Chatham Lodging Q3 2026 Earnings Call Transcript

Chatham Lodging (NYSE:CLDT) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Chatham Lodging Trust reported strong financial performance with RevPAR growth of 8% for Q3 2026 and GOP margins up to 45.4%.

The company successfully acquired a $100 million portfolio and executed a share repurchase plan, increasing original adjusted FFO per share guidance by 28%.

Silicon Valley hotels showed significant recovery with a RevPAR increase of 23%, contributing positively to overall results.

Occupancy rates reached 83%, the highest since 2019, driven by strong business travel demand.

Chatham plans to continue leveraging robust demand and minimal new supply to drive growth, with a focus on Silicon Valley and Bellevue.

The balance sheet remains strong with a low leverage ratio and significant free cash flow expected, allowing for future investments and dividend growth.

Guidance for full-year 2026 includes RevPAR growth of 4-4.5%, with adjusted EBITDA of $104.2 to $105.3 million.

Full Transcript

Gil (Operator)

Thank you for standing by. My name is Gil, and I will be your operator for today. At this time, I would like to welcome each and every one of you to the third quarter earnings results for Chatham Lodging. All lines will be placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad.

If you would like to withdraw your question, kindly press star one again. I will now turn the call over to Chris Dally. Please go ahead.

Chris Dally (Investor Relations)

Thank you, Gil. Good morning, everyone, and welcome to the Chatham Lodging Trust third quarter 2026 results conference call. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown, as described in our most recent Form 10-K and other SEC filings. All information in this call is as of November 5, 2026, unless otherwise noted, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial measures referred to on this call, on our website, www.chathamlodgingtrust.com. Now to provide you with some insight into Chatham’s 2026 third quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; Dennis Craven, Executive Vice President and Chief Operating Officer; and Jeremy Wegner, Senior Vice President and Chief Financial Officer. Let me turn the session over to Jeff Fisher. Jeff.

Jeffrey Fisher (President and CEO)

Okay, thanks, Chris, and good morning, everyone. Certainly appreciate all joining us this morning here. Dennis, Jeremy, and I are coming to you from our Homewood Suites in Paducah, Kentucky, after touring all six of our recently acquired hotels over the last couple of days. And let me tell you something, believe it or not, it’s pretty exciting to be here. Let’s start there. Year to date through September, the approximate $100 million portfolio generated excellent results with third quarter RevPAR growth of 10% and GOP margins of 45.4%.

Year to date through September, RevPAR rose 8% and the GOP margins expanded 140 basis points to 48%. Both metrics outperformed our portfolio in the quarter and year to date, which is just fantastic. Demand growth has been approximately 3% in 2026 and that number accelerated in the third quarter to almost 5% as they enter the seasonably slower months. We look ahead to another good year next year and the full ramp up events of events at the new and recently actually huge, as we saw yesterday, expanded athletic complexes in Paducah.

Pivoting to our overall results, it was another great quarter stacked on top of an equally strong second quarter and a very good first quarter with excellent results on the top line, margins, and flow-through to hotel EBITDA and FFO per share. Listen to these third quarter results. RevPAR up 8%, hotel EBITDA margins up 190% and EBITDA up 21% with our FFO per share up 31%. We certainly haven’t seen that for a while. Combining outstanding operating results with a very accretive acquisition and while strategically hitting a home run with our share repurchase plan are each meaningful contributors that have enabled us to easily meet our original expectations for the year. We’ve increased our original adjusted FFO per share guidance from $1.09 to $1.39 at the midpoint, a 28% increase. Third quarter RevPAR of $161 set an all-time high off the back of record July and September.

RevPAR business travel represents approximately 75% of our EBITDA and BT demand was the biggest driver of our results. All of the major airlines are seeing the same thing. As American said, corporate travel is up 28% and with that small-medium 46%. Delta reported its highest corporate sales week ever during the third quarter and corporate sales across all sectors up double digit. United said business revenue up 22% in the quarter and Southwest said third quarter included 20 of the top 50 corporate booking days in history. Obviously all this is very encouraging for the hotel industry overall, but especially for us given BT is, as I said, by far our most important segment.

