Q3 2025 Groupon Inc Earnings Call

Speaker #1: Hello and welcome to Groupon's Third Quarter 2020 Financial Results conference call . On the call today are Chief Executive Officer Duchamp thankful and Chief Financial Officer Rana Kashyap .

Speaker #1: At this time , all participants are in a listen only mode . Today's call will be a question and answer session only . The company has posted earnings materials , including earnings commentary on the company's investor relations website at investor coupon.com .

Speaker #1: Today's conference call is being recorded . Before we begin , Groupon would like to remind listeners that the following discussion and responses to questions reflect management's views as of today , November 7th , 2025 , only , and will include forward looking statements .

Speaker #1: Actual results may differ materially from those expressed or implied in the company's forward looking statements . Groupon undertakes no obligation to update these forward looking statements as a result of new information or future events .

Speaker #1: Additional information about risks and other factors that could potentially impact the company's financial results is included in its earnings press release and its filings with the SEC, including its quarterly report on Form 10-Q.

Speaker #1: We encourage investors to use Groupon's Investor relations website and investor coupon.com as a way of easily finding information about the company . Groupon promptly makes available on this website the reports that the company files or furnishes with the SEC .

Speaker #1: Corporate governance information and select press releases and social media postings in the call today . The company will also discuss the following non-GAAP financial measures .

Speaker #1: Adjusted EBITDA and free cash flow in Groupon's press release and their filings with the SEC, each of which is posted on its Investor Relations website.

Speaker #1: You will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable measures under U.S. GAAP. And with that, I'd like to turn it over to Doosan to make a few opening remarks before we jump into Q&A.

Speaker #1: Tucson .

Speaker #2: Hello. And thanks for joining us for our first quarter 2020 earnings call. It's great to be with all of you today.

Speaker #2: Yesterday , after the market closed . We released our earnings and posted our earnings commentary on our Investor Relations website . Today , I will make brief opening remarks and then open up the call for your questions .

Speaker #2: For more details on our quarterly performance , I encourage you to read our full earnings commentary . Press release , and thank you .

Speaker #2: I am pleased to report another strong quarter that demonstrates continued momentum in our transformation journey . Global billings grew 11% year over year , making our second straight quarter of double digit growth .

Speaker #2: Our core local category continues to be the engine driving this growth, with North America local up 18% and international local, excluding Gift Cloud, up 15% year-over-year.

Speaker #2: Combined , our core local category now represents 89% of billings and grew 18% , reinforcing the scalability of our hyperlocal marketplace playbook . We delivered adjusted EBITDA of 18 million ahead of our expectations and our trailing 12 month free cash flow reached 60 million .

Speaker #2: This demonstrates our ability to generate strong profitability and cash flow while continuing to invest strategically to accelerate our deployment. On the demand side, we feel the compounding benefits of systematic improvements across our marketing engine.

Speaker #2: We drove healthy growth in our paid performance channels , supported by a modest increase in marketing spend and improving ROI . We added nearly 300 net new active customers quarter over quarter and 1 million plus over the last four quarters .

Speaker #2: Excluding Italy , a strong signal for the overall health of our marketplace . On the supply side , our hyper local focus is working .

Speaker #2: All four major international markets delivered a second consecutive quarter of double digit growth in North America . Our focused , hyper local city strategy is paying off .

Speaker #2: Chicago is now our biggest city and growing at nearly double the rate of North America . Local overall . Things to do had an exceptional summer season with its seventh consecutive quarters of strong double digit growth .

Speaker #2: On the technology front, our platform velocity is accelerating meaningfully. Deal page conversion rates improved 13% year over year in North America, and we are seeing faster development cycles and higher quality releases as our modernization efforts translate into tangible business capabilities.

Speaker #2: Looking ahead , our strategic priorities remain clear . Accelerate topline growth toward our goal of over 20% billings growth . While generating strong adjusted EBITDA and free cash flow .

Speaker #2: The momentum we are seeing across customer growth, category performance, and platform capability gives me confidence that we are building the foundation to become the trusted destination for quality, local experiences at unbeatable value.

Speaker #2: We are still in the early innings of a large opportunity to build a hyper local experience marketplace that combines trust , curation , quality and unbeatable value with the network effects and unit economics of modern marketplaces .

Speaker #2: I would like to thank our team . This is not an easy journey and their continued commitment to our mission and to our transformation has been really great .

Speaker #2: With that , let's open the call for questions .

