Q2 2026 Custom Truck One Source Inc Earnings Call
Speaker #1: Ladies and gentlemen, thank you for standing by, and welcome to Custom Truck One Sources, second quarter 2026, earnings conference call. Please note this conference call is being recorded.
Speaker #1: I would now like to hand the conference call over to your host today, Ryan Perman. Vice President of Investor Relations, for Custom Truck One Source.
Speaker #2: Thank you, operator, and good morning. Before we begin, we would like to remind you that management's commentary and responses to questions on today's call may include forward-looking statements which, by their nature, are uncertain and outside of the company's control.
Speaker #2: Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the risk factor section of the company's filings with the SEC.
Speaker #2: Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during the call in the press release we issued yesterday after the market close.
Speaker #2: That press release and our second-quarter investor presentation are posted on the Investor Relations section of our website. Yesterday afternoon, we also filed our second quarter 2026 10-Q with the SEC.
Speaker #2: Today's discussion of our results of operations for Custom Truck One Source, Inc., or Custom Truck, is presented on a historical basis as of or for the 3-month end of June 30, 2026, and prior periods.
Speaker #2: Also, a reminder that beginning last quarter, our financial reporting now reflects our two new reportable segments: specialty equipment rentals, or SER, and specialty truck equipment and manufacturing, or STEM.
Speaker #2: While our 2026 results in our earnings press release and SEC filing reflect the application of inter-segment pricing and margins, as per accounting requirements for inter-segment sales, the segment results for 2025 reflect the inter-segment sales with no margin as no inter-segment agreement was in place in the period.
Speaker #2: For an illustrative comparison of what the 2025 results would have been had inter-segment sales been reflected with the appropriate gross margin and had other internal accounting policies been in place at the time, please see the appendix of the Q2 investor presentation posted on our Investor Relations website.
Speaker #2: Joining me today are Ryan McMonagle, CEO, and Chris Eperjesy, CFO. I will now turn the call over to Ryan.
Speaker #3: Thanks, Brian, and good morning, everyone. We delivered record revenue in the second quarter, capping a strong first half. Driven by continued strong momentum in our core end markets and outstanding execution by our team, in the second quarter, we generated revenue of $563 million and adjusted EBITDA of $117 million.
Speaker #3: Up 10% and 25% year over year, respectively. Our specialty equipment rental segment continues to deliver consistently strong performance. Driven by sustained and growing demand and the transmission and distribution, or T&D, markets, our rental fleet averaged $81.6% utilization during the quarter, up 400 basis points from Q2 of last year.
Speaker #3: This was supported by continued robust levels of OEC on rent, which averaged 1.37 billion dollars in Q2, up 13% year over year. So far in Q3, both measures have continued to show year-over-year growth.
Speaker #3: We believe that we are in the early stages of what could be a once-in-a-generation transmission demand supercycle. We ended the quarter with total OEC of 1.68 billion dollars, the highest quarter-end level in our history, which will support our expected continued growth in SER revenues in the second half of this year.
Speaker #3: Also, our average fleet age is just over 3 years old, which we believe is one of the youngest fleets in the industry in positions us well to support our customers' needs across the country.
Speaker #3: Our trucks and equipment continue to power the people who strengthen and build critical infrastructure in the US and Canada. The market has been focused on the durability of demand in T&D, and our ability to convert improving rental KPIs into earnings and cash flow.
Speaker #3: And we believe our trending results over recent quarters speak directly to that. Bidding activity and ongoing conversations with our customers lead us to believe that these conditions will persist through the remainder of 2026 and beyond.
Speaker #3: Our specialty truck equipment and manufacturing segment had record performance in the second quarter, with equipment sales reaching an all-time quarterly high for the company and reflecting continued healthy end-market demand and order flow. For Q2, STEM revenue excluding sales to our SER segment was up 5% versus Q2 of 2025, which at the time was a record for non-fourth-quarter equipment sales.
Speaker #3: New sales order backlog ended the second quarter at $322 million, down 89 million dollars from the end of Q1 on record Q2 deliveries. Despite the decrease in our backlog in Q2, intra-quarter order flow remained strong and our backlog has grown so far in Q3.
