Q3 2025 Triumph Financial Inc Earnings Call

Karen's letter last evening outlined a quarter of continued execution on our revenue growth goals as well as the initial results of our push towards lean operations. There was a bit of noise. This quarter related to our restructuring efforts and we highlighted those nonrecurring portions of that in our commentary there was a lot of positive momentum in the quarter through a very tough market as evidenced by the continued revenue growth of our payments.

This we plan to continue executing on our ability to grow revenue expand operating margins and improve shareholder returns in whatever market we face.

That quarterly letter published last evening, and our quarterly results will form the basis of our call. Today. However, before we get started I would like to remind you that this conversation may include forward looking statements. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ the company undertakes no obligation to publicly revise any forward looking statements.

For details please refer to the Safe Harbor statement in our shareholder letter published last evening. All comments made during today's call are subject to that safe Harbor statement with that I'd like to turn the call over to Aaron for our kickoff and to welcome you to our Q&A Erin.

Thank you Luke good morning, and welcome.

This quarter's letter I think is reflective of the evolution in our business that I've been talking about for the last few quarters. Our focus on revenue growth continues to be sure, but also demonstrating our commitment to operating margin expansion.

Speaker #1: And thanks for joining us this morning to discuss our third quarter 2025 results. With that, let's get to business. Aaron's letter last evening outlined a quarter of continued execution on our revenue growth goals, as well as the initial results of our push towards lean operations.

Luke Wyse: Thank you for joining us this morning to discuss our third quarter 2025 results. With that, let's get to business. Aaron's letter last evening outlined a quarter of continued execution on our revenue growth goals, as well as the initial results of our push towards lean operations. There was a bit of noise this quarter related to our restructuring efforts, and we highlighted those non-recurring portions of that in our commentary. There was a lot of positive momentum in the quarter through a very tough market, as evidenced by the continued revenue growth of our payments business. We plan to continue executing on our ability to grow revenue, expand operating margins, and improve shareholder returns in whatever market we face. That quarterly letter published last evening and our quarterly results will form the basis of our call today.

I believe we made meaningful progress this quarter towards that end.

With our restructuring efforts, which will reduce our expense run rate and also in our revenue growth efforts as they continue to gain traction.

Speaker #1: There was a bit of noise this quarter related to our restructuring efforts, and we highlighted those non-recurring portions of that in our commentary. There was a lot of positive momentum in the quarter through a very tough market, as evidenced by the continued revenue growth of our payments business.

Now one thing I'm happy to talk about on this call is the freight market, but I will not talk about it as an excuse it is what it is we must play the cards. We're dealt not explain how things would be better for us if our cards were better.

Speaker #1: We plan to continue executing on our ability to grow revenue, expand operating margins, and improve shareholder returns in whatever market we face. That quarterly letter, published last evening, and our quarterly results will form the basis of our call today.

Irrespective of what the freight market does we expect revenue to go up and expenses to be flat at this time next year.

We can't always control the offense, we can play, but we can certainly control our defense.

Speaker #1: However, before we get started, I would like to remind you that this conversation may include forward-looking statements. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ.

Luke Wyse: However, before we get started, I would like to remind you that this conversation may include forward-looking statements. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The company undertakes no obligation to publicly revise any forward-looking statement. For details, please refer to the Safe Harbor statement and our shareholder letter published last evening. All comments made during today's call are subject to that Safe Harbor statement. With that, I'd like to turn the call over to Aaron for a kickoff and to welcome you to our Q&A. Aaron?

Now through the Tech investments, we've made we have created a unique value proposition to the transportation market.

Speaker #1: The company undertakes no obligation to publicly revise any forward-looking statement. For details, please refer to the Safe Harbor statement and our shareholder letter published last evening.

We've also been able to realize efficiency in operations that when you couple them with the announced restructuring allowed us to cut 5% of our expense base with the majority of those savings commencing in the fourth quarter.

Speaker #1: All comments made during today's call are subject to that Safe Harbor statement. With that, I'd like to turn the call over to Aaron for a kickoff and to welcome you to our Q&A.

Speaker #1: Aaron?

This restructuring does more than that it also organizes our go to market strategy around our customer verticals brokers carriers shippers and factors. This realignment allows us to better serve our customers, while creating operational leverage that supports margin expansion.

Speaker #2: Thank you, Luke. Good morning and welcome. This quarter's letter I think is reflective of the evolution in our business that I've been talking about for the last few quarters.

Aaron P. Graft: Thank you, Luke. Good morning and welcome. This quarter's letter, I think, is reflective of the evolution in our business that I've been talking about for the last few quarters. A focus on revenue growth continues to be sure, but also demonstrating a commitment to operating margin expansion. I believe we made meaningful progress this quarter toward that end with our restructuring efforts, which will reduce our expense run rate, and also in our revenue growth efforts as they continue to gain traction. Now, one thing I'm happy to talk about on this call is the freight market, but I will not talk about it as an excuse. It is what it is. We must play the cards we're dealt, not explain how things would be better for us if our cards were better.

Speaker #2: A focus on revenue growth continues to be sure, but also demonstrating a commitment to operating margin expansion. I believe we made meaningful progress this quarter toward that end, with our restructuring efforts which will reduce our expense run rate and also in our revenue growth efforts as they continue to gain traction.

We have called for 20% annual growth in transportation revenue and we intend to deliver.

We also intend to drive margin expansion by becoming more efficient while growing revenue.

Finally, I want to address <unk>.

Speaker #2: Now, one thing I'm happy to talk about on this call is the freight market, but I will not talk about it as an excuse.

We have included in our quarterly disclosures and update on our position in that credit that is based upon our review of the most up to date information available to us at.

Speaker #2: It is what it is. We must play the cards we're dealt, not explain how things would be better for us if our cards were better.

At present, we believe we remain adequately secured in that credit.

Speaker #2: Irrespective of what the freight market does, we expect revenue to go up and expenses to be flat at this time next year. We can't always control the offense we can play, but we can certainly control our defense.

Aaron P. Graft: Irrespective of what the freight market does, we expect revenue to go up and expenses to be flat at this time next year. We can't always control the offense we can play, but we can certainly control our defense. Now, through the tech investments we've made, we have created a unique value proposition to the transportation market. We've also been able to realize efficiency in operations that, when you couple them with the announced restructuring, allowed us to cut 5% of our expense base with the majority of those savings commencing in the fourth quarter. This restructuring does more than that. It also organizes our go-to-market strategy around our customer verticals: brokers, carriers, shippers, and factories. This realignment allows us to better serve our customers while creating operational leverage that supports margin expansion. We have called for 20% annual growth in transportation revenue, and we intend to deliver.

We remind investors that this is a highly fluid and evolving situation subject to ongoing legal proceedings as such we're unable to provide further detail or comment at this time beyond the information we provided to you in the letter.

Speaker #2: Now, through the tech investments we've made, we have created a unique value proposition to the transportation market. We've also been able to realize efficiency in operations that, when coupled with the announced restructuring, allowed us to cut 5% of our expense base, with the majority of those savings commencing in the fourth quarter.

We will of course have further updates for investors in future periods as this matter progresses.

With that I'll welcome everyone to the call and we'll open it up for questions.

We will now move to a question and answer session. If he is joined by the webinar. Please use the raise hand icon, which can be found at the bottom of your weather now application.

Speaker #2: This restructuring does more than that. It also organizes our go-to-market strategy around our customer verticals: brokers, carriers, shippers, and factors. This realignment allows us to better serve our customers while creating operational leverage that supports margin expansion.

When you accrued on Pes, Amit your line and ask a question we will now close the maintenance to assemble the key.

The first question is from Matthew O'neill. Please mute yourself, if they can make a question.

Speaker #2: We have called for 20% annual growth in transportation revenue and we intend to deliver. We also intend to drive margin expansion by becoming more efficient, while growing revenue.

Hey, Thanks, taking my question guys good morning.

Good morning, Matt.

I wanted to start on the intelligence segment.

Aaron P. Graft: We also intend to drive margin expansion by becoming more efficient while growing revenue. Finally, I want to address Tricolor. We have included in our quarterly disclosures an update on our position in that credit that is based upon our review of the most up-to-date information available to us. At present, we believe we remain adequately secured in that credit. We remind investors that this is a highly fluid and evolving situation subject to ongoing legal proceedings. As such, we're unable to provide further detail or comment at this time beyond the information we provided to you in the letter. We will, of course, have further updates for investors in future periods as this matter progresses. With that, I'll welcome everyone to the call, and we'll open it up for questions.

When do you expect to take the fully integrated product to market do just trying to get some thoughts on what to expect from intelligence segment in 2026. Thanks.

Speaker #2: Finally, I want to address Tree Calore. We have included in our quarterly disclosures an update on our position in that credit that is based upon our review of the most up-to-date information available to us.

Thanks for the question I appreciate it a fully integrated part that product is actually in market right now as we speak so the Cleveland prior to try and family 460 days.

Speaker #2: At present, we believe we remain adequately secured in that credit. We remind investors that this is a highly fluid and evolving situation subject to ongoing legal proceedings.

Speaker #2: As such, we're unable to provide further detail or comment at this time beyond the information we provided to you in the letter. We will, of course, have further updates for investors in future periods as this matter progresses.

It seems quite a lot of things from integrating the legacy Tri of team the green screens in the ASI team. We've relaunched the brand we've revamped our go to market strategy and as part of your question. Most importantly, we've integrated the products, which in my 30 Years' experience in this industry, it's unprecedented theres theres plenty of eggs.

Speaker #2: With that, I'll welcome everyone to the call, and we'll open it up for questions.

Samples as companies that have grown through acquisition and still have an integrated the business or the brands in years.

Speaker #3: We will now move to our question and answer session. If you have joined, via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application.

Operator: We will now move to our question and answer session. If you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application. When you are called on, please unmute your line and ask your question. We will now pause a moment to assemble the queue. The first question is from Matthew Olney. Please unmute yourself and begin with your question.

So I'm very proud of that achievement and pleased that the company gave us the opportunity to do that.

Speaker #3: When you are called on, please unmute your line and ask your question. We will now pause a moment to assemble the queue. The first question is from Matthew Olney.

Now we have that integrated product tenants my job and the team's job to go out and win the market.

Okay I appreciate the detail there and then if I move over to the factoring segment.

Speaker #3: Please unmute yourself and begin with your question.

Speaker #4: Hey, thanks for taking my question, guys. Good morning.

[Analyst 1]: Hey, thanks for taking my question, guys. Good morning.

It looks like the the revenue growth has been in that mid single digit to high single digit over the last year and I know you're investing a lot in that business from battery as a service the increased automation any more color on what that revenue growth could look like.

Speaker #5: Morning, Matt.

Aaron P. Graft: Morning, Matt.

Speaker #4: I wanted to start on the intelligence segment. You know, when do you expect to take the fully integrated product to market? Just trying to get some thoughts on what to expect from intelligence segment in 2026.

[Analyst 1]: I wanted to start on the intelligence segment. When do you expect to take the fully integrated product to market? Just trying to get some thoughts on what to expect from the intelligence segment in 2026. Thanks.

Next year within factoring in obviously the macro is the unknown there. So just assume no change in the macro.

Speaker #4: Thanks.

Speaker #6: Thanks for the question. I appreciate it. The fully integrated product is actually in the market right now. As we speak, we've been part of the Triumph family for 160 days.

Aaron P. Graft: Thanks for the question. I appreciate it. The fully integrated product is actually in market right now as we speak. We've been part of the Triumph Financial family for 160 days. We've achieved quite a lot of things from integrating the legacy Triumph team, the Greenscreens AI, Inc., and the Isometric Technologies team. We've relaunched the brand and revamped our go-to-market strategy. As per your question, most importantly, we've integrated the products, which in my 30 years' experience in this industry is unprecedented. There are plenty of examples of companies that have grown through acquisition and still haven't integrated the business or the brands in years. I'm very proud of that achievement. I'm pleased that the company gave us the opportunity to do that. Now we have that integrated product, and it's my job and the team's job to go out and win the market.

Yes, Matt Thanks for that question our target for growth is 20% and we're looking in a variety of different ways. I think we're going to market right now with the most robust playbook that we ever a pad and I think it creates opportunities for us to drive revenue not only with our core factoring product, but with a bundled products that we have.

Speaker #6: We've achieved quite a lot of things from integrating the legacy Triumph team, the green screens, and the ISO team. We've relaunched the brand, we've revamped our go-to-market strategy, and as per your question, most importantly, we've integrated the products, which in my 30 years' experience in this industry is unprecedented.

I think the opportunity not only in the large segment, because we still see opportunities there.

Through the fallen Angels people who've come out of the banking environment into the factoring space as well as continued consistent growth in our small carrier segment.