Speaker #1: Thanks , Jason . Our first question comes from Bobby Brooks from Northland Capital . Bobby , you may now unmute your line .

Speaker #3: Hey , good morning guys . Thank you for taking my question . Something that really caught my attention was the commentary that after allocating the focus sales resources to Chicago at the start of the year , it's now growing double the rate of North American local .

Speaker #3: So just a few questions on that. But first, is it right for me to think that Chicago local billings were growing in the high 30s?

Speaker #3: And a follow-up, could you just discuss a bit more in detail what those focused sales resources look like? And the notable actions they took?

Speaker #2: Yeah . Thanks for the question . I can take it . So our Chicago efforts started already last year , where we reallocated disproportionately higher share of our sales resources and sales team to Chicago .

Speaker #2: And at the same time , as we are developing our that's how we call it marketplace understanding . And deal books and curation for sales , which means that we are more prescriptive in terms of what we are asking our to come with .

Speaker #2: Chicago is always the first in the pipeline , so we are really focusing on it so that we understand the inventory , we understand what's missing , we understand how our customers are behaving in Chicago .

Speaker #2: We understand what they are searching on Groupon , and then we are asking ourselves to come specifically and close the gap . And obviously it takes several quarters before the results are visible in a numbers .

Speaker #2: But with the compounding effect , we need a very strong , very strong impact on Chicago results . And obviously this is a big learning for for us , it's not really a surprise result .

Speaker #2: We were expecting that this will come . So we are expanding our focus on more cities , which we already did two two quarters ago .

Speaker #2: And we are also expanding our marketplace understanding across the board so that this becomes the new golden standard for all sales processes within Groupon.

Speaker #3: Got it . That's super helpful . Color . And then so it seems like this is a play playbook that you're already already in the process of expanding to other metros .

Speaker #3: I guess just for like context , you mentioned how the you initially put those sales increase sales resources in Chicago last year was .

Speaker #3: So is it is it like maybe was that like four quarters ago ? Five quarters ? I'm just trying to get a sense of then maybe when we see the impact of those other metros that now you're using that playbook with start to kind of flow through results , because I get that it is a it's a lag , lagged effect .

Speaker #2: Yeah . We are iterating the process . What you can think about it that we started approximately four quarters ago with all new metros .

Speaker #2: We would like to see results faster because we have learnings . And it was also a process where we were improving pretty much every every quarter and changing the and fine tuning the approach .

Speaker #2: So it should be faster with other metros . .

Speaker #3: Got it . That makes sense . And then one more for me is just , you know , clearly got the sense of your guys's focus of making the customer journey kind of match customer in the prepared remarks last night , if you guys use the example of someone wanting to take their kids to a waterpark , is going to be different than someone looking for an oil change .

Speaker #3: And so . So I was just curious , like how how do how how do you plan on having Groupon ? Kind of provide a different customer journey ?

Speaker #3: And I'm just curious kind of what that different customer journey would look like .

Speaker #2: So we have . I would split it into two parts . One is the mindset shift , which was happening in Groupon in the last 6 to 12 months , because in the past we were looking on the marketplace as one product , running plenty of tests across the board , and then quite often being surprised that we don't see results .

Speaker #2: Now , especially in the product department . With new leadership , we changed the approach and we are looking really on the results and test per category .

Speaker #2: So for example , we have our new map feature , but simply the map is relevant only some categories and completely irrelevant in some other categories .

Speaker #2: In the past , if we would release new app , we would say it's not bringing the results as expected . So let's forget it and let's jump to something else , because the overall impact would be probably zero or around zero .

Speaker #2: Now we can see that, for example, when you are looking for an oil change, the map is very relevant, and we can show it.

Speaker #2: And there are some other categories where actually we should not be showing the map . So we have this very category specific approach in product development , which is changing the customer journeys across the board .

Speaker #2: And then there is second very important technological enablement projects for us . This is CDP or let's say CRM for customers . We are building .

Speaker #2: And we already have a live pilot in in UK , a new technology which will be able to customize the messaging because the old Groupon tech stack is very limiting in terms of how we can target customers , how we can do personalization .

Speaker #2: So this is something which we are changing, and we want to be pretty much optimizing based on the behavior of every single customer on the website.

Speaker #2: And every user journey will be pretty much fitting . The profile of that user . When we were doing some internal demos and showing it , it should end up with Groupon looking completely different for for each customer , simply based on the on the profile .

Speaker #3: Super helpful color and great, great quarter. I'll return to the Q.

Speaker #2: Thank you Bob .