Speaker #3: We continue to see strong sales demand in the utility end market, especially focused on transmission equipment. And the infrastructure end market, we have seen less growth, but our ongoing conversations with our customers and the pace of bidding and our order activity combined to provide us with the confidence to expect another year of growth and third-party customer revenue for STEM.
Speaker #3: With respect to the EPA 27 NOx emission regulations, the EPA introduced its proposed changes to the rules in early July. Which maintains the 2027 NOx standards, while adding non-conformance penalty provisions.
Speaker #3: The regulations are expected to be finalized later this year, given our current inventory position, the chassis pre-buy actions we have already taken, and our strong relationships with our chassis OEM partners.
Speaker #3: We believe CTOS is well-positioned to navigate the impact of the upcoming emissions standards changes. Given our strong year-to-date performance, robust conditions in the T&D end markets, and our outlook for the rest of the year, we are increasing our previous full-year 2026 consolidated revenue and adjusted EBITDA outlooks.
Speaker #3: We expect consolidated revenue in the range of $2.1 to $2.2 billion and adjusted EBITDA in the range of $437.5 to $455 million. Long-term, sustained end-market demand, buoyed by secular megatrends, combined with our ability to provide exceptional execution on behalf of our customers, sets us apart from our competition.
Speaker #3: Our longstanding relationships with our strategic suppliers and customers continue to be keys to our success. I continue to have the highest degree of confidence in the custom truck team and want to thank everyone for their hard work and dedication that helped achieve our extraordinary results in the second quarter.
Speaker #3: We look forward to updating everyone soon. With that, I'll turn it over to Chris to walk through the numbers in more detail.
Speaker #2: Thanks, Brian, and good morning, everyone. I'll start with the consolidated results for the quarter, then discuss segment performance, our balance sheet, liquidity, and leverage, and finally our updated 2026 outlook.
Speaker #2: Our second quarter 2026 results reflect stronger operating performance across the business and improved rental fundamentals, particularly in our T&D end markets. For the second quarter, total revenue was $563 million, and adjusted EBITDA was $117 million.
Speaker #2: Representing 10% and 25% growth, respectively, versus Q2 2025. On a gap basis, second quarter net income was $10 million, or 5 cents per diluted share.
Speaker #2: Compared with a net loss of $28 million, a year ago, bringing first-half net income to $6 million. About $19 million of that year-over-year improvement reflects a favorable income tax stream as the prior-year quarter carried a tax expense related to an adjustment in our estimated effective tax rate, the balance was driven by higher operating income.
Speaker #2: Turning to our segments, in SER, second quarter third-party revenue, excluding inter-segment sales, was $219 million, up 20% year-over-year, driven by strong double-digit growth in both rental revenue and rental equipment sales activity.
Speaker #2: Rental sales activity benefited from an increase in our PO activity in Q2 versus the same period last year. Segment adjusted EBITDA of $117 million, was up 26% year-over-year, with segment adjusted EBITDA margin of 53%, up more than 700 basis points versus Q2 2025.
Speaker #2: Our key rental KPIs in SER remain quite strong in Q2, continuing the momentum we've experienced in recent quarters. In Q2, utilization averaged 81.6%, up 400 basis points versus Q2 2025.
Speaker #2: Average OEC on rent in the quarter was $1.37 billion, up almost $160 million, or 13%, versus the same period in 2025. On-rent yield in the second quarter was 39.4%, reflecting both sequential and year-over-year increases for the quarter.
Speaker #2: On-rent yield remained within our targeted upper 30s to low 40s percent range, and we continue to see opportunities for rate improvement as transmission mix grows and pricing discipline holds.
Speaker #2: Our historically strong rental KPIs reflect both increased rental activity and the continued scaling of our fleet to meet demand. Net rental capex in Q2 was $36 million, and our fleet age at quarter end was just over three years.
Speaker #2: A modest increase from the end of last quarter, which is consistent with our plan to reduce maintenance CapEx and age the fleet somewhat this year.
Speaker #2: Our OEC in the rental fleet ended the quarter at almost 1.68 billion dollars, up approximately 120 million dollars versus the end of Q2 2025, and by almost 24 million sequentially.
Speaker #2: The increase reflects disciplined fleet investment in the face of strong demand particularly in T&D, while we expect to continue to invest in the fleet in 2026, our planned decrease in maintenance capex in 2026 compared to 2025 should contribute to increased free cash flow generation this year versus last year.
