron had secured significant positions to protect our cash flow on the costless collars through 2026 and into part of 2027. You can see that on our supplemental deck and on the earnings release. Anything out with that, obviously, we get and enjoy the upside of that. And that -- if the prices remain as high as they are at the moment, we will see additional cash coming in, in relation to particularly the Gabon and the Ivory Coast production levels -- sorry, cash levels for the production. William Dezellem: And so there is no additional price advantage to your location, it's just simply availability that you have, availability to get the crude to Europe or whatever market? Ronald Bain: Yes. I mean -- it's Ron again, Bill. We could see the premium going on to the Brent price for the type of crude that we've got. I mean, the Gabon Etame crude, it's had a discount to Brent in 2025. But in previous years, we have seen some premiums. So it would not be out of the question for that premium to come back in. The big question here is what's going to happen with freight prices with a prolonged situation in the Gulf. So that's a $64,000 question. I think we're all playing with is what freight is going to do for those vessels. William Dezellem: All right. And so you have not seen that premium return yet? Ronald Bain: No. We saw the differential at one point, I think it was last week, we saw WTI and Brent virtually get parity. So the differentials are going to move. We just haven't seen the effect -- the long-term effect yet, Bill. So it's something we're keeping a watch on. William Dezellem: Okay. And let me move to Egypt. Would you please discuss the exploration well in the H-Field in the Eastern Desert and that success and what the implications are for that new knowledge? Thor Pruckl: Yes, it's Thor here. Yes, we drilled into that zone, and we were a bit surprised, I guess, at the volumes that came in with that well. And I guess what's even more surprising is that the rates have sustained themselves quite high. So currently, what we're doing there is we're looking back at the seismic and doing the technical work on it to see if there's additional opportunities to drill further wells in the next well on that. Operator: The next question is a follow-up from Stephane Foucaud with Auctus Advisors. Stephane Guy Foucaud: So following up on a question from Charlie about Gabon. Where would you see production settling at once the program is finished early [ 2003 ] in terms of production plateau at that point? And then I have a question about interest. George Maxwell: Okay. I mean, on a -- I mean, as you know, we're drilling, so I'm kind of being a bit speculative. On a successful case basis, we're currently somewhere in the region between 14,000 and 16,000 barrels a day gross. I would expect to be somewhere between 20,000 to 23,000 barrels a day on completion of the program. It really is dependent on two things. One is within that program, we are currently considering to drill a gas well, and that gas well will enhance the gas availability for gas lift and gas injection and field fuel in the Etame field. And currently, the more gas we can deliver into the existing production wells, the higher we can cycle the compressors, and therefore, we will have enhanced oil recovery from existing production, which is completely separate from the new wells we're going to drill. The second part of that is when we go to drill the 5H well in Ebouri, we are going back into that structure that we really haven't looked at for over 10 years. We've got some estimates as what we consider this well may be able to perform, but the upsides of those estimates, the range is fairly large. So depending on what we encounter in that far reach well on 5H, it could have a meaningful change in the production. But rule of thumb, I would expect to be between 20,000 and 23,000 a day gross out of Gabon at the end of the program. Thor Pruckl: I guess one thing that we're pretty happy with is that on the Ebouri field specifically, the continued performance of the 2H well, as well as the 4H well, which I think you're probably aware of, we brought on a year ago under a test program. That well is still flowing at a pretty good rate. So we're pretty happy with what we're seeing out of Ebouri right now and expect that next well to be good as well. Stephane Guy Foucaud: And a quick one for Ron. The -- in the -- so the CapEx includes capitalized interest, $20 million or so. So I assume this is not cash. This is something that -- it's an accounting CapEx, for lack of a better word, correct? Ronald Bain: It is. And you'll see on Slide 11, how we split out the CapEx by country, and we've kept the sort of wedge in relation to capitalized interest. I may have to correct you. I mean, it is cash. It's whether you pay the bank or whether you're paying for the CapEx, the cash does leave the bank, unfortunately. Operator: The next question is from Aaron Schafer with Kornitzer Capital. Aaron Schafer: What prices did you realize during the quarter for your oil? And then as my follow-up, what prices are you realizing thus far this year? Ronald Bain: Okay. We're just getting that schedule. I mean, the -- again, if you look into the earnings release, Aaron, on Page 5, we give a breakdown of the 3 months through the 31st of December. And you can see the realized prices that we got for our crude right across our asset basis there. So Gabon, it was about $58; Egypt, $54; and Canada, $53. So again, it was quite -- it was obviously a suppressed market as we went through the end of 2025. You should see obviously that coming up in Q1 2026. Operator: This concludes the question-and-answer session. I would like to turn the conference back over to George Maxwell for any closing remarks. George Maxwell: Thank you very much, operator. I'd like to thank everyone for joining us today in our 10-K -- 2025 earnings call. I think when we entered 2025, there was a lot of speculation about the size of projects that we were undertaking and the size of CapEx spend we had in 2025. And I guess a lot of risk factors added on to our ability to execute and deliver through 2025 on these major projects while still maintaining the returns to our shareholders through dividends and keeping a very prudent position around the balance sheet. And I think when we look at the results for 2025, it's very clear we've achieved exactly what we said we were going to do when we had this call -- the similar call 12 months ago. Now we're now in a position where when we look at the project in Cote d'Ivoire, that's significantly derisked with the vessel on its way back and production lined up to begin again in Q2. So when we look at the CapEx year for 2026, we don't have a significant development CapEx, i.e., a major project of construction. What we do have are major CapEx investments in drilling activity to add liquid production to our production facilities and therefore, cash -- significant cash generative opportunities. Given where we are on these projects, although we have a significant CapEx spend planned for 2026, that is money going into the ground to come back out in cash in the near term. And that's a significant difference to the type of projects we were executing in 2025, which were development capital projects for construction of production facilities. So I think we've demonstrated the success of our ability to manage and work with our partners to achieve the successes that you see in 2025. And I think we should hope -- the market should have confidence in our ability when we go through the drilling activities, both in Gabon and with our partners in Egypt and in Cote d'Ivoire, that we will be successfully executing those in 2026. So with that, I'd like to thank everyone. I think we've had a very successful 2025. The diversification and derisking of the company's cash flows and production opportunities is starting to pay dividends for us, and we'll continue to see that grow through '26 and into '27. Thank you very much. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: Thank you for standing by, and welcome to the WM Technology, Inc. Fourth Quarter and Full Year 2025 Earnings Call. I'd now like to introduce your host for today's program, Simon Yao. Please go ahead, sir. Simon Yao: Good afternoon, and thank you for joining us to discuss our fourth quarter and full year 2025 results. Today, we are joined by our CEO, Doug Francis; and our CFO, Susan Echard. By now, everyone should have access to our earnings announcement and supporting slide deck on our Investor Relations website. During this call, we will make forward-looking statements about our business outlook, strategies and long-term goals. Keep in mind that forward-looking statements are not guarantees of future performance and are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website and our Investor Relations website. We specifically disclaim any intent or obligation to update these forward-looking statements, except as required by law. For the benefit of those who may be listening to the replay or archived webcast, this call was held on March 12, 2026. Since then, we may have made announcements related to the topics discussed so please refer to the company's most recent press releases and SEC filings. We will also discuss non-GAAP financial measures alongside those prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, but not as a substitute for the information prepared in accordance with GAAP. You can find a reconciliation of these measures to our GAAP results in our earnings release and earnings presentation. Finally, today's call is being webcasted from our Investor Relations website, and an audio replay will be available shortly. With that, I will now turn it over to Doug. Douglas Francis: Good afternoon, everyone, and thank you for joining us today. Over the past year, we have remained focused on executing against a clear set of priorities, operating with discipline, strengthening our financial position and continuing to invest in the platform to support long-term growth. While the cannabis industry continues to face significant structural headwinds, Weedmaps remains focused on the long game. For the full year 2025, we delivered $175 million in revenue, generating $40 million in adjusted EBITDA and ended the year with $62 million in cash, an almost 20% increase in our cash balance at the end of 2024. Our 2025 results reflected our team's ability to manage through industry cycles and the actions we have taken to reset and reinforce the business over the past several years. We are navigating a survival and balance sheet management mindset across the sector, but our strong liquidity allows us to invest thoughtfully. Revenue for the fourth quarter came in at the top end of our prior guidance and adjusted EBITDA exceeded our guidance for the quarter. That said, both of these measures were down 10% or more compared to the fourth quarter of 2024, reflecting the continuation of the industry trends that we discussed last quarter, which persisted through the fourth quarter and into the start of this year. Susan will walk through how these trends affected our financial results in more detail. Before I turn it over to her, I would like to provide our view of some of the macro trends and how we see them impacting our business. The cannabis landscape continues to be reshaped by consolidation. We see this led by 2 groups. On one hand, we have the MSOs who largely operate outside of the legacy states. And on the other, we have the large California-based retailers who continue to dominate and expand in the market. MSOs are prioritizing states where the operating and regulatory conditions support sustainable path to profitability, while battle-hardened California operators are adapting to operate on low margins in one of the industry's most competitive markets. This trend creates two possible challenges for Weedmaps. First, consolidation reduces the number of operators in the market. And like most marketplaces, our platform tends to perform best in regions with a larger and more competitive base of operators as they compete for visibility on our platform. Second, product choice and shelf space become streamlined, making a narrower set of brands available to the user. As these market dynamics persist, we remain focused on enhancing our product offerings, deepening our relationships with large California-based clients and MSO partners, improving adoption in states with regulatory capture and strengthening the overall marketplace experience. These efforts remain a strategic priority and we expect to make meaningful investments across our teams and technology throughout the year as we continue building for the future of Weedmaps. On Schedule III, we remain cautious around its potential for Weedmaps despite the positive headlines. It is critical to understand that rescheduling will not make cannabis federally legal nor will it immediately allow Weedmaps to enter new business lines or launch new revenue strategies. Being a company serving the cannabis industry market while being listed on a major U.S. exchange limits our strategic options relative to other technology businesses. We are restricted in how we can monetize and execute cannabis technology and how we can handle transactions and logistics. Without these capabilities, we are not able to provide customers a regular e-commerce experience like what they are used to outside of cannabis nor are we able to access the full benefit of our dual-sided marketplace. Unfortunately, Schedule III will not change this in the near term nor do we believe plant touching companies will be allowed on either of the U.S. exchanges anytime soon. While the potential elimination of 280E tax will improve cash flows for some, the impact may be more limited than the current positive sentiment within the industry suggests. Many plant touching operators, including a majority of publicly traded MSOs have adopted certain legal positions, utilized accounting consolidation strategies or recorded allowances for uncertain tax liabilities. As a result, most clients are already realizing cash flow benefits similar to what they would see if Section 280E did not apply. Rescheduling will just make the future of these benefits clearer and more certain, and rescheduling on its own will not erase these companies' historical tax liabilities, which, even if they are manageable, may slow down a client's ability to spend that newly free cash flow on growth rather than debt service. Furthermore, the tax benefits of rescheduling are likely to disproportionately favor large operators and MSOs who will continue to consolidate the market, which, as I explained, could have an impact on the Weedmaps business model. Ultimately, we want full legalization, and Schedule III is a step in that process. We are excited for the industry and the potential benefits rescheduling to provide, including extended research opportunities and greater regulatory clarity. In the meantime, we continue to focus on what we can control, building a broad marketplace where consumers can discover the brands and the products they want and ultimately transact with our retail partners. We are optimistic about several growth levers. We have several product updates underway designed to enable product-first discovery and shopping journeys. We believe this mode of engagement with the platform will allow retailers and brands to offer consumers an e-commerce experience more similar to what they find when shopping in other industries. We're pleased with the early momentum we've seen in New York, and hope to leverage our learnings and experiences to grow our presence in other new markets like Minnesota and Texas and the regulatory capture markets where we've historically had less of a presence. I want to thank our team for their continued focus and execution during a challenging period for the industry. While there is still work ahead, we believe the investments we are making today position Weedmaps well for the next phase of the industry's evolution. With that, I'll turn it over to Susan. Susan Echard: Thanks, Doug. Now turning to our financial performance. Revenue for the fourth quarter was $43 million, a decline of 10% year-over-year reflecting the persistent challenges our clients face across our core markets. In these regions, severe pricing compression, competition from the illicit markets and elevated excise tax burdens continue to weigh on our clients' margins and marketing budgets, limiting their ability to spend on our platform. This dynamic was reflected in lower spend across our featured and deals listings, which tend to be more sensitive to shifts in marketing spend. These conditions have driven contraction and consolidation across several of the industry's largest markets, particularly California and Michigan, where both total retail sales and average retail prices declined year-over-year throughout 2025. We saw encouraging growth in newer markets such as New York and Ohio, where our teams prioritized client penetration as retailers come online in those states. While this growth did not offset the pressure in our more mature markets, we are pleased with the early momentum we have seen in these states. As a result, full year revenue was $175 million compared to $185 million in 2024, representing a year-over-year decline of approximately 5%. Average paying clients in the fourth quarter were 5,120, down approximately 2% both year-over-year and sequentially, reflecting the consolidation in operator exits in the markets such as California, Michigan and Oklahoma, partially offset by growth in newer markets like in New York where our client count nearly doubled compared to the prior year. For the full year, average paying clients were 5,190, up 2% compared to 2024. Average revenue per paying client for both the fourth quarter and the full year was approximately $2,800, down from prior year levels. This is attributed to lower spend from certain existing clients amid tighter marketing budgets as well as the addition of clients in newer markets who typically begin at lower initial spend levels. Against a softer revenue backdrop, we remain disciplined in managing our cost structure throughout the year. Total operating expenses increased modestly by 2% to $174 million for the full year compared to $170 million in 2024, primarily due to certain nonrecurring items. Full year sales and marketing and product development expenses declined by $2 million and $8 million, respectively, driven by lower headcount-related costs and reduced advertising spend following restructuring actions taken earlier in the year to optimize and refocus these teams. These reductions were more than offset by higher general and administrative expenses, which increased approximately $6 million year-over-year. This increase included a couple of onetime items, including a $2.3 million noncash loss contingency recorded in the second quarter related to a contractual obligation with our server provider, as well as a $2.8 million legal settlement disclosed as a subsequent event in our 2025 Form 10-K. Additionally, in the fourth quarter, we recorded a noncash asset impairment charge of approximately $7.8 million, largely related to our goodwill assets. As a result, net income for the full year was $3 million. Despite our revenue decline year-over-year, our cost control efforts resulted in a non-GAAP adjusted EBITDA for the full year of $40 million compared to $43 million for 2024. In the current industry environment, maintaining tight cost control enables us to navigate these challenges while preserving the flexibility to invest in key organic growth initiatives. Our operating model allows us to manage expenses and maintain profitability while self-funding operations and continuing to invest in the business. Looking ahead, many of the industry dynamics that impacted our clients in 2025 have carried into the early part of this year and are expected to persist through 2026. As a result, we expect first quarter revenue to decline sequentially by mid- to high single digits from the fourth quarter. We plan to continue investing opportunistically across the business. And given the potential variability and the timing of these investments, we will not be providing adjusted EBITDA guidance for 2026. The company remains committed to preserving financial flexibility and disciplined capital allocation as we assess the opportunities ahead. With that, I'll turn the call back to the operator. Operator: Thank you. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.
