Church & Dwight (CHD) Q3 2026 earnings call transcript

Good morning, everyone. Thanks for joining the call. We delivered strong third-quarter results, and I want to start off by thanking all of our Church and Dwight employees around the world for executing so well in a volatile environment. I'll begin with some thoughts on the broader environment and then review our Q3 results, and then I'll turn it over to Lee McChesney or CFO, and when Lee is done, we'll open it up for questions.

Starting with the broader environment, conditions remain challenging, including inflationary pressure related to the Middle East conflict and increasing global transportation rates. That said, our teams continue to execute with excellence. Our portfolio of value and premium brands, they are performing well, and we remain focused on offering consumers high-quality solution-oriented products at the right value. Our power brands drove our third consecutive quarter of industry-leading organic sales growth supported by innovation, distribution lens, and targeted marketing investment.

Turning to the quarter, we exceeded our outlook across key metrics. Net sales increased 1 percent ahead of our outlook of a 1 percent decline. Organic sales grew 5.1 percent well above our 3 percent outlook with growth across all three divisions. This performance was driven primarily by volume growth of 4.6 percent and positive price in the mix of 0.5 percent. Gross margin was up 46.8 percent, up 170 basis points, and adjusted EPS was 92 percent, up almost 14 percent, and above our 89 percent outlook.

Innovation and distribution gains continue to be key drivers of our organic growth performance. Our 26 innovations across the power brands are performing very well, and we remain confident that our relentless focus on innovation will continue to drive industry-leading growth on shelf and fuel market share expansion.

Now I'll turn my comments to each of the three divisions. First up is the U. S. consumer business, domestic organic sales increased 4.4 percent, driven by 3.6 percent volume growth, and favorable price in product mix of 0.8 percent. Growth was broad-based across our household and personal care portfolios, led by Armand Hammer liquid laundry detergent, Therabreath mouthwash, and toothpaste, Armand Hammer cat litter, and water pick water flossers. This mouth is also off to a great start.

This quarter, we had such broad-based growth. I didn't list them all, but six brands contributed in a meaningful way. The Armand Hammer brand, which had another quarter of growth, with laundry hitting record shares across total laundry, Armand Hammer laundry detergent consumption grew over 4 percent, and the category grew about 2 percent in the quarter. Promotional levels for the category were elevated, however Armand Hammer gained share, as the value segment in laundry continues to be fit for purpose in this economic environment.

Next up is letter. Continued fantastic results as Armand Hammer cat litter consumption grew 5.4 percent, and share increased 0.6 points to reach 24 percent. While category of emotional levels declined slightly, they do remain at historical high levels. Our Armand Hammer cat litter dual defense with micro-band clumping litter launch continues to do very well.

Now turning to the personal care side of the business, Therabreath continues to contribute considerably to our overall performance as the brand gained 3.5 share points to reach a record share level of 26.8 percent, which further solidified our number two position in total mouthwash. Even with that growth, household penetration remains relatively low at only 14 percent compared to the mouthwash category of 65 percent.

Therabreath complete is now the top selling new rents nationally, and we recently launched portable rent sachets for freshness on the go. Therabreath toothpaste is building trial, and an everyday regiment through a robust marketing campaign with strong average consumer ratings of 4.5 stars. Heroes expanding its acne expertise in the cleansers with a lineup designed to balance efficacy and gentleness. Hero consumption outpaced the patch category in the quarter, and we're confident that the cleansers launch will lead to share gains in total acne.

In fact, in the last four weeks, that is happening. Facial cleansers represent a $650 million category, and account for approximately 30 percent of the total acne category. Lots of runway for hero, and again, we have relatively low household penetration at 10 percent compared to the category at 30, which gives us great confidence in the continued growth of the brand.

Turning to water pick, that business had double-digit sales growth in the quarter and is gaining share in 2026. As we discussed on the last quarter, touch of the sales growth in the U. S. is slowed from our original expectations due to competitive products growing in channels that we did not compete in. The good news is that our plans to expand distribution in the U. S. are on track, and as a reminder, a significant opportunity remains on household penetration in the U. S. , where touch is only 6 percent compared to the category, which is around 47 percent.

Additionally, the international rollout for touchland remains significant. We recently launched touchland in the U. K. in Australia, and the early results have been excellent. We have plans for a much broader distribution in 27 and 28.