Also, we are continuing to see announcement after announcement of business investment happening around the country and it is driving BT demand up and down the chain scales. We’ve seen broad strength across our portfolio as evidenced by our overall portfolio occupancy of 83% in the quarter, which marks our highest quarterly occupancy since 2019. Additionally, 13 of our 39 hotels produced double-digit RevPAR growth in the quarter. Of course for us, for years we were asked by investors and potential investors when Silicon Valley was going to come back to life and we can affirmatively say it is. RevPAR surged 23% to $174, which is the highest quarterly RevPAR since the pandemic. Excluding the intern-heavy third quarter of 2022, RevPAR has been up double digits five of the last six years and projected 2026 RevPAR growth should be our best growth since the pandemic. This is obviously a great statistic.

Third quarter occupancy reached 85% for the hotels, which represents the fourth highest quarterly occupancy in the last decade. As we previously spoken, once occupancy starts getting above 80%, it allows us to start pushing ADR more aggressively. Depending on how the fourth quarter finishes, we may very well achieve a 10% ADR increase this year, which would be a great way to head into 2027 for those hotels. We are experiencing strong corporate demand in the Valley.

All four hotels have seen top account production increase ranging from 22% to 29% at our Mountain View and both Sunnyvale hotels and over 50% increases at our San Mateo hotel. If you look at our growth in the second and third quarters, our hotels actually did better outside of the World Cup games. Our top accounts are filled with names everyone knows, whether it be Applied Materials, Palo Alto Networks, Nvidia, Alphabet, Amazon, Microsoft, SAP, Sony, Roblox, Samsung, Tesla, just to name a few.

By the way, Silicon Valley strength continued in October with RevPAR growth of approximately 18% of occupancy of almost 80%. As we’ve reiterated, a key component of the Chatham growth story moving forward is the accelerating recovery of these four hotels that will drive outperformance. Silicon Valley added 250 basis points to our third quarter RevPAR growth. Outside of the Valley, among our largest markets, Dallas and Washington, D.C. were the best performers with RevPAR growth of 20% and 15%, respectively.

As everyone knows, the Dallas Convention Center has been substantially closed for renovation and expansion since 2024, but it still hosts some smaller events and our performance benefited from some World Cup demand related to the entire media center for the first part of July. And a great job by our team selling the hotel with RevPAR up 34% in the quarter that was the media center for the World Cup. Of course, performance at our three D.C. hotels thankfully benefited from no shutdowns or threats of shutdowns.

Encouragingly, and this applies to all our hotels, government per diem rates for the next year 2026–27 period are up on an average over 5% across our portfolio, so that’s some good news. Looking forward, year to date, RevPAR at our two Sunnyvale hotels is approximately 18% below 2019 levels. Still, Mountain View is under renovation this year, so it’s not comparable, but it’s trending around the same level to 2019. San Mateo is up approximately 8% versus 2019. Returning RevPAR to 2019 levels at the two big Sunnyvale hotels would add another $4 to $5 million of FFO, or an additional 8 to 10 cents per share. Before handing the call over to Dennis, I want to emphasize that we are thrilled with our results so far this year.

Like I said earlier, it is a combination of great results along with great strategic decisions over the past few years, and thankfully shareholders have noticed and our returns lead all lodging REITs in 2026. Having said that, we strongly believe in our ability to further increase shareholder value via multiple levers. As a reminder, the overall lack of new supply in the industry favors existing owners, and combine that with the robust demand growth we are seeing across the board in many of our markets certainly bodes well for 2027 and beyond, and our portfolio will continue to benefit from the continued resurgence of the business traveler.

And of course no other lodging company has the internal growth upside that Chatham does given our exposure to Silicon Valley and Bellevue. Now add in the fact that we generate the highest operating margins in the industry. That means our FFO growth potential is very strong and that’s before investing money on any external acquisitions. Finally, we are generating strong cash flow after CapEx and dividends that we can use to accrete FFO, whether that’s by paying down debt, making acquisitions, repurchasing shares, or increasing our common dividend. Our balance sheet is in great shape after our successful recycling of assets and paying down debt over the last couple of years. So based on our guidance we estimate that we will generate $25 million of free cash flow. And let’s not forget our Portland Home2 Suites will deliver accretive earnings upon its opening in 2028.

We look forward to executing on these many levers that we do have and delivering for our shareholders going forward. With that, I’d like to turn it over to Dennis.