Speaker #6: There are plenty of examples of companies that have grown through acquisition and still haven't integrated the business or the brands in years, right? So I'm very proud of that achievement.

Thank you guys.

Speaker #6: I'm pleased that the company gave us the opportunity to do that. And now we have that integrated product and it's my job and the team's job to go out and win the market.

Thanks, Matt.

The next question is from pins, which sat at K B W. E T them yourself and they can make a question.

Hey, good morning.

Speaker #4: Okay, appreciate the details there. And then if I move over to the factoring segment, it looks like the revenue growth has been in that mid-single-digit to high-single-digit over the last year.

[Analyst 1]: Okay. I appreciate the details there. If I move over to the factoring segment, it looks like the revenue growth has been in that mid-single digit to high single digit over the last year. I know you're investing a lot in that business from, you know, Factoring-as-a-Service, the increased automation. Any more color on what that revenue growth could look like next year within factoring? Obviously, the macro is the unknown there. Just assume no change in the macro.

Good morning, Tim.

Hey, Good morning can you hear me.

We can hear you fine.

Speaker #4: And I know you're investing a lot in that business from, you know, factoring as a service, the increased automation. Any more color on what that revenue growth could look like next year within factoring? And obviously, the macro is the unknown there.

Sorry about that.

CH Robinson jumped on board keep a quarter or two ago. Our soldiers joined pretty recently can you help give us an idea of how much of their expected total volume is on boarded are they fully on boarded at this point was it all in the Q3 run rate or what should we expect in terms of that ramp.

Speaker #4: So just assume no change in the macro.

Speaker #5: Yeah, Matt, thanks for that question. Our target for growth is 20%, and we're looking in a variety of different ways. I mean, we're going to market right now with the most robust playbook that we have ever had.

Brad Voss: Yeah, Matt. Thanks for that question. Our target for growth is 20%. We're looking in a variety of different ways. I mean, we're going to market right now with the most robust playbook that we ever have had. I think it creates opportunities for us to drive revenue, not only with our core factoring product, but with the bundled products that we have. I think the opportunity not only in the large segment, because we still see opportunities there through the fallen angels, people that have come out of the banking environment into the factoring space, as well as continued consistent growth in our small carrier segment.

<unk>.

Yes in terms of their payments business all of their payments volume is on boarded at this point.

Okay that was all about.

Tim is just that the.

Speaker #5: And I think it creates opportunities for us to drive revenue, not only with our core factoring product, but with a bundle of products that we have.

The payments business is onboard and I think the revenue growth opportunity in those partnerships because it's not just a vendor relationship. There I mean, certainly we're providing a vendor service and managing their payments, but in those instances, we're talking about a partnership the revenue from those is just beginning that is not.

Speaker #5: So I think the opportunity not only in the large segment, because we still see opportunities there, through the fallen angels, people have come out of the banking environment, into the factoring space, as well as continued consistent growth in our small carrier segment.

Fully in the run rate.

Speaker #4: Thank you, guys.

[Analyst 1]: Thank you, guys.

Speaker #5: Thanks, Matt.

Got you, okay, Okay, and where they fully in the run rate for Q3 in terms of Tpa volume.

Aaron P. Graft: Thanks, Matt.

Speaker #3: The The next question is from Tim Switzer at KBW. Please unmute yourself and begin with your question.

Operator: The next question is from Tim Switzer at KBW. Please unmute yourself and begin with your question.

While the Tpa volume was in.

But we have not.

Speaker #7: Hey, good morning.

[Analyst 2]: Hey, good morning.

Charge them.

Speaker #5: Morning, Tim.

Aaron P. Graft: Morning, Tim.

Fully for the payment services, yet I think that's part of the regime. It's volume the payments volume is on ramping up the revenue associated with the payments volume.

Speaker #7: Hey, good morning. Can you hear me?

[Analyst 2]: Hey, good morning. Can you hear me?

Okay and is the contract organized in a way that eventually they will be paying 100% free every invoice.

Speaker #5: We can hear you fine.

Aaron P. Graft: We can hear you fine.

Speaker #7: Hey, sorry about that. So, David Robinson jumped on board TPA a quarter or two ago. Our coach has joined pretty recently. Can you help give us an idea of how much of their expected total volume is onboarded?

[Analyst 2]: Hey, sorry about that.

Aaron P. Graft: No problem.

[Analyst 2]: C.H. Robinson jumped on board TriumphPay a quarter or two ago. RXO just joined pretty recently. Can you help give us an idea of how much of their expected total volume is onboarded? Are they fully onboarded at this point? Was it all in the Q3 run rate, or what should we expect in terms of that ramp?

Yeah.

We don't ever attempt for any customer we're never going to speak about the details of their contract right. I think we told you in the letter I, even saw where you did the analysis of what we charge, an audit and payment and as with any business when you're dealing with large customers there.

Speaker #7: Are they fully onboarded at this point? Was it all in the Q3 run rate, or what should we expect in terms of that ramp?

Speaker #5: Yes, in terms of their payments business, all of their payments volume is onboarded at this point.

Brad Voss: Yes, in terms of their payments business, all of their payments volume is onboarded at this point.

There are there.

There are terms in contracts the timing difference between beginning the service and when they're paying their ultimate rates that theres going to be a lag in that but we would never comment on a specific customer's contract what I can tell you is.

Speaker #7: Okay, and was all of that.

[Analyst 2]: Was all of that.

Speaker #5: And on top of that, Tim, is just that the payments business is onboarded. I think the revenue growth opportunity in those partnerships, because it's not just a vendor relationship there.

Aaron P. Graft: On top of that, Tim, is just that the payments business is onboarded. I think the revenue growth opportunity in those partnerships, because it's not just a vendor relationship there. I mean, certainly, we're providing a vendor service and managing their payments. In those instances, we're talking about a partnership. The revenue from those is just beginning. That is not fully in the run rate.

Is.

Speaker #5: I mean, certainly we're providing a vendor service in managing their payments, but in those instances, we're talking about a partnership. The revenue from those is just beginning.

If you look at payments and we gave you the numbers in the letter of what the infill opportunity is in our existing customer base, if all of those customers.

Speaker #5: That is not fully in the run rate.

Our painful rates and I think over time, they will because the network is that valuable for them. This exercise of collaborative selling and going and showing these people what they're saving and what they are saving in fraud by outsourcing their payments to us I'm a believer in the value of our proposition and obviously the market's a believer.

Speaker #7: Got you. Okay, okay. And were they fully in the run rate for Q3 in terms of TPA volume?

[Analyst 2]: Got you. Okay. Were they fully in the run rate for Q3 in terms of TPA volume?

Speaker #5: Well, the TPA volume was in, but we have not charged them fully for the payment services yet. That's part of the...

Brad Voss: The TPA volume was in, but we have not charged them fully for the payment services yet. I think that's part of the arrangement.

Speaker #7: I think.

Speaker #5: Arrangement. Payments volume. The payments volume is on. We're ramping up the revenue associated with the payments volume.

But if you just look at that like the infill opportunity plus the revenue growth opportunity for that business on just the fee income side before we get into anything else related to.

Aaron P. Graft: The payments volume.

Brad Voss: The payments volume is on. We're ramping up the revenue associated with the payments volume.

Speaker #7: Okay, and is the contract organized in a way that eventually they will be paying 100% for every invoice?

[Analyst 2]: Is the contract organized in a way that eventually they will be paying 100% for every invoice?

Speaker #5: We don't ever temp for any customer. We're never going to speak about the details of their contract, right? I think we told you in the letter. I even saw where you did the analysis of what we charge on audit and payment.

Aaron P. Graft: We don't ever, Tim, for any customer, we're never going to speak about the details of their contract. Right? I think we told you in the letter, I even saw where you did the analysis of what we charge on audit and payment. As with any business, when you're dealing with large customers, there are terms and contracts. The timing difference between beginning the service and when they're paying their ultimate rates, there's going to be a lag in that. We would never comment on a specific customer's contract. What I can tell you is if you look at payments, and we gave you the numbers in the letter of what the infill opportunity is in our existing customer base, if all those customers are paying full rates, I think over time they will because the network is that valuable for them.

Interest income liquidity the float all of those things.

The market is seeing the value in the network. After six years of a lot of work and a lot of investment there.

They're seeing it and you know it.

Speaker #5: And as with any business, when you're dealing with large customers, there are terms and contracts. The timing difference between beginning the service and when they're paying their ultimate rates, there's going to be a lag in that, but we would never comment on a specific customer's contract.

If you were to just look at.

Payments and you were not to include the investments, we're making in loan pay the EBITDA margin in that payment segment would be almost 30% because of low pay as a startup piece of our payments business. Now if you think about that margin plus the growth rate.

Speaker #5: What I can tell you is if you look at payments, and we gave you the numbers in the letter of what the infill opportunity is in our existing customer base.

Of revenue in that business looking at last quarter and this quarter I think that's pretty exceptional it's taken us a long time to get there.

But.

We've delivered on it and we intend to continue to deliver on it.

Speaker #5: If all those customers are paying full rates, and I think over time they will, because the network is that valuable for them. This exercise of collaborative selling and going and showing these people what they're saving and what they're saving in fraud by outsourcing their payments to us, I'm a believer in the value of our proposition.

Got it thank you I'll jump back in the queue.

The next question is from <unk> Yang Keenness at Raymond James Please limit yourself and it can make a question.

Aaron P. Graft: This exercise of collaborative selling and going and showing these people what they're saving and what they're saving in fraud by outsourcing their payments to us, I'm a believer in the value of our proposition. Obviously, the market's a believer. If you just look at that, the infill opportunity plus the revenue growth opportunity for that business on just the fee income side, before we get into anything else related to interest income, liquidity, the float, all of those things, the market is seeing the value in the network. After six years of a lot of work and a lot of investment, they're seeing it. If you were to just look at payments and you were not to include the investments we're making in LoadPay, the EBITDA margin in that payment segment would be almost 30% because LoadPay is a startup piece of our payments business.

Good morning.

Speaker #5: And obviously, the market's a believer. But if you just look at that, like the infill opportunity, plus the revenue growth opportunity, for that business, on just the fee income side, before we get into anything else related to interest income, you know, liquidity, the float, all of those things, the market is seeing the value in the network after six years of a lot of work and a lot of investment.

Good morning, Joe.

So I'd like to tackle the revenue question a different way.

And three Q, you had $240 million of annualized transportation revenue and you continue to target growing franchise revenue by 20% a year.

So this implies roughly $50 million of growth in 2026 apps in our freight recovery.

I think roughly $20 million will probably come from intelligence and loan pain.

Speaker #5: They're seeing it. And, you know, if you were to just look at payments and not include the investments we're making in Load Pay, the EBITDA margin in that payment segment would be almost 30% because, you know, Load Pay is a startup piece of our payments business.

And you also called out 42 million very high margin revenue opportunity from increasing pricing or try and pay customers.

No generally speaking can you help us bridge that $50 million revenue gap, that's implied in your outlook.

Well I think you've already started along that journey. So if we just take it segment by segment I mean, Tim.

Speaker #5: Now, if you think about that margin, plus the growth rate of revenue in that business, looking at Q2 and Q3, I think that's pretty exceptional.

Aaron P. Graft: If you think about that margin plus the growth rate of revenue in that business, looking at last quarter and this quarter, I think that's pretty exceptional. It's taken us a long time to get there, but we've delivered on it, and we intend to continue to deliver on it.

Tim just spoke earlier about factoring so factoring for the quarter was roughly $40 million of revenue.

Speaker #5: It's taken us a long time to get there. But we've delivered on it and we intend to continue to deliver on it.

What's going to change over the next year to move from a single digit growth rate to a higher growth rate. The answer is not what the freight market will do the freight market is going to do what it will do but that's not.

Speaker #7: Got it. Thank you. I'll jump back in the queue.

[Analyst 2]: Got it. Thank you. I'll jump back in the queue.

That does not affect our analysis what does affect our analysis is this will be the first full year in many years where growth in factoring has been a very high priority for us Youll remember a couple of years ago. We were limiting growth that is no longer the case number two the value proposition we are offering.

Speaker #3: The next question is from Joe Yankunis at Raymond James. Please unmute yourself and begin with your question.

Operator: The next question is from Joe Yankunis at Raymond James. Please unmute yourself and begin with your question.

Speaker #8: Good Good morning.

[Analyst 3]: Good morning.

Speaker #5: Morning, Joe. So I'd like to tackle the revenue question a different way. You know, in 3Q, you had $240 million of annualized transportation revenue.

Aaron P. Graft: Morning, Joe.