Speaker #1: Our next question comes from Eric Sheridan from Goldman Sachs . Eric , you can now unmute your line .

Speaker #4: Thanks . Thanks so much for the questions . Maybe two , if I could , building on parts of the last answer , when you think about purchase frequency , would you call out the difference in behavior between newer cohorts versus older cohorts ?

Speaker #4: Can you go a little bit deeper into some of the initiatives aimed at improving frequency among the newer cohorts against the type of user growth you've seen over the last 12 months?

Speaker #4: That'd be number one. And then number two, when you think about the next 12 to 18 months and the intensity around marketing, how do you think about striking a balance between more direct response marketing aimed at either user acquisition or behavior against scaling some of the brand advertising?

Speaker #4: You talked about in the shareholder materials just would better understand the combined effort on marketing intensity over the next 12 to 18 months .

Speaker #4: Thanks so much .

Speaker #2: Thank you very much for for both questions , Eric . We're kind of interconnected and I will start with purchase frequency and will be building on the on the last answer we were talking about purchase frequency as a focus for the company .

Speaker #2: Probably last 3 or 4 quarters , yet we are reporting that we don't see material improvements internally . We see improvements in the repurchase rate of the cohort of new customers .

Speaker #2: When we compare our customers , which we were acquiring last year , versus customers , which we acquire right now , and look at which what percentage of them is doing the second purchase , typically within 30 days from the first one we see improvement .

Speaker #2: So we know that the activities and plans we have are directionally right. What's holding us back is really the limitation of our platform.

Speaker #2: And that's why I was talking about the CDP project implementation , which we have up and up and running in , in UK , and we will be expanding it .

Speaker #2: Very soon to , to the mainly to North America , but pretty much the rest of the group , which would really allow us to , to design the specific journeys based on what customer did , because we see that there are simply category specific rules .

Speaker #2: Our customers are buying the stuff, which can be predicted, meaning that if you buy an exchange. Now, we know that most likely you will need it in like the next nine months and similar.

Speaker #2: Right now we don't have the targeting capability . So so this technology enabler is I would say , last major big missing piece in the marketing stack , which we have so that we can accelerate on a on a purchase frequency .

Speaker #2: And the the second part on the brand advertising general . It's very hard to predict how exactly we will be running it , but we simply have based on our experience , we know that the brand is part of the marketing mix and especially nowadays , when the world is moving towards like social media influencers , this is a channel which is which can drive business significantly .

Speaker #2: We were piloting and we have some some great influencers promoting Groupon Inc . I would say last 4 or 5 quarters and we are successfully growing it , but now we are adding into it like the video advertising , YouTube and other channels where we will be pushing brand .

Speaker #2: It's very hard to say how it will be impacting ROI overall. We don't plan to change our strategy that we want to grow.

Speaker #2: Contribution profit in the company . At the same time , if we see that the brand is delivering more than we were expecting , we were , we would be adjusting the budgets between between performance and brand advertising .

Speaker #2: But we will come back with more data in next earnings call because our brand campaign starts in two weeks .

Speaker #4: Great . Thank .

Speaker #5: You .

Speaker #1: Our next question comes from Bobby Brooks from Northland Capital Partners . Bobby , you can unmute your line .

Speaker #3: Hey , thanks . I just wanted to circle back on , you know , it was great to hear the shift in tone on how you're kind of looking at the buyback comparative from the prepared remarks last night , comparatively from the second quarter call .

Speaker #3: So I was just curious if you could maybe give us a look or a bit more color on the factors . You guys will be considering when making the decision of when to be stepping into buyback , or just any more general color on how to be thinking about it or modeling it going forward .

Speaker #3: Thank you .

Speaker #6: Yeah . Bobby . Hey , this is Ron . I can take this so I think you you rightfully noticed our commentary in the script , which , you know , I think you commented on was a little was different than what we said in the past .

Speaker #6: You know , what we said in the past was fairly noncommittal . And and I think this what we've said here is we expect to be opportunistic .

Speaker #6: And so we are evaluating and the factors to consider here . You asked about we were looking at our cash generation , our investment priorities , what the market conditions are like .

Speaker #6: And of course , the trading prices of our shares . So we will be opportunistic on the buyback and those are the factors that that we'll be considering in evaluating how to allocate our capital with respect to this , this channel .

Speaker #3: Got it . That's helpful . And then I just want to follow up , Dushan . I think the with the customer frequency of the new cohort , I just want to make sure I understood it right .