Dennis M Craven (EVP & Chief Operating Officer)

Thanks, Jeff. We continue to experience broad demand growth across our portfolio with approximately 85% of our hotels generating RevPAR growth and 80% of our hotels pushing ADRs higher and, as Jeff stated, one third of our hotels experiencing double-digit RevPAR gains. These trends are even better than the strong trends we saw in both of the first two quarters. Our top five RevPAR hotels in the quarter were led by our Hampton Portland with RevPAR of $350, essentially flat to last year, an incredible $120 higher than our second-highest hotel, the Hilton Garden Inn Portsmouth with RevPAR of $230.

Rounding out our top five were the Hilton Garden Inn Marina del Rey with RevPAR of $225, our Residence Inn in White Plains, New York with RevPAR of $206, and then the Residence Inn Mountain View producing great results following its renovation. We had little exposure to the World Cup in the third quarter, benefiting only slightly from one game at Levi’s Stadium and one at SoFi Stadium, as well as the media center in Dallas that Jeff spoke about. Our seven predominant leisure hotels generated RevPAR growth of approximately 1% on the quarter. Our leisure hotels were led by our Hyatt Place Pittsburgh which saw RevPAR grow 17%. On the downside, our Savannah SpringHill Suites cooled off slightly, down 4% in the quarter with that market softening after being really on fire for the last several years.

Our Hilton Garden Inn Portsmouth saw RevPAR decline 6% in the quarter due to leisure demand softness from Canada and a new Homewood Suites that opened earlier this year just down the block. Our five convention hotels saw RevPAR expand 15% in the quarter. Dallas and Austin had rebound quarters with RevPAR up 34% and 20% respectively, gaining business even though their respective convention centers are essentially closed. Austin also benefited from increased business travel from key corporate accounts in the Domain where both of our hotels are located. Another nice development occurred in San Antonio with our hotel up there 21% in the quarter.

Outside of our larger markets, we had another great quarter at our two hotels outside of Charleston in Summerville where RevPAR grew 10%, and our Home2 Phoenix Downtown experienced RevPAR gains of 13% in the quarter. Switching to our bottom-line successes, we had another great quarter managing expenses and maximizing employee productivity, as well as increasing our out-of-room profits which ultimately are driving our margins higher. We continue to focus on increasing other operating department revenue and profits, and we were able to increase those profits by about $700,000, or 23% in the quarter, from $3.2 to $3.9 million.

Within our other operating departments, we increased parking profit by $260,000, or 12%, and doubled our cancellation fees to almost $500,000 due to increased focus on collecting and also benefiting from the power of implementations which automated cancellation fee collections. We even increased our pantry profits by 10% in the quarter. Just a fantastic job by our teams focusing on these profit enhancement initiatives. Our employee productivity remains excellent. We maintained a steady level of employment versus the end of the second quarter, actually down four employees, and that’s a nice achievement even though portfolio occupancy rose to 83% from 81% from the second quarter to the third quarter. For the quarter, our labor and benefits cost per occupied room increased 2.9%, thus allowing us to meaningfully expand our operating margins outside of labor and benefits.

We were able to drive margins higher by reducing our repairs and maintenance, our utilities, our property taxes, and our property insurance line items all by approximately 30 basis points each. Again, should be some good news coming on the property insurance renewal upcoming for 2027 with expectations of a further reduction of 8% to 10% expected at this point. For us it’s not big dollars, and it’s probably only a decrease of around a few hundred thousand dollars, but nonetheless great to see and will help offset what seems to be never-ending increases in health care costs and employee-related liability insurance for the quarter.

Our top five producers of GOP were led by the little Hampton Inn Portland with GOP of $2.4 million. Just another fantastic quarter, followed by our Residence Inn San Diego and then three of our five tech hotels: our Residence Inn Bellevue and our two Sunnyvale hotels rounding out the top five. And when you include Mountain View and San Mateo, all four Silicon Valley hotels were in the top 11 of our 39 hotels. If you look at Hotel EBITDA, really the only difference in the top five is that our Embassy Springfield bested our first Sunnyvale, our Sunnyvale number one hotel, to reach into the top five.