Operator: Good day, ladies and gentlemen, and welcome to the Vista Gold's 2025 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. Today is Friday, March 13, 2026. It's now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. Please go ahead. Pamela Solly: Thank you, John, and good day, everyone. Thank you for joining the Vista Gold 2025 Financial Results and Corporate Update Conference Call. I'm Pamela Solly, Vice President of Investor Relations. On the call today is Fred Earnest, President and Chief Executive Officer; and Doug Tobler, Chief Financial Officer. On March 11, 2026, Vista reported its operating and financial results for the year ended December 31, 2025. Copies of the news release and the annual report on Form 10-K are available on our website at www.vistagold.com. During the course of this call and the question-and-answer session, we will be making forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Vista to be materially different from results, performance or achievements expressed or implied by such statements. Please refer to our most recently filed Form 10-K for details of risks and other important factors that could cause actual results to differ materially from those in our forward-looking statements and the cautionary note regarding estimates of mineral resources and mineral reserves. I'll now turn the call over to Fred Earnest. Frederick H. Earnest: Thank you, Pam, and thank you, everyone, for joining us on the call today. We'll begin with an overview of our 2025 achievements and then discuss our outlook for 2026. Our achievements in 2025 underscore our commitment to creating greater value for our shareholders and positioning Vista and Mt Todd for long-term success. 2025 was a pivotal year for our company. The completion of the Mt Todd feasibility study in July marked an important milestone for both the project and Vista. Throughout the year, we remain focused on safety, environmental stewardship, financial discipline and delivering value for our shareholders. In November, we surpassed 4 years without a workplace incident and maintained 0 reportable environmental events and ended the year with a strong treasury. further strengthened by a recent equity raise that will support permitting, technical studies and early engineering work as we continue to advance Mt Todd. Earlier this week, we closed a $44.85 million public offering, and we're pleased with the demand and broad range of interest from resource investors. We are committed to prioritizing the efficient use of our cash and creating value for our shareholders through disciplined execution of our strategy for the Mt Todd gold project. I will discuss some of these topics in greater detail later in the call, but I'll now turn the time over to Doug Tobler for a review of our financial results for the year ended December 31, 2025. Douglas Tobler: Thank you, Fred. Thanks, everybody, for joining the call as well. My comments today will provide a recap of our financial position and results of operation as presented in our 2025 Form 10-K. For additional details about our audited financial statements, this 10-K is available for review at sec.gov or sedarplus.ca. And all of the amounts that I mentioned today will be in U.S. dollars. Vista ended 2025 with cash on hand of $13.6 million and has recently completed an equity offering with net proceeds of $41.9 million. Securing these funds comes at a very important time because it provides Vista with immediate ability to fund the programs that Fred will mention later in this discussion. We are now well positioned from a financial perspective to execute on our objective to begin detailed engineering in 2027. We also continue to have a clean balance sheet with no debt. Turning to our results of operations. 2025 concluded as we expected with the majority of our expenditures relating to Mt Todd, while we held our corporate costs consistent with 2024. Overall, Vista reported a net loss of $7.5 million for the year ended December 31, 2025. This compared to net income of $11.2 million for 2024. The swing between years is largely accounted for by 3 things. First, we recognized a $16.9 million gain in 2024 that related to our grant of a royalty interest to Wheaton Precious Metals. Secondly, during 2024, we capitalized a $1.9 million of drilling and other cost expenditures that qualified as development costs. And lastly, we sold used mill equipment in 2024 for net proceeds of $800,000. Key components of our results of operations include Mt Todd-related expenditures and corporate administration. Our exploration and other expenses for Mt Todd were $5.6 million in 2025 compared to $3.5 million in 2024. This variance is mostly the result of having capitalized $1.9 million of development costs in '24, as I mentioned previously. Aside from our recurring site-related activities at Mt Todd, our priorities in '25 were largely associated with completing the 2025 feasibility study, while in '24, we carried out a drilling program in the area of the Batman pit and the South Cross Lode. And as I mentioned, we continue to hold our corporate administration expenses steady on a year-over-year basis. In 2025, these expenses totaled $3.6 million compared to $3.7 million for 2024. That concludes my remarks. I'll turn the call back to Fred now. Thank you. Frederick H. Earnest: Thank you, Doug. As I indicated previously, in July of 2025, we completed a new feasibility study for our Mt Todd gold project that presents a new vision for the project as a 15,000 tonne per day operation. The completion of the new feasibility study was a defining moment for Mt Todd and Vista. The study demonstrates an achievable path to near-term production centered on a smaller, initial operation that prioritizes higher grade ore to the processing plant, significantly lowers initial capital costs and incorporates contract services to reduce development and operational risks. At the feasibility study gold price of $2,500 per ounce, the net present value at a 5% discount rate or NPV5 was estimated to be $1.1 billion. The internal rate of return was estimated to be 27.8% and the payback period was 2.7 years. At a $3,300 gold price, the NPV5 was estimated to be $2.2 billion with an IRR or internal rate of return of 44.7% and a payback period of 1.7 years. At a $5,000 gold price, the NPV5 is estimated to be $4.5 billion, and the IRR is estimated to be 74.5% with a 1.3-year payback period. For additional information on the feasibility study results, please refer to Vista's news release dated July 29, 2025, and the feasibility study presentation, both of which can be found on our company website. Since completing the 2025 feasibility study, we have prioritized work to support the start of detailed engineering and design. Recent drilling has provided core for selective metallurgical testing to confirm grind size, gold recoveries and optimal selection and sizing of grinding equipment. We have completed a preliminary geotechnical review to assess the opportunity to steepen the west pit wall, reduce stripping and potentially convert additional mineral resources to mineral reserves. I'm pleased to report that based on this review, we plan to commence geotechnical drilling at the conclusion of the wet season at Mt Todd, in other words, in the next month or so, and complete a new geotechnical study for the Batman pit. During the fourth quarter of 2025, we began the process of modifying our existing key permits to align with the designs and operating plans in the 2025 Mt Todd feasibility study. Applications were submitted for several modifications with additional applications planned for this year. In January, we hired an approvals manager, Dr. Francis Kuranchie, to complement our operations team in Darwin. His primary responsibility is to manage the permit modification and approval processes. Talking for a moment about safety and ESG. Throughout 2025, we remain firmly committed to safety, environmental stewardship and the interest of our stakeholders. In November, we've surpassed 4 consecutive years without a workplace incident, which is a testament to our strong safety culture. Our site team continued to successfully advance Mt Todd's environmental initiatives with 0 reportable incidents and management continued its proactive engagement with the Jawoyn Aboriginal Association Corporation and other key stakeholders. In 2026, we are focused on building the technical and organizational foundation required for project execution. This includes advancing the technical studies I mentioned earlier, completing ongoing permit modification activities and building an Australian-based team to lead the development and operation of Mt Todd. This team is expected to include a small executive group based in Perth and a larger operational presence based in the Northern Territory. In addition to the recently hired approvals manager in February, we announced 2 key appointments to our Perth team, including an Executive General Manager of Projects and Technical Services and an Executive General Manager of External Relations and Social Performance. We expect to make additional announcements in the coming months as we continue to add to our project team. Completing this work is an important prerequisite to initiating detailed engineering and design, which we expect to begin in 2027. The decision to commence detailed engineering and design is expected to mark the start of an approximately 27-month period of design, construction and commissioning, culminating in first gold production. Looking ahead, we believe Mt Todd holds tremendous intrinsic value and represents an exceptional investment opportunity at conservative long-term gold prices. With an all-in sustaining cost of roughly $1,500 per ounce and a very conservative gold price of $3,300 per ounce, the Mt Todd project will generate $300 million of free cash flow annually. At a $2,500 gold price, the study net asset value per share is $7.31 per share on the currently number of issued and outstanding shares. And at a $3,300 gold price, the study net asset value per share is $14.89 per share, which is a little over 7x our current share price. We are very pleased with our share price performance in 2025, which reflects not only the rising gold price but also the market's strong support of the new Mt Todd 15,000 tonne per day feasibility study. For the year ended 2025, Vista's shares increased almost 252% compared to the year-end 2024. Following our recent financing that closed earlier this week, our current market capitalization is approximately $300 million. We anticipate that sustained strength in the gold price will continue to positively influence Vista's share price performance. Today, with higher gold prices and growing investor interest, Mt Todd is positioned as one of the most attractive development stage projects in the gold sector. Its strong project economics, favorable jurisdiction, permitting status and existing infrastructure make it well suited for near-term development. we are confident that this is the right market environment in which to advance Mt Todd. In conclusion, Vista is committed to seeing Mt Todd developed in compliance with the highest mining and ESG standards, and we will work diligently toward that goal. For more information about Mt Todd and Vista Gold, I refer you to our corporate presentation, which can be found on our website at www.vistagold.com. We believe that Vista Gold represents an exceptional investment opportunity and at current prices represent a tremendous opportunity to establish a position or increase one's holdings in Vista Gold. This concludes my formal remarks, and we will now respond to any questions from participants on the call. Operator: [Operator Instructions] Our first question comes from the line of Heiko Ihle from H.C. Wainwright. Unknown Analyst: It's [indiscernible] calling on behalf of Heiko. First question, given recent geopolitical events around the world, could you maybe provide a bit of color on where you see discount rates for projects in geopolitically safe jurisdictions such as yours headed? Frederick H. Earnest: Doug, would you like to respond to that? Douglas Tobler: Well, I think what you're going to see is for projects like Mt Todd sitting in the Northern Territory, which is really a Tier 1 jurisdiction. I think discount rates will be better. I think cost of debt will be better as we look to finance the project. And I think when you're looking at the NAV of the project, you can probably think in terms of a lower risk factor, so a lower discount rate. Anything that's within reach of the current conflicts and potential other conflicts, I think, will really struggle in the next couple of years. Unknown Analyst: And second question, we're still over $5,000 for gold and obviously, the value of Mt Todd is very sensitive to the price of gold. And in Australian dollar terms, we're pretty close to an all-time high. What kind of rumblings have you heard in regards to input cost changes given recent strength in gold price? And maybe if you could provide a bit of color on what concerns you may have with issues related to construction costs, if anything? Frederick H. Earnest: That's an interesting question. It's something that all of us are continually watching. While the gold price has gone up in the last 9 months significantly, so far and with the exception of the last week or so in Australia, fuel prices have remained pretty constant. Obviously, what's going on in the Middle East right now is affecting global energy costs, and we will continue to watch that. That's obviously one area of concern. You'll know that we intend to generate power for the project using natural gas, which is produced in the Northern Territory. And so far, we don't see any indications that natural gas prices are being affected by what's happening there. So we continue to watch these events and as they unfold worldwide. Certainly, it's reasonable to expect some modest increase year-on-year in equipment costs and what will ultimately be the construction costs of the project. But at this point in time, we don't see any real significant changes that would dissuade our views on Mt Todd. I would just want to add one final comment, and that is that Mt Todd is very leveraged to the price of gold. And certainly, the gold prices that we are seeing today and have seen since we completed the study in July certainly highlight the tremendous leverage that we have to the gold price in a very positive way. Operator: Our next question comes from the line of Mike Schultz from -- a private investor. Unknown Attendee: My question, so it looks like the strategy now is pretty much to proceed with mining -- Vista mining the Mt Todd themselves, still open to a partnership because of indications of hiring management team and whatnot. In terms of when -- 27 months has been thrown out in terms of when gold could actually start being produced, but it's been thrown out over a couple of month period of time. So from like today, when would be the soonest that if no partner showed up that -- the first ounce could be produced. And I know it's an estimate, by the way, so... Frederick H. Earnest: Yes. Well, that's entirely dependent on the start of detailed engineering and design. What we've disclosed publicly is that looking at where we're at with the permit modification process that we expect that, that will occur in 2027. I think our best estimate today would be that we'll be in a position to make that decision mid-2027. So if you want to add 27 months on to that date, that will give you a rough estimate of when we would expect to see first gold poured. Operator: Our next question comes from the line of Michael Johnson, private investor. Unknown Attendee: I just had 2 questions. One, so we just saw that you guys issued a bunch of additional outstanding shares in order to finance this part of the project. So if you guys do go -- I just want to know what your guys' options or your outlook on financing ahead and I guess, to the concern of the current shareholders that we're going to get diluted. So I just didn't know if you could speak on that a little bit. Frederick H. Earnest: Yes, I'll let Doug answer that. What's your second question, so we can address them orderly here. Unknown Analyst: And then my second question is, I noticed -- I don't know if it was Q3 or Q4 of last year that Sun Valley Gold was -- it seemed like they were dumping a lot of your share -- of the shares of their holdings of Vista Gold. I didn't know if you guys had any more information about that or why that would be happening or anything? Frederick H. Earnest: Yes, certainly. I'll respond to the second question, but first, let Doug respond to the question about financing. Douglas Tobler: Sure. So if you look at the production profile for Mt Todd, it's one of the better projects I've seen in terms of structuring for financing. And financing in this day and age can take many different forms. It doesn't have to be just traditional bank debt, but that's obviously a very common source. And frankly, there's a lot of deals getting done that way as well. But if you take a project that's got the Mt Todd production profile, which is 3 years of roughly 175,000 ounces and then about 15 more years after that at very steady 150,000 ounces, that's exactly what lenders like to see. They like to see big cash flow upfront, so they can get paid back and then that puts the shareholders in line after that. So we're at the very front end of that process of looking at what avenue of leverage we'll put on the project, but early numbers would tell us that something in the order of 65% to 70% of the project can be financed, I'll call it debt, but levered. And then the balance of that would have to be equity. So when we look at what that does on a shareholder basis, on a per share basis, one of the critical things for us is making sure that we get to pay back quickly for shareholders and also that when we're done with the financing, it's accretive. So even though we will still have to issue shares for that additional 30-odd percent of the project financing, we look at it from the standpoint of where are we today. And then if we look at what our potential net asset value can be once the project is built and cash flowing and you actually switch from somewhat of an NAV model to more of a times free cash flow basis, we see the uplift as very, very significant. And when you divide that new valuation once you're in operations by an estimate of what your shares would be, it's still quite accretive to see the project go into operations. And you can see that with a number of other companies that as they ramp up towards production and get into production, their share prices move quite dramatically upward. So that's the direction that we're trying to head. So yes, there will be more shares out, but we're very focused on making sure the outcome of that on a per share basis is actually accretive, not dilutive. Frederick H. Earnest: And Michael, with regard to your question about Sun Valley Gold, we are aware that the Sun Valley Gold Fund, who was previously a large shareholder of Vista Gold has been converted to a family office and that managed funds have been redistributed to individual investors or may have been sold. And we don't know the exact numbers. What we can disclose is what's publicly available is that Peter Palmedo, who was the President of Sun Valley Gold Fund personally holds about 933,000 shares and there's another 2.6 million shares or so that are held in Palmedo Holdings LLP. We believe that there are several tranches of a couple of million shares that were distributed to investors that continue to hold those shares in Vista Gold. But I think that the important answer to your question is that this was not necessarily Sun Valley Gold selling shares because they no longer liked Vista Gold, but rather Sun Valley Gold Fund winding down and redistributing. But because of the reporting requirements, that reporting showed up as sales when, in fact, it may not have been. So Peter Palmedo individually continues to be a very strong holder of Vista Gold as manifested by the roughly 3.5 million shares that he continues to hold as a personal investment. And the rest of that holding was obviously managed money, and we don't know with certainty whether those funds were ultimately sold or continue to be held. I hope that helps. Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call over to Fred Earnest. Please continue, sir. Frederick H. Earnest: Thank you, John. And again, thank you to all of you who have taken time to join the call today. As we look backward at 2025, we see that, that was a very successful year, a pivotal year for the project and for Vista Gold, obviously, additionally for the sector as a whole with the tremendous rise in the gold price. The feasibility study that we completed in July has changed the course and the trajectory for developing Mt Todd. This year, we have a very exciting year before us. As I indicated, we are adding people to our team to form the basis for the technical and organizational team that will advance and build and operate Mt Todd. And I'm very pleased with the quality of people that we've been able to attract to our organization and look forward to announcements that we'll make in the coming months as we continue to build this team. As we indicated, we have commenced the process of modifying the permits that we hold and to align them with the designs and operational plans as defined in the July 2025 feasibility study. I'm very excited to have an approvals manager, Dr. Kuranchie on our team managing those efforts, and we have filed some of those modification applications, and we'll be filing other applications in the near future and as the year goes on. Third is the work that we're doing with the technical studies. And these studies are laying the groundwork for the start of detailed engineering and design. They will be providing some of the final answers to questions that were identified as part of the feasibility study. The core has been cut and is ready to be shipped from the Mt Todd site and we'll be going to the assay lab here in the coming weeks. The geotechnical program, the driller has been selected and we're waiting for a little bit of a break in the weather at Mt Todd to be able to get him on site and start drilling. And we're very excited about that. We'll also be doing some test work and confirmation work related to the design of a water treatment plant for the site. So these things are all progressing. I'm very pleased with the support that was shown to us as a management team and to the project in the form of the financing. We're delighted to have a number of new core shareholders in the register, and we're thankful for their support, and we look forward to an ongoing relationship with each of them. I'm excited about the prospects for this year. I think that as we continue to advance that we will see tremendous growth in the share price and the value -- shareholder value for Vista Gold. I'm grateful for each of you for taking time to join us on the call this morning. Certainly, as you may have further questions, I invite you to reach out to Pamela Solly, our Vice President of Investor Relations. And if needs to be, Pam will connect you with the appropriate technical people or other in the company to help you fully understand and getting answered your questions. With that, I again thank you and encourage you to join us in this journey of value creation. I think that there's a tremendous opportunity before us. And I thank you for joining us and wish each of you a very pleasant and a very happy day. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Wheaton Precious Metals 2025 Fourth Quarter and Full Year Results Conference Call. [Operator Instructions] Thank you. I would like to remind everyone that this conference call is being recorded on Friday, March 13, 2026, at 11:00 a.m. Eastern Time. I will now turn the conference over to Emma Murray, Vice President of Investor Relations. Please go ahead. Emma Murray: Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton's Chief Executive Officer; Haytham Hodaly, President; Vincent Lau, Chief Financial Officer; Wes Carson, VP Mining Operations; and Neil Burns, VP Corporate Development. For those not currently viewing the webcast, please note that a PDF version of the slide presentation is available on the Presentations page of our website. Some of the comments on today's call may contain forward-looking statements. Please refer to Slide 2 for important cautionary information and disclosures. It should be noted that all figures referred to on today's call are in U.S. dollars. With that, I'll turn the call over to Randy Smallwood. Randy Smallwood: Thank you, Emma, and good morning, everyone. Thank you all for joining us today as we review Wheaton's fourth quarter and full year results of 2025. Our portfolio of high-quality, long-life assets delivered another outstanding year in 2025, surpassing our production targets and generating record revenue, earnings and operating cash flow. We've realized annual production of 690,000 gold equivalent ounces, exceeding the top end of our production guidance for the year. Our results were supported by strong contributions from cornerstone assets, including Salobo, Antamina and Peñasquito, alongside the continued ramp-up of Blackwater and Goose, further demonstrating the strength of our diversified streaming model. Last month, we also announced our 2026 and long-term guidance, which outlines Wheaton's expected production growth of 50% to 1.2 million gold equivalent ounces by 2030, a remarkable milestone for our company and a first for the broader streaming and royalty industry. With the strength of our performance reinforced by our confidence in future cash flows, we are pleased to announce an 18% increase to our quarterly dividend to $0.195 per share, highlighting our commitment to returning value to shareholders. Many of you know, the coming weeks will also mark an important transition for Wheaton. After 15 years as Chief Executive Officer, I will be stepping into the role of Chair of the Board effective March 31. I have tremendous confidence in the leadership of Haytham Hodaly, who will be assuming the role of CEO next month. Haytham has played an integral role in shaping Wheaton's strategy and growth over this past decade and has been instrumental in many of the key transactions that have helped build our portfolio into what it is today. Wheaton is entering its next chapter from a position of incredible strength with what we believe is an unrivaled portfolio of high-quality assets, a robust pipeline of development projects and a balance sheet that continues to provide the flexibility and capacity to pursue new opportunities. With that, I would like to hand the call over to our next Chief Executive Officer, Haytham, to discuss our capital allocation strategy and some of the key developments across our portfolio. Haytham? Haytham Hodaly: Thank you, Randy, and good morning, everyone. 2025 was another significant year for Wheaton as we continue to execute on our disciplined capital allocation strategy, focused on acquiring high-quality assets, structuring agreements with strong counterparties and maintaining attractive margins with long-term growth potential. During the year, we strengthened our portfolio with the addition of the Hemlo and Spring Valley gold streams, both of which represent high-quality assets operated by experienced mining partners in low-risk jurisdictions and further enhance the diversification of Wheaton's portfolio. Following year-end, we also announced the largest precious metal streaming transaction ever completed, expanding our exposure to the Antamina mine in partnership with BHP. Although we covered the transaction details on the announcement conference call last month, I'll briefly reiterate some of the key strategic rationales. Quality silver production is becoming increasingly difficult to source, while demand has continued to rise for both critical and industrial uses and for silver's safe haven qualities in today's geopolitical setting. Expanding our stream on Antamina strengthens Wheaton's position as one of the largest silver producers global. Structurally, the stream features highly attractive terms, including a production percentage drop-down limited to 1/3 after 100 million silver ounces are received, no buyback clause and full exposure to commodity prices, consistent with our standard approach to streaming agreements. Already a major contributor to Wheaton's portfolio, Antamina is expected to provide approximately 18% of our total production by 2030, following the doubling of our exposure, solidifying its position as our second largest asset. This is complemented by 6 additional assets expected to come online over the next 5 years, all of which have received their key permits are fully funded and are either nearing or already well into construction. Antamina sits on an extensive land package that hosts multiple large-scale skarn and porphyry targets with claims covering more than 1,000 square kilometers. The map on the left provide some visual context for the scale of the land package relative to the size of the existing Antamina pit, all of which is covered by Wheaton's area of interest. Antamina has a large annual exploration program, and to date, drilling has continued to upgrade inferred resources and further define potential at depth below the current resource pit. Since Wheaton's first stream on Antamina back in 2015, over 95% of silver reserves have been replaced through resource conversion and exploration success, a testament to the asset's demonstrated ability to extend mine life through ongoing reserve growth. Overall, this transaction adds meaningful and immediate production from one of the world's premier lowest-cost mining assets, and we strongly believe that Antamina is an asset that will be operating for decades to come. As I prepare to step into the role of Chief Executive Officer, I am confident in the strong foundation we have built, and I'm excited to support the next generation of mine builders in this unprecedented environment for gold and silver. Interest in stream financing remains strong across a wide range of high-quality opportunities, and we remain focused on delivering sustainable value for all stakeholders while upholding the principles that have made Wheaton a leader in the streaming industry. I am deeply grateful to Randy for his guidance and mentorship and to the Board for their confidence in me, and I am truly honored to lead the company into its next phase of unmatched growth within the sector. With that, I will now hand the call over to Wes Carson to provide a more detailed review of our operating results and guidance. Wesley Carson: Thanks, Haytham. Good morning, everyone. Overall production in the fourth quarter was 205,000 GEOs, an 8% year-over-year increase primarily driven by stronger production from Salobo and Antamina, coupled with the commencement of production at Aljustrel and Blackwater. In the fourth quarter of 2025, Salobo produced 89,000 ounces of attributable gold, representing a quarterly record and an increase of 5% compared to the prior year, driven by higher throughput and recoveries. As noted in their public disclosure, Vale continues to advance a series of growth-focused initiatives to enhance efficiency and support medium- to long-term production growth across the Salobo complex. Antamina produced 1.6 million ounces of attributable silver in the fourth quarter of 2025, a 49% year-over-year increase primarily driven by significantly higher grades and modestly improved throughput and recoveries. As previously announced Antamina's related production in 2026 is expected to increase significantly, reflecting the addition of the new BHP stream commencing in the second quarter. Constancia produced 700,000 ounces of attributable silver and 15,000 ounces of attributable gold in Q4, a decrease of approximately 25% and 18%, respectively, relative to the prior year, primarily driven by significantly lower gold and silver grades and slightly lower throughput. On February 20, 2026, Hudbay announced that the depletion of the Pampacancha pit was accelerated and completed in late December following an optimized mine plan in the fourth quarter of 2025. Due to strong outperformance across several assets during the year, Wheaton exceeded the upper limit of its annual production guidance in 2025, surpassing the midpoint of the guidance range by approximately 9%. Company anticipates that 2026 GEO production will continue to grow from levels achieved in 2025, driven by expected contributions from newly acquired operating streams at Antamina and Hemlo, along with anticipated start-up of several development projects, including Mineral Park, Fenix, Marmato and Platreef and stable production from Salobo and Peñasquito. Attributable production is forecast to be consistent at Salobo in 2026 with slightly lower grades as per the mine plan, offset by increasing throughput, supported by staged upgrades and optimization across Salobo 1, 2 and 3. At Antamina, attributable production is expected to increase significantly due to the newly added stream. Overall, silver performance is expected to be in line with 2025 with higher throughput, offset by lower grades caused by a higher ratio of copper-only ore versus copper zinc ore mined in 2026. Attributable production at Peñasquito is anticipated to increase in 2026, driven by an increased stockpile process. Attributive production at Constancia is expected to decline in 2026, reflecting the depletion of the Pampacancha pit in late 2025. Wheaton's estimated attributable production in 2026 is forecast to be 400,000 to 430,000 ounces of gold, 27 million to 29 million ounces of silver and 19,000 to 21,000 ounces GEOs of other metals, resulting in total production of approximately 860,000 to 940,000 GEOs. Annual production is expected to be weighted to the second half of the year with approximately 45% in the first half and 55% in the second half, driven by mine sequencing at Salobo and Peñasquito and the ramp-up of newly operating assets throughout 2026. Production is currently forecast to grow at a sector-leading rate of approximately 50% over the next 5 years to over 1.2 million GEOs by 2030, driven by expected growth from operating assets, including Salobo and Blackwater, newly acquired operating assets, including BHP production, Antamina and Hemlo and development projects, including Mineral Park, Fenix, Platreef, Koné, Kurmuk, El Domo, Spring Valley, Copper World and Santo Domingo. From 2031 to 2035, attributable production is currently forecast to average approximately 1.2 million GEOs annually, supported by incremental contributions from additional predevelopment assets. That concludes the operations overview. And with that, I'll turn the call over to Vince. Vincent Lau: Thank you. As outlined by Wes, production in the fourth quarter totaled 205,000 GEOs, representing a quarterly record and an 8% increase year-over-year. Sales volumes totaled over 190,000 GEOs, representing a 35% increase year-over-year, with the increase reflecting a drawdown of PBND coupled with higher production. Strong commodity prices, combined with our solid production base, resulted in record quarterly revenue of approximately $865 million and gross margin of $664 million, representing increases of 127% and 168%, respectively, compared to the same quarter or same period last year. Of this revenue, 59% was attributable to gold, 39% to silver and the remaining 2% split between palladium and cobalt. The higher margin reflects the leverage provided by fixed per ounce production payments across the majority of Wheaton's operating streams, which accounted for 80% of revenue during the quarter. Notably, year-over-year margin growth exceeded the appreciation in gold prices over the same period, underscoring the effectiveness of Wheaton's business model in generating higher levered cash flows and margins in the quarter's rising precious metals price apartments. At December 31, 2025, the PBND balance totaled approximately 155,000 GEOs, representing roughly 2.5 months of payable production, which is on the lower end of our expected range of 2.5 to 3.5 months. As is typical following a PBND drawdown, and further impacted by seasonal shipping factors early in the year, PBND balances are expected to rebuild in the first quarter of 2026. As in prior periods, PBND levels largely reflect normal timing differences between mine production and concentrate deliveries. These ounces expected to be delivered in the early part of 2026. In the fourth quarter, strong operating results and commodity prices drove record revenue, earnings and cash flow. Net earnings increased by 533% prior year to $558 million, while adjusted net earnings increased by 179% to $555 million. Operating cash flow increased to $746 million, a 134% increase in the fourth quarter of 2024. For the full year of 2025, revenue totaled approximately $2.3 billion, representing an 80% increase compared to 2024, driven by higher realized commodity prices together with strong production and sales volumes. Approximately 99% of revenue was derived from precious metals, including 62% from gold and 36% from silver. Gross margin for the year totaled approximately $1.7 billion, an increase over the prior year of 108%, reflecting the strong operating performance across our portfolio, coupled with higher commodity prices. Wheaton continued to generate strong cash flow in the fourth quarter with operating cash flow totaling approximately $746 million. During the quarter, the company made total upfront cash payments of approximately $646 million, including the $300 million upfront payment for the Hemlo gold stream, which closed during the quarter and began contributing production