Speaker #2: In STEM, second quarter third-party revenue was $345 million, a quarterly record and up 5% versus Q2 of 2025, which previously represented our highest non-fourth-quarter revenue in our history.
Speaker #2: STEM segment adjusted EBITDA was $37 million, and segment adjusted EBITDA margin was 8.5% in the quarter, recall that our 2025 segment adjusted EBITDA does not include any margin on inter-segment sales, while 2026 segment adjusted EBITDA does.
Speaker #2: STEM gross margins in the quarter were slightly lower as a result of increased sales to national accounts, which tend to carry modestly lower margins.
Speaker #2: Our new sales backlog ended Q2 at $322 million, down 89 million dollars sequentially on record Q2 deliveries, and at approximately 3 and a half months just below our targeted range of 4 to 6 months of new sales.
Speaker #2: June quoting activity increased 26% year-over-year, supporting expected growth in our order intake in the second half. We've seen strong order growth so far in Q3, and our backlog currently stands at more than 340 million dollars.
Speaker #2: Turning to the balance sheet and liquidity, with LTM adjusted EBITDA of more than $431 million, and net debt of $1.66 billion, we finished Q2 with net leverage of 3.85 times.
Speaker #2: This represents a sequential quarterly improvement of 0.17 turns and more than a 0.8-turn improvement versus the end of Q2 2025. Availability under our ABL was 229 million dollars as of June 30th, and based on our borrowing base, we have more than 240 million dollars of additional availability that we can potentially access via our existing facility.
Speaker #2: Free cash flow generation and deleveraging remain key focus areas for us. The increase in our inventory during the first half was largely planned, reflecting chassis and whole goods positioning ahead of scheduled second-half deliveries together with the chassis pre-buy actions Ryan discussed, even with that increase, we expect to reduce inventory and floor plan balances during the second half of 2026, which should support improved free cash flow generation.
Speaker #2: Through the first half of the year, leveraged free cash flow improved by approximately 40 million dollars versus the prior-year period. With respect to our 2026 guidance, the demand environment across our key end markets remains very strong.
Speaker #2: We expect the STEM segment to continue to benefit from an overall favorable macro demand environment, as well as our strong relationship with our key customers and chassis and attachment suppliers.
Speaker #2: Our order backlog supports this. In our SER segment, OEC on rent and utilization reached historically high levels in the second half of fiscal 2025, and consistent with our year-to-date results, we expect those levels to continue building sequentially in the second half of 2026.
Speaker #2: Demand for our equipment that serves the T&D utility markets continues at record levels, and we expect the locational rental market to provide incremental growth as we further penetrate this expanding end market.
Speaker #2: Given our young fleet age, we continue to expect to be able to significantly reduce our overall investment in our rental fleet in 2026 versus 2025, while continuing to generate growth.
Speaker #2: The small increase in our fleet age to just over 3 years in the second quarter reflects this. However, giving demand trends in our T&D end markets, we plan to modestly increase our net investment in our rental fleet from our previous estimate and now expect a range of 170 million dollars to 200 million dollars, which supports mid-single-digit net OEC growth this year.
Speaker #2: This represents a meaningful reduction from over 250 million dollars and net fleet capex in 2025. After prior year's investments in inventory driven by the strong demand environment, we expect to continue making progress on further net working capital improvements in 2026 as we continue on our path of reducing inventory levels on hand for our target level of below 6 months, as a result, we continue to expect to generate more than 50 million dollars of leveraged free cash flow and reduce our net leverage ratio to meaningfully below 4 times by year-end 2026, while progressing towards our 3 times net leverage target in 2027.
Speaker #2: Our increased 2026 revenue guidance reflects consolidated revenue in the range of 2.1 to 2.2 billion dollars, or year-over-year growth of 8% to 13%. Given the strong environment in the T&D end markets and overall strength across both of our segments, we are also raising both the bottom and top ends of our adjusted EBITDA guidance, and now project a range of 437.5 to 455 million dollars, resulting in year-over-year growth of 14 to 19%.
Speaker #2: We still expect non-rental capex of 40 million dollars to 50 million dollars. We are increasing our segment guidance for 2026 as well, we are projecting SER revenue of 850 to 875 million dollars, and STEM revenue of 1.63 to 1.7 billion dollars, with STEM third-party new sales revenue growth of 3 to 10%.