Speaker #3: You you mentioned that the the new cohorts added in 2024 or I should say the new cohorts added in 2025 . Their purchase frequency is higher than the cohorts added in 2024 , albeit that 2025 new new customers is still below the legacy customers .

Speaker #3: And I understand that correctly.

Speaker #2: Under operational level, so that we can drive these projects in a very agile way, we are pretty much following the theory of purchase rate in the next 30 days, meaning the new customer makes an order.

Speaker #2: We are looking . What percentage of these customers is doing the second order within the 30 day interval ? Because it's it's a leading indicator for the purchase frequency , and we can see based on the changes and projects which we started already in Q4 last year , that that is that is improvement in this group .

Speaker #2: So this makes me strongly convinced that , like the the projects which we have in place are the right ones , that they will be working .

Speaker #2: It's it's by adding right inventory . We were talking about the deals , but it's also about the communication , at the right moment .

Speaker #2: Right time, which is typically when the customer is redeeming and using the service, which typically means a very good experience. With Groupon, we are more open to the next purchase.

Speaker #2: So this is this is confirmed to ramp it up . And so that it's converted into overall user base . The simply need to also step up with better technology so that we can target and personalize in more advanced , advanced way .

Speaker #3: Got it . I'll return the Q thank you .

Speaker #5: Thank you .

Speaker #1: Thanks , Bobby . Our next question comes from Sean McGowan from Roth Capital Partners . Sean , you can now unmute your line .

Speaker #5: Thank you. Kind of following up on some of the things you've talked about there, have you? You've been now doing this for quite a while.

Speaker #5: The reminding consumers of , of expiring groupons . And , you know , encouraging them to redeem them . Can you talk a little bit about what impact you've noticed on their purchase patterns ?

Speaker #5: How likely they are to to , you know , purchase an additional Groupon ?

Speaker #2: I thank you , Sean , for the question . I am not able to share the exact numbers , but our analysis are showing that vendor customer redeems .

Speaker #2: We simply have a much higher rate of of the of the . Second purchase , and this is a project which we were talking about since since last year .

Speaker #2: It takes a little bit more time than what we were expecting because of the way some Groupons are redeemed. For some merchants, we don't even have a redemption signal.

Speaker #2: So we have to do plenty of background work to improve the system and collect more, more inputs and signals from our merchant partners.

Speaker #2: But this is one of the like the priority projects we will be also improving and expanding our reviews section , which is very highly related to to the overall overall topic .

Speaker #2: And we will expect that it will translate into repurchase rate overall for all . Groupon customers .

Speaker #5: Okay . Thank you . And Rana , a quick kind of housekeeping question . I think you mentioned in the prepared remarks that that X gift cloud International billings were up 15% .

Speaker #5: Can you translate that into what the revenue growth would have been ? X Gift Cloud .

Speaker #7: So X gift ground our revenue growth in Italy .

Speaker #6: X gift card in X and X are growth in Q2 was up 7.6 . So I think about 8% .

Speaker #5: Okay . Thank you very much . Then back to you just on the quite a bit in the prepared remarks about AI , can you give a little bit more color on what some of the the benefits you're expecting to see from greater use of AI ?

Speaker #2: So there will be and there are benefits both on the like how we are running the company , but at the same time , we see opportunities with with customers .

Speaker #2: So I can start with like , let's call it as G&A opportunities . AI is and will be increasingly more one of the factors which will be improving conversion of our sales team .

Speaker #2: We are doubling down and expanding our lead generation capabilities . We have the system now , which is connected with our I talk about it as marketplace understanding so that we are feeding our engine with information , which businesses , which deals we need , in what area .

Speaker #2: So we will be sending to our sales team better quality leads , which when will be converted , will generate higher revenue versus just some leads in general , which they had in the past .

Speaker #2: We we have AI included in the I call it warm up communication with merchants to present the Groupon and overall we are adding AI tools to the to the wholesales process .

Speaker #2: For example , we were talking about that AI , AI deal creation where we see that when we can present merchants during the sales call , how the deal will be looking on Groupon .

Speaker #2: It's not only speeds up the whole process , but it's also increasing conversion . We already have AI use in supply monitoring where AI is giving a deal insights and like guiding sales , what should be changed on the deal to improve it and generate more for the merchant and more sales for for group one and for for customers .

Speaker #2: Obviously engineering is pretty much everywhere . Higher efficiency , higher quality of outputs , finance also higher efficiency and marketing is scale and conversions like going forward .