Turning to international organic sales delivered another strong quarter of growth, and grew organically 7.8 percent, during by volume growth of 9.1 percent, partially offset by lower price and product mix of 1.3 percent. Again, similar to the U. S. , growth was broad-based, was led by Therabreath, Patis, Touchland, and Oxyclaim. In fact, nine brands in international had double-digit growth.

Global ECOM was once again a strong contributor. Revenue grew 20 percent in the quarter, and global online sales now represent 25.9 percent of total consumer sales. Our SPD division also delivered strong results, organic sales growth of 5 percent, reflecting volume growth of 2.9 percent, and higher price and product mix of 2.1.

These balanced global results contributed to our overall great organic growth performance in the quarter. This was now our 11th straight quarter of organic growth in the SPD business. Regarding 2026, I continue to be very pleased with our performance in the first nine months of the year. Our brands remain strong. Our portfolio is more focused following the strategic actions we completed in 2025.

Our operating fundamentals continue to support volume growth, market share gains, and growth margin expansion. Looking ahead to 2027, I'm also very optimistic that the company's performance. We have momentum as we enter the year. Our teams are advancing our 2030 growth initiatives, focusing on expanding our arm and hammer, increasing their breath in oral care, and scaling our international business.

I look forward to sharing our first formal update on these initiatives and our analysts today at the end of January. With that, I'll turn the call over to Lee for more detail in the quarter.

All right.

Well, thank you, Rick, and good day, everyone. We appreciate you joining the call. As Rick just shared, our teams delivered another strong quarter in 2026. Against the backdrop, backdrop of ongoing industry headwinds and uncertainty, our team has delivered three quarters of 5% plus profitable organic growth. A big thank you to our team members and all of our retail and distribution partners for driving growth really well done.

So let's get into the details. We'll start with EPS. Third quarter just EPS was 92 cents, an increase of 13.6% versus last year, and it was above our outlook of 89 cents. Stronger than expected sales and continued growth margin expansion fueled the earnings growth, enabled healthy levels of marketing and supported our SG&A investments.

Organic sales in the third quarter grew 5.1%, well above our outlook of approximately 3%. Growth was broad-based and primarily volume-driven, with volume growth of 4.6% and positive price and mix of 0.5%. Our consumer domestic business, organic sales, increased 4.4%, our consumer international business increased 7.8% and our specialty products business increased 5%. This steady and broad-based growth continues to demonstrate the strength of our portfolio categories or innovation that drives true incremental growth and the execution mindset of our commercial teams.

Let's now turn to gross margin. Our third quarter gross margin increased to 46.8%, an increase of 170 basis points versus last year. Productivity delivered 150 basis points, our acquisition mix and production drove 160 basis points and 40 basis points was a combination of volume, price, mix and effects.

These positive contributions were partially offset by the headwinds from inflation and transportation costs of 180 basis points. And this quarter, our marketing investment levels reached 11.9% of sales as we continue to invest behind our brands and new products. Adjusted SG&A was 261 million or 16.3% of net sales, an increase of 110 basis points versus last year. The increase reflects acquisition-related amortization in our SG&A investments in international, e-commerce and AI capability building.

Adjusted income from operations increased 27 million or 10.1% to 298 million reflecting our strong, profitable growth results. Let's now turn to cash from operations for the first nine months of 2026, was 841 million, which drove a healthy cash flow conversion of 114%. Capital expenditures totaled 92 million through the third, and we expect full-year capital expenditures to be approximately 125 million or about 2% of sales.

And as for the third quarter, as of the third quarter, total debt was 2 point cash on hand was 447 million. Our Board of Directors approved a new share repurchase program authorizing up to $1 billion of common stock repurchases. This program has no expiration date and replaces the prior authorization. This program is consistent with our disciplined approach to capital allocation.

It gives us additional flexibility to return capital by continuing to invest in the business and pursue strategic acquisition opportunities.

Let's now turn to our 2026 out. As detailed this morning in our press release, we are raising our sales expectations and tightening our adjusted EPS outlook. Our outlook reflects the strong year-to-day growth, confidence, and continued fourth quarter momentum.

It also includes the latest impact of the Middle East commodity pressures and the latest transportation rates that have both increased further over the past 90 days. Overall, our outlook for 2026 includes approximately $150 million of inflation, which brings us up to 50 million more than we had in our original outlook at the beginning of 2026 and 20 million more than our July outlook.