[Analyst 3]: I'd like to tackle the revenue question a different way. You know, in Q3, you had $240 million of annualized transportation revenue, and you continue to target growing transportation revenue by 20% a year. This implies, you know, roughly $50 million of growth in 2026 absent a freight recovery. I think roughly $20 million will probably come from Intelligence and LoadPay. You also called out, you know, $42 million, you know, very high margin revenue opportunity from increasing pricing for TriumphPay customers. Generally speaking, can you help us bridge that $50 million revenue gap that's implied in your outlook?

To the market, it's not just about liquidity and converting receivables into cash it's about load pay and all the other things we do about instantly getting funded on weekends no one else can do that.

Speaker #5: And you continue to target growing transportation revenue by 20% a year. So this implies, you know, roughly $50 million of growth in 2026. Apps in a freight recovery.

So even with a slow growth market, even with all the headwinds my expectation is that factoring is going to grow 20% and we have a plan to go do that.

Speaker #5: And I think roughly $20 million will probably come from intelligence and load pay. And you also called out, you know, $42 million as a very high-margin revenue opportunity from increasing pricing for TriumphPay customers.

In payments you've already laid that out you can see what great leadership Todd has delivered the opportunities. Once again, we have the infill opportunity of growing revenue with customers, who we have delivered value to for many years second we have the go to market opportunity. We have a very full pipeline and you will hear us announce new.

Speaker #5: You know, generally speaking, can you help us bridge that $50 million revenue gap that's implied in your outlook? Well, I think you've already started along that journey.

Aaron P. Graft: I think you've already started along that journey. If we just take it segment by segment, Tim just spoke earlier about factoring. Factoring for the quarter was roughly $40 million of revenue. What's going to change over the next year to move from a single-digit growth rate to a higher growth rate? The answer is not what the freight market will do. The freight market's going to do what it will do, but that does not affect our analysis. What does affect our analysis is this will be the first full year in many years where growth in factoring has been a very high priority for us. You'll remember a couple of years ago, we were limiting growth. That is no longer the case. Number two, the value proposition we are offering to the market. It's not just about liquidity and converting receivables into cash.

Speaker #5: So if we just take it segment by segment, I mean, Tim, just spoke earlier about factoring. So factoring for the quarter was roughly $40 million of revenue.

Customers joining the payments network.

And.

Just those two things alone on a fee income basis.

Speaker #5: What’s going to change over the next year to move from a single-digit growth rate to a higher growth rate? The answer is not what the freight market will do.

Our payments business will grow.

Inside of payments, you've got load pay which doubled over last quarter and we've given you. The number that a linked in funded loan pay account is $750 of revenue what I would tell you is that's what it is.

Speaker #5: The freight market's going to do what it will do, but that does not affect our analysis. What does affect our analysis is that this will be the first full year in many years where growth in factoring has been a very high priority for us.

Seasoned account that's functioning primarily as a digital banking account, we have some accounts that are on an annualized basis closer to four and $5000 because they're using the debit card significantly in the interchange fees, which we've disclosed are high.

Speaker #5: You'll remember a couple of years ago, we were limiting growth. That is no longer the case. Number two, the value proposition we are offering to the market.

Speaker #5: It's not just about liquidity and converting receivables into cash. It's about load pay and all of the other things we do about instantly getting funded on weekends.

But more than that as we alluded to here using our intelligence product and the things in our value chain, we can turn load pay into more than just the digital banking account, we will turn it into a business companion and if you do that and we will be doing that in 2026 that $750 number is very light on the revenue opportunity.

Aaron P. Graft: It's about LoadPay and all the other things we do about instantly getting funded on weekends. No one else can do that. Even with a slow growth market, even with all the headwinds, my expectation is that factoring is going to grow 20%, and we have a plan to go do that. In payments, you've already laid that out. You can see what great leadership Todd has delivered. The opportunities, once again, we have the infill opportunity of growing revenue with customers who we have delivered value to for many years. Second, we have the go-to-market opportunity. We have a very full pipeline, and you will hear us announce new customers joining the payments network. Just those two things alone, on a fee income basis, our payments business will grow. Inside of payments, you've got LoadPay, which doubled over last quarter.

Speaker #5: No one else can do that. So even with a slow growth market, even with all the headwinds, my expectation is that factoring is going to grow 20%.

Speaker #5: And we have a plan to go do that. In payments, you've already laid that out. You can see what great leadership Todd has delivered the opportunities.

With that we will achieve as we continue to grow that business and finally, you've come to intelligence and Don said it perfectly we chose and maybe it wasn't it's not popular but I believe it's the right thing to do we took four months to fully integrate that acquisition, the ISO acquisition and our legacy.

Speaker #5: Once again, we have the infill opportunity of growing revenue with customers to whom we have delivered value for many years. Second, we have the go-to-market opportunity.

Speaker #5: We have a very full pipeline, and you will hear us announce new customers joining the payments network. Just those two things alone, on a fee income basis, will cause our payments business to grow.

The data we generate again, the reinforcing power of the value chain all of the data we touch in in our audit and payments business in order to give the market the most precise.

AI driven.

Speaker #5: Inside of payments, you've got Load Pay, which doubled over last quarter. And we've given you the number that a LinkedIn-funded Load Pay account is $750 of revenue.

And now lets us to help brokers run their business.

Aaron P. Graft: We've given you the number that a LinkedIn-funded LoadPay account is $750 of revenue. What I would tell you is that's what it is, a seasoned account that's functioning primarily as a digital banking account. We have some accounts that are on an annualized basis closer to $4,000 and $5,000 because they're using the debit card significantly and the interchange fees, which we've disclosed are high. More than that, as we alluded to here, using our intelligence product and the things in our value chain, we can turn LoadPay into more than just a digital banking account. We will turn it into a business companion. If you do that, and we will be doing that in 2026, that $750 number is very light on the revenue opportunity that we will achieve as we continue to grow that business. Finally, you come to intelligence. Don said it perfectly.

And now that she's equipped with that and the team is equipped with that and that we have relationships with almost every broker in the industry and I believe a very strong brand reputation of being people, who do what we say we will do.

Speaker #5: What I would tell you is that's what it is a seasoned account that's functioning primarily as a digital banking account. We have some accounts that are on an annualized basis closer to four and five thousand dollars because they're using the debit card significantly and the interchange fees, which we've disclosed are high.

Have very high expectations that that $10 million run rate is going to grow substantially in 2026.

So that's how I would put it all together for you is the value chain in all of these things reinforce one another we have invested in our brand to be people, who deliver value to our customers.

Speaker #5: But more than that, as we alluded to here, using our intelligence product and the themes in our value chain, we can turn load pay into more than just a digital banking account.

Speaker #5: We will turn it into a business companion. And if you do that—and we will be doing that in 2026—that $750 number is very light on the revenue opportunity that we will achieve as we continue to grow that business.

And we're ready to go no matter what the freight market does we're going to go take market share this year and we're going to do it at a time.

While expanding our margins.

I appreciate that I have a few more load pay questions, but I'll hop back in the queue for those one thing I wanted to touch on now.

Speaker #5: And finally, you come to intelligence. And Don said it perfectly: we chose, and maybe it wasn't, it's not popular, but I believe it's the right thing to do.

Aaron P. Graft: We chose, and maybe it wasn't, it's not popular, but I believe it's the right thing to do. We took four months to fully integrate that acquisition, the ISO acquisition, and our legacy, the data we generate. The reinforcing power of the value chain, all of the data we touch in our audit and payments business in order to give the market the most precise AI-driven analysis to help brokers run their business. Now that she's equipped with that, and the team is equipped with that, and that we have relationships with almost every broker in the industry, and I believe a very strong brand reputation of being people who do what we say we will do, I have very high expectations that that $10 million run rate is going to grow substantially in 2026.

So part of the F M CSA with proper enforcement.

Speaker #5: We took four months to fully integrate that acquisition, the ISO acquisition, and our legacy data we generate. Again, the reinforcing power of the value chain, all of the data we touch in our audit and payments business, in order to give the market the most precise AI-driven analysis to help brokers run their business.

Roughly 5% of drivers will exit the market over call. It the next year and a half.

In 2018, 5% of the drivers exited the market due to an electronic logging device mandate and spot rates skyrocket.

And now we're in a different type of market and the capacity, leaving the system through immigration reform won't be as sun, but all else equal how do you think immigration reform could impact average invoice prices.

Speaker #5: And now that she's equipped with that, and the team is equipped with that, and that we have relationships with almost every broker in the industry, I believe we have a very strong brand reputation of being people who do what we say we will do. I have very high expectations that the $10 million run rate is going to grow substantially in 2026.

Yeah.

Put this in the letter.

You know the F. N C. S. A said that 3.8 million $3 8 million drivers.

We would size the for hire market between one to 1.3 million drivers and interestingly when you look at the breadth of our factoring business, we probably touch 6% to 7% of all trucks on the road in the for hire market specifically.

Speaker #5: And so that's how I would put it all together for you: the value chain and all of these things reinforce one another. We have invested in our brand to be people who deliver value to our customers.

Aaron P. Graft: That's how I would put it all together for you, the value chain and all of these things reinforce one another. We have invested in our brand to be people who deliver value to our customers, and we're ready to go. No matter what the freight market does, we're going to go take market share this year, and we're going to do it at a time while expanding our margins.

I have a firm conviction that the majority of people.

Speaker #5: And we're ready to go. No matter what the freight market does, we're going to go take market share this year and we're going to do it at a time while expanding our margins.

The non domiciled Cdls and people, who did not go through the proper channels to be in a truck work in the for hire market. So if this ends up being enforced.

Speaker #5: I appreciate that. I have a few more load pay questions, but I'll hop back in the queue for those. One thing I wanted to touch on now: per the FMCSA, with proper enforcement, roughly 5% of drivers will exit the market over the call for the next year and a half.

[Analyst 3]: I appreciate that. I have a few more LoadPay questions, but I'll hop back in the queue for those. One thing I wanted to touch on now. Per the FMCSA, with proper enforcement, roughly 5% of drivers will exit the market over, call it, the next year and a half. In 2018, 5% of the drivers exited the market due to an electronic logging device mandate and spot rates skyrocketed. I know we're in a different type of market, and the capacity leaving the system through immigration reform won't be as sudden. All else equal, how do you think immigration reform can impact average invoice prices?

It is going to cause more distortions in the for hire market and the smaller end of that market.

And then it will with large fleets or obviously company owned trucking enterprises, just because the way the vetting criteria works.

Speaker #5: And in 2018, 5% of the drivers exited the market due to an electronic logging device mandate and spot rate skyrocketed. I know we're in a different type of market and the capacity leaving the system through immigration reform won't be as sudden.

I just want to say like I've been in transportation now for 13 14 years.

<unk> a lot. It is an immigrant driven business and I think that's fantastic right. We've watched people build successful companies.

Speaker #5: But all else equal, how do you think immigration reform can impact average invoice prices? Yeah, I put this in the letter. You know, the FMCSA said that 3.8 million or 3.8 million drivers.

I mean somewhat vilified these drivers.

Aaron P. Graft: Yeah. I put this in the letter. You know, the FMCSA said that 3.8 million, there are 3.8 million drivers. We would size the for-hire market between 1 to 1.3 million drivers. You know, interestingly, when you look at the breadth of our factoring business, we probably touch 6 to 7% of all trucks on the road in the for-hire market specifically. I have a firm conviction that the majority of people, the non-domiciled CDLs, and people who did not go through the proper channels to be in a truck work in the for-hire market. If this ends up being enforced, it is going to cause more distortions in the for-hire market and the smaller end of that market than it will with large fleets or obviously company-owned trucking enterprises, just because the way the vetting criteria works.

But I'm not sure that they should be the villain in the story of these people are also working very hard, but if you put those people in a truck and they are not trained is a danger to them a danger to others and if you have electronic logging devices that can be reset remotely from overseas in these drivers that you're just creating shadow.

Speaker #5: We would size the four higher market between one to 1.3 million drivers. And, you know, interestingly, when you look at the breadth of our factoring business, we probably touch six to seven percent of all trucks on the road in the four higher market specifically.

Capacity and so if the government were to follow through on enforcing so that everyone.

Speaker #5: I have a firm conviction that the majority of people, the non-domiciled CDLs, and people who did not go through the proper channels to be in a truck work in the four higher market.

Has the opportunity to earn a fair living in trucking.

Invoice prices would absolutely go up and so we'll see they've said, they're they've set a lot of things, we'll see what they deliver on and what we want is every truckload of thrive.

Speaker #5: So if this ends up being enforced, it is going to cause more distortions in the four higher market and the smaller end of that market.

That's our goal I mean spot market going up would be fantastic, but we run a long term business here, we want to see truckers be treated fairly and.

Speaker #5: Then it will, with large fleets or obviously company-owned trucking enterprises, just because of the way the vetting criteria works. I just want to say, like, I've been in transportation now for 13, 14 years.