immediately. In addition, the company paid dividends totaling approximately $75 million to shareholders during the quarter. As Randy mentioned earlier, the Board has declared its first quarterly dividend of 2026 at $0.195 per share, representing an 18% increase compared to the prior year. After declaring record levels of dividends in 2025, Wheaton has now returned $2.6 billion in dividends to shareholders since inception, representing over 70% of the total equity ever raised by the company. We remain committed to a progressive dividend policy. And since introducing this policy 3 years ago, we have increased the dividend every year and at an increasing rate, reflecting the growing cash flow profile of the company. Overall, cash and cash equivalents amounted to approximately $1.2 billion at December 31, 2025. Subsequent to the quarter, we announced the Antamina silver stream with BHP for an upfront payment of $4.3 billion, which we expect to fund through a combination of existing liquidity and new financing on or around April 1, 2026. Funding sources are expected to include the $1.2 billion of cash on hand at year-end, approximately $400 million of incremental free cash flows currently expected to be generated prior to closing, and $300 million from the recently completed monetization of non-core equity investments. The remaining balance is expected to be funded through a $1.5 billion term loan and an anticipated $900 million draw on Wheaton's existing undrawn $2 billion revolving credit facility. The term loan and the revolving credit facility provides flexible non-dilutive financing that may be repaid at any time without penalty. At closing, we currently expect net debt of approximately $2.4 billion, which represents a modest level of leverage for a company of our size and cash flow generation profile. With the strength of our production guidance outlined by Wes, we currently forecast more than $10 billion in operating cash flow to be generated through the end of 2028 at current spot prices. As such, we currently expect to return to a net cash position in approximately 1 year while maintaining strong capacity to fund existing commitments and potential future stream acquisitions. Given our strong cash flow profile, Wheaton believes it is prudent to utilize a portion of our debt capacity to finance a transaction of this scale, allowing our shareholders to maintain maximum exposure to precious metals price upside while preserving balance sheet flexibility. That concludes the financial summary. And with that, I turn the call back over to Randy. Randy Smallwood: Thank you, Vincent. Clearly, 2025 was another very strong year for Wheaton that underscores the benefits of consistent execution of our strategy. As we reflect on this impressive year, there are several key highlights that stand out. First, our portfolio continued to deliver strong operating performance with production exceeding our annual guidance and generating record revenue, earnings and operating cash flow. Second, we continue to strengthen the quality and diversification of our portfolio through disciplined capital allocation, including the addition of the Hemlo and Spring Valley gold streams, further expanding our exposure into high-quality assets in low-risk jurisdictions. Third, following year-end, we announced the largest precious metal streaming transaction ever completed, doubling our expected production from our best-performing asset, Antamina, in partnership with the largest mining company in the world, BHP. This transaction adds meaningful near-term production while further enhancing Wheaton's long-term growth profile. Fourth, our development pipeline continues to advance with assets such as Blackwater and Goose ramping up alongside several other projects expected to contribute to Wheaton's sector-leading organic growth profile over the coming years to record levels of 1.2 million ounces per year. And finally, with over $3 billion in annual cash flows expected at current commodity prices, we maintain ample capacity to support a meaningful 18% increase to our annual dividend, while continuing to pursue accretive opportunities. I would simply summarize this Wheaton release and these Wheaton results as record everything. With that, I would like to open up the call for questions. Operator? Operator: [Operator Instructions] Our first question comes from Fahad Tariq from Jefferies. Fahad Tariq: Can you just remind us over the next year or 2 years, what the funding commitments are, and whether that's been factored into the comment that Wheaton can get back to a net cash position within 1 year? Vincent Lau: Fahad, thanks for the question. We have about $1.5 billion of capital commitments over the next couple of years. And yes, the estimate that we would come back to a net cash position does include that and also paying our dividends at the current new level. So we have a very robust cash flow profile where we can pay this all back in about a year. Fahad Tariq: Okay, very clear. And then just on corporate development, do you see additional opportunities in the portfolio to go back to assets that you're already familiar with and maybe increase the exposure the way you did with Antamina or... Neil Burns: We always look for that opportunity. And as you know, majority of our deals that have been done in the last few years have been done with existing partners. So we're always in communication with our existing partners, to understand what their funding needs, and of course, suggest further streaming from their high-quality operations. Operator: [indiscernible] Daniel Major: Can you hear me, okay? Randy Smallwood: Yes. Daniel Major: Great. And firstly, Randy, good luck in the future, and I know we'll still see you, but congrats on the move. Yes, three questions from my side. Yes, first thing on Antamina, just back to just a few considerations of the transaction. I mean, I guess BHP's pitch on the selling the stream was a little bit along the lines of it's a mature asset, which is a known entity, and therefore, they're happy to part with the potential upside. Where do you see the key source of upside to this asset? Is it purely a mine life extension? Or are there other characteristics that you see upside? Haytham Hodaly: Thank you for the question, Daniel. It's Haytham. I'll answer the question. First of all, I think the way BHP pressed it was they wanted to unlock silver in a time of strong commodity prices. So it's not that they think this is by any means maturing and coming up to its twilight here. This is an asset that's going to go for at least the next 4 to 6 decades based on the replenishment of the reserves that we've seen over the last 10 years as a participant with an existing stream with Glencore. We've had access to a lot of the information. There are certain limitations on tailings capacity and stuff in these expansions. There's various different methodologies they're looking at to continue to expand it. But from a resource and reserve perspective, this asset will be a generational asset. Daniel Major: Okay. And then the second question, just touching on the balance sheet and funding commitments, et cetera. I mean, as you point out, the level of leverage, even at $2.4 billion of net debt is low. How do you see this in your ability to compete in the market for new transactions over the next 12 months? Is there a limit to the kind of size of deal you would be comfortable in taking on whilst you're in this period of deleveraging? Or are you open for the business just the same? Haytham Hodaly: Thanks for the question. I'll tell you, we're incredibly comfortable with where we are from a cash and debt position right now. We're generating over $3 billion or roughly, call it's, $3 billion in free cash flow over the next 12 months is our expectation. And looking at our existing revolver and cash that we're generating, we would easily be able to fund a transaction in the $1.5 billion to $3 billion range, if we need it in the next little while. Outside of that, if we see any $4.3 billion Antamina transactions, yes, we'll probably have to look for other sources of funding. But at this point in time, if you look over our last 7, 8 years, and you look not just at us, but our peers as well, typically, funding in this area has been $1 billion on average a year. So Antamina was definitely, I would say, something that was -- is not an annual repetition. This is something that we'll continue to move forward with looking for larger transactions, but we're more than comfortable with our existing balance sheet and our cash flows going forward to fund any transactions we see in front of us. Randy Smallwood: Daniel, if I'd add and Randy here, we've been talking about the concept of multibillion-dollar streams now for a while, and there will be multibillion-dollar streams coming down the pipe. But most of those are going to wind up being construction funding of big copper projects. And so the advantage of those, of course, is that you drip feed that over a period of time during the construction process, which, of course, the advantage being you don't have anywhere near the permitting risk if you're buying royalties and such, where you typically wind up having to pay upfront. And so -- but that drip feed of construction also gives us plenty of capacity. And so we still see plenty of capacity to enter into a multibillion-dollar streams. And ideally, if they are on operating assets like Antamina, we will find a way. We have never been limited from a capital perspective. And I would actually simply describe our current balance sheet is efficient right now. It doesn't have any lazy cash sitting there looking for a place. We are in the precious metals business. We're not in the cash storage business. So I personally think that this is the perfect place for a balance sheet to be in our business because we are fully exposed to the metal as our shareholders are investing into us for. So pretty comfortable with where we are. Vincent Lau: I would also add, it's Vince here. If you step back, the leverage that we have is very modest. It's a 0.7x net debt-to-EBITDA level. And you have to remember, as a streaming company, our EBITDA is our cash flow. So it can't be compared to another producer, for example, being able to delever in a year is an extremely powerful cash flow profile that we have. Daniel Major: Very clear. And just one more, if I could, just a couple of modeling questions just around the distribution of cash flows through the year, 2 points. You've given the schedule for capital commitments on streams about $590 million during the year, distribution through the year on that? And also, can you remind me when you would expect to make the tax payment? I think it was $115 million during the year. Vincent Lau: Sure. The tax payment is expected to be in the second quarter, June 30 is the timing. In terms of the upfront payments, for Q1, I would say, excluding the Antamina stream, probably in the $250 million range, plus or minus, depending on some timing. And then for the entirety of 2026, again, excluding Antamina, would be about $500 million. And then 2027 is about $500 million to $600 million at this point. Obviously, these things are really dependent on construction schedules. But again, we have plenty of capacity to fund all that. Operator: [Operator Instructions] Our next question comes from Lawson Winder from Bank of America Securities. Lawson Winder: Can I ask about the dividend and just thinking about how the dividend relates to gold price. When you were considering today's updated level, how is the downside in gold price factored in? Or put another way, to what gold price on the downside is the dividend level sustainable? Vincent Lau: Lawson, our current dividend policy, paying the $0.195 represents just over 10% of our operating cash flows. We have to see a materially lower gold price and silver price before we're constrained at all. I think we ran some math, even if we went down to $3,000 gold, the amount we're paying out is still only kind of in the mid-30s in terms of percentage of operating cash flow. So very sustainable in terms of what we're paying. Our goal is to have a progressive dividend where we deliver this growth back to our shareholders in a consistent manner over time. We're trying to avoid these big hockey stick jumps and deliver it in a more gradual manner. So we have a lot of room to grow our dividend and a lot of room to maneuver if there were any downside in the price. Haytham Hodaly: Lawson, it's Haytham here. A couple of years ago, we started this progressive dividend. We've been paying dividend out that was previously linked to cash flows. We increased it by 3.5%, 2 years ago. Last year was by 6.75% roughly, this year is about 18%. We've got something that should give you a lot of comfort. And what I would say, regardless of what the commodity price does, even if the commodity price has, we still have a lot of comfort. We have 50% growth in cash flows over the next 5 years. So even if commodity prices went down by 50%, we still have a 50% increase in production. So we don't see that being any kind of concern for us whatsoever. In fact, I think over time, as we continue to generate more cash flows, we would expect to continue to see that dividend increase as well. Lawson Winder: Yes, that's very helpful. And then just related to that and related to the earlier question on size of deal. So I mean, Haytham, you mentioned like $1 billion to $1.5 billion would be sustainable. But I mean, even at those levels, we're looking at net-net leverages of below 2x. Like -- theoretically, like what level of net leverage would you guys be comfortable going to in order to get another big deal done? Vincent Lau: Thanks, Lawson. We don't ever want to introduce credit risk into our company. What we provide is safe, high-quality exposure to precious metals. So 1.5 to 2x leverage is kind of what we are comfortable with at this point. Even with that, we're talking about an addition of almost $2 billion of capacity from a debt perspective. And we currently just don't see a deal where all that needs to be paid immediately. A lot of this is, as Randy said, drip fed over a long period of time. And again, we're replenishing our coffers rapidly. We're generating $10 billion of cash flow over the next 3 years. So plenty of capacity to continue to pursue growth. Randy Smallwood: And I'd just add, Lawson, we would never let that balance sheet limit us in terms of a new opportunity. We never have. I mean, I pride ourselves on not issuing new equity, but there's always that if you had the right opportunity to go down that path. But we just don't see the need for that, and we don't want to dilute our existing shareholders. They are the ones that we work for. And so our approach is to is to maximize the leverage side if we have to. And then there's other sources. So it would never limit our ability to grow. It's just a matter of our preference is to use debt because we find it's the best way to deliver premium returns to our shareholders. And it's worked very well for us. The last time we issued any significant [ DRIP ] type of equity financing was I think a decade ago, 10 years ago, and I have very little interest in doing that again. And I know that the use of debt effectively over the last 10 years has dramatically improved the returns for our existing shareholders. And so we're staying with that plan. But we've always got other options in the background. We've never been limited. The limiting factor for Wheaton has always been quality assets, finding quality assets to invest into. Vincent Lau: And just as a reminder, the interest rate we're paying on that debt is less than 5% or around 5%, very efficient cost of capital. And the only covenant we have is a test of 0.6 net debt to total cap. So very, very, very flexible in terms of ability to manage that. Lawson Winder: All right. That's all extremely helpful commentary guys. I appreciate it. If I could ask one follow-up. There are several new mines that you guys have streams on that are starting up and will be ramping up this year or early next year. So there's Fenix, Kurmuk, Koné are 3 that I'm thinking of in particular, and there's more in '27. Just with these new mines, are there any delivery delay considerations that we should be maybe thinking about factoring in, in terms of like when those mines and the operators will realize production versus when Wheaton will ultimately take delivery? Haytham Hodaly: I'll answer that question. Obviously, when we structure our transactions, we structure them to ensure that if there are any delays, we are kept hold from an IRR perspective. we have mechanisms in place that are called the delay ounces that compensate us for the time value of money in case any of that happens. Now looking at the half a dozen different projects that are in the pipeline. I'd say the majority of them are pretty close to their time lines, we maybe a few months off. One of them is actually a few months well ahead of schedule, and it's one of the bigger contributors. So we're excited about the profile here going forward. Keep in mind, every single one of these projects that are in our 5-year profile that give us that 50% growth are funded, are permitted and half of them are already in construction and the other half are starting here shortly. So we're pretty excited about those. Randy Smallwood: Lawson, I think the other part of your question there had to do with the physical deliveries. These are all assets that produce doré. Doré moves very quickly. So they're not producing concentrates. If we have a mine, a copper mine when it starts up, you're right, there's a pipeline of getting that production to the smelter and you have to get that when a mine starts up, that takes a while to get going. But all the mines that we have in the next while are actually producing doré, which finds itself to a refinery very fast. Nobody likes having that sitting around. So we shouldn't see any issues there. It will -- they'll all push us as we always give guidance, 2 to 3 months of produced but not yet delivered. These assets will all be to the lesser side. We've always found the doré mines are much tighter. Operator: Our next question comes from Tanya Jakusconek from Deutsche Bank (sic) [ Scotiabank ]. Tanya Jakusconek: I think I'm at Scotiabank. Okay. Can I just put in just a congratulations for Randy and Haytham on your new positions going forward. Let me just -- okay, I'll start with a very simple modeling question. I just want to make sure -- I noticed that the depreciation has gone up quite a lot. I just want to make sure that now with the new Antamina coming in as well, should we be thinking about like $90 million to $100 million a quarter or thereabouts, would that be reasonable? Vincent Lau: Tanya, the depletion really changes quarter-to-quarter depending on our asset mix in terms of what's delivering. I would say there wasn't a materially different change in our depletion rates by asset from last year. The depletion rate for Antamina going forward will be combined between the legacy Glencore stream with the new BHP stream, that would be roughly around $27 an ounce. Tanya Jakusconek: Okay. Okay. And then just making sure I understand correctly as we look through the year, you've got the rebuilding of the PBND you mentioned going through Q1 or the first half of the year. Did I hear that correctly? Vincent Lau: That's right. We -- Salobo kind of delivered a