This outlook assumes roughly a crude oil price of $100 a barrel. Now, our teams have continued to focus on delivering incremental productivity and leveraging an RGM toolkit to mitigate this pressure, which has helped our business deliver gross margin improvements every quarter in 2026. For 26, we now expect organic sales growth of approximately 5 percent at the high end of our prior range of 4 percent to 5 percent.

We now expect adjusted gross margin to expand approximately 100 basis points, inclusive of the latest cost headway. In our market investments remain at approximately 11 percent of sales, reflecting our continued commitment to brand investment.

SG&A as a percentage of sales is expected to remain above 2025 levels, including acquisitions, our target investments and growth initiatives, AI capabilities, e-commerce, and our international business.

The adjusted tax rate is expected to be approximately 21 percent, and we now expect adjusted EPS of approximately 7 percent tightening on our prior range of 6 percent to 8 percent. Our cash from operations outlook remains approximately 1.175 billion, and if we turn to the fourth quarter, we expect organic sales growth of approximately 4 percent, and the adjusted EPS is expected to increase 17 percent to 19 percent versus last year.

To close out our remarks, let me reiterate, we are very pleased with the third quarter performance and remain confident in our ability to deliver an improved 2026 outlook. Our strong portfolio continued share gains and disciplined execution position as well as we look forward to 2027. Matt, we are now ready for questions.

Yeah. Thanks, Anna. So, I think innovation has become a core competency of Church and Dwight. We just had Carlos Lanera, who was our third R&D for many years, retire, and what he brought to this company, I think, was just a great multi-factor way to innovate.

And so we built this muscle. And it's not a muscle that we've built just in personal care, it's a household as well. Now, we've gone through the Arm and Hammer strategy, and part of that's a good, better best strategy for laundry and for litter. And there's a lot of work going on with household innovation. You'll see some stuff coming in 2027, but in fact, I just sat through 2028 probably two weeks ago, and I was really encouraged about the entire innovation portfolio, especially household for 2028. So, I think it's broad-based.

We always want to compete on innovation, you know, value is not just price, it's what the consumer's getting when you intersect value in price. So that's how you win with innovation over long period of time.

And then, Lee, you want to take the forward-looking- Yeah. So, I mean, to your point, now we certainly know what commodities are today. That's certainly what everyone's faced in the business.

And we have, you know, some good confidence as you look for here. We look at productivity levels of where we are today. We're going to have a record-level productivity in 2026, and as we sit here today, we're actually the same time last year, we're actually a little bit favorable to that, so that's a good start for next year.

You know, we have our RGM toolkit that's served as well this year. It seems to rally around that for 27 as well. And then, certainly, we have a nice positive drive towards good mix from innovation and from the portfolio. So, you know, all those things are in play, and, you know, again, it's all against the backdrop of the inflation we see today. So, you know, as we said, we're optimistic for 27, and, you know, we'll continue to respond to the macro environment.

Yeah, I would maybe add one or two comments to that. I think the other thing that's kind of not unique but kind of normal is we actually get fixed cost leverage next year, right? This year, our reported sales growth is essentially flat to up 1%, organically, we're doing great. But remember, we shed $400 million of businesses next year, our organically reported numbers will be a lot closer, and that provides some leverage.

And, as we said, you know, we had a record year of productivity, looking at what we know right now, we expect another record year next year for productivity, so those are great tailwinds.

Okay, great. Thank you both. Very helpful.

Yeah. Thanks, Peter. You know, I think, first of all, categories, I'm actually a little bit more bullish on these days. I think we started the year saying category growth of around 2%.

Q1, Q2, and Q3 now of all kind of been at or above 2.5%, like we had a strong Q1 of around 3.5. Q2 was 2.7, and then Q3 was 2.5. So I'll look for categories closer to 2.5%. And also, I would say, as we look forward, in 2027, we think it's around 2.5%. So that's all a good thing. On Q4 organic sales, look, you know, 4% is still super high compared to the rest of the industry.

Maybe we're being a little conservative, I would say, our trends are very strong as we look at October even.

Awesome. Thank you so much for that. That's it.

Yeah. Why don't I take the pricing and promotion question and then Lee can circle back on gross margin and hedging? So what the consumer is still stretched. A lot of inflation happening out there. You're right. Gas prices are up. Disposable income. That means the disposal income is down.