I mean, there are a huge part of our economy, there driving 80000 pounds trucks on our on our highways. We want to see every truck are thriving we want to see well trained well compensated taken care of people driving those trucks. So.

Aaron P. Graft: I just want to say, like, I've been in transportation now for 13, 14 years, seeing a lot. It is an immigrant-driven business, and I think that's fantastic. Right? We've watched people build successful companies. We've somewhat vilified these drivers, but I'm not sure that they should be the villain in the story. Like, these people are also working very hard. If you put those people in a truck and they are not trained, it's a danger to them, a danger to others. If you have electronic logging devices that can be reset remotely from overseas and these drivers, you're just creating shadow capacity. If the government were to follow through on enforcing so that everyone has the opportunity to earn a fair living in trucking, invoice prices would absolutely go up. We'll see. They've said they're, you know, they've said a lot of things.

Speaker #5: I've seen a lot it is an immigrant-driven business and I think that's fantastic, right? We've watched people build successful companies. We've somewhat vilified these drivers, but I'm not sure that they should be the villain in the story.

That's a little bit of a soap box and the answer to your question, but I'll repeat the answer I started with I believe if that were to be enforced you will see more distortion in the for hire market than you would in the overall market. So I hope that answers your question.

Isn't it thank you I'll hop back in the queue.

Speaker #5: Like, these people are also working very hard, but if you put those people in a truck and they are not trained, it's a danger to them and a danger to others.

Okay.

The next question is from Gary Tenner at D. A Davidson please limit yourself I think can make a question.

Speaker #5: And if you have electronic logging devices that can be reset remotely from overseas, these drivers are just creating shadow capacity. If the government were to follow through on enforcing regulations so that everyone has the opportunity to earn a fair living in trucking, invoice prices would absolutely go up.

Good morning.

Good morning, Gary.

So I had a question about.

Loan pay.

I know it's so early early on and then you added a lot of that new accounts. This quarter I'm curious about what you've seen so far in terms of retention or churn I mean is the experience so far was.

Speaker #5: And so we'll see. They've said they're, you know, they've said a lot of things. We'll see what they deliver on and what we want is every trucker to thrive.

Aaron P. Graft: We'll see what they deliver on. What we want is every trucker to thrive. That's our goal. I mean, spot market going up would be fantastic, but we run a long-term business here. We want to see truckers be treated fairly. I mean, they're a huge part of our economy. They're driving 80,000-pound trucks on our highways. We want to see every trucker thrive, and we want to see well-trained, well-compensated, taken care of people driving those trucks. That's a little bit of a soapbox in the answer to your question, but I'll repeat the answer I started with. I believe if that were to be enforced, you will see more distortion in the for-hire market than you would in the overall market. I hope that answers your question.

Open relocate tenants open.

Speaker #5: That's our goal. I mean, spot market going up would be fantastic, but we run a long-term business here. We want to see truckers be treated fairly and I mean, they're a huge part of our economy.

Has have a permit to be fairly sticky.

In terms of ongoing utilization of the account and the and the.

Product.

Yes, they have.

Speaker #5: They're driving 80,000-pound trucks on our highways. We want to see every trucker thrive, and we want to see well-trained, well-compensated, well-taken-care-of people driving those trucks.

We recognized early on that the account opening is just the first step and it was really critical to get those accounts linked and funded to be used the way that they should be used for the client.

Speaker #5: So you know, that's a little bit of a soapbox, and the answer to your question, but I'll repeat the answer I started with. I believe if that were to be enforced, you will see more distortion in the four-higher market than you would in the overall market.

So a lot of work has gone into making sure that we establish those linkages were up around 70% of accounts getting linked to very quickly. After account opening and then the funding follows when they actually have a load for which they are paid so that results in a very high retention rate. It's also the thing that of course drives the opportunity for monetization.

Speaker #5: So I hope that answers your question. Is it a, thank you, I'll hop back in the queue.

[Analyst 3]: Yes, it is. Thank you. I'll hop back in the queue.

Early on.

Speaker #3: The next question is from Gary Tenner at DA Davidson. Please unmute yourself and begin with your question.

Operator: The next question is from Gary Tanner at D.A. Davidson. Please unmute yourself and begin with your question.

Okay I appreciate that.

Then I do appreciate all the color you gave on the revenue side a few minutes ago, just wanted to touch on the expense side, obviously with the reduction in force.

Speaker #7: Good morning. Can you hear me?

[Analyst 2]: Good morning.

Speaker #5: Morning, Gary.

Aaron P. Graft: Morning, Gary.

Speaker #7: me? So I had a question about load pay. I know it's still fairly early on and you added a lot of net new accounts this quarter.

[Analyst 2]: You hear me? I had a question about LoadPay. I know it's still fairly early on, and you added a lot of net new accounts this quarter. I'm curious about what you've seen so far in terms of retention or churn. I mean, is the experience so far, once an account is opened or a LoadPay account is open, have they proven to be fairly sticky in terms of ongoing utilization of the account and the product?

But as of earlier in the quarter or earlier in the third quarter and your guide on fourth quarter expenses.

Obviously, a much greater focus on that side or that part of the P&L just as we're looking out into 2026.

Speaker #7: I'm curious about what you've seen so far in terms of retention or churn. I mean, is the experience so far once an account is opened or load pay account is open, has they proven to be fairly sticky?

Maybe it's for sure for any thoughts around this but.

As you think about managing the expense part of things you talked about.

Our focus on improved efficiency ongoing into 2026, what kind of mark or measuring sticks would you be thinking about for the expense side of the equation for sure.

Speaker #7: In terms of ongoing utilization of the account and the product?

Gary if you're if you look at the way that that we've kind of framed our fourth quarter at 96 and a half.

Speaker #5: Yes, they have. So we recognized early on that the account opening is just the first step. It was really critical to get those accounts linked and funded to be used the way that they should be used for the client.

Brad Voss: Yes, they have. We recognized early on that the account opening is just the first step, and it was really critical to get those accounts linked and funded to be used the way that they should be used for the client. A lot of work has gone into making sure that we establish those linkages. We're up around 70% of accounts getting linked very quickly after account opening. The funding follows when they actually have a load for which they're paid. That results in a very high retention rate. It's also the thing that, of course, drives the opportunity for monetization early on.

And I think Aaron mentioned during the first during his opening comments that we're looking to be right at about that level a quarter or a year from now so what does that imply that implies that's throughout the course of 2026, we're going to have to find more ways to be efficient.

Speaker #5: And so, a lot of work has gone into making sure that we establish those linkages. We're up around 70% of accounts getting linked very quickly after account opening.

And the expense reduction initiatives that we announced recently is really the first outward the hourly evident step in that direction.

Speaker #5: And then the funding follows when they actually have a load for which they're paid. So that results in a very high retention rate. It's also the thing that, of course, drives the opportunity for monetization early on.

But we've we've got the same annual compensation and benefits reset that will that we always see in the first quarter of 2026, so there could be a little bit of upward pressure early in the year, but we are looking to.

Speaker #7: I appreciate that. And then, you know, I do appreciate all the calls you gave on the revenue side a few minutes ago. I just wanted to touch on the expense side.

[Analyst 2]: I appreciate that. I do appreciate all the call you gave on the revenue side a few minutes ago. I just wanted to touch on the expense side. Obviously, with the reduction in force that you announced earlier in the quarter or earlier in the third quarter and your guide on fourth quarter expenses, there is obviously a much greater focus on that side or that part of the P&L. Just as we're looking out into 2026, and maybe it's premature for any thoughts around this, as you think about managing the expense part of things, you talked about a focus on improved efficiency ongoing into 2026. What kind of marker or measuring sticks would you be thinking about for the expense side of the equation next year?

Speaker #7: Obviously, with the reduction in force that you announced earlier in the quarter, or earlier in the third quarter, and your guidance on fourth quarter expenses, you know, there is obviously a much greater focus on that side or that part of the P&L.

Continue to find ways to get more efficient across our entire platform throughout the year, it's not an overnight process, but it's something that we are committed to.

And Gary just to to look you cover a lot of financial institutions and.

You know in.

Speaker #7: Just as we're looking out into 2026, and maybe it's premature for any thoughts around this, but, you know, as you think about managing the expense part of things, you talked about, you know, a focus on improved efficiency, ongoing into 2026.

In the banking World, obviously, managing margins and efficiency initiatives I mean, a lot of people go through cycles of doing these things I, just I want to be clear on on some things. So first of all just to reiterate what Brad said.

Speaker #7: What kind of markers or measuring sticks would you be thinking about for the expense side of the equation next year?

$96 five millions what we expect Q4 of 2025 to be $96 5 million in or better as what we expect Q4 of 'twenty 'twenty six to be in there'll be gyrations in between there just like there's gyrations in revenue tied to the seasonality of our business, but as we're thinking about efficiencies we wouldn't be.

Speaker #5: Gary, if you're, if you look at the way that we kind of framed our fourth quarter at 96.5, and I think Aaron mentioned during the first, during his opening comments that we're looking to be right at about that level a quarter or a year from now.

Brad Voss: Gary, if you look at the way that we kind of framed our fourth quarter at $96.5 million, and I think Aaron mentioned during his opening comments that we're looking to be right at about that level a quarter or a year from now. What does that imply? That implies that throughout the course of 2026, we're going to have to find more ways to be efficient. The expense reduction initiative that we announced recently is really the first outwardly evident step in that direction. We've got the same annual compensation and benefits resets that we always see in the first quarter of 2026. There could be a little bit of upward pressure early in the year, but we are looking to continue to find ways to get more efficient across our entire platform throughout the year. It's not an overnight process, but it's something that we are committed to.

Sitting here, telling you that we think we can drive 20% revenue growth. If we were cutting off the very things that create value.

Speaker #5: So, what does that imply? That implies that throughout the course of 2026, we're going to have to find more ways to be efficient. The expense reduction initiative that we announced recently is really the first outwardly evident step in that direction.

I mean for example, we this quarter still invested $110 million and technology on our cost base.

A lot of people talking about J P. Morgan's got spent 18 billion.

Speaker #5: But we've got the same annual compensation and benefits resets that we always see in the first quarter of 2026. So there could be a little bit of upward pressure early in the year, but we are looking to continue to find ways to get more efficient across our entire platform throughout the year.

If you were to do the math and compare it like on a relative basis, we still spend three to four times, what they spend on our expense base on technology and technology will continue to lead US forward. We will continue to enhance the products. The thing. That's happened is that we have gotten to a level I mean, theres just been a tremendous.

Speaker #5: It's not an overnight process, but it's something that we are committed to. And Gary, just to look, you cover a lot of financial institutions, and you know, in the banking world, obviously managing margins and efficiency initiatives—I mean, a lot of people go through cycles of doing these things.

Amount of heavy lift to get us to where we are now and we began that lift frankly in a market, where we had such tailwind that it was harder for people to see.

Aaron P. Graft: Gary, you cover a lot of financial institutions. In the banking world, obviously managing margins and efficiency initiatives, a lot of people go through cycles of doing these things. I just want to be clear on something. First of all, just to reiterate what Brad said, $96.5 million is what we expect Q4 of 2025 to be. $96.5 million or better is what we expect Q4 of 2026 to be. There will be gyrations in between there, just like there's gyrations in revenue tied to the seasonality of our business. As we're thinking about efficiencies, we wouldn't be sitting here telling you that we think we can drive 20% revenue growth if we were cutting off the very things that create value. For example, we this quarter still invested $110 million in technology on our cost base.

And the conviction was to stay through that lift when those tail wins turned into the longest set of headwinds anyone has seen since the deregulation of trucking and 1980.

Speaker #5: I just want to be clear on something. So, first of all, just to reiterate what Brad said: $96.5 million is what we expect Q4 of 2025 to be.

We're largely there and when you can take this proprietary dataset that we've created and you can use advances in AI and all the things we do to start to automate tasks internally without taking away from your product roadmap.

Speaker #5: 96.5 million or better is what we expect Q4 of 2026 to be. There will be gyrations in between, just like there are gyrations in revenue tied to the seasonality of our business.

Or without taking away. Your your sales functions I mean, we are out in the market all the time with people and so.

Speaker #5: But as we're thinking about efficiencies, we wouldn't be sitting here telling you that we think we can drive 20% revenue growth if we were cutting off the very things that create value.

It's this is not a cost cutting exercise. This is an efficiency in getting lean exercise and frankly figuring out.

Speaker #5: I mean, for example, we this quarter still invested $110 million in technology on our cost base. You know, a lot of people, you know, talk about JP Morgan is going to spend $18 billion you know, if you were to do the math and compare it, like on a relative basis, we still spend three to four times what they spend on our expense base on technology and technology will continue to lead us forward.

How the five pieces of our value chain can work better together. So we're not duplicating product development work in silos, but instead doing it as a cohesive unit and so that's how we intend to get there.