Looking further at the Silicon Valley hotels, third quarter GOP was up 39% and Hotel EBITDA grew 51% year over year on a 23% increase in RevPAR. Our third quarter GOP margins were approximately 50%, up 500 basis points, and our Hotel EBITDA margins of almost 43% rose 740 basis points. We did receive about $100,000 of property tax refunds in the quarter on one of our hotels in Sunnyvale which added about 80 bps to that margin, but still, excluding that, 660 basis points of Hotel EBITDA margin improvement.

We discussed last quarter that we would most likely look to opportunistically sell an asset or two this year. We do have one hotel currently under contract for approximately $11.5 million that would close before the end of the year if it is completed. On the capex front, we spent approximately $3 million in the quarter and $17 million year to date with our full budget for the year being about $27 million. And we do have three hotels scheduled for renovation later this year which are our Gaslamp Residence Inn, our Farmington Homewood Suites, and our Hyatt Place Pittsburgh will commence its renovation most likely now in early January given the fact that the Steelers at least look to be making the playoffs at the moment.

So I’ll turn it over to Jeremy.

Bruce Jeremy Wegner (Chief Financial Officer)

Thanks, Dennis. Good morning, everyone. Our Q3 2026 Hotel EBITDA was $35 million, adjusted EBITDA was $31.9 million, and adjusted FFO was $0.46 per share. We were able to generate a GOP margin of 44.7% and Hotel EBITDA margin of 38.7% in Q3. GOP margins for the quarter were up 110 basis points from last year, and Hotel EBITDA margins increased 190 basis points. The Midwest portfolio that we acquired in March generated RevPAR growth of 9.8% and $3 million of Hotel EBITDA in Q3.

Chatham’s overall RevPAR growth of 8.3% in Q3 exceeded our expectations going into the quarter, and the strong top-line performance has continued into October where Chatham’s RevPAR increased 7.9%. While Chatham’s top-line performance was strong across many markets, performance was strongest in Silicon Valley where RevPAR increased 23% in the quarter. Costs continue to remain manageable with rooms labor up just under 3% on a cost per occupied room basis in Q3.

Chatham’s balance sheet remains in excellent condition and provides significant flexibility to fund opportunistic growth through accretive acquisitions and the development of the Home2 Portland, ME. As of Q3, Chatham’s leverage ratio as defined in its credit facility was only 29.3%, and the company had $235 million of availability under its revolving credit facility. Continuing strong EBITDA growth and meaningful free cash flow after dividends are expected to further enhance our financial flexibility.

In 2026, we expect to generate approximately $25 million of free cash flow after dividends and maintenance and renovation capital expenditures. With this level of free cash flow, Chatham will be able to fund the development of the Home2 Portland with virtually no incremental borrowing. Turning to our full-year guidance for 2026, we expect RevPAR growth of 4% to 4.5%, adjusted EBITDA of $104.2 to $105.3 million, and adjusted FFO per share of $1.38 to $1.40 for the full year. We generally expect that Chatham’s Q4 RevPAR growth will be approximately 3.5% to 4%. This concludes my portion of the call. Operator, please open the line for questions.

Gil (Operator)

At this time, I would like to remind everyone that if you have a question, press star followed by the number one on your telephone keypad. Okay, so your first question comes from the line of Gaurav Mehta with Alliance Global Partners. Your line is open.

Gaurav Mehta (Analyst)

Thank you. Good morning. I wanted to ask you on your Silicon Valley hotels, maybe on the occupancy side, what’s the upside left on the occupancy side? Is there more like a natural cap on the occupancy? And then how does the occupancy for your Silicon Valley hotels compare to the market occupancy in Silicon Valley?

Dennis M Craven (EVP & Chief Operating Officer)

Hey, Gaurav, this is Dennis. I mean, listen, I think if you look at upside—and I don’t have the full year quantified for you—but if you go back to pre-pandemic years, the Silicon Valley hotels ran upwards of 80s and into the 90s in terms of occupancy, especially in the second and third quarters. And then seasonally, those hotels slow down from kind of mid-November to mid-February. So there’s still a lot of upside in total occupancy levels. I think when you looked at our third quarter occupancy of almost, I guess it was 85%, there’s still room to run there.

Gaurav Mehta (Analyst)

Okay, second question. On the expense side, it seems like your expense growth in the quarter was 2.5%. Can you maybe provide some color on how you managed to keep the expenses lower in the quarter?