When you have this amount of inflation, typically promotional levels kind of retread a bit. That hasn't happened largely, I think, because manufacturers have spent back kind of tariff refunds to help extend promotional spending. As I said, kind of in my prepared remarks in laundry, as an example, amount sold on deal for the category went from the mid-30s typically to around 40.

We also did that. We're getting a share in this environment. The value part of the segment is growing, but promotional spending is up versus historical levels for laundry and litter.

But elasticities are still strong. So when that happens, you do see the volumes kind of come in and react. I guess my comments on pricing and inflation in general is we've been very clear. We are first and foremost going after productivity. And you just heard me say we had record productivity this year. We think we're going to have record productivity next year.

That's what we do first and foremost. We then do what we said. We look at our revenue growth management and promotional spending. And when inflation is elevated, typically promotional levels do come down. That's what we've seen over the last 20 years. And then the last is price. And I'll say if inflation maintains at this type of level, historically, the perspective is companies have to move. If it's not transitory, if it's structural, then it starts to make its way throughout the entire kind of cost picture. But we hit number one and number two, the hardest, and then if we need to, then we look at number three.

Lee, you want to talk about hedging and gross market?

Sure. So as Rick and I talked about, I've got lots of things that help drive gross margin improvement. We've always done a healthy amount of hedging in key areas. We talked about earlier this year as some of the inflation came along. And then with all the volatility, we've paused a bit, but we've been back at it and hedging going into 27.

We'd say at this point right now, we're actually slightly hedged a bit more than we were this time last year. But you have to consider that we've hedged certain key things that we purchased. Right now, you're just seeing inflation everywhere. So the impact's helpful, but certainly just the overall inflation bucket is larger as we look for here. But that's all part of the math we talked about earlier that we're looking at and facing into for 27 with all of our tools.

Yeah. Rupesh, you know, international, it's actually a great growth driver. We should have listed it in the release for international, maybe that was just an oversight, but it's definitely a net sales driver, consumptions up, sales are up, in the U. S. , gain share and patches.

Last four weeks, we've gained share in all of Acne. Cleanzers are off to a good start, 4.5 stars, some reviews. Sales were slightly down in the U. S. , but consumption was up, but sales were only slightly down because remember a third of that business is online and some of that shifted as Prime Day had shifted from July to June.

So we feel great about hero. We feel great about the innovation coming for hero. A lot of positive things.

Yeah. On Touchland, I would say the business is going to be close to Flatish all in, but with the confirmed distribution gains that we've already heard about in the U. S. and with the international launch plans, which are underway now, we expect growth in 2027, so that's the good news.

Yeah, sure. So Chris, it was a net about $15 million in the third quarter, and in the fourth quarter, we expected to be about $5 million.

Yep. I understand.

Yeah. I'll give you some color. We're going to go through a lot more detail in January on the growth initiatives, but basically on Therabeth mouthwash, we think there's still a ton of room to run. We're within six or seven share points of Listerine these days. We're growing double digits, the category is flat. We're winning with innovation, we're winning with, on the shelf space, we're winning with the marketing and reaching the consumer.

Our repeat rate is fantastic, customer loyalty is growing. So, across the board, we believe that Therabeth mouthwash has still a long runway, and the one fact that I continue to hit again and again is just household penetration for Therabeth versus the category, and I think that's a good approximation.

And meanwhile, that's just time of the U. S. Therabreath is a fantastic brand globally. It is starting to win globally.

We just introduced that actually in Japan, remember we bought Graphico, our distributor a few years back, and now we're putting a few of our brands through that distributor, like Water Pick, like Hero, like Therabreath. I think Therabreath has already reached like 15 or 20% of their sales in a matter of 12 months or less. So, that trend, that need, problem solution brand for mouthwash is not just a U. S. trend or need. That is a global consumer need, so a lot of optimism about the global expansion of Therabreath.

Meanwhile, Therabreath paste, like I said last call, off to a great start, we have a one share already on the paste.

Repeat rate is closing it on 30%, which is actually really good for a toothpaste innovation, because there's high brand loyalty for toothpaste typically. So, we got trial, and now we're getting a repeat rate up, and we're laser focused on that. Meanwhile, I think I'll hold any other further comments to January on how each of the initiatives are going, but I would just say I expect those growth initiatives to be tailwinds in 27, 28, and 29.