Aaron P. Graft: A lot of people talk about JP Morgan is going to spend $18 billion. If you were to do the math and compare it, on a relative basis, we still spend three to four times what they spend on our expense base on technology. Technology will continue to lead us forward. We will continue to enhance the products. The thing that's happened is that we have gotten to a level, there's just been a tremendous amount of heavy lift to get us to where we are now. We began that lift, frankly, in a market where we had such tailwinds that it was harder for people to see. The conviction was to stay through that lift when those tailwinds turned into the longest set of headwinds anyone has seen since the deregulation of trucking in 1980. We are largely there.

And we've been hopefully very explicit with you now on what our expectations of ourselves or to continue to grow revenue and hold expenses flat. So I hope that's helpful.

Speaker #5: We will continue to enhance the products. The thing that's happened is that we have gotten to a level—I mean, there's just been a tremendous amount of heavy lift to get us to where we are now.

It is I missed your opening remarks, I appreciate you're flagging that.

Speaker #5: And we began that lift, frankly, in a market where we had such tailwinds that it was harder for people to see. And the conviction was to stay through that lift when those tailwinds turned into the longest set of headwinds anyone has seen since the deregulation of trucking in 1980.

The next question is from how goods at the 19th he sent me a sense I think can make a question.

Hey, good morning, everyone. Thank you for the detail.

You made a comment you said, we are not limiting growth in factoring anymore.

Speaker #5: We are largely there. And you can take this proprietary data set that we've created and you can use advances in AI and all the things we do to start to automate tasks internally without taking away from your product roadmap.

And I was just curious if you could explain a little bit more of that statement in in your target for 20% growth.

Aaron P. Graft: You can take this proprietary data set that we've created, and you can use advances in AI and all the things we do to start to automate tasks internally without taking away from your product roadmap or without taking away your sales functions. We are out in the market all the time with people. This is not a cost-cutting exercise. This is an efficiency and getting lean exercise. Frankly, figuring out how the five pieces of our value chain can work better together so we're not duplicating product development work in silos, but instead doing it as a cohesive unit. That's how we intend to get there. We've been hopefully very explicit with you now on what our expectations of ourselves are to continue to grow revenue and hold expenses flat. I hope that's helpful.

Perhaps you guys can give us a color for like you're you're.

Do you feel for a bridge of of the components of that or how much of that was just witnessed behave normal market lift if things got a little better maybe I missed it and how much of it's really idiosyncratic.

Speaker #5: Or without taking away your sales functions. I mean, we are out in the market all the time with people. And so this is not a cost-cutting exercise.

To your strategies to gain share in that space that that'd be helpful to help us understand how you go from basically where you're at now which is back to growth three quarters in a row, but maybe a target of 20% of this bridge that kind of the math there as best you can sure. Thank you.

Speaker #5: This is an efficiency and getting lean exercise. And frankly, figuring out how the five pieces of our value chain can work better together so we're not duplicating product development work in silos, but instead doing it as a cohesive unit.

So the first thing I'm not going to talk about an improving freight market I've talked about that three and a half years and and I have no idea. This may be the new normal forever, who knows but where we're focused on what's in front of us, but a couple of things and Tim and Ive been in this business now.

Speaker #5: And so, that's how we intend to get there. We've been hopefully very explicit with you now on what our expectations of ourselves are: to continue to grow revenue and hold expenses flat.

Speaker #5: So I hope that's helpful.

Speaker #7: It is. I missed your opening remarks, so I appreciate you flagging that.

And seen a lot of things so when the payments network began.

[Analyst 2]: It is. I missed your opening remarks, so I appreciate you flagging that.

Alright, we felt there was a need.

At the beginning to really try to divide the world and so that you had our liquidity solutions, which is our factoring business, which is meeting the working capital needs of carriers and then you had the payments network, which was going to serve all the parties, including other factoring companies and we've done that.

Speaker #3: The next question is from Hal Goch at B. Riley. Please unmute yourself and begin with your question.

Operator: The next question is from Hal Goach at B. Riley. Please unmute yourself and begin with your question.

Speaker #8: Hey, good morning, everyone. Thank you for the detailed update, Aaron. I think you made a comment when you said we are not limiting growth in factoring anymore.

[Analyst 4]: Hey, good morning, everyone. Thank you for the detail. Aaron, I think you made a comment. You said we are not limiting growth in factoring anymore. I was just curious if you could explain a little bit more of that statement. In your target for 20% growth, perhaps you guys could give us a color for your feel for a bridge of the components of that growth. How much of that would just be a normal market lift if things got a little better? Maybe that's mid-second. How much of it's really idiosyncratic to your strategies to gain share in that space? That'd be helpful to help us understand how you go from basically where you're at now, which is back to growth, you know, three quarters in a row, but maybe a target of 20% help us bridge that, kind of the math there as best you can.

Speaker #8: And I was just curious if you could explain a little bit more about that statement. Additionally, in your target for 20% growth, perhaps you could give us a sense of your feel for the bridge of the components of that growth.

I think we have 50 to 60 factoring companies, who use the payments network, who continue to use the payments network.

And what we learned was that we're going to be people, who were going to use that functionality in the payments network, whether we were growing factor in or whether we were holding factoring study and <unk>.

Speaker #8: How much of that would just be, hey, normal market lift if things got a little better? Maybe that's it. And how much of it's really idiosyncratic to your strategies to gain share in that space?

As we continue to focus on its less about factoring and I just want to be Super clear about this it's about the customer. So you put the customer at the center of the universe and factoring is one of several products equipment finance insurance load pay that you want to sell that customer to help their business.

Speaker #8: That'd be helpful to help us understand how you go from basically where you're at now, which is back to growth, you know, three quarters in a row, but maybe a target of 20% helps bridge that kind of the math there.

Speaker #8: As best you can.

Speaker #5: Sure. Thank you. So the first thing, I'm not going to talk about an improving freight market. I've talked about that three and a half years and I have no idea.

Aaron P. Graft: Sure.

[Analyst 4]: Thank you.

Aaron P. Graft: The first thing, I'm not going to talk about an improving freight market. I've talked about that three and a half years, and I have no idea. This may be the new normal forever. Who knows? We are focused on what's in front of us. A couple of things. Tim and I have been in this business now, you know, and seen a lot of things. When the payments network began, we felt there was a need at the beginning to really try to divide the world so that you had our liquidity solutions, which is our factoring business, which is meeting the working capital needs of carriers. Then you had the payments network, which was going to serve all the parties, including other factoring companies. We've done that. I think we have 50 to 60 factoring companies who use the payments network, who continue to use the payments network.

And so with a customer centric viewpoint, we're going to go where the customer.

It leaves us we're not out there trying to reprice the factoring industry or go after other factors. We don't think we need to do that frankly factoring as a percentage of all invoices over the last 10 years has grown because factoring has gotten more sophisticated and and as a result.

Speaker #5: This may be the new normal forever. Who knows? But we are focused on what's in front of us. A couple of things.

Speaker #5: And Tim and I have been in this business now, you know, and seen a lot of things. So when the payments network began, we felt there was a need at the beginning to really try to divide the world so that you had our liquidity solutions, which is our factoring business, you know, which is meeting the working capital needs of carriers.

More carriers use it and see it not just as a I need immediate liquidity, but literally as a business service, including the ability to lower their prices on fuel I mean in many cases, the fuel aggregation discount that a factor can provide more than offsets the revenue that customer pays in order to turn.

Speaker #5: And then you had the payments network, which was going to serve all the parties, including other factoring companies. We've done that. I think we have 50 to 60 factoring companies who use the payments network and continue to use the payments network.

Their invoice into cash right. So it's actually a net positive to their bottom line when they use our fuel card and get instantly paid versus just having collected that invoice in 30 days later without financing.

Speaker #5: And what we learned was there were going to be people who were going to use that functionality in the payments network, whether we were growing factoring or whether we were holding factoring steady.

Aaron P. Graft: What we learned was there were going to be people who were going to use that functionality in the payments network, whether we were growing factoring or whether we were holding factoring steady. As we continued to focus on, it's less about factoring. I just want to be super clear about this. It's about the customer. You put the customer at the center of the universe, and factoring is one of several products, equipment financed, insurance, LoadPay, that you want to sell that customer to help their business. With a customer-centric viewpoint, we're going to go where the customer leads us. We're not out there trying to reprice the factoring industry or go after other factors. We don't think we need to do that. Frankly, factoring as a percentage of all invoices over the last 10 years has grown because factoring has gotten more sophisticated.

And that's.

Why the industry grows so.

Putting the customer at the center delivering the customer more than just factory I mean, if that's what they need that's what they get but we're delivering them a value chain of interlinked things that nobody else in the marketplace has all of those things.

Speaker #5: And as we continued to focus on, it's less about factoring, and I just want to be super clear about this. It's about the customer.

Speaker #5: So you put the customer at the center of the universe, and factoring is one of several products—equipment, finance, insurance, load pay—that you want to sell that customer to help their business.

And we want truckers to thrive, we want owner operators to thrive we want small fleets to thrive we want large fleets to thrive and we have a value proposition for each of them and so if you run to that value proposition.

Speaker #5: And so, with a customer-centric viewpoint, we're going to go where the customer leads us. We're not out there trying to reprice the factoring industry or go after other factors.

With our market position, we believe we're going to grow 20% and we believe the market will continue to grow and so I.

Speaker #5: We don't think we need to do that. Frankly, factoring is a percentage of all invoices. Over the last 10 years, it has grown. Because factoring has gotten more sophisticated, and as a result, more carriers use it and see it not just as a, "I need immediate liquidity," but literally as a business service, including the ability to lower their prices on fuel.

I don't know that the market will grow 20%, but our expectation of ourselves is to grow 20%.

Aaron P. Graft: As a result, more carriers use it and see it not just as a, "I need immediate liquidity," but literally as a business service, including the ability to lower their prices on fuel. In many cases, the fuel aggregation discount that a factor can provide more than offsets the revenue that customer pays in order to turn their invoice into cash. It's actually a net positive to their bottom line when they use our fuel card and get instantly paid versus just having collected that invoice 30 days later without financing. That's why the industry grows. Putting the customer at the center, delivering the customer more than just factoring. If that's what they need, that's what they get. We're delivering them a value chain of interlinked things that nobody else in the marketplace has all of those things. We want truckers to thrive. We want owner-operators to thrive.

Oh.

Thank you Anne.

Sure.

The next question is from Tencent sat at K B W. E T semi yourself that they can make a question.

Speaker #5: I mean, in many cases, the fuel aggregation discount that a factor can provide more than offsets the revenue that the customer pays. In order to turn their invoice into cash, right?

Hey, there thanks for taking my follow ups.

You mentioned Darren in your letter above.

About some opportunities in the intelligence segment with shippers.

Speaker #5: So it's actually a net positive to their bottom line when they use our fuel card and get instantly paid versus just having collected that invoice in 30 days later without financing.

And you mentioned about a pilot program to achieve a critical mass of shipper data.

Can you provide some color on how exactly you're achieving.

Speaker #5: And that's, you know, why the industry grows. So putting the customer at the center, delivering the customer more than just factoring. I mean, if that's what they need, that's what they get.

I guess, obtaining the shipper data and like how many shippers are you partnered with or any anything you can provide around that.

Yeah, I'm going to start this off and and Don is going to give you. The detailed answer but I would say, we already make about $4 billion of payments for shippers in our payments business.

Speaker #5: But we're delivering them a value chain of interlinked things that nobody else in the marketplace has all of those things. And we want truckers to thrive.

So I mean, it's a pilot program that begins with a b. So that helps this is not starting from ground zero, but Don what else would you say.

Speaker #5: We want owner-operators to thrive. We want small fleets to thrive. We want large fleets to thrive. And we have a value proposition for each of them.

Aaron P. Graft: We want small fleets to thrive. We want large fleets to thrive. We have a value proposition for each of them. If you run to that value proposition with our market position, we believe we're going to grow 20%, and we believe the market will continue to grow. I don't know that the market will grow 20%, but our expectation of ourselves is to grow 20%.

I would add to that that the ISO business has already been supporting several shippers.

Speaker #5: And so if you run to that value proposition, with our market position, we believe we're going to grow 20% and we believe the market will continue to grow and so I don't know that the market will grow 20%, but our expectation of ourselves is to grow 20%.

Throughout their history, we have about a dozen or so shoppers that are already on the performance intelligence products, but what we're really talking about in this product as a pilot project is the combination of pricing and performance for shippers to help them benchmark themselves against the market.

Our hypothesis is we need about 10 to 12 shippers are 10, sorry, 10 to 15 shippers or roughly $500 million in freight under management as the data sample and we're getting that data. The same way that we have felt our broker data sample is to direct submissions from the shippers themselves to T. M. S N accretion on.