Dennis M Craven (EVP & Chief Operating Officer)

Yeah, I mean, Gaurav, this is something really we’ve—and I’ll give kudos to Island Hospitality. We don’t like, you know, giving them too many compliments here and there sometimes. But really, over the last few years, they’ve invested a lot of resources and people especially that are really looking at trends and patterns every day of the week and staying in constant communication with the GMs and the regional VPs, just ensuring that they are adjusting their expense patterns, their buying, their labor—most importantly in terms of hours—on a very frequent basis.

It’s just those controls that allow us to really keep a handle on, especially, employee productivity.

Gaurav Mehta (Analyst)

All right, thank you. That’s all I had.

Dennis M Craven (EVP & Chief Operating Officer)

Thank you, Gaurav.

Gil (Operator)

Your next question comes from the line of Tyler Batory with Oppenheimer. Your line is open.

Tyler Batory (Analyst)

Thanks. Good morning. Congrats on the really strong results here. The performance has been tremendous, so really, really well done. I don’t want to lose the forest through the trees with this first question, but I am curious a little bit more just what you’re seeing the rest of Q4, just in terms of trying to bridge the RevPAR performance so far this year—the RevPAR performance through October in particular—and then November, December, and how those are shaping up.

I know the holiday kind of complicates things and it’s seasonally slow, but I just wanted to be clear in terms of what you’re seeing to end the year.

Dennis M Craven (EVP & Chief Operating Officer)

Yeah, I mean, I think, Tyler, we’re similar to what we’ve done each of the first three quarters. I think November and December for us, generally speaking, is kind of lower single-digit RevPAR growth implied. We’d like to think that we’re going to beat that, and so we’re a little bit conservative on that front. We do have, obviously, one of our bigger hotels, the Residence Inn San Diego Gaslamp— has started its renovation. Thankfully it’s kind of in a year where the convention calendar is a little bit down, so timing is a little helpful to us. But I think in general we’re going to be a little conservative here for November, December. One thing we do know, even though it’s always a comp year over year, is that obviously the four Silicon Valley hotels, which have been just fantastic, people do start to check out there as you get into the Thanksgiving holidays.

And a lot of those people just really don’t come back until after the first of the year and really into February, late January and early February. So we’re just going to be a little bit conservative here and hopefully we outperform it.

Tyler Batory (Analyst)

Okay, okay, that’s what I figured, but just wanted to check. And then a multi-part question. Thinking about 2027, I know visibility still got a way to go till we get to 2027, but I imagine you’re doing budgets and planning for next year in terms of the industry and the lodging industry overall. I mean, again, the performance this year has been exceptional, and I just wonder if that has legs into next year. Do we start to run into challenging times and maybe things start to slow?

So if you could talk about just your industry perspective, that would be helpful, and specific to Chatham. Just frame for us some of the building blocks, renovations, possible disruption, possible outperformance next year. Really just trying to get a baseline of generally how you’re thinking about the industry and then, in light of that outlook, how you’re positioned to potentially outperform that industry perspective.

Jeffrey Fisher (President and CEO)

Well, that’s a lot of questions. This is Jeff, not sure we can remember all that, but we’ll try. Okay, but, you know, relative to 2027, look, I will tell you, because we try to tell it like it is, that some of the outperformance this year, obviously, in the industry has to be attributed to some of the real crappy results the prior year and some of those external factors, whether they were, you know, a couple of government shutdowns and, you know, some of the other things that occurred overall in the macro geopolitical scene.

So you do have a scenario on that front that doesn’t repeat itself in 2027. But that being said, I think the underlying strength that everybody is seeing in the business travel segment, which is where we are, as I’ve said during the prepared comments and otherwise, when you look at the composition of our portfolio, really bodes well for us for next year. And look, you know, they can vote to shut down, you know, as many data centers as they want to shut down in the future, but I still believe that Silicon Valley has plenty of legs left in it for the work that is going on and for the overall expansion, you know, in that segment.

So I think that with one third of the portfolio, or hopefully getting back to that number for our total EBITDA, would be very accretive, as we indicated, around $0.10 or more, you know, in FFO on top of where we are. And I think I could turn it back over to Dennis to talk about any specific drivers per se going forward.