Speaker #2: Overall STEM sales are expected to be down marginally to up 3%, with the variance attributable solely to a year-over-year reduction in inter-segment sales due to lower SER maintenance rental capex spending this year.
Speaker #2: For the third quarter, we expect consolidated revenue and adjusted EBITDA to be up year-over-year, though modestly below second-quarter levels. A portion of our second-quarter new and used equipment deliveries including RPO buyouts had been planned for the second half, that timing shifted results between quarters but did not reduce the full-year expectations reflected in the ranges we raised today.
Speaker #2: Our rental business enters the third quarter with OEC on rent and utilization above prior-year levels. We expect both to grow sequentially with year-over-year growth rates naturally moderating from here as we lap a second half of 2025 that posted the largest increase in OEC on rent in our history.
Speaker #2: The fourth quarter remains our historically strongest quarter. In closing, I want to echo Ryan's comments regarding our continued strong business outlook. Despite broader macroeconomic uncertainty, recent results and end-market fundamentals support our confidence in the long-term demand drivers and our ability to deliver meaningful adjusted EBITDA growth this year.
Speaker #2: With that, operator, we can open the line for questions.
Speaker #1: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand.
Speaker #1: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.
Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question is from Swetha Rakhetcha from Kantor Fitzgerald.
Speaker #1: Your line is now open. Please go ahead.
Speaker #3: Hi. Good morning, Ryan and Grace. Swetha here on behalf of Manish. Congrats on the great quarter. My first question on the quarterly is on the quarterly cadence, given that you've indicated that third-party new equipment sales and used equipment sales and RPO buyouts have shifted from the second half into Q2.
Speaker #3: Can you help us quantify the revenue and adjusted EBITDA that is being pulled forward, and clarify how much of it came from Q2 versus Q4?
Speaker #3: Hello?
Speaker #1: Hi there, Brian. Just making sure you are unmuted on your end. We are currently experiencing some technical difficulties one moment while we deal with these difficulties.
Speaker #1: much. Earning orders, I'm kind of in that low-single-digit range. and then orders—or quotes—were up, up, up in the double-digit range. and so to us it's kind of a good, a good leading indicator for the backup here.
Do you consider the business changes really just a inflation?
Uh, item that that you need that you need that to pass along. And if so, I mean, um, have have the customers had a
really negative reaction to the fact that I because of things that are out of your control, you're going to have to raise prices a bit.
Yeah. It's an it's an interesting 1 to work through and it still feels like some of the regulations are still being finalized but I think the non-conformance penalties have been announced and we're estimating. Those are
In kind of the $4,500 to $7,000 range depending on spec and obviously a few, a few of the factors in there, um, and that's to continue running on the same engine. So I think we're running off today, and so we've taken the position, like, you know, or that looks by Ford a little bit. Um, just the economics of non-conformance heavily to us makes sense to carry more inventory heading into 2027, and then obviously the veracity—
And that that is most impacted is the L9 engine, which is Shifting to the x10 engine Cummins. So, we're watching that
um,
We're watching that closely, and Cummins is now saying they'll be in full production on the X10.
Uh, later in Q3 of next year. So we're watching how that plays through. But yes, it's going to be a cost increase for our customers.
And obviously doing everything.
And mitigate that.
Cutting into 27.
And maybe, uh, thanks for that, uh, Ryan and maybe lastly, just the the map and the slide deck. Um, how close are you to opening up some of those? Uh, lessons served markets right now, like the New York injuries and measure area. The Carolina is ETC. The other items that you mentioned, uh, on the, on the slide deck. I did see an opening in the northwest
What might be next on the calendar for you for, um, sending your footprint here?
Yep, we're working on all those markets. So that's uh, you know, those are those are areas where there's clearly opportunity to grow, um, and so, you know, I don't, I don't we're not expecting any other openings this year. Um, and so those would be, uh, kind of in the years ahead and that would be fairly consistent with that. We've got a, a couple locations opening a couple locations this year.
Great. Thanks so much.
Thanks, Mike. Good to talk to you.
Your next question is from Naim Kaplan with Deutsche Bank.
Your line is now open. Please go ahead.