Speaker #7: Thank you, Aaron.

[Analyst 2]: Thank you, Aaron.

Speaker #5: Sure.

Aaron P. Graft: Sure.

Speaker #3: The The next question is from Tim Switzer at KBW. Please unmute yourself and begin with your question.

Operator: The next question is from Tim Switzer at KBW. Please unmute yourself and begin with your question.

Speaker #8: Hey there, thanks for taking my follow-ups. You mentioned Aaron in your letter about some opportunities in the intelligence segment with shippers. You also mentioned a pilot program to achieve a critical mass of shipper data.

[Analyst 2]: Hey there. Thanks for taking my follow-ups. You mentioned, Aaron, in your letter about some opportunities in the intelligence segment with shippers. You mentioned a pilot program to achieve a critical mass of shipper data. Can you provide some color on how exactly you're achieving, I guess, obtaining the shipper data, and how many shippers are you partnered with or anything you can provide around that?

They're look they're paid invoices at whatever the case may be.

Got it very helpful. And then real quick are you guys able to provide an update at all on that nonperforming adequate financial you purchased last quarter.

Speaker #8: Can you provide some color on how exactly you're achieving? I guess obtaining the shipper data and like how many shippers are you partnered with or anything you could provide around that?

Youre confidence being able to recover the $11 million you charged off when you bought it.

We feel just as good about that today as we did when we announced it.

Speaker #5: Yeah, I'm going to start this off, and then Don's going to give you the detailed answer. But I would say we already make about $4 billion of payments for shippers in our payments business.

Aaron P. Graft: Yeah, I'm going to start this off, and then Don's going to give you the detailed answer. I would say we already make about $4 billion of payments for shippers in our payments business. It's a pilot program that begins with a B. That helps. This is not starting from ground zero. Don, what else would you say? You know.

Awesome good to hear thank you guys.

The next question is from Jim Young.

Speaker #5: So I mean, it's a pilot program that begins with a B. So that helps. This is not starting from ground zero. But Don, what else would you say?

John Smith.

Raymond James piece of meat and stuff that they can make a question.

Speaker #6: Yeah, you know, I would add to that that the ISO business has already been supporting several shippers. Throughout their history, we have about a dozen or so shippers that are already on the performance intelligence products.

Don Everhart: I would add to that that the ISO business has already been supporting several shippers throughout their history. We have about a dozen or so shippers that are already on the performance intelligence products. What we're really talking about in this product, the pilot project, is the combination of pricing and performance for shippers to help them benchmark themselves against the market. Our hypothesis is we need about 10 to 12 shippers, or 10 to 15 shippers, or roughly $500 million in freight under management as a data sample. We're getting that data the same way that we have built our broker data sample, through direct submissions from the shippers themselves through TMS integration on their bookloads or paid invoices, whatever the case may be.

Okay.

Yeah.

Okay.

Can you hear me.

We got to be on fire away.

Alright, so for starters I understand loan pay is a relatively new product.

Speaker #6: But what we're really talking about in this product are the pilot project is the combination of pricing and performance for shippers to help them benchmark themselves against the market.

You have a massive distribution channel for this.

Ever evolving mode. Perry are you firing on all cylinders right now trying to sign up new accounts.

Speaker #6: Our hypothesis is we need about 10 to 12 shippers or 10, sorry, 10 to 15 shippers or roughly 500 million dollars in freight under management as a data sample.

I know it looks like you know you're going to hit your year end account target.

But given the vast number of owner operator drivers on the road, you're barely scratching the surface on really penetrating this market.

Speaker #6: And we're getting that data the same way that we have built our broker data sample is through direct submissions from the shippers themselves through TMS integration on their workloads or paid invoices or whatever the case may be.

What's the biggest challenge right now and growing your load pay user base.

I would start to say by saying that we are firing on multiple fronts and we feel really good about that so the multiple fronts that I'm, referring to our sales through our broker partners our own organic sales efforts and then sales efforts that are coming through our factory business. All those are all three of those are contributing meaning.

Speaker #7: Got it. Very helpful. And then real quick, are you guys able to provide an update at all on that non-performing equipment finance one you purchased last quarter?

[Analyst 2]: Got it. Very helpful. Real quick, are you guys able to provide an update at all on that non-performing equipment financial you purchased last quarter and your confidence being able to recover the $11 million you charged off when you bought it?

Speaker #7: And your confidence being able to recover the $11 million you charged off when you bought it?

Lee to the totals all three of those have the opportunity to scale further and so yeah I'm very comfortable that we're going to continue to accelerate the growth in account openings that you've seen so far.

Speaker #5: We feel just as good about that today as we did when we announced it.

Brad Voss: We feel just as good about that today as we did when we announced it.

Speaker #7: Awesome. Good to hear. Thank you, guys.

[Analyst 2]: Awesome. Good to hear. Thank you, guys.

We may be just scratching the surface right now but.

Speaker #3: The next question is from Joe Yankunis at Raymond James. Please unmute yourself and begin with your question.

Operator: The next question is from Joe Yankunis at Raymond James. Please unmute yourself and begin with your question.

It's not too far out where it's going to be much deeper than that.

Joe Here's what's.

Don't Miss this I mean to me this is extremely important.

Speaker #8: Hello, again. Can you hear me?

[Analyst 3]: Hello again.

So think of load pay as it now exists as something like venmo with a debit card.

Brad Voss: Joe, can you hear me?

Speaker #5: We got you, Joe. Fire away.

Aaron P. Graft: We got you, Joe. Fire away.

Speaker #8: All right, so for starters, I understand Load Pay is a relatively new product. You have a massive distribution channel for this ever-evolving Load Pay.

[Analyst 3]: All right. For starters, I understand LoadPay is a relatively new product. You have a massive distribution channel for this ever-evolving LoadPay. Are you firing at all cylinders right now trying to sign up new accounts? I know it looks like you're going to hit your year-end account target. Given the vast number of owner-operator drivers on the road, you're barely scratching the surface on really penetrating this market. What's the biggest challenge right now in growing your LoadPay user base?

Think of load pay where it will be in the first quarter of next year as a bank or a full service banking account that is built with a bunch of specific enhancements for truckers.

Speaker #8: Are you firing at all similar numbers right now trying to sign up new accounts? I know it looks like you know you're going to hit your year-end account target.

And then finally think about load pay where it will be towards the end of 2026 as a full on business companion with an embedded intelligence offering.

Speaker #8: But given the vast number of owner-operator drivers on the road, you're barely scratching the surface on, you know, really penetrating this market. What's the biggest challenge right now in growing your load pay user base?

Those are that's a radically different product that our customers will be consuming.

Speaker #5: I would start by saying that we are firing on multiple fronts, and we feel really good about that. The multiple fronts that I'm referring to are sales to our broker partners, our own organic sales efforts, and then sales efforts that are occurring through our factoring business.

Brad Voss: I would start by saying that we are firing on multiple fronts, and we feel really good about that. The multiple fronts that I'm referring to are sales through our broker partners, our own organic sales efforts, and sales efforts that are occurring through our factoring business. All three of those are contributing meaningfully to the totals. All three of those have the opportunity to scale further. I'm very comfortable that we're going to continue to accelerate the growth and account openings that you've seen so far. We may be just scratching the surface right now, but it's not too far out where it's going to be much deeper than that.

Then the five 4500 customers that we've currently added so we.

We do have a distribution network that I would argue is unrivaled we touch almost every four higher trucker in the United States between our own factoring business in our payments business.

Speaker #5: All of those are all three of those are contributing meaningfully to the totals. All three of those have the opportunity to scale further. And so yeah, I'm very comfortable that we're going to continue to accelerate the growth and account openings that you've seen so far.

So and we have partnerships with some of the largest providers in freight the.

The product that people are consuming now it's not a beta product I mean, it's a real product, but it is getting better literally every quarter and it's getting better because we have an embedded our technology team that's doing great work.

Speaker #5: And we may be just scratching the surface right now, but it's not too far out where it's going to be much deeper than that.

So.

Speaker #5: And And Joe, here's what's don't miss this. I mean, to me, this is extremely important. So think of load pay as it now exists as something like Venmo with a debit card.

Aaron P. Graft: Joe, here's what's, don't miss this. I mean, to me, this is extremely important. Think of LoadPay as it now exists as something like Venmo with a debit card. Think of LoadPay where it will be in the first quarter of next year as a full-service banking account that is built with a bunch of specific enhancements for truckers. Finally, think about LoadPay where it will be towards the end of 2026 as a full-on business companion with an embedded intelligence offering. Those are, that's a radically different product that our customers will be consuming than the 4,500 customers that we've currently added. We do have a distribution network that I would argue is unrivaled. We touch almost every for-hire trucker in the United States between our own factoring business and our payments business. We have partnerships with some of the largest providers in freight.

Yeah, I mean firing on all cylinders all I mean, I think again you have to answer that question of am I more concerned now about going from 4800 customers to 10000 customer sure.

Speaker #5: Think of load pay where it will be in the first quarter of next year as a bank, a full-service banking account that is built with a bunch of specific enhancements for truckers.

That's important but what's really important to me is completing that journey from venmo to banking to banking beyond.

Because I know that the per year.

Unit revenue from that is much higher and my costs are not much higher because we already do these things inside of our value chain. So again, it's not just about distribution. It's also about product development.

Speaker #5: And then finally, think about load pay where it will be towards the end of 2026 as a full-on business companion with an embedded intelligence offering like those are that's a radically different product that our customers will be consuming than the five, you know, 4,000, 500 customers that we've currently added.

And we are well on our way.

I appreciate that answer.

Wanted to shift gears here so.

So it seems like factoring as a service is starting to gain momentum.

What level of.

Speaker #5: So we do have a distribution network that I would argue is unrivaled. We touch almost every for-hire trucker in the United States between our own factoring business and our payments business.

Transaction volume through battery as a service would you need to see in 2026 to view this initiative a success.

Well.

For us doing factoring whether it's for our first party business or for a third party business its factory.

Speaker #5: So, we have partnerships with some of the largest providers in freight. The product that people are consuming now is not a beta product.

Aaron P. Graft: The product that people are consuming now, it's not a beta product. I mean, it's a real product, but it is getting better literally every quarter. It's getting better because we have an embedded technology team that's doing great work. Firing on all cylinders. I think, again, you have to answer that question of, am I more concerned now about going from 4,800 customers to 10,000 customers? Sure. That's important. What's really important to me is completing that journey from Venmo to banking to banking beyond because I know that the per unit revenue from that is much higher and my costs are not much higher because we already do these things inside of our value chain. Again, it's not just about distribution. It's also about product development. We're well on our way.

What Tim and team do that the operational execution is the same I really flip that question around to our partners and say what do they seek to achieve I mean, we are the platform that empowers them to grow this is not our business in the sense that we control the marketing levers.

Speaker #5: I mean, it's a real product, but it is getting better literally every quarter. And it's getting better because we have an embedded technology team that's doing great work.

Speaker #5: So yeah, I mean, firing on all cylinders. Well, I mean, I think again, you have to answer that question of, am I more concerned now about going from 4,000, 800 customers to 10,000 customers?

And the growth engines, if I listen to what C. H Robinson says has said publicly if I think about what what I believe our XO and our future fast partners want to do they want to monetize the payment experience and more than that.

Speaker #5: Sure. Like that's important. But what's really important to me is completing that journey from Venmo to banking to banking beyond. Because I know that the per-unit revenue from that is much higher and my costs are not much higher because we already do these things inside of our value chain.

Genuinely more than that they also want to bind themselves closer with their carriers because they want carriers.

Repeat business to thrive in so it's their goals that are more important in mind, we have built a.

Speaker #5: So again, it's not just about distribution, it's also about product development. And we're well on our way.

A factory that can do factoring for ourselves and anyone else that needs. It and so it's a success to us if it's a success to them.

Speaker #7: I appreciate that answer. One to shift gears here. So it seems like factoring as a service is starting to gain momentum. You know, what level of transaction volume through factoring as a service would you need to see in 2026 to view this initiative as a success?

[Analyst 3]: I appreciate that answer. I wanted to shift gears here. It seems like Factoring-as-a-Service is starting to gain momentum. What level of transaction volume through Factoring-as-a-Service would you need to see in 2026 to view this initiative as a success?

Okay I appreciate that and then just one last one for me you guys have the new buyback in place just any commentary on how active you plan to be in the near term.

Yeah, I mean, we're not going to speak to the timing of that what we will what we can say is our intent is to use the buyback with.

Speaker #5: Look, for us doing factoring, whether it's for our first-party business or for a third-party business, it's factoring. Like what Tim and team do that the operational execution is the same.