Dennis M Craven (EVP & Chief Operating Officer)

Yeah, Tyler, I mean, listen, I think—I don’t know if you happened to catch—but Chris Maceda was on CNBC this morning. You know, he spoke—one of his statistics was talking about nonresidential fixed investment, NRFI, not exactly no-runs, first-inning gambling bets, but basically saying that it’s at its strongest point in decades. And I think, you know, one of the things we’ve talked about here for, you know, a good year and a half or so is the fact that just with all this capital investment, whether that was from the prior administration with the Infrastructure Act and now what’s happened in the last two years, there is just a lot of money being spent on manufacturing and other types of things as well around the country.

And as we sit here in Paducah, Kentucky, after going to Effingham yesterday and Joplin, and all six of our hotels basically had the same thing, which is Monday to Thursday they’re 100% sold out at this, you know, kind of, you know, at this stage of that thing. So it’s just there’s a lot of activity happening in a lot of these investment areas that, you know, are very encouraging, especially for Chatham and given its reliance on, one, you know, obviously our tech hub in Silicon Valley, but also just in general our exposure around kind of the Midwest and the Southeast, which is where a lot of this capital investment is happening.

So, you know, I think in general that is really where it is, is that’s going to be very good for our hotels.

Jeffrey Fisher (President and CEO)

And look, with 66% of the hotels being extended-stay hotels, let’s not forget the benefit that brings, because you could see that kind of business that Dennis is talking about in a lot of the locations really is more than one-night, two-nights business. So the length of stay, you know, I think is important—those statistics I think over, as you move through the next couple of years. And I noticed that extended-stay hotels again outpaced non-extended-stay hotels in a recent report by Highland very substantially.

And that gap should continue to grow, in my opinion. Bodes well for all our, you know, Homewoods, Residence Inns, our Home2s, those kind of hotels.

Dennis M Craven (EVP & Chief Operating Officer)

And lastly, Tyler, you did mention kind of renovation schedules and everything like that as you move into 2027. And in the years after that, we’re pretty well lined up here to where it’s essentially going to be kind of around five hotels per year that will be getting renovated over the next several years. We have the big San Diego Gaslamp hotel starting—well, now it’s commenced that renovation. If you look forward a year, fourth quarter of next year, kind of from the November to February timeframe, we’ll be renovating one of our Sunnyvale hotels.

The following year after that, we’ll be renovating the second of the Sunnyvale hotels, and after that the San Mateo hotel. So, you know, those are pretty well lined up, at least from a comp perspective, Tyler, that, you know, it’s not—we’re not going to be taking multiple of our biggest hotels out at the same time. So it really should have a normalized effect when you look at our comp RevPAR.

Jeffrey Fisher (President and CEO)

But just to footnote that, I think you get a lot of ADR growth out of those renovations, particularly in Silicon Valley.

Dennis M Craven (EVP & Chief Operating Officer)

Yeah, and we haven’t spent a lot of time talking about it, but we will in the near future, which is a lot of the improvements we’re going to be making to all four of those hotels outside of the guest rooms. And that’s really exciting in terms of adding some stuff to the hotels and really nice fitness facilities and other facilities and experiences and really enhancing the outdoor spaces and public space of those gatehouses, really, to bring those up to, you know, experiences that today’s traveler that’s really going to like.

So we’re excited about that.

Tyler Batory (Analyst)

Okay. A lot of good detail there, so appreciate it. And I think you hit on all my questions, so I’ll leave it there. Thank you.

Jeffrey Fisher (President and CEO)

All right. Okay. We’re not getting CNL yet anyway. It’s good news.

Gil (Operator)

All right. So at this time, I would just like to announce one final reminder. If you would like to ask a question, please press star followed by the number one on the telephone keypad. Ladies and gentlemen, since there are no further questions, I’d like to hand the call over back to you for the closing remarks. Please go ahead.

Jeffrey Fisher (President and CEO)

Well, thank you all for joining today, for those of you that are there or listen later on, and we certainly look forward to maintaining our momentum, our focus, and I think the results will speak for themselves going forward. Thank you.

Gil (Operator)

Thank you, everyone. And that concludes today’s call. You may now all disconnect. Have a nice day ahead. Thank you.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.