Hi, good morning. This is Naim on for Nicole de Blaze. So my first question, um you consistently highlighted that your long-term demand is underpinned by major federal funding packages, including, you know, the jaw, the IRA and the chips act. So given that, you know, we're getting later into 2026. Do you describe how these federal dollars are translating into actual order flow? You know, what percentage of the 200, uh, 3222 million dollars, send backlog, or SDR booking, pipelines directly tied to projects,
Receiving federal subsidies or grants, and in which fiscal year do you project the legislative tailwinds could reach their peak contribution to topline growth?
Yeah uh good question. And I'm I'll um try to answer it with maybe kind of broad comments about our is demand. So we're seeing right now, we're seeing really strong demand.
In transmission and distribution. I would argue that is less kind of back stop by some of the federal funding programs. Obviously there are some brands
Approvals that are going on out there. So I'd say those are less directly impacted by federal spending dollars. They are impacted by some of the regulatory improvements, right that we're seeing on that side of the business. Um, and so I think that's where we're seeing really strong Demand right now, you know, in some of our our, our prepared comments, we mentioned in the infrastructure side of things which would be more directly impacted by some of the federal spending dollars. We have yet to see that pick up in a meaningful way. Um, and so I would expect that, you know, as those dollars are released it's uh, it's kind of a, a future benefit, uh, later this year really into next year that we would begin to see some of those. Uh, some of those dollars, really impact backlog, and ultimately our Revenue.
Our average fleet utilization reached 81.6%. Um, so, you know, this utilization is at the very high end of your historical target ranges. But, you know, with the young average fleet of about 3 years, is 81% to 82% a sustainable run rate in this supply environment? Or should we model a normalization back down to the high 70s as you raise net rental capex? Um, as you're raising net rental capex, which brings new fleet online in the second half.
Yeah, I think that low 80s is a good spot to live, right? You know, and I think a couple things are benefiting that, right? You mentioned the few days which I think it's positive. And then certainly as you're heading into a transmission cycle, those projects are generally longer duration projects, um, you know, which should benefit, uh, utilization, you know, kind of where it is or even climbing into the into the fall which is generally what happens in our business.
All right. Thank you very much. I'll pass it on.
It's good to talk to you.
Your next question is from Justin Hawk from beard.
Your line is now open. Please go ahead.
Oh, great. Um, yes, I guess. Chrissy kind of answered this question with the seasonality, but I was just wondering if you could, um, quantify the—
Um, going forward, of the orders that you saw in the queue that were expected in Q3, and then I guess maybe a broader question is just, is some of that people converting from what would otherwise have been a rental and they want to own equipment ahead of, kind of, you know, long-term visibility? Or what's driving that?
Yeah, I like Chris start. Maybe on seasonality Justin, then I can give you some commentary on. What's driving it? Yeah, Justin, it's hard to quantify because there would have been pull forward and push out last year as well. And so I don't want to give you give a gross number when it really should be a net number. But you know, it it was tens of millions, I guess between both new sales and new sales. Um, but again, last year, there would have been a similar, pull forward related to some of the chat, some of the prebby pre- Tariff to get ahead of the Tariff prebby last year. Um, and I'll let Ryan answer the second part. Yeah. And then Justin, we we've talked about this in the past and certainly when you know several years ago when the business was
Performing well, but we see kind of that some of that pretty buy is just a good indicator of long-term demand. So some of that showed up.
both sides, some of that showed up in our
Uh, rental asset sales line. Um, and that's, you know, that was customers who wanted to go ahead and have equipment, you know, for the long term. Um, and so, you know, that's—we take that as a good indicator of future.
Great. Um and I guess my second question. I I apologize. If if you gave this number I didn't hear it. But um obviously the the uh levered pre-cast flow guidance isn't uh changed. But you did talk about um you know holding the inventories up or I guess investing a little bit more there. Um, they were up sequentially, are you still expecting kind of a hundred million of inventory benefits for the year and I think, you know, on a working capital basis, I think it was supposed to be a little closer to 30 to 40 million. I'm just trying to see if there was any change in uh kind of the inventory expectations.
So, you know, sitting here today, that is still our target. Um, you know, I think more importantly, we still feel comfortable with the above $50 million of levered free cash flow. You know, how that comes, you know, EBITDA growth versus net working capital versus other, you know, potential cash flow triggers—you know, they're kind of moving parts. But I think we still, you know, feel like there's a path to get to the numbers that you just quoted.