Aaron P. Graft: Look, for us doing factoring, whether it's for our first-party business or for a third-party business, it's factoring. Like what Tim and team do, the operational execution is the same. I'd really flip that question around to our partners and say, what do they seek to achieve? We are the platform that empowers them to grow. This is not our business in the sense that we control the marketing levers and the growth engines. If I listen to what C.H. Robinson has said publicly, if I think about what I believe RXO and our future FaaS partners want to do, they want to monetize the payment experience. More than that, genuinely more than that, they also want to bind themselves closer with their carriers because they want carriers' repeat business to thrive. It's their goals that are more important than mine.

From earnings right. We are in the we are in the process of growing earnings I can see that and you know.

If the market gives us an opportunity and we can do it safely and soundly where you know that that that's not very nice tool to have in the toolkit, but we didn't announce this just because we intended to be out in the market tomorrow.

Speaker #5: I'd really flip that question around to our partners and say, what do they seek to achieve? I mean, we are the platform that empowers them to grow.

Speaker #5: This is not our business in the sense that we control the marketing levers and the growth engines. If I listen to what CH Robinson has said publicly, if I think about what I believe RXO and our future FAS partners want to do, they want to monetize the payment experience.

We want that tool in our toolkit to as just part of our overall capital planning strategies.

Alright, I appreciate it thanks for taking my questions.

For sure.

Speaker #5: And more than that, genuinely more than that, they also want to bind themselves closer with their carriers because they want carriers repeat business to thrive.

The next question is from Matt Olney of Stephens, Please limit yourself I'm thinking with your question.

Speaker #5: And so it's their goals that are more important than mine. We have built a factory that can do factoring for ourselves and anyone else that needs it.

Yeah, Thanks for taking the follow up guys.

Aaron P. Graft: We have built a factory that can do factoring for ourselves and anyone else that needs it. It's a success to us if it's a success to them.

There was some commentary in the letter the certain types of non transportation lending is no longer part of the core lending strategy can you just kind of clarify what is and what is not part of the core business I'm just trying to appreciate how big the initiative. This is to exit some of these.

Speaker #5: And so it's a success to us if it's a success to them.

Speaker #8: Okay, I appreciate that. And just one last one from me. You guys have the new buyback in place. Just any commentary on how active you plan to be in the near term?

[Analyst 3]: Okay, I appreciate that. Just one last one from me. You guys have the new buyback in place. Any commentary on how active you plan to be in the near term?

Non transportation loans and are you accelerating this after seeing the tri color or are you just reiterating what you've said previously.

Speaker #5: Yeah, I mean, we're not going to speak to the timing of that. Look, what we will what we can say is our intent is to use the buyback with, you know, from earnings, right?

Aaron P. Graft: Yeah, I mean, we're not going to speak to the timing of that. What we will, what we can say is our intent is to use the buyback with, you know, from earnings. Right? We are in the process of growing earnings. I can see that. You know, if the market gives us an opportunity and we can do it safely and soundly, that's a very nice tool to have in the toolkit. We didn't announce this just because we intended to be out in the market tomorrow. We want that tool in our toolkit as just part of our overall capital planning strategy.

I'm just reiterating what we said previously look I think about there's two parts to the core business. There is the one we spend 90% of the time talking about which is the transportation business.

Speaker #5: We are in the we are in the process of growing earnings. I can see that. And you know, if the market gives us an opportunity and we can do it safely and soundly, we're, you know, that that's not a very nice tool to have in the toolkit but we didn't announce this just because we intended to be out in the market tomorrow we want that tool in our toolkit to as just part of our overall capital planning strategy.

But there is also a very healthy underlying community bank right. If you look at our metrics you look at the financial performance of that Bank you look at our deposit quality.

That's that's core to our strategy and the bank will always be core to our strategy.

What we don't want to have happen.

Is.

We don't need to be talking about community bank credits right. The weaning the community bank to be safe sound and by and large it does that but you know in the past as we sought to generate revenue to reinvest in the business. We've been in things like liquid credit, we're winding that business down.

Speaker #7: All right, I appreciate it. Thanks for saving my questions.

[Analyst 3]: All right, I appreciate it. Thanks for taking my questions.

Speaker #5: For For sure.

Aaron P. Graft: For sure.

Speaker #3: The next question is from Matt Olney at Stevens. Please unmute yourself and begin with your question.

Operator: The next question is from Matt Olney at Stephens. Please unmute yourself and begin with your question.

Right and so what I mean by that Matt is anything that's no long that's not core when we're talking about the community bank self itself too.

Speaker #8: Yeah, thanks. Taking the follow-up, guys. There was some commentary in the letter that certain types of non-transportation lending are no longer part of the core lending strategy.

[Analyst 1]: Yeah, thanks for taking the follow-up, guys. There was some commentary in the letter that certain types of non-transportation lending is no longer part of the core lending strategy. Can you just kind of clarify what is and what is not part of the core business? I'm just trying to appreciate how big of an initiative this is to exit some of these non-transportation loans. Are you accelerating this after seeing the Tricolor, or are you just reiterating what you've said previously?

Traditional community banking I think you're not going to see expansion from us away from that Youre going to see us retrenched to that core as you see our transportation business continue to grow.

Speaker #8: Can you just kind of clarify what is and what is not part of the core business? I'm just trying to appreciate how big the initiative this is to exit some of these non-transportation loans.

Okay I appreciate that and then on Tri color. It sounds like based off the letter you work to confirm the location of the collateral and feel good about that.

Speaker #8: And are you accelerating this after seeing the tricolor or are you just reiterating what you've said previously?

Speaker #5: I'm just reiterating what we said previously. Look, I think about there's two parts to the core business. There's the one we spend 90% of the time talking about, which is the transportation business.

Aaron P. Graft: I'm just reiterating what we said previously. Look, I think about there's two parts to the core business. There's the one we spend 90% of the time talking about, which is the transportation business, but there is also a very healthy underlying community bank. Right? If you look at our metrics, you look at the financial performance of that bank, you look at our deposit quality, that's core to our strategy. The bank will always be core to our strategy. What we don't want to have happen is we don't need to be talking about community bank credits. Right? We need the community bank to be safe, sound, and by and large, it does that. In the past, as we sought to generate revenue to reinvest in the business, we've been in things like liquid credit. We're winding that business down. Right?

And with the borrower and bankruptcy what's the next data point you expect to hear on this topic I'm trying to appreciate this could drag on for a while and then if the collateral is a depreciating asset at what point do you look to monetize the collateral and start selling the inventory.

Speaker #5: But there is also a very healthy underlying community bank, right? If you look at our metrics, you look at the financial performance of that bank, you look at our deposit quality, that's that's core to our strategy.

Based on the bankruptcy timeline, we're going to know a lot more in three weeks, that's not to say, we will necessarily be liquidating collateral that quickly that may take longer but there are different segments of the collateral and this is important to know there may be portions of the collateral that were able to liquidate right away because theres.

Speaker #5: And the bank will always be core to our strategy. What we don't want to have happen is we don't need to be talking about community bank credits, right?

Speaker #5: We need the community bank to be safe, sound, and by and large, it does that. But you know, in the past, as we sought to generate revenue to reinvest in the business, we've been in things like liquid credit where winding that business down.

No question about the fact that our collateral we should be able to move forward with that if there are others, who think they have claims on that collateral then that's a process for the court to figure out we feel really good about our position in that.

Speaker #5: Right? And so what I mean by that, Matt, is anything that's no longer that's not core when we're talking about the community bank self, itself to traditional community banking, I think you're not going to see expansion from us away from that.

And of course, we're going to work.

Aaron P. Graft: What I mean by that, Matt, is anything that's no longer, that's not core when we're talking about the community bank itself to traditional community banking, I think you're not going to see expansion from us away from that. You're going to see us retrench to that core as you see our transportation business continue to grow.

We're going to let that let that happen but.

The liquidation could start you know relatively soon and could extend on for a period of time I don't think we'll be in this credit a year from now, but it's hard to say anything for sure. When you were talking about a bankruptcy of this size.

Speaker #5: You're going to see us retrench to that core as you see our transportation business continue to grow.

Okay. Thank you guys.

Sure.

Speaker #8: Okay, appreciate that. And then on tricolor, it sounds like based off the letter you've worked to confirm the location of the collateral and feel good about that.

[Analyst 1]: Okay. Appreciate that. On Tricolor, it sounds like based off the letter, you work to confirm the location of the collateral and feel good about that. With the borrower in bankruptcy, what's the next data point you expect to hear on this topic? I appreciate it. This could drag on for a while. If the collateral is a depreciating asset, at what point do you look to monetize the collateral and start selling the inventory?

The next question is from Adam meet them meet yourself I think can make a question.

Hi, good morning.

Speaker #8: And with the borrower and bankruptcy, what's the next data point you expect to hear on this topic? I'm just trying to appreciate if this could drag on for a while and then if the collateral is a depreciating asset, at what point do you look to monetize the collateral and start selling the inventory?

Good morning, Adam.

Question on <unk>.

Maybe the medium to longer term competitive landscape now that you've proven the model and the ecosystem.

Where do you anticipate challenges from competition.

How would you compete with triumph has he brought me outside.

Speaker #5: Yeah, based on the bankruptcy timeline, we're going to know a lot more in three weeks. That's not to say we will necessarily be liquidating collateral that quickly.

Brad Voss: Yeah, based on the bankruptcy timeline, we're going to know a lot more in three weeks. That's not to say we will necessarily be liquidating collateral that quickly. That may take longer. There are different segments of the collateral, and this is important to know. There may be portions of the collateral that we're able to liquidate right away because there's no question about the fact that that's our collateral and we should be able to move forward with that. If there are others who think they have claims on that collateral, that's a process for the court to figure out. We feel really good about our position in that. Of course, we're going to let that happen. The liquidation could start relatively soon and could extend on for a period of time.

Yeah.

So if we think about the value chain audit payments liquidity solutions digital banking, plus an intelligence and some of those lines of business, we have almost no competitor.

Speaker #5: That may take longer, but there are different segments of the collateral, and this is important to know. There may be portions of the collateral that we're able to liquidate right away because there's no question about the fact that that's our collateral, and we should be able to move forward with that.

I mean, there's certain there is competition everywhere, but in other lines of business like intelligence, there's three main providers.

So look at it.

Speaker #5: If there are others who think they have claims on that collateral, then that's a process for the court to figure out. We feel really good about our position in that.

If you're me my linked then feed my Twitter feed is filled with freight tech.

Speaker #5: And of course, we're going to, you know, we're going to let that let that happen. But the liquidation could start, you know, relatively soon and could extend on for a period of time.

And I, it's like every week someone is coming across with this game changing announcement right. This new technology, that's going to disrupt the system that's desperately in need for disruption.

Speaker #5: I don't think we'll be in this credit a year from now, but it's hard to say anything for sure when you're talking about a bankruptcy of this size.

Brad Voss: I don't think we'll be in this credit a year from now, but it's hard to say anything for sure when you're talking about a bankruptcy of this size.

Yeah, what I've seen is change management is really hard you can build really cool technology are really cool feature set and you can tell a really cool anecdotal story looking at things in hindsight, but change managements hard when we and so if somebody were.

Speaker #8: Okay, thank you guys.

[Analyst 1]: Okay, thank you, guys.

Speaker #5: Sure.

Aaron P. Graft: Sure.

Speaker #3: The next question is from Adam Mead. Please unmute yourself and begin with your question.

Operator: The next question is from Adam Mead. Please unmute yourself and begin with your question.

Speaker #8: Hi, good morning.

[Analyst 2]: Good morning.

Wants to come after factoring well I mean, frankly that already happens Theres 400 factoring companies, we're the second largest light.

Speaker #5: Morning, Adam.

Aaron P. Graft: Morning, Adam.

Speaker #8: Question on maybe the medium to longer-term competitive landscape. Now that you've proven the model and the ecosystem, where do you anticipate challenges from competition and how would you compete with Triumph if you were on the other side?

[Analyst 2]: Question on maybe the medium to longer-term competitive landscape. Now that you've proven the model and the ecosystem, where do you anticipate challenges from competition, and how would you compete with Triumph if you were on the other side?

And you just got to figure out how to go to market and you got to compete with us on cost of funds and youre going to have to do more than just payday lending because that's not what we do right. We truly help truckers thrive and grow and have seen people start with one truck and have 100 trucks and it's an American success story. So do you want to compete with us there.

Speaker #5: Yeah, so if we think about the value chain, audit payments, liquidity solutions, digital banking plus, and intelligence, in some of those lines of business, we have almost no competitor.

