Financial Data and Key Metrics Changes - The company reported a net revenue increase of 6% year over year for Q3 2025, driven by improvements in payer mix and state-directed payments from New Mexico and Tennessee [6][12] - Adjusted EBITDA for Q3 2025 was $376 million, up from $347 million in the prior year, with a margin of 12.2%, an increase of 100 basis points year over year [11][12] - Leverage was reduced to 6.7 times, down from 7.4 times at year-end 2024, indicating improved capital structure [9][15] Business Line Data and Key Metrics Changes - Same-store net revenue increased by 6.0% year over year, primarily due to rate growth, with net revenue per adjusted admission up 5.6% [12][51] - Same-store inpatient admissions rose by 1.3% year over year, while same-store surgeries declined by 2.2% [12] - The company continued to grow its inpatient volume, although outpatient elective surgeries remained under pressure [7][12] Market Data and Key Metrics Changes - The company experienced a divergence in inpatient and outpatient surgeries, with outpatient surgeries down due to economic headwinds affecting consumer demand [19][20] - The payer mix improved sequentially and year over year, contributing to a more favorable revenue environment [12][20] Company Strategy and Development Direction - The company is focused on supporting caregivers and improving healthcare experiences, with plans for a leadership conference to discuss future vision and investments [5][6] - Strategic investments are being made in capacity and service line expansions, including acquisitions and new service lines in various markets [8][9] - The company is pursuing divestitures and has ongoing discussions for potential deals, indicating a strategic approach to capital deployment [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future operational and financial performance, citing improvements in consumer confidence and payer mix [6][20] - The company anticipates positive free cash flow for the full year of 2025, with expectations for continued growth in 2026 driven by Medicare rate increases and state-directed payment programs [15][26] - Management acknowledged ongoing inflationary pressures but remains confident in cost control measures and operational efficiencies [13][14] Other Important Information - The company refinanced