big shipment at the end of 2025. That was a little bit unexpected. So we would expect a bit of clawback in Q1. We're sitting at 2.5 months right now. I think we're closer to 3 months by the end of Q1. Randy Smallwood: It's pretty typical, Tanya. Fourth quarter is always a squeeze on that as companies try to elevate year-end performance, right? And so it's -- there's two things that we've learned. One that it squeezes down in the first -- or in the fourth quarter, and two is that it bumps back up again in the first quarter. So there will be an increase in that. Tanya Jakusconek: Okay. So if we think about it just for the year, we should think about it somewhere in that 2.5 to 3 months, would that be fair? Randy Smallwood: Yes. I think it's 3 months. As I mentioned in one of the earlier questions, the more doré production we have, the tighter that gets, the more concentrate production goes the other way, right? So the concentrates that we get out of Antamina will push us towards the 3-month side. I think our general guidance has been typically 3 months. The other comment and just to reinforce again that earlier question is when we have new projects starting on it does take a little bit longer to get the processes and the flow streams -- the pipeline is full, so to speak. And so that will probably push us. So I would say 3 months is a good target. Tanya Jakusconek: Okay. That's all my modeling questions. Maybe just coming back to the transaction market. Obviously, a great deal with BHP. And so maybe Randy or Haytham, can you talk about now that you have a relationship with the BHP, are there opportunities to do other deals with them on some of their portfolio? The Koné district, obviously, is one that needs to be built, and that's a lot of capital there, but maybe also within their operating portfolio. Haytham Hodaly: I would hope there's opportunities to do deals with all of our existing partners. And BHP is just our newest partner. But you're right, there's a lot of large-scale porphyry projects that are going to be in production probably -- or in construction, pardon me, probably in the next 3 to 5 years. And we are in constant contact with all of our existing partners, including BHP about trying to figure out ways to continue to help them fund those capital projects. Tanya Jakusconek: Okay. And excluding these big deals that are over $1 billion, and there are a few out there, what else would you be seeing in sort of the smaller category? Have those increased at all? Or has everything shifted to these bigger deals? Neil Burns: Maybe I'll take that one, Tanya, it's Neil here. As Randy mentioned earlier, our opportunities pipeline is extremely robust, continuing off the strength that we saw in 2025. In fact, keeping the lawyers very busy right now signing NDAs with lots of interesting opportunities that came out of BMO and PDAC. Size-wise, we are a majority in the $200 million to $300 million range. But there are a few that are in the $0.5 billion to $1 billion range as well. Tanya Jakusconek: Okay. And in our last conference call, I think, Randy had mentioned there was a big shift to silver. You're seeing a lot more silver. Has that shifted at all? Or is it still silver or is gold back in the game? Haytham Hodaly: I think a lot more silver was probably in reference to Antamina, which is now, Tanya, I think I would say the majority of new opportunities we're looking at is primarily gold. It's one of the reasons I like silver, it's really tough to find. Tanya Jakusconek: Congratulations on the deal. Operator: Our last question comes from Richard Hatch from Berenberg. Richard Hatch: Congrats team on record everything. I've got a few questions. First one is just on where we are in the cycle. I completely agree that we're going to see more of these large porphyry copper deposits funded and built. But kind of strikes me that we're probably a couple of years away from really starting to see those come to market and get funded. Is that the right -- are you in the same thinking as me? Or are you seeing it differently? That's the first one. Neil Burns: Sure. That's true for sure. There are a number of big projects out there, and those do take a while to get permitted, obviously, and have massive CapEx. So I agree with you there that they will take a few years to come about. Haytham Hodaly: Richard, I'll point back to a comment that Randy made earlier is a lot of those of that funding is construction funding, and it's stripped during the overall construction profile. So I suspect over the next 3 years, as Vincent pointed out, we're going to be generating close to $10 billion a year -- oh, sorry, $10 billion in total in free cash flow. We're going to have a lot of excess cash, and we're going to be looking to deploy that cash into those type of projects. Richard Hatch: Yes, makes sense. Good stuff, please do. And then just a few final questions. Just on the Koné payments. When should we be thinking about that last $156 million going out the door? Vincent Lau: The Koné payments will probably be sometime in 2026. We only have one left of $156 million, so either Q1 or Q2. Richard Hatch: Okay. And the -- I was curious about the Santa Domingo $30 million refund. What's going on there? Is that -- just perhaps could you just give us what's the deal with that? Haytham Hodaly: So Santa Domingo, obviously, we put up some capital when we first entered into that transaction. And because the project hasn't come online, we've given our partner an opportunity to repay that $30 million and defer making any additional interest payments from this point forward. That's what it was. Richard Hatch: Okay. And then my last two. Firstly, just to clarify, you said that Antamina will be slightly lower year-on-year. Is that the right way to think about it? Wesley Carson: Yes, that's correct. Richard Hatch: Okay. And the last one is just on your accounts receivable, they've kind of picked up to over $40 million. And I'm just kind of -- is that going to come down -- is that expected to come down anytime soon? Or should we keep it at that level? I'm just sort of thinking about working cap and just how I should be thinking about it? Vincent Lau: Yes, we probably expect that to come down a bit. It's a mark-to-market thing on our concentrate sales, so a pretty anomalous item, but it should normalize over time. Richard Hatch: Congrats on a great quarter and keep going. Randy Smallwood: Thanks, Richard. And thank you, everyone who joined us today. Today marks my final quarterly conference call as a CEO, and I'm deeply grateful to close this chapter on such a high note, capping our best year on record with the largest transaction in the history of streaming our royalties. As I transition into the role of Chair of the Board, I could not be prouder of the company we have built together, our people, our culture and the value that we have created for all of our stakeholders. Wheaton is entering its next phase of growth from a position of exceptional strength, and I have complete confidence in Haytham's leadership and the broader management team as they continue to build on this strong momentum. I would like to thank our employees, our mining partners, our shareholders and the communities where we operate for their unwavering support over the years. serving our employees, our shareholders and, in fact, all of our stakeholders as Wheaton's Chief Executive Officer has been the greatest privilege of my professional career. As I sign off, I do so with great pride, gratitude and immense optimism, if not excitement for Wheaton's future, and I thank all of you for joining me on this incredible journey. Thank you. Operator: This concludes this conference call for today. Thank you for participating. Please disconnect your lines.
Operator: Good morning, and welcome to Team, Inc.'s Fourth Quarter and Full Year 2025 Operational and Financial Results Conference Call. [Operator Instructions] Please note, this event is being webcasted. I would now like to turn the conference over to Nelson Haight, Chief Financial Officer. Please go ahead. Nelson Haight: Thank you, operator. Good morning, everyone, and welcome to Team, Inc.'s discussion about our fourth quarter and full year 2025 operational and financial results. On the discussion today are Gary Hill, our Chief Executive Officer; and myself, Nelson Haight, Chief Financial Officer. I want to remind you that management's commentary today may include forward-looking statements, including without limitation, those regarding revenue, gross margin, operating expense, other income and expense, taxes, adjusted EBITDA, cash flow and future business outlook, which by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Team Inc.'s latest annual and quarterly filings filed with the Securities and Exchange Commission, along with our associated earnings release. Team assumes no obligation to update any forward-looking statements or information, which speak only as of their respective dates. With that, I will turn it over to Gary Hill, our CEO. Gary Hill: Thank you, Nelson. Welcome, everyone, and thank you for joining us on the call today. I want to start by saying how honored I am to be here and join you all for my first earnings call as Team's CEO. With more than 30 years of hands-on experience in industrial services and related industries, having the opportunity to lead, grow and enhance a company like Team is an extraordinary opportunity. I am excited to lead Team at this pivotal stage, and I'd like to thank our employees for their warm welcome, sharing their perspectives and their hard work and dedication that have helped to deliver the strong operational and financial results that Nelson will discuss with you today. During my first 6 weeks, I've spent a lot of time connecting with our employees, customers and stakeholders. These conversations have given me a deeper understanding of where we stand as a company, the challenges we face and the opportunities ahead. I look forward to working closely with the Board, the management team and Team's talented employees to strategically grow our company. Over the past several years, Team has repositioned itself and made meaningful improvements in operations, safety and in its financial performance and balance sheet. Team has a unique culture, storied history, strong customer relationships and numerous built-in strengths already in place. I want to maintain open communication and collaboration with shareholders employees, stakeholders and customers to better drive progress and build on past successes. Team boasts a proud history and a workforce renowned industry-wide for delivering safe and technically superior customer service. This has established an outstanding foundation and my goal is to take this very strong company and make it even better through continuous improvement. I see opportunities to expand our wallet share with existing customers and accelerate our growth in end markets, such as aerospace and midstream, and I'm challenging myself and our entire team to accelerate top line growth, enhance efficiency and reduce costs, which should lead to margin and EBITDA growth. I want to continue strengthening our organization through further investment in our people and infrastructure to more profitably and efficiently deliver the products and services that meet our customers' needs. Finally, Team has built an impressive safety culture, and continuing to build off that success to ensure everyone gets home safely will always be our highest priority. With that, I would like to turn it over to Nelson to discuss our financial accomplishments. Nelson Haight: Thank you, Gary. Over the last 3 years, we have been focused on simplifying the business, strengthening our capital structure, and balance sheet, and improving our margins, and while we still have some work to do, we are now well positioned to accelerate our top line growth and further expand our cash flow generation. Our results in 2025 reflect the impact of our operational and commercial initiatives. With year-over-year expansion in our revenue, margins and adjusted EBITDA driven by our ongoing focus on improving cost efficiency and expanding margins. In March of 2025, we successfully refinanced our capital structure, lowering our blended interest rate by more than 100 basis points and extending our term loan maturities out to 2030. In September 2025, we closed on a $75 million private placement of preferred stock and warrants that helped us to pay down about $67 million of debt. As part of that same transaction, we also amended our ABL credit facility to, among other things, increase the commitment by $20 million to provide additional flexibility during the seasonal spring and fall demands on our working capital and to lower the applicable interest rate margin. We also amended our first lien term loan facility to lower the applicable interest rate margin and improve financial flexibility. The private placement also included a delayed draw feature available through September 2027 debt depending upon the intended use of proceeds, allows the company to raise up to an additional $30 million through the placement of additional preferred stock and warrants. Our net debt at the end of 2025 was $279 million down, from about $289.6 million at the end of 2024, and we exited 2025 with strong liquidity of $77.4 million. The tangible improvements we delivered in operating performance and cash flow generation over the past several years were key to completing these financial transactions. As a result, we have addressed all of our near-term maturities, lowered our cost of capital and provided financial flexibility as the company's performance continues to improve. Turning to the fourth quarter. We continued to deliver solid results, generating year-over-year improvements in revenue, operating income, adjusted EBITDA and gross margins. For the fourth quarter, revenue was up $11.5 million or 5.4% as compared to the prior year period, driven by an 8.9% increase in our Mechanical Services segment and a 1.9% increase in our Inspection and Heat Treating segment. Our operating income was up $4.4 million or 200% year-over-year. Our focus on higher margin opportunities in both segments, coupled with sustainable cost reductions led to significant improvement in operating income. Our continued progress in the previously announced cost management program can be seen in our fourth quarter adjusted selling, general and administrative expense, which excludes noncash items and expenses not representative of ongoing operations, and which was lower by $1 million in absolute terms and 150 basis points when expressed as a percentage of revenue versus the prior year period. This helped drive our adjusted EBITDA higher by nearly $2 million to $16.4 million. These positive trends were also seen in our full year 2025 results. Revenue increased $44 million or 5.2% year-over-year with increases in both our Inspection and Heat Treating and Mechanical Services segments of 7.5% and 2.8%, respectively. In conjunction with the increased revenue, we saw our operating income increase by $3.9 million or 39%. Importantly, we generated $60.7 million of adjusted EBITDA, a roughly 12% improvement over 2024 and our adjusted EBITDA margin expanded to almost 7% for 2025, which was up from 6.4% in 2024. We have significantly improved our adjusted EBITDA over the last 3 years, and we believe we are on the right trajectory toward achieving our goal of an adjusted EBITDA margin greater than 10%. I believe that we are in a significantly improved position compared to where we were 3 years ago. As an organization, we remain highly focused on growing adjusted EBITDA and we will continue to prioritize free cash flow generation through further improvements in working capital management and margin expansion to deleverage the business and allow for meaningful debt paydown. I remain confident in our ability to successfully execute on these goals and look forward to continuing to deliver strong results that we expect will lead to growth in shareholder value. With that, let me now turn it back over to Gary for some closing comments. Gary Hill: Thanks, Nelson. As you heard today, Team has delivered strong operational and financial results in 2025 and heading into 2026, we expect to continue building off this momentum with further growth in the top line and adjusted EBITDA. I'm very excited about our future because we have talented employees and differentiated offerings for our customers. Given my recent transition to the CEO role, we will not be providing guidance on fiscal year 2026 at this time to allow for a deeper review of our operational performance, market trends and strategic priorities. We will present a more fulsome update that lays out our longer-term plans and objectives and 2026 guidance to the market after the end of the fiscal quarter. Finally, I am committed to continuous improvement and believe that we can strategically grow Team and unlock substantial value for our shareholders. Thank you for joining us today and for your continued interest in Team. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: Welcome to Lennar's First Quarter Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to David Collins for the reading of the forward-looking statement. David Collins: Thank you, and good morning, everyone. Today's conference call may include forward-looking statements, including statements regarding Lennar's business, financial condition, results of operations, cash flows, strategies and prospects. Forward-looking statements represent only Lennar's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could affect future results and may cause Lennar's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in our earnings release and our SEC filings, including those under the caption of Risk Factors contained in Lennar's annual report on Form 10-K most recently filed with the SEC. Please note that Lennar assumes no obligation to update any forward-looking statements. Operator: I would now like to introduce your host, Mr. Stuart Miller, Executive Chairman. Sir, you may begin. Stuart Miller: Okay. Good morning, everybody, and thanks for joining us today. We're in Miami. And I'm here with Diane Bessette, our Chief Financial Officer; David Collins, who you just heard from, our Controller and Vice President; Katherine Martin, our Chief Legal Officer; Bruce Gross, CEO of Lennar Financial Services; Eric Faders here, President of Lennox, and we have today, Jim Parker and David Grove, our Area Presidents who are new to this program and who are now overseeing operations across the company. As you know, Jon Jaffe officially retired at the start of this year. And while Jon's absence is deeply felt, the depth of experience and leadership on our team ensures that we're just not going to miss a step. And Jon, if you're listening, all is good, and we know you're listening. We hope that you're enjoying your time at the beach. We're working hard. And I promise you that Jim and David are comfortable with everything in their day-to-day new positions, except for the trauma embedded in today's conference call, but it really is the only thing that you didn't prepare them for. All right. So let's move on. And as usual, today, I'm going to give a brief macro and strategic overview of the company. After my introductory remarks, you will hear briefly from Jim Parker and David Grove, who will give a brief operational overview. We hope you'll all get to know them over time over the next quarters as we are certain, you will be quite impressed. Of course, after they speak, Diane is going to give a detailed financial overview, along with some limited guidance for the second quarter of 2026. And then, of course, we'll have our question-and-answer period. [Operator Instructions] So let me begin. As we noted in our press release last night, we're pleased to review our first quarter 2026 results against the backdrop of what remains a stubbornly challenging [indiscernible] market. Of course, recently, the challenges seem to have intensified given the volatility and uncertainty surrounding current events in the Middle East and the recent pullback of institutional purchasers as participants in the market. Nevertheless, even with additional hurdles, we believe that we are closer to an inflection point for Lennar than at any time in the past 3 years. In the first quarter, we remained focused on our clear and consistent strategy. We drove consistent volume and we match production and sales pace. We use margin as a circuit breaker and we continue to refine and improve our asset-light land light manufacturing platform. We have not pulled back and waited for the market to improve. We have maintained volume and focused on building improved business programs to bring cost down so that we can remain profitable and still provide needed housing supply. While in our first quarter, margins and our bottom line continue to reflect the affordability-driven realities of the current market -- housing market, we also saw continuous improvement in all facets of our underlying cost structure that has set us on a course to stabilize and improve margins as we continue to produce volume and meet the market at affordability. Even with the current market challenges, we are feeling optimistic about our position in strategic markets and the progress made in reshaping our business for current conditions. We are, in fact, actually adapting to market conditions as they are and not waiting for the market to bounce back. So let me briefly discuss the overall housing market from a macro standpoint. The macro economy continues to present a complex and a time unsettling backdrop for the housing market. Home prices remain high and have generally continued a pace of increase nationally that is generally higher than the pace of wage increases. Mortgage interest rates, which showed some early signs of easing towards the end of last year have remained stubbornly over 6%, hovering around 6.2% to 6.4% through most of our first quarter. With home prices plus interest rates at these levels, affordability remains the central challenge facing our buyers and consumer confidence while not collapsing, continues to be tested by a range of uncertainties, both domestic and global. Additionally, and it goes without saying that the war in the Middle East is a wildcard, it might end quickly, and the world is a better and safer place where it might trigger higher gas prices, higher inflation and higher interest rates, and we'll just have to wait and see. On the employment front, consumers who had previously felt secure in their jobs are now questioning that security as technology-driven disruption particularly the rapid advance of and constant news coverage of artificial intelligence raises important questions about the future of our workforce. This uncertainty layers on to already strained household budget and has made consumers more hesitant to commit to large purchases, particularly homes. Traffic has remained reasonably consistent across our communities, but the urgency to transact remains measured. At the same time, a combination of tariffs and immigration issues are keeping upward pressure on materials -- material and labor costs and are pushing overall costs higher. With affordability at state, we have been working hard to push against and to manage these pressures through our trade partner relationships and through the efficiencies we have built into our manufacturing model and our product. Nevertheless, the cost structure in the industry is pushing higher and is difficult to manage. Additionally, since our earnings call, the federal government has made only 1 strategic move relative to housing. The institutional purchasers have been sidelined by political pressures and popular sentiment that suggest that they are part of the housing problem. They have generally purchased somewhere between 5% and 7% of new homes in order to rent them to those who either can't afford to purchase but want a single-family lifestyle for those who prefer to rent. Ultimately, this movement will reduce demand in the market and signal to the industry to build less supply. On a more positive note, the federal government's engagement with the housing prices continues to deepen. As I noted last quarter, federal officials have been actively engaged with the builders and industry associations to understand the affordability challenge and explore practical solutions. These specific programs remain to be finalized or to be seen, but the level of attention being paid at the federal level to the housing shortage is unprecedented and we believe that meaningful policy support is more likely now than at any time in recent history. Any program that effectively broadens access to affordable or tenable homeownership would be a significant tailwind for the industry and for Lennar specifically. Of course, and additionally, the legislature is currently working on the 21st Century Housing Act. Simply put, our best assessment of the bill is that it will not meaningfully impact housing or affordability in the short term. Perhaps over the longer term, with the right regulations written in its way, there will be some impact. In summary, the housing market remains caught in attention between the underlying demand and constrained affordability. Supply is still critically short and years of underproduction have created a structural deficit that will take years to close. The combination of high home prices, still high interest rates, constant cost pressure and continuous consumer and cautious consumer sentiment has kept the market soft, but we believe the conditions are building for an eventual recovery. Against this backdrop, let me turn to Lennar's operating strategy. Our strategy is and has remained very clear. We are focused on 3 core tenants. One, operationally, driving consistent volume to maximize efficiency, both within our operations as well as in the way that we operate. Number two, financially, refining our asset-light, land light balance sheet to generate strong and growing returns and cash flow; and three, technologically engaging and incorporating new technologies to help advance our operational progress and to enhance our customer experience. To date, we have carefully defined and refined each of these tenants, both within the company, and we have kept you apprised of the strategy as well. In 2026, we are bringing new levels of expectation and accountability to each of these areas and expect to drive definable results quarter by quarter in each of these areas. We are on a focused and determined march to drive costs down this year by using and enhancing each of these components. As I've said before, we are not nostalgically waiting for the market to reset in the -- to the way things were. Instead, we're adjusting ourselves to the way things are, and we have made considerable progress. Progress can be seen in 3 distinct areas. First, we see real progress now in cost and efficiencies embedded in execution in their operating divisions. You have and will continue to hear more about progress in our production and supply chain areas that are enabling us to become a low-cost provider and you will hear more about this shortly from Jim and from David. Second, we are starting to see real traction in our technology initiatives that are creating efficiencies in the way that we operate and the speed at which we add additional efficiencies. As a company, we are actually getting good at these things as we have already paid the [indiscernible] -- of Dumex embedded in learning and unknown discipline. We are now -- we now have our operators working collaboratively with engineers to develop the products and product upgrades at speed, and we have built transmission lines through the company for execution across our platform in order to drive uniformity. Additionally, we have brought into the company as associates, an important "special services" [ aqua ] hire team of engineers and tech specialists that are enabling us to accelerate. Over time, you will hear a lot more about our Tigereye associates and associated excellence initiatives that celebrates best-in-class execution in our technology endeavors. This program will drive accelerated product development and dissemination. Currently, we are seeing important progress in our marketing and sales machine and David will discuss internal progress shortly. But let me just note that alongside our Tiger team and initiatives, our engagement with Opendoor and their leadership team continues to help us drive change [indiscernible] in both our product offerings and our customer acquisition programs and in improving our customer experience. We are also seeing progress in driving change in the manner in which we operate our extensive land light land bank administration. Technology improvements have started to and will continue to reduce friction and improve option costs in this critical part of our business as transacting becomes more fluid and seamless. These improvements are already enabling us to transact with more counterparties and discover the best risk-adjusted cost provider for each unique land deal. We are seeing significant current cost improvement, but we are still at the very beginning. We believe this is a big area of opportunity for this year and for future cost reductions as the inefficiencies embedded in this area of financial transformation can be resolved with modern technologies. Third area and we are in the early stages, is of rightsizing our overhead as these changes take some time and these changes will take a little bit of time to flow through our earnings. But making no mistake, we have been working hard already on these changes. In past calls, I've noted that the technology migration is expensive and has inflated our overhead. We have carried additional associates, consultants and various other costs as we started the process of modernizing our 71-year-old company with new technologies. The process started 2.5 years ago with our JDE ERP transition from world to E1. This transition is now complete which enables our resources to be focused on driving our business forward. Our entire tech team is now being configured to build important parts of the future of Lennar. We have seen a new shot of energy in the Lennar technology group as we can deploy our best and brightest associates to focus on the most interesting company solutions. At the same time, many of the resources that were needed to get started and move the program forward are no longer needed. Much of this cost was in the form of consulting and contract labor that can be readily reduced as needs subside, and these costs will be transitioned throughout 2026 this year as those resources are being returned to industry. On the more corporate front, as Jon Jaffe retired at the beginning of the year, many of you have asked about leadership changes and if all is good at Lennar. Actually, John's retirement is a great example. In fact, a number of our longer-term Lennar associates have chosen to retire more recently and in the context of current market conditions. Let me say first that any of our tenured associates who have made Lenor what it is today, always have the absolute privilege to retire on their terms and on their time frame. With that said, each of them has led, trained and nurtured future leaders who are themselves now tenured, ready to lead and eager for the opportunity. Jon felt it was a good time to retire and frankly, Jim and David were ready and anxious for their term at that. They are tenured. They are proven Lennar professionals, and they are energized by the opportunity. It all makes sense. Jon retires the next leaders are ready to take on new opportunity with fresh legs and new energy and overhead has benefited at the same time. This is exactly how it's supposed to work, and it's working well here at Lennar. New leadership is taking a fresh look at efficiencies as well, together with new technologies, SG&A will continue to shrink and the bottom line is that our overhead costs are coming down meaningfully throughout 2026. Now let's turn to our first quarter 2026 operating results in more detail. We continued in the first quarter to focus on volume and natural production pace with our sales pace. We started 17,425 homes, and we sold 18,515 homes, staying closely in balance and keeping our inventory properly sized. While we ended the quarter with approximately 3 completed unsold homes per community, slightly above our target of 2, we constructively entered the spring selling season with ready inventory. As the quarter progresses and sales volume picks up, we expect to work that inventory back towards our target range. Our average sales price came in at $374,000 essentially flat to plan and down 8% from the prior year, a reflection of continued use of incentives to enable affordability and drive volume. Sales incentives on deliveries were 14.1%, roughly flat with Q4 of last year at 14.5%, and we are cautiously optimistic that incentive levels are beginning to stabilize. The new order incentive rate actually showed some really encouraging signs notably below the 14.1% delivery incentive rate, and we believe reflects improving demand dynamics. Of course, with an asterisk around the evolving macroeconomic elements that we're seeing in the market. As a result, our gross margin in the first quarter was 15.2%, reflecting improving discipline across construction, land and overhead. Our SG&A came in at 9.8%, slightly above expectations net margin was 5.3%, producing net income of $229 million and EPS of $0.93. Our inventory turn improved to 2.5x, which is up from 1.7x a year ago, and our return on inventory was 17.4%. Our community counts at 1,678 at quarter end, up 6% from a year ago, and this positions us well for the remainder of this year, and we have additional communities opening as we go into the second quarter. On the Asset-Light side, we continue to make strong progress. Less than 5% of our land is on balance sheet and our total homebuilding inventory has been reduced from just under $20 billion 2 years ago to $10.5 billion today. Our land banking relationships with no Rose, Angelo Gordon, Domain, Parstone, Apollo and others continue to function extremely well, providing just-in-time home site delivery in support of our manufacturing model. We have an 86% land bank delivery rate this quarter, up from 52% in Q1 of last year, and this reflects both the maturation of those relationships and the volume consistency that makes us a valued partner to each of our counterparties. On the balance sheet, we ended the quarter with $2.1 billion in cash and a homebuilding debt-to-capital ratio at 15.7%. Our strong balance sheet continues to give us flexibility to both invest in growth and return capital to shareholders. So conclusion, me say that while it has been another challenging quarter in a challenging housing market, it is another constructive quarter or wear. Our numbers are not yet where we'd like them to be, but the trajectory is just right. Costs are coming down, volume is holding. Our asset-light platform is to functioning extremely well. and technology initiatives are beginning to yield real and measurable results. We are very well positioned with strong and growing national footprint, a community count that is 6% above last year and a cost structure that is materially more efficient than it was 2 years ago. When mortgage rates normalize, we believe that pent-up demand will be activated quickly and our margin will recover rapidly. We always keep in mind that normalized incentive levels run 4% to 6% compared to the 14% we are carrying today. That gap is our opportunity, and we are building toward it deliberately and with confidence. Our balance sheet is strong. Our land banking relationships are deep and productive and our technology initiatives are positioning Lennar be a materially different and better company in the years ahead. We are building not just for this market, but for the long term. We couldn't be prouder of the extraordinary associates across the company who have executed to one of the most challenging environments in the history of housing, doing hard things, building new capabilities, and never losing sight of our mission to provide affordable, high-quality homes to families across America. We are truly delivering the American dream. And with that, and for the first time, let me turn it over to Jim Parker. Unknown Executive: Thanks, Stuart, and good morning, everyone. I am Jim Parker, and I'm Lennar's Area President for the Eastern half of the country. I came to Lennar about 8 years ago through the CalAtlantic transaction and have been in the homebuilding business for over 30 years. David, [indiscernible] and I worked together to drive performance across the Lennar platform and you would hear from David right after me. Let me start by saying that I'm very enthusiastic about where we are as a company and the tremendous progress we've made over the past 3.5 years. While the market has been difficult since interest rates spiked in 2022, we have had a clear and well-communicated plan at Lennar, and we have been coordinated in our execution. The overall housing market has and continues to adjust to a combination of elevated prices in the wake of coded and elevated interest rates, pressuring affordability and homebuyer confidence across our geographies. Instead of waiting for the market to correct, we believe this was a new normal and began to adapt our business execution to provide the volume the market needs at the prices and incentives where the market can transact. We are focused on refining products, optimizing our everything's included packages, rebuilding margins and using mortgage rate buydown to maintain or regain momentum. Through our first quarter, we've been seeing early signs of a more consistent demand environment. We will see how that holds up as the market adjusts to the new geopolitical turmoil. Over the last 3 weeks, over the next 3 weeks. David and I will visit each of our divisions and conduct our quarterly operations reviews, which happened at the beginning of each quarter. And this is always exciting as we walk through the market at a very local level, we get a direct view of how our leaders think how they adapt to change and how they represent Lennar in our markets. These sessions allow us to pair the macro environment with what's actually happening in the field. So our decisions remain grounded in reality. The reviews also give us the ability to discuss our strategies that work in real time. The ongoing dialogue is collaborative, rewarding and allows us to refine our approach continually, making sure that we stay aligned with the ever-changing conditions and needs of each market. These conversations aren't just about metrics. They're about people. We get to see our talent in action and understand how each operator engages with landowners, developers, trade partners and