Okay, Nick. You know, my comment on, you know, the question before I think from Bonnie was really like, hey, help us understand why we think we have some positive tailwinds on gross margin. We have multiple positive tailwinds on gross margin, one of which is just being able to leverage our fixed costs. And I think in 2026 or 2025, you're right. We had some higher spending that was happening. A lot of that higher spending was actually happening in the marketing line and the gross-to-net line.

Not necessarily on the cost of goods line. So that comparable is already good and done with, and then as we move forward, we're going to have real revenue growth and you should expect some leverage and that's a tailwind. That's really the only point. Not really trying to quantify that. It's just a normal tailwind for any business as we have real growth.

The second question on touchland, I would say it's a little bit broader base than where we're at now. It's going to be in a couple of different classes of trade, which is good. It's one big step in the right direction and we already have confirmed the acceptances with that. And meanwhile, in the beauty class of trade, we're working hard on making sure we have innovations and exclusives in order to differentiate that a bit. So I would say I'm really, really happy with the progress we've made and I'm optimistic.

Yeah, that's where we expected to be. Thanks for passing on.

Yeah, thanks for the question, Andrea. I'm not going to make any more comments on pricing than what I've already made. And just to reemphasize it, I said first and foremost, we focus on productivity. And we've done that in such a good way this year, hitting record levels. We expect to have record levels for next year. And we can see around the corner at that already.

Number two, we expect promotions to come down over time as inflation is sustained at these levels. And then number three, I just said that if inflation remains at these levels, typically the industry is priced in those examples when it becomes more structural or not transitory. That's the extent to which I'll talk about pricing. Our evergreen model is to have gross margin expansion.

Revenue growth and margin expansion are the two things that are the lifeblood of any organization. And you have to have all the right things in order to do that though. You have to have a productivity program, you have to have the right innovation, you have to have consumer moving innovation that people want to pay for. So we have some great tailwinds and our goal each and every year is to expand margin.

Yeah, a problem Olivia. I would say I'm really encouraged with the top line. You know, number one, it matters what categories you're at. And our categories, I would pick our categories over almost any other company out there.

The balance of premium value, the lack of private label exposure in general. There are a lot of good things to say and why our categories are growing around 2.5%. Fantastic. Then we tend to take share over time. Like I said before, innovation muscle is alive and well. Our marketing and commercial teams are doing a great job gaining those TDPs. We were the second highest TDP growth. I let everyone know that last quarter as an example for 2026.

So there's a lot going right. And our growth isn't just one brand. It's broad base. I said that in my prepared remarks. Maundry, litter, their breath, water picked a feast, baking soda. I mean, there's a whole host of drivers. Internationally, like I said before, it's not one brand or two brands. It's nine brands that had double digit growth.

They're doing a great job taking our recent acquisitions like Therabreath and Hero Global. And I gave you the example about Japan.

So it's very broad based. I believe it's very sustainable. And then you throw on top of that the growth initiatives that we've been working on. Remember all the time that we spent maybe a year and a half or two years ago on 16 business that were at structural disadvantages. We're spending all that time on innovation and on the growth initiatives.

And the growth initiatives are laying the groundwork. And I'm going to announce in January the category that we're going to go into in the U. S. for Arm and Hammer, but we have a lot of optimism about that. And then finally for International, it's all about also M&A. A year or two ago, our M&A portfolio and kind of diligence was all U. S. based. That's not true anymore.

We're looking at acquisitions all the time outside the U. S. And moving down the field fairly quickly through the filters and that process is getting more repeatable and more sustainable. And I'm optimistic.

Yeah, I would call it more housekeeping than anything. We were getting to the end of our previous authorizations. So you always want to make sure you have flexibility as you look forward in the future. That's probably how to characterize it.

It's a great question. I think, I don't think we'll get into that level of detail yet. If you want to ask it again in January, feel free. But now we're going to have inflation that's quite large next year. But offsetting that, we're going to have productivity.

We have mix of the tail end typically, especially as you think about. They're breath or miss mouth, even touch them globally. And then like I said before, about fixed cost. So there's a lot of things going on our direction. We always believe that we can expand margin.

Just not ready to put that out there yet. It's about two or three months too soon.