Great. Thank you.
Your next question is from Scott schneberger from Oppenheimer.
Your line is now open. Please go ahead.
I've been digging in more to the end markets. Thanks.
Yeah, no good. Good to talk to Scott and um you're happy to do that. It is uh there's a couple things I think that we're really lasered and on 1 is obviously a lot of our our customer what our customers are saying. So both our public our public company customers and kind of what they've reported even in this quarter and how they're talking about it. But maybe more importantly for us is is what our kind of day-to-day conversations are with those customers. And so there's a lot of planning going on for new lines that are beginning. You know, that, that are being prepared that are being designed and that the equipment is beginning, um, beginning beginning to be staged. And so for us that's really kind of that indicator of. Hey this is a long-term cycle so it's projects, you know, that don't begin until 2027 and really into 2020.
Uh as well. And so I think that's where, you know, the tone of the conversation has changed me, please. So we obviously, that's what we're listening to most closely. A lot of kind of the, the industry aggregators of what's going on in the blind miles and completes and expected starts, obviously is, uh, is is strong and is encouraging there as well. So so I'd say that's kind of the fundamental thing. Scott, that really gives us comfort that this is the beginning of a early early Innings beginnings of a very long cycle here. Which generally is how transmission plays. If you look back.
Um, as well. So let's say that's certainly where the strongest is. Um, and then to ask about some of the other in markets distribution is still good. Um, it does feel like maybe there are some IOU dollars shifting from distribution to transmission, um, to, to meet the demand that we're seeing in the short term. Um, and then you're right Scott, things like data centers are a, uh, they are a good Tailwind. Um, uh, they're a good Tailwind for us. Uh, you know, but not not fundamentally. What's driving kind of the growth that we're seeing?
Thanks, appreciate that. Ryan and then, um, can we talk a little bit about pricing? Obviously, a lot of uh, a lot of Dynamics, impacting, how pricing is right now, how it is going to be going forward. Um, oec yield on rent, have been accelerating in the, in the, in each of the quarters of the first half coming into some tougher comps and obviously, you know, engine changes in the next year. Um, can you just speak about appetite of the customers, um, on taking pricing? It seems like it's pretty good right now, uh, and there's understanding of, of, of, of cost pressure, but just where you think that can go over, let's say the next 2 to 6 quarters, please, thanks.
I'll start and Chris, you can can kind of give some historical perspective, too. But um, uh, look, Scott, 2 things are going on right now. There's obviously, when there's strong demand, you know? We're we obviously want to be competitive and price intake, price kind of where we can. You know, the dynamic that we've talked about too is as transmission picks up, right? It's generally at a higher honoring yield than just,
Um, and so you're seeing a little bit of that impact in our business today as we talked about this transmission,
Cycle is period. So, I think we talked about on the Q1 call, we took price up about 5%, and obviously the way that gets applied is it's not just a peanut butter spread, but we took price up about 5% at the very end of last year, beginning of this year. To the — Kristi, am I missing anything else? No, probably the only other thing I would add, you know, is we've talked about kind of wanting to live in that 15% to 18% range on new sales. Um, you know, we're at the lower end of that range right now, and largely that was driven in this quarter by really high volume with some mix — just larger customers, and then some product mix. But, you know, we still feel comfortable that we can live in that range and, you know, certainly get towards the higher end of that range as demand continues to be stronger in the next year.
Thanks. And just following on that, how important a driver is it of the margin expansion, and what do you see as the primary drivers of margin expansion in the segment? That's all. Thanks.
I can start you know we've lived in that mid 70% kind of gross margin range, certainly on the rental side which we think is a good spot. Um you know we typically have said we want to be in the kind of low to mid-70s and we're at the high end of that higher, end of that range, you know, I I guess the way the answer is, we think that's sustainable, you know, there could be some upside there but we feel really comfortable kind of where we're living right now on that, mid-70s percent range.
Thank you.
Thanks Scott.
There are no further questions at this time. I will now turn the call back to CEO Ryan mcmonagle for closing remarks.
We appreciate your engagement and look forward to updating you next quarter. In the meantime, please don't hesitate to reach out with any questions.
Thank you again and have a great day.
This concludes today's call, thank you for attending. You may now disconnect