customers. Those relationships drive our ability to secure land, maintain cost discipline and grow market share. After our people, land is our most vital asset, and we stay closely involved in shaping a disciplined, refresh land strategy in every submarket so we can grow community count, reduce absorption pressure and improve margins. We also take a close look at how we are resonating with customers through our local and national marketing and sales efforts, through intelligence tools like RILA, which captures real-time feedback from buyer interactions and through our dynamic pricing machine in everything's included platform. This collaborative approach ensures that we are aligning product, monthly payment and value in a way that meets today's buyers' needs while allowing [indiscernible] to strategically reduce incentives and rebuild our margins. This business approach and local focus have allowed Lennar's market position to remain exceptionally strong. We are the #1 builder by market share in 22 of the top 50 homebuilding markets and a top 3 builder and 42 of the top 50 markets. That leadership reflects our volume first, value-focused strategy and the strength of Lennar's operating machine. We ended Q1 with 1,678 active communities, up 6% year-over-year. With that growth, we continue to right-price our communities and lessen our incentives. At the end of the day, we run this business hands on and is one Lennar. When we stay close to our operators close to our customers and aligned around land, product and execution, we create consistency consistency across the company. I'm proud of the discipline and momentum our teams are building, and we look forward to carrying that into the rest of the year. With that, I'll turn it over to David. Unknown Executive: Thanks, Jim. Good morning, everyone. I'm David Grove, I'm the Area President for the West. Nice to be with you today. As Stuart said, we remain extremely focused on capitalizing on our strategy of asset-light and even flow production to fuel operational efficiencies and consistent growth. The execution of our strategy is resulting in exactly the outcome we expected. While we have certainly impacted our margin, we are also realizing lower costs, improved cycle time and continue to buy well structured land at rationalized prices, all while continuing to drive efficiencies in our operations. So let me start with our cost savings and cycle time improvement. Our technology-driven bid tool software, coupled with our even flow starts and everything's included strategy has allowed us to consistently realize cost savings quarter-over-quarter. We have lowered our direct cost 12 of 13 quarters sequentially, and we are down 12% over the last 2 years. Our direct are now below pre-COVID levels. In Q1, we achieved just over a 2.5% reduction in direct construction costs from Q4, which represents a 7% year-over-year reduction. Our cycle time on single-family detached homes was down another 5 days quarter-over-quarter to 122 days. This is an 11% year-over-year reduction and an all-time low for Lennar. On the land front, we continue to capitalize on strong relationships with developers and land sellers to fill our land pipeline. Our consistent strategy and creative problem solving has given us the ability to negotiate both land pricing and terms that will position us for stronger margins and allow us to maintain our land life strategy. These operational improvements increased our inventory turn by 47% from prior year to [ 2.5 ]%. Turning briefly to our marketing and sales machine, which through constant refinement continues to mature and facilitates our ability to execute our strategy and produce results even in the face of a tough market. In the first quarter, we achieved a sales pace of [ $3.60 ] per community per month while carefully managing incentives on a home-by-home basis as we use technology to drive volume while preserving price. Our intense focus on optimizing digital spend and driving high-quality leads is continuously improving. In the first quarter, our qualified Q [ leads, ] which represents the highest intent buyers in our funnel, increased 10% year-over-year. Once the lead enters the funnel, speed of engagement becomes a critical metric. Our average response time to customer inquiries improved to 35 seconds in Q1, a 12% improvement from prior quarter and a 71% improvement year-over-year. And this response of this now extends around the clock 24/7 and with digital agents available at any hour. We also measure the quality of our engagement as another critical component. In Q1, we improved our quality scores by 7%, reflecting our continued investment in coaching and AI assisted performance analysis. We are measuring and accounting for every aspect of our business in order to drive improvement. As a result of refined targeting faster response time and higher quality engagement, our digitally driven sales appointments kept increased 11% from our prior quarter and 17% from Q1 '25, which helped support sales activities in a seasonally softer demand period. Our focus extends to predictive capabilities of our pricing machine as well. Our pricing strategy focuses on daily evaluation of demand patterns, inventory levels and price [indiscernible] discovery data designed to set the price and incentives for each home in each community to optimize margin while maintaining a targeted sales pace. This maximizes sales efficiency and maintain appropriate inventory levels. As to reminded, we ended our first quarter with 3 completed unsold homes per community. In conclusion, our team is focused on executing our strategies that drive improving customer acquisition results, reduce direct costs and enhance operational efficiencies. These efforts, among others, are delivering measurable results and position us for future success. Stuart Miller: Before we go forward, Diane, great job guys. But David, how many years have you been with the company? Unknown Executive: 27. Stuart Miller: So I just want to make sure that everybody understands, Jim, you've got 30 years in the industry -- and 8 years here at Lennar, the during from the [indiscernible] program and David 27 years right here at Lennar. David Collins: Homegrown Stuart Miller: Carry on. Diane Bessette: Okay. Good morning, everyone. So Stuart, Jim and David have provided a great deal of color regarding our operating performance. So therefore, I'm going to spend a few minutes on the results of our financial services operations. summarized balance sheet highlights and then provide estimates for the second quarter. So starting with Financial Services. For the first quarter, our financial services team had operating earnings of $91 million. The lower earnings were mainly derived from our mortgage business. The decrease was primarily based on the mix of buy-down programs offered to our homebuilding divisions, including an increase in ARMs versus fixed rate mortgages with ARMs generating significantly lower earnings. And now turning to the balance sheet. Note that this quarter, once again, we were highly focused on generating cash by pricing homes to meet affordability. The result of these actions was that we ended the quarter with $2.1 billion of cash and total liquidity of $5.2 billion. We are well positioned as a land light manufacturing homebuilder. Our year supply of owned homesites was it 0.1 year and our homesites controlled percentage was 98%. This configuration significantly lowered our balance sheet risk, especially in challenging environments. We ended the quarter owning 11,000 homesites and controlling 486,000 for a total of 497,000 homesites. We believe this portfolio of primarily option homesites provides us with a strong competitive position to continue to grow market share in a capital-efficient way. Our inventory turn increased to 2.5x with a return on inventory of approximately 17%. We maintain our focus on increasing asset turns which will enable us to capture greater improvement in returns when margins normalize. During the quarter, we started approximately 17,400 homes and ended the quarter with approximately 38,600 homes in inventory. This includes about 5,000 completed unsold homes, which as we've noted, equates to about 3 homes per community. And then turning to our debt position. Homebuilding debt-to-total capital was 15.7% at quarter end. We ended the quarter with $1.7 billion outstanding under our term loan and no outstanding borrowings under our revolving credit facility. Our next debt maturity of $400 million is due in June. Consistent with our commitment to increasing total shareholder returns, we repurchased 2 million shares for $237 million, and we paid dividends totaling $123 million. Our stockholders' equity was approximately $22 billion and our book value per share was approximately $89 -- in summary, the strength of our balance sheet provides us with confidence and financial flexibility as we progress through 2026. With that brief overview, I'd like to turn to the second quarter and provide some guidance estimates. Starting with new orders. We expect Q2 new orders to be in the range of 21,000 to 22,000 homes with continued focus on matching starts and sales paces. We anticipate our Q2 deliveries to be in the range of 20,000 to 21,000 as we maintain even flow production and turn inventory into cash. Our Q2 average sales price on those deliveries should be between $370,000 and $375,000 and gross margin should be in the range of 15.5% to 16%. As we focus on maintaining volume, we continue to price to market. That said, we believe our Q2 -- our Q1 margin of 15.2% should represent the low point for the year. Our SG&A percentage should be in the range of 8.9% to 9.1%, but of course, all of these metrics are dependent on how market conditions unfold. For the combined homebuilding joint venture land sales and other categories, we expect a loss of approximately $2 million. We anticipate -- sorry, approximately $20 million. We anticipate our Financial Services earnings to be between $100 million and $110 million. And for our multifamily business, we expect earnings [ was up ] $10 million. Turning to another, we expect a loss of approximately $25 million, including -- excluding the impact of any potential mark-to-market adjustments. Our Q2 corporate G&A should be about 1.9% of total revenue, and our foundation contribution will be based on $1,000 per home delivered. We expect our Q2 tax rate to be approximately 25.5% and the weighted average share count should be approximately $243 million. And so on a combined basis, these estimates should produce an EPS range of approximately $1.10 to $1.40 for the quarter. And finally, we continue to aim for a full year delivery target of 85,000 homes for the full year. With that, I'll turn it over to the operator. Operator: [Operator Instructions] And our first question comes from Alan Ratner from Zelman & Associates. Alan Ratner: Thanks for the detail, and David Jim did a nice job. Glad to have you on the call. So first question, obviously, I think, top of mind on recent activity, I think you kind of phrased it well, Stuart. But I'm just curious with the move we've seen in rates here over the last couple of weeks. Obviously, you kind of probably started the process of thinking about the guidance towards the end of your quarter in February when rates were 20, 25 basis points below where they are today. A, I'm curious, have you continued to see the ability to either stabilize in lower your incentives even over the last couple of weeks emits this volatility and b, has the cost of rate buydowns gone up alongside the move in rates we've seen here? And how is that contemplated in the margin guide? Stuart Miller: So the question is interesting, Alan, because it happens to be an interesting time to do an earnings call. There's enough brand-new volatility since the end of our quarter, to call into question any number of things. I think that we've tried to give as much guidance as we saw through the quarter and not do too much to update that thinking or guidance kind of under the banner that one week in a row doesn't make a trend either to the positive or to the negative. And the benefit we had right now today is that immediately after this call both Jim and David, as Jim carefully described, will be in the field working with the divisions to see what the actual impact is and think about what we do to either offset or lean into the things we're seeing in the field. As we sit today, without doing too much to update. I don't think we have an update. We haven't seen significant movement either in traffic or in the ability to sell and I'll let Jim and David weigh in on that in a second. But I just don't think that there's enough information to know whether this will be a short-term program. or even if a long-term program, what they're domestically, it will be a net positive or net negative. But as we see things right now, we're not seeing significant movement in the market, it really has been pretty steady. Jim, you first? Unknown Executive: No, I agree. Right now, we haven't seen an impact, but it's early to tell. We talked to our division presidents this morning, and they have not seen any change to date this week or the previous week. So we're confident, but we're being very cautious. And like Stuart said, we're making sure we stay really close to the local markets -- make sure we stay in tune with that. David? David Collins: Yes, we're generally in the last -- this week, seeing a similar demand pattern that we've seen in the prior couple. So no significant negative impact. I think, generally speaking, that's positive in light of the state of the macro economics. Stuart Miller: So look, I would just summarize and say that first of all, we generally don't give updated guidance or information. But given the anomalous moment that we're in, it's worth putting it on the table that right now, things are steady as we see them, both Jim and David and myself for that matter, are day-to-day in touch with our operators to get that feedback in real time. And we're not seeing something that would adjust the way that we have thought about the information that we've given, including our guidance. And for those of you who've known me well, I don't complete writing the material that I deliver in our earnings call until generally late at night or early in the morning, the night before, so we keep it pretty up to date and this was pretty well thought through. Alan Ratner: That is incredibly helpful. So I appreciate just kind of walk through the timing there of when you kind of put this plan together on what you've seen. Second question on SG&A, recognizing you're not going to give guidance beyond the second quarter. I just wanted to touch on, I think, some of the comments you made, Stuart, about I think you referenced an expected improvement in SG&A in '26 versus '25 given all of the exchanges and maybe some of the headcount changes, I guess, that have gone on the last several quarters. Just want to make sure I'm understanding that correctly. I mean if I look at your SG&A as a percentage of revenue year-to-date through the first half of the year, at least including your 2Q guidance, you're going to be up about roughly 100 basis points year-on-year as a percentage of revenue. Does that mean you're anticipating that to actually be lower on a year-over-year basis in the back half of the year? Or am I reading too much into that commentary? Stuart Miller: So let me say that first, let me broaden the discussion to overhead, which is broader than just SG&A. But the answer is that as numbers are reduced, it takes time for those numbers to flow through and come through our earnings reports. I think theoretically, yes, we are seeing opportunities and expectations that our overhead is going to be meaningfully lower as we come to the end of the year whether it actually flows through 1 quarter or another, we're going to wait and see. Some of these things get a little bit sticky. But at the end of the day, it's happening in so many interesting areas that we're reducing costs. Some of the costs associated with our technology initiatives are clearly front-end loaded. The transition from world to E1 was extraordinarily expensive. That's tapering off. It might take some time for that to flow through. But that's happening more quickly, but there are other elements of what we and they're working on. And even the things where we missed that and went down bed adds initially where money was spent and we don't have to spend that money anymore. Additionally, as I talked about senior management, we have so many extraordinary people within our company that are deciding to use this opportunity to retire and let the next-generation shine. Though we haven't put out a public announcement, I'm sitting off from one of our favorites in Bruce. Bruce is going to be retiring. This has been embedded in that. We've known this for a month. And Bruce is actually going to transition and become part of the Lennar foundation working hand-in-hand with Marshall. But it's really across the company recognizing that overhead reduction or overhead reduction is a positive, but enabling the next generation of leaders to come up step up and put themselves on display just as you've seen here this morning is really a greater good. And when I say fresh legs, if you look at the energy that Jim and David are bringing to the equation, if you listen to [ Laura Escobar ] and Financial Services. You listen to others around the company, the opportunity to take a fresh look at a lot of things is a really unique opportunity that we're leading into right now. Operator: Next, we'll go to the line of Stephen Kim from Evercore ISI. Stephen Kim: Appreciate it. Thanks, as usual, for all the info. I guess my first question has to do with how you determine what's the optimal level of volume that you need to extract the efficiencies in your homebuilding operation given all the technology initiatives as well. I'm curious, is it based on a certain market share? Or is it more sort of a bottoms-up kind of approach? And therefore, like independent of what volumes are doing in the broader market. Like last year, it sounded like it was a little bit more like the latter. You were focused on achieving a certain level of volume, so you get the efficiencies that you needed because industry starts were down high single digits segment, you happen to gain a lot of share, right? But -- so this focus wasn't on the share. It was on maintaining a certain level of volume. But in your opening remarks, you also mentioned about growing market share almost as if it was a goal in itself. So I just wanted to make clear, how should we think about how you think about the volume that you need in any given year? Are there situations, for example, where you would willingly relinquish some market share or are you -- or should we think that you're always looking to gain market share? Stuart Miller: Well, Steve, the -- interesting question, I'm thinking about it as you're asking it. The reality is that the answer is unique to each market and each market is a little bit different. And so when you look at the roll-up of our company, it would be hard to cobble together a unified strategy. The fact of the matter is, there are a number of considerations that are going into that calculation. Some of them are -- and they're all very market specific. We don't have a specific mandate to grow market share, but we do recognize that with advantaged market share, we