Speaker #2: I expect that we will be able to drive growth of performance , marketing and social and influencer marketing the same or similar theme .

Speaker #2: And recently also we introduced the chatbot for our customer service , where we expect that until now , the chatbot was or the customer service of group one was more really like a service .

Speaker #2: But going forward , we want to look at customer service as a advertising marketing channel because it's a touch point with customers , and we already have AI chatbot , which is handling the initial part of the communication .

Speaker #2: And then advanced system where our agents are pretty much guiding AI , how we should treat the the conversation with customer and taking over just part of the communication .

Speaker #2: With heavy help of AI . So this is on a side and then on the customer . Customer side . I expect that and it will be slower than everyone .

Speaker #2: Probably predicts . Now . Like always with new technologies that there will be change in behavior , how customers are looking for , for services .

Speaker #2: So we are closely monitoring and working with partners and with our teams how to be ready for AI apps , how to have the website easy to read and communicate with , with AI engines so that they can find it via analyzing what are the really key words which are driving the AI traffic so that we can provide better , better results like going , going forward .

Speaker #2: And again , it will be slower than everyone expect . The we believe that people will change the way how they are looking for for stuff , and it will be more conversational and Groupon will be part of it .

Speaker #2: Ultimately, I see Groupon as a kind of gateway for small businesses because it's very hard to expect that all small businesses, with quite a tough time just to run the business, will be ready to have the solution ready.

Speaker #2: Working with all the key players we won't be ultimately , the platform which will be bringing all local merchants and small businesses to to AI world .

Speaker #5: Thank you. Very helpful. Thank you.

Speaker #1: Thanks , Sean . We'll now pose written questions to management that came in through our Investor Relations press line . Investors who are live on the line .

Speaker #1: If you have follow ups , please raise your hand and we'll head back to you . Our first written question is in regards to marketing efficiency , marketing spend rose 14% year over year to 37% of gross profit .

Speaker #1: As you leaned into acquisition , how are you measuring marketing ROI across channels and what early learnings are emerging from your new brand campaign in key markets like New York and Chicago ?

Speaker #2: I can I can take that question . So first brand campaign is starting in next two weeks . So we don't have a lot of learnings from our own .

Speaker #2: Obviously , we were doing the homework and we were looking on how other companies were running brand campaigns to to take the learnings .

Speaker #2: So we have positive expectations of of the outcome and in terms of performance of our marketing channels , based on the numbers which we were reporting , you can see that our marketing channels and paid marketing channels are performing very , very well .

Speaker #2: We have very good ROI . We are not changing our ROI goal of like 100% return within the seven day window . For all our market performance , marketing budget , and we with this setup , although based on the results which .

Speaker #2: Google and Meta are are posting , you see that they are able to monetize better their traffic . We are still able to to grow and improve the marketing with the exactly same ROI , which I consider as a great result .

Speaker #2: And based on the additional AI opportunities , I believe we still have a way to go . We still can grow the video part , the social part of of the marketing .

Speaker #2: So I believe that part of our future growth will be coming from from this area and maybe one , one additional comment on this at the same time , we see a shift of behavior of customers .

Speaker #2: We see that the AI pieces mainly by by Google , are simply decreasing the traffic coming from SEO . At the same time , we see higher conversion .

Speaker #2: So SEO overall for everyone , it's not just a group on specific topic . It's definitely kind of headwind . But at the same time we see that there are opportunities with conversion and opportunities with AI , which will bounce it .

Speaker #1: Thank you . Duchamp . Our next written question is in regards to platform modernization . Your new app remains at roughly 3% of traffic , with plans for a full North American cutover by early Q1 2026 .

Speaker #1: What KPIs are you watching to gauge readiness for the full migration and what incremental uplift and conversion or engagement have you seen from early adopters ?

Speaker #2: I'm happy to report that in recent weeks , we see quite major improvements , and that's why we are more optimistic with with the rollout of the of the platform , the biggest learning and takeaway which we have from the app is that new mobile next app users have 10 to 20% higher engagement , which means that because app is easy to use , they are simply coming back to the application , relaunching it , looking for .

Speaker #2: Available on Groupon Inc more than customers using the legacy application at the same time , it's not converted yet into into conversion . The monetization is pretty much on par .

Speaker #2: That's why we we are just decided that we will be ramping up the distribution for new users already . Now in Q4 , and then we will really accelerate it in in early Q1 because we feel much more confident about the app performance right now and the second part to this question is related again to the CDP or CRM platform , which would allow us to deliver personalized messaging because this is a tool .