Aaron P. Graft: Yeah. If we think about the value chain, audit payments, liquidity solutions, digital banking plus and intelligence, in some of those lines of business, we have almost no competitor. I mean, there's competition everywhere, but in other lines of business, like intelligence, there's three main providers. Look, if you're me, my LinkedIn feed, my Twitter feed is filled with freight tech. It's like every week someone is coming across with this game-changing announcement, right? This new technology that's going to disrupt a system that's desperately in need for disruption. What I've seen is change management is really hard. You can build really cool technology, a really cool feature set. You can tell a really cool anecdotal story looking at things in hindsight, but change management's hard. If somebody wants to come after factoring, frankly, that already happens. There's 400 factoring companies. We're the second largest.

I mean, I guess arguably straightforward youre going to need the balance sheet to do it.

Speaker #5: I mean, there's there's competition everywhere, but in other lines of business like intelligence, there's three main providers. So look, if you're me, my LinkedIn feed, my Twitter feed is filled with freight tech.

If you want to compete with us in the network where.

We've touched 47%.

Of all invoices in.

From a payments perspective, and 64% of all invoices and you you know from.

From a the depth of when you add both audit and payments together I mean, you're going to have to create an interlinked solution.

Speaker #5: And it's like every week someone is coming across with this game-changing announcement, right? This new technology that's going to disrupt the system that's desperately in need of disruption.

I guess the person who comes after us can do a way better than I've done right. It's taken six years and an amazing team to do this our compounded annual growth rate over six years is over 100%, but it has been extremely hard. So if you want to do that youre going to have to integrate you know, it's one thing again to create cool.

Speaker #5: And you know, what I've seen is change management is really hard. You can build really cool technology, a really cool feature set, and you can tell a really cool anecdotal story looking at things in hindsight.

Technology, it's a whole another thing to integrate into legacy technology systems, upon which a plethora of vendors use because nobody has a huge appetite right now to completely redo their tech stack. So again, it's changed management as much as technology innovation and then finally on intelligence I mean look there's a.

Speaker #5: But change management's hard. You know, when we and so if somebody wants to come after factoring, well, I mean, frankly, that already happens. There's 400 factoring companies.

Speaker #5: We're the second largest. Like, you just got to figure out how to go to market. You got to compete with us on cost of funds and you're going to have to do more than just payday lending because that's not what we do, right?

Aaron P. Graft: You just got to figure out how to go to market. You got to compete with us on cost of funds, and you're going to have to do more than just payday lending because that's not what we do. We truly help truckers thrive and grow and have seen people start with one truck and have 100 trucks, and it's an American success story. You want to compete with us there. That's, I mean, I guess arguably straightforward. You're going to need the balance sheet to do it. If you want to compete with us in the network, where we touched 47% of all invoices and from a payments perspective and 64% of all invoices, then from the depth of when you add both audit and payments together, you're going to have to create an interlinked solution.

Well known leader in that industry, and they're a great company.

Right and they've been in a market dominant position for a long period of time.

Speaker #5: We truly help truckers thrive and grow and have seen people start with one truck and have 100 trucks and it's an American success story.

Our secret sauce and intelligence if you want to beat US is you have to get more.

Speaker #5: So you want to compete with us there? That's, I mean, I guess arguably straightforward. You're going to need the balance sheet to do it.

True transactional data than we have.

And you can't I don't see how you get there at the scale, we have unless you have the payments network by because that automatically causes us to touch a significant portion of all transactions. So the veracity.

Speaker #5: If you want to compete with us in the network where you know we touched 47% of all invoices and from a payments perspective and 64% of all invoices, then you're, you know, from the depth of when you add both audit and payments together, I mean, you're going to have to create an inner link solution.

Of our data.

I would already put against anyone in the world unquestionably like it's there.

And the density of that data in both lanes and bye bye actual movement type its not just a a load I mean is it a hazmat load is it a team load is it a drop trailer load like there's there's so many nuances under the surface of these invoices that you need to know and so if you want to do that you got.

Speaker #5: I guess the person who comes after us can do it way better than I've done, right? It's taken six years and an amazing team to do this.

Aaron P. Graft: I guess the person who comes after us can do it way better than I've done. It's taken six years and an amazing team to do this. Our compounded annual growth rate over six years is over 100%, but it has been extremely hard. If you want to do that, you're going to have to integrate. It's one thing, again, to create cool technology. It's a whole nother thing to integrate into legacy technology systems upon which a plethora of vendors use because nobody has a huge appetite right now to completely redo their tech stack. Again, it's change management as much as technology innovation. Finally, on intelligence, there's a well-known leader in that industry, and they're a great company, right? They've been in a market-dominant position for a long period of time.

To find a way to get to the source of truth to a massive scale of data and then you have to build the artificial intelligence driven models that we've built.

That speak back to the broker and help brokers.

Manage their margin and that's what we're trying we're trying to help truckers strike brokers manage their margin the whole thing work more efficiently. So.

That's why you come at things from a value chain. Its all interconnected together in it and you can't really piecemeal into what we do because.

Aaron P. Graft: Our secret sauce in intelligence, if you want to beat us, is you have to get more true transactional data than we have. You can't. I don't see how you get there at the scale we have unless you have the payments network, right? That automatically causes us to touch a significant portion of all transactions. The veracity of our data, I would already put against anyone in the world. Unquestionably, it's there. The density of that data in both lanes and by actual movement type, it's not just a load. Is it a hazmat load? Is it a team load? Is it a drop trailer load? There are so many nuances under the surface of these invoices that you need to know. If you want to do that, you have to find a way to get to the source of truth to a massive scale of data.

If you look at that chart, we put in the letter we took each customer segment and we showed you the things that those customers consume from US you want to go to audit for broker. That's great can you do payments can you do intelligence can you do liquidity solutions, if they want supply chain finance.

So.

We're not going to sit on our heels, we're going to continue innovating.

We are going to continue to manage.

Our business in a way that delivers value to our customers because you treat people. The way you would want to be treated that's how you create long term success.

And then we benefit from six years of really hard work of building this network and integrating with almost every legacy provider out there. So that's how we view our market position and we.

We got we still got work to do.

Great. Thank you on the capital allocation side, how do you think about I guess paying down some of the expensive sub debt or even the preferreds.

Aaron P. Graft: You have to build the artificial intelligence-driven models that we've built that speak back to the broker and help brokers manage their margin. That's what we're trying to do. We're trying to help truckers thrive, brokers manage their margin, the whole thing work more efficiently. That's why you come at things from a value chain. It's all interconnected together. You can't really piecemeal into what we do because if you look at that chart we put in the letter, we took each customer segment and we showed you the things that those customers consume from us. You want to go do audit for broker? That's great. Can you do payments? Can you do intelligence? Can you do liquidity solutions if they want supply chain finance? We're not going to sit on our heels. We're going to continue innovating.

Mark versus share repurchases.

If you think about the way that our balance sheet is structured from a you know from our various pieces of capital.

We're pretty well in balance as we sit today with the with tier one and two.

Capital from a regulatory capital perspective, so I don't think that you're going to see us.

Do things like retire sub debt or.

That's why you come at things from a value chain. It's all interconnected together, and you can't really piecemeal into what we do because.

On the or the preferred stock in the near term I think we're pretty well in balance.

Okay. Just finally on the factoring side in your letter you stated that the instant decision.

For owner operators was 58% versus 15 for the larger fleet I guess intuitively I would have thought it would be the reverse them. Maybe you can help me understand the dynamics there.

If you look at that chart, we put in the letter, we took each customer segment and we showed you the things that those customers consume from us. You want to go do audit for broker. That's great. Can you do payments? Can you do intelligence? Can you do liquidity Solutions if they want supply chain? Finance?

so,

Aaron P. Graft: We are going to continue to manage our business in a way that delivers value to our customers because you treat people the way you would want to be treated. That's how you create long-term success. We benefit from six years of really hard work of building this network and integrating with almost every legacy provider out there. That's how we view our market position. We still got work to do.

We're not going to sit on our heels. We're going to continue innovating.

Um, we are going to continue to manage.

Adam I can I can address that when you look at how those different segments present information to us it's done completely different so the individual owner operator, some incident at an invoice by invoice basis through our portal when you take into consideration the large fleets. They do it in large batches of data and images and.

Our business operates in a way that delivers value to our customers because we treat people the way we would want to be treated. That's how you create long-term success.

So it's it's natural that the.

And then, we benefit from 6 years of really hard work of building this network and integrating with almost every Legacy provider out there. So, that's how we view our Market position. And

The large fleet submitting a batch is going to is a different model than the owner operator model or the small fleet is a very small fleet model and so ingesting that is completely different our teams are working through it and we believe that we're going to bring that number up but currently.

We got we still got work to do.

[Analyst 2]: Great. Thank you. On the capital allocation side, how do you think about, I guess, paying down the expense of sub debt or even the preferred stock versus share repurchases?

Great. Thank you on the capital allocation side, how do you think about I guess paying down to the expensive subject or even the preferred

Stock versus share repurchases.

[Analyst 3]: If you think about the way that our balance sheet is structured from various pieces of capital, we're pretty well in balance as we sit today with tier one and two capital from a regulatory capital perspective. I don't think that you're going to see us do things like retire sub debt or the preferred stock in the near term. I think we're pretty well in balance.

It is at 15% a good number it's just not where we're going to be that's not where our target is long term. The true fact is that the people that utilize instant decision. The most are that there is that small fleet and when you look at the small fleet fleet and their need for capital and our ability to provide that 24 seven using our load pay product that is really where we're the <unk>.

If you think about,

The way that our balance sheet is, is structured from a, you know, from a various pieces of of capital.

Rubber rubber meets the road for us so hopefully that answers your question.

It doesn't I really appreciate it thanks for your time.

Youre welcome.

We're pretty well in balance as we sit today with uh, you know, with Tier 1 and 2, uh, capital from a regulatory, Capital perspective. So I don't think that you're going to see us, uh, do things like retire, sub debt, or, um, or or the preferred stock, and, and the near-term. I think we're pretty well in balance.

[Analyst 2]: Okay. Just finally, on the factoring side, in your letter, you stated that the instant decisions for owner-operators was 58% versus 15% for the larger fleet. I guess intuitively, I would have thought it would be the reverse. Maybe you can help me understand the dynamics there.

Just a reminder, if you would like to ask a question. Please use the raise hand icon, which can be found at the bottom of the screen. When you cool down piece of meat Your line and ask a question.

There are no more questions at this time I would now like to turn the call back to Alan for closing remarks.

Okay, just just finally on on the factoring side and your letter, you stated that the instant decisions for owner operators was 58% versus 15 for the larger Fleet. I guess intuitively, I would have thought it would be the reverse so maybe you can help me understand the Dynamics there.

[Analyst 3]: Yeah, Adam, I can address that. When you look at how those different segments present information to us, it's done completely different. The individual owner-operator submits it at an invoice-by-invoice basis through our portal. When you take into consideration the large fleets, they do it in large batches of data and images. It is natural that the large fleet submitting a batch is going to take a different model than the owner-operator model or the very small fleet model. Ingesting that is completely different. Our teams are working through it, and we believe that we're going to bring that number up. Currently, it's 15%. It's a good number. It's just not where we're going to be. That's not where our target is long term. The true fact is that the people that utilize instant decision the most are that small fleet.

Thank you for joining us. This morning, we look forward to seeing you in about three months take care.

Yeah, Adam. I can I can address that, uh, when you look at how those different segments, present information to us, it's done completely different. So the individual owner operator submits it at an invoice by invoice basis through our portal. When you take into consideration the large fleets, they do it in in large batches of data and images. And so it's it's natural that

[Analyst 3]: When you look at the small fleet and their need for capital and our ability to provide that 24/7 using our LoadPay product, that is really where the rubber meets the road for us. Hopefully that answers your question.

[Analyst 2]: It does. I really appreciate it. Thanks for your time.

Up. But currently um it it's 15% is a good number. It's just not where we're going to be. That's not where our Target is long term. The true fact is that the, the people that utilize instant decision, the most are that is that small Fleet, and when you look at the small Fleet and their need for Capital, and our ability to provide that 24/7 using our load pay product. That is really where, um, you know, where the rubber rubber meets the road for us. So hopefully that answers your question.

[Analyst 3]: You're welcome.

It does. I really appreciate it. Thanks for your time.

You're welcome.

Operator: Just a reminder, if you would like to ask a question, please use the raise hand icon, which can be found at the bottom of your screen. When you are called on, please unmute your line and ask your question. There are no more questions at this time. I would now like to turn the call back to Aaron P. Graft for closing remarks.

Just a reminder: if you would like to ask a question, please use the raise hand icon, which can be found at the bottom of your screen. When you are called on, please unmute your line and ask your question.

There are no more questions at this time. I will now like to turn the call back to Aaron for closing remarks.

Aaron P. Graft: Thank you for joining us this morning. We look forward to seeing you in about three months. Take care.

Thank you for joining us this morning. We look forward to seeing you in about 3 months, take care.