are able to work with trade partners and landholders to do a better job of negotiating. So I'm going to turn it over to David, first, why don't you talk a little bit about land opportunities and things like that. And then, Jim, maybe you'll think about some other components. Unknown Executive: Yes. Sure. I'd say that market share -- by market, we understand based on our position in the market, where we ought to be, and we have a target. But that doesn't really drive what you're asking about. What drives our consistent volume is the way that we thoughtfully put together each one of our land positions and our communities, and we have expectations out early on that we hit a certain pace. And our strategy right now is to maintain that pace, which is the increased market share is a derivative of our maintained pace on a community-by-community basis to our underwriting and then the competitors that generally slowing down a little bit. Stuart Miller: Jim, trade partners, any thoughts about that? Unknown Executive: Yes. I think the trade partners, we absolutely -- we build it from the bottom up. It really starts with the community it really starts when you plan that community and you come up with what the ideal absorption is, and then we try to build from that. And the better job we do with that with trade partners and land sellers and everything else, the growth kind of comes with it. We get more looks at different communities in the future. And it just kind of all ties together. But I really think it's not going in having a set number of mine. It's really from building from the bottom up of the communities as we open more communities, that's really what really accelerates that market share. So it's smart growth, but we're really trying to get to a set absorption based on what the market will give us. in what we think is the right level with the trade and everything else and it just kind of builds up from there. Stuart Miller: And I just have to say that the volatility embedded in putting our foot on the accelerator and you take it off and putting on the brake and going back and forth, it only creates inefficiencies in the development process in the construction process and all the process. If we can build the tangibility for our trade partners and even for land partners, we're going to get the best pricing, and we're using that to our advantage. And in each market, we are doing our own very separate, very focused market study to think about the combination of pricing and pacing in our own unique way, focused not on answering competitive information or contextualizing it in terms of how can we rationalize affordability with cost structure to end up with the best configuration for the future. And I just want to say one last thing, and I've said this over and over again, that we didn't start with this -- with a notion that we're going to wait for the market to recover. Instead, market by market, we have focused on how do we construct the best version of Lennar to build efficiencies market that's likely to remain stubborn for a long time. It's now 3.5 years and we haven't had that throw back to the past. We're constructing an operating platform that is reconfigured to be able to build affordability for the future. And if you think back to the over time and to the inflationary period that we went through in 2022, '23. The cost structures grew alongside the pricing structures were left with the pricing and the cost structure is very sticky, both on land and on vertical construction, horizontal as well and rebuilding the company to be better positioned to build affordability has been hard work. It's being done at every division, division by division within its own structure, and that rolls up to the number that you see corporately. Stephen Kim: Got you. That's very helpful. I appreciate that. I guess my second question has to do with volume through the year. So you've reiterated the guide to $85,000 in closings and you're kind of off to a little bit of a slower start than even last year. And it just sort of feels like the year is going to be kind of more back-end weighted. And I just wanted to ask how important is it for you to achieve a more sort of even flow of volume through the year? Is the fact that this year is not going to be quite maybe as much as you might like. Is that a hindrance to you're achieving the efficiencies that you ultimately want to get. Longer term, should we be expecting that you're going to achieve more of a kind of a 50-50 kind of front half, back half kind of cadence? Stuart Miller: Look, this is an art, not a science. I can't predetermine today what we're going to do throughout the year. As I said, Steve, and as Jim carefully laid out. Jim and David are getting out into the field for operations reviews, division by division, bottom-up approach, working with the people. And that happens at Lennar all the way through the year. So what we say today might change over the next couple of weeks. We know that there's a lot going on in the world that is affecting both gas prices, inflation levels, interest rates and that might be short term, it might be longer term. We're going to be connected with what's happening on the ground. And it might be unique to different markets, how it actually plays out. What we are solving to is how do we use as much volume consistency as we can to build efficiency in everything that we're doing. But we don't want to, at the same time, not pay attention to what the market is allowing us to do. We don't want to break the market until it's a balancing act. And that's why I say it's not a science. Jim, do you want to add on that? Unknown Executive: Yes. I would just say this is a huge priority for the divisions. We start this process even before the year begins with our early forecasting. We look at the different quarters, we look at whether they are as equal as they possibly can be. It really goes back to focusing in on the land and opening communities in a timely manner and not letting delays hit. And I think we're getting much better at that. But I think it really comes down to looking out 18 months, seeing what quarters look like, and that's when we decide where we have a community account, what do we need to push, what do we need to do -- you take Northeast markets, what do we need to do as far as getting the home sites to develop quicker with different methods dealing through the weather. So I think it really starts with planning. And I think you see divisions that are doing it well. They just have a tremendously well brand machine. Truman Patterson: David, [ anything to add ]? Unknown Executive: To say that we are focused on consistency of volume, but we are also responsive to the market as the market shifts underneath us. I think what holds us in good stead is that we have clarity of strategy. We are going to start at our sales paces, open communities on time. We're going to price to market where the market happens to be, and we're going to deliver our homes and not carry excess inventory now. Stuart Miller: And our pricing mechanism, our pricing tool is really primarily focused on getting a kind of tactile sense of where the customer is and where affordability lies. And this is our primary driver in our day-to-day hands on pricing all the way through the company. Operator: Next, we'll go to the line of Susan Maklari from Goldman Sachs. Susan Maklari: My first question is, it's impressive to see how the inventory turns hit 2.5x this quarter despite all the pressure that you are seeing in the market. I guess, could you talk about where you see the upside to inventory as you think about the construct of those [ new ] areas of focus that you're really looking to achieve as we move through the next several quarters? Stuart Miller: Well, not only that's a good question, that's a timely question. Eric and I spent some time in New York working through some of the capital markets approaches that we think about and dream about in terms of charting the path for the future of the company. I'm not going to be able to give you an answer as to where I think it can go. But I think that there's a field of opportunity. I will say that I think that the financial transformation that we've gone through and that is separating land from homebuilding and balance sheet is really interesting. It's getting more interesting by the day. If you look at and think about risk-adjusted pricing for capital when you look at risk profiles and you separate risk profile, there's a field of opportunity to rationalize the cost that are associated with the different dimensions of land that we currently have. I said in my remarks that we are targeting specific land banking programs and relationships and trying to find the right bucket for the right land to maximize or minimize the capital costs associated, the option costs associated. But additionally, we think that over time by taking a capital market thought process to the way that we have configured this, we're going to be able to think even better about how we bring land into availability for the company, how we manage the just-in-time delivery system. And all of this is going to have incremental benefit to that inventory turn number. So I don't think you've heard the last of inventory turn. I think that we're continuing to reach higher. And I think that we're going to see more come of this. I think that we're all going to find that the program that -- the program that we put in place is going to enable us to marry this operational view of our business with a capital markets view and make us better. So one of the things that I want to detail -- and maybe Dave and Jim, you'll weigh in on this, is the importance of our core product to this discussion. The more we migrate to fewer products that we build over and over again, the more efficiency we're going to inject. I still look at our cycle times and how they've come down just year-over-year from 137 days to 122. And quarter-over-quarter, you're looking at, I think it was 127 days down to 122 to -- might have been 126, but I look at the focus in the field and the opportunity to make it better by using core products. How would you say to talk about that? Unknown Executive: Yes. I think the core product is going to -- is not only producing -- or resulting in our cycle time reduction. I think it's going to continue to improve. Also, it helps us rationalize our cost structure a couple of core products that are designed very efficiently within everything's included packet. It helps us capitalize on our purchasing structure, capitalize on our scale and that combination of volume core product, efficiency of build is materializing in lower cost than factor cycle times, which are going to be accretive to our inventory turns. Unknown Executive: I would just say the cycle time, you go to these ops meetings and the teams are so proud of getting lower and lower and it's become the best friendly competition I've seen amongst divisions. So I love sitting there and when Charlotte says, they're at 101, they say, well, that's great, but why is Greenville at 96, they come back the next quarter and even hit it harder. So it's become a very badge of honor. And the core plans just makes us so much more efficient for our trades to build. They know they get repetition. They know what they're looking for and inspections go smoother. So it really all helps at the cycle time. Stuart Miller: Yes. And look, I've been there with you. You've been the instigator. And it's not just a competition to see who can do things faster. It's a combination of being able to bring the consistency that we give to our trade partners and even to land partners, but to our trade partners, enabling us to get better and better at the coordinated [ dance ] of building homes and some of our divisions are just really pay the new ground to improve that cycle time in a very constructive way. Unknown Executive: Yes. And the best thing is quality is improved with cycle time. It becomes so much more efficient. Stuart Miller: Quality and customer experience. North stars for the company. Susan Maklari: Okay. Well, that was very helpful color. And actually, just following up on it quickly, where are you in terms of the core plans? Can you talk to what percentage of the deliveries today are coming from that? Is there any kind of a target that you can share with us as you think about, I don't know, the next 12 or 24 months. And I guess also as part of that, it leads to the question around capital allocation. And as this comes together, can you talk to how you're thinking about the top uses of cash and how shareholder returns and growth and all these other initiatives fit within that? Stuart Miller: So look, the discussion of core plans, again, we can talk about it corporately, but the reality is it's division by division by division. But the more important thing is how technology plays into all of this because we are migrating to a place where our due diligence program relative to land is going to be tied to an element of core plan engagement that is going to merge the company using technology towards greater and greater use of core plans. Now you can imagine if we're talking about the land engagement and due diligence process, it's going to take some time for this to actually come through the system, but this is an area where monitor technologies across a diffuse platform, 50 divisions coast-to-coast and getting that entire enterprise to push towards core plan, it is going to be technology that really drives us forward, and we're building those connectors right now. But is there anything that you guys would say about where core plans are percentage-wise and how we are migrating through your [indiscernible] views and division engagements. Unknown Executive: That's generally across the platform, call it, 65% core, and that's going to vary by division from some at 50% to some at 90%. And that is really relative to the rollout of our core in order to meet different buyer profiles at different price points. Operator: Our final question comes from John Lovallo from UBS. John Lovallo: Maybe firstly, in trying to kind of bridge the homebuilding cash it appears that there's roughly maybe $1 billion or so of cash flow use in the first quarter. It seems like it was largely attributable to inventory, which it was a bit surprising given that you started and you delivered roughly the same number of homes in the quarter. So kind of what's driving the pressure on cash flow given the expectation for a pretty strong conversion in 2026? Stuart Miller: It probably relates most to average sales price coming down. Diane Bessette: Yes, I think so, John, I'll jump in. We're -- as you know, we're very focused on pricing to market. Our incentives are on a higher level. And so while we're getting cost savings that are increasing cash, as you've heard us say, it's hard to outpace the lower revenue on a per home basis. So we have to keep purchasing homesites to keep the production going. So I think you'll see a little bit of better matching against the quarters progress, but the first quarter is still light on revenue because it's light on deliveries. It's a little bit of an anomaly for the year. John Lovallo: Okay. Understood. And understanding that they were in a pretty dynamic market right now. I just wanted to follow up on Steve's question. The 85,000 delivery target seems to imply that you plan to start more homes than your orders in the second quarter. And they kind of work through that inventory in the back half. If that's correct, I mean what's -- if that's not correct, maybe I'll say it that way, what's driving the much higher kind of second half deliveries than the implied second quarter inventory? Stuart Miller: So first of all, let me say, we have -- we clearly have question marks around the 2 things that I detailed as things that have happened in the short term that it's kind of changed the landscape. And of course, turmoil in the Middle East has everybody's attention and we have a question mark, what that going to in? How is it going to ripple through? And number two, the sidelining of the institutional investor is another component of that there are a lot of people thinking about it. And if the institutional investors are really sidelined. Is that going to instigate more more primary buyers to the market as some believe or is it going to reduce volume. We're going to have to wait and see. And I tried to leave room for those changes. That impacts the question of what will our deliveries be as we come through the year. But what drives us to continue to aim for that number is a base belief base optimism that I've been getting from both David and Jim about the configuration of our business. And so on the one hand, you have the geopolitical issues or domestic issues that are counterbalancing. But I will tell you that leading up to the past couple of weeks, there is -- has been a sense of optimism about programs that we have in place. Jim, why don't you talk about that a little bit? Unknown Executive: Well, look, I think it comes down to -- we see the steadiness in a lot of markets, but more importantly, we see the energy with our associates and they're starting to really see these different programs. We're starting to see the advantage to it. A quick example is virtual customer care. And I had ops meetings yesterday at 3 divisions over the last 2 days, and every division they all talked about. At first, they were challenged now sudden the efficiency, the customer experience, the quickness of the response to the customer. I think that's really what we're seeing is our teams are really starting to buy into what we've been working on for years, and we're now seeing the advantages and optimism fuels a lot of people. And I think that you get that positive energy going, that's what's driving it. Stuart Miller: David? Unknown Executive: I just said that we have the privilege right now of being able to -- having the time to read what the market gives us over the next few months within this environment. And we have -- because of our cycle time reduction, we have the room to adjust accordingly so that we can determine as the year progresses, whether $85,000 is rational or not. Stuart Miller: Well, I think that generally speaking, the unified view right now is it's definitely within our scope and within the opportunity set, and we're pretty enthusiastic about the programs that we have in place that have given us somewhat of an edge on the market, certainly an edge on information flow and staying close to the market. And of course, that very careful dance that we dance of having corporate or time to the individuals and the divisions that are actually seeing what's happening on the ground. I think that there's a general sense of optimism to the company right now that we're going to do as good as the market allows. And I think that's a good place to stop. I want to thank everyone for joining us. I couldn't be more excited about the program we have in place and having David and Jim make it through their first traumatic conference call. And we look forward to coming back together, of course, in the second quarter and beyond as a management team that's invigorated and focused on the best of a tough situation. Thank you. Operator: That concludes Lennar's First Quarter Earnings Conference Call. Thank you all for participating. You may now disconnect your lines. Please enjoy the rest of your day.
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