Yeah, sure. I don't remember who asked me. Maybe it was Peter. I think if you take all the noise away, we are saying that, hey, we've grown 5% for the last three quarters and our outlook for the years 5%. That makes the math 4%. That was the high end of our range previously. I just don't think we have a lot to gain by going above our normal range. So maybe we're a little conservative on the quarter call, but it is what it is at 4%. We think 4% is head and shoulders above almost anybody else out there.

Lee, anything you want to add?

Yeah, I would just say miss mouth is to a great start. The outlook for the year is still very strong. Great consumption numbers did really well during the prime day season. So as we said before, super optimistic, no less optimistic, probably even more optimistic as you look forward.

Yeah, it would be WTI. I just keep an eye. We buy products that aren't always going to be proportional to oil. That's a good reference for you.

Yeah. I would say we do expect, I think, growth in Q4. I think in Q3, it was slightly negative. But it's a sales and shipment timing when you've got to get out of the different seasons and programs.

So for the full year, flatish is the call. I guess I just have a better lens into what retailers have accepted, what programs are in as Nick was kind of alluding to, like, in at least one major retailer. This is in the beauty set. And the set is absolutely beautiful.

It's right where we would want it to be. The displays look great. The packaging is right where we want it to be.

And we believe that a lot of times consumers are going to the store and they're looking for this because customs kind of created a category that didn't really exist. And then they don't have the choice to buy the Tesla brand. There's only one alternative. And so we believe that once they are in more of a accessible retail distribution, then consumers will pick the Tesla product.

I think what we're seeing internationally is also off to a great start. You know, in one retailer just a couple of weeks ago, they sold out in a matter of hours what they thought they were going to do for one week. So we're trying to make sure we go broad quickly and get through all the regulatory barriers that are in place around the world. And we've made a lot of progress in doing that. And we think we're going to have some great success next year. So that's kind of why I have optimism.

I'll start me. I would just say the move from $30 million to $50 million of incremental inflation, it was a mix of commodities and a mix of transportation. Now to your point, the transportation, we're viewing that as the situation. That is mostly linked to the driver rules in the U. S. and just creating a shortage of drivers. So that's the mindset. And accordingly we're responding around that.

Trying to make sure we do the most efficient things in transportation. That's all part of what we're looking into as we put together our plans for 27. And we're not transportation experts, but I would say that when spot rate rates go up 40%, that's specifically transitory. Like supply and demand forces balance out over time. And we've seen in years past where we've had large spikes, but over 20 years or so, on average usually you have 3% to 5% inflation and transportation rates. And so this might be a little bit more stressful for a period of time, but over time it will also balance out.

Yep, fair question. I think the criteria is very similar, but there's just a couple of asterisks. Like, of course you wanted to be number one, number two brand. That doesn't go away. Of course you wanted to be gross margin or creative asset light with the real competitive advantage. I think we're more willing to accept a plant or a factory in these examples, because then you can bring in some of our other products potentially. We're more willing to buy an entire business there that you need the entire back office, for example, especially if you're going into a different country.

So I think there's a little bit more latitude, but it all makes sense.

I think that's insightful. I think partially yes, I think we're from a laggard to leader on e-commerce growth. We've been ahead of the curve for a while now on typically gaining share with these brands online. When you look at retail, if you take a big step back, a lot of the growth at retail is what? It's coming from e-commerce.

So that's one. I kind of acknowledge that. But number two is mixed matters. And some of the businesses that we sold had low exposure to online businesses and sales. And some of the businesses that we've bought, like Touchland, like Ms. Mouth, are over-indexed to online businesses or online sales. And so that's helped as well. So your portfolio mix also matters.

Yeah. Sergio, that is an excellent question. I'm not going to give you as much as you want. I'll give you an update in January on our analyst day about that. I would say there's one that we've already taken back and there's two or three that we're looking at if they can get some key thresholds. And there's also, you know, a couple that we're going to ask.

You know, sometimes you go through an innovation process internally and then we think it has legs, but maybe another company's better set to get it off the ground. So we're having those conversations as well. So it's pretty broad-based and comprehensive and I'll give you more of an update at our analyst day.

All right. Thank you very much. We had some fantastic results in Q3. Wasn't possible without a whole group of people at church in Hawaii to make that happen. So thanks for the entire team. We'll speak to everyone soon. Late January for analyst day. We're really looking forward to that too. Take care.