Speaker #2: How to improve experience for customers , deliver them the push notifications and in-app messages , which will be more relevant . And we see this as an opportunity for us for next year .

Speaker #1: Thanks , Dushan . We have a follow up question from Sean from Roth Capital . Sean , you can unmute your line .

Speaker #5: Thank you . Yeah , I noticed that the last quarter and this quarter as well , travel seems to be doing better . So can you talk about some of the things that you're doing in travel that seem to be working ?

Speaker #2: Do you want to take that question , or should I ?

Speaker #5: Yeah .

Speaker #2: I can take it . Yeah .

Speaker #6: So so Sean , you correctly noted our travel business has been doing well . You know , our travel business in is still relatively small relative to the market opportunity .

Speaker #6: And our business , we have had success this summer working with several large enterprise brands in travel that that really fit with our proposition .

Speaker #6: And so what we've been doing there , you know , these are actually existing customers that we're growing faster with and what we've been working closely with them to understand their needs .

Speaker #6: And designing and understanding what our customer needs are and introducing more room nights better , better deals . And that's that's been a really successful these properties also overlaid with many of the outdoor activities for the summer .

Speaker #6: And so that that also , you know , lets say lines up well with our platform offering things to do experiences . And so that's really what drove travel this summer .

Speaker #5: Great . Thanks , Robert .

Speaker #1: And another follow up from Bobby from Northland . Bobby , you can now unmute your line .

Speaker #3: Hey , one more for me . So obviously a lot of a lot of discussion on the AI initiatives and kind of where you see the opportunity there .

Speaker #3: But I guess I was just curious , like from from the customer facing perspective , you know , is there anything as folks are checking out the website and looking for deals in the coming months ?

Speaker #3: Are any of these kind of AI initiatives going to be able to be directly seen when browsing inventory on the website , or maybe through the app , whether it's the legacy or the new rollout ?

Speaker #3: One ? Just curious to hear that color .

Speaker #2: So one internal project , which we are running in this area is also really updated version of search and Relevance platform for whole Groupon Inc , which would allow us to unlock better opportunities , more personalization in general , in line with what I was talking about with the CRM project , also , and the plan is that when we will have this platform released , we will be adding the AI search .

Speaker #2: Also on Groupon platform until until then , we release the functionality , which is not like pure AI , but which is like helping customers when they are typing the search query that we are adding .

Speaker #2: The better suggestions we are adding the related stuff based on the previous results . This is what we are already piloting on that .

Speaker #2: On that new technology . But we expect much more when when we will have it . And at the same time we have a very heavy stream .

Speaker #2: When we are making sure that our website is able to talk with all AI platforms because like our observation right now , is that not many customers are really using the apps from in open and other platforms .

Speaker #2: It's more still the organic language . Help me find Groupon deals in New York , for example , the query , which is quite often used in OpenAI or find Me the deals for for , I don't know , for the bowling during the weekend .

Speaker #2: And we want to make sure that our website is providing the feeds for for AI agents so that it's very easy to incorporate our results in that natural language flow .

Speaker #2: There . But obviously we are and will be ready also for for the . App world . When it will , we will see some better numbers coming .

Speaker #2: We have projects which are covering it so that we are ready , but from like like impact perspective . I believe that the bigger value right now is about the compatibility of the website to talk with AI engines so that it's easy for them to show our results .

Speaker #3: Makes a lot of sense . Appreciate the color .

Speaker #1: Thanks , Bobby . We have one final written question . Can you give an update on the Italian tax settlement ?

Speaker #6: Yeah , I can take that one . And there are more details on this in our Q but the headline is we continue to see progress there .

Speaker #6: Our Italian entity received an update that the proposed settlement we had has received several approvals. So, that's good progress. Now, it's waiting to get a revised assessment that reflects the terms of the agreement.

Speaker #6: We also have an upcoming court date in December , and we are expecting to jointly seek judicial approval . So this is progress .

Speaker #6: We're hoping to resolve this ongoing matter and put it behind us . You know , at the same time , it's been fluid situation .

Speaker #6: And so , you know , we will continue to update you as we get more information . Yeah . And maybe as a reminder , the rating amount that that would be owed under the terms of this agreement is approximately 50 million , $15 million , one five .

Speaker #6: So that's the latest update we have on Italy . Thank you .

Speaker #1: Thank you , thank you . Doosan . There are no further live or written questions . So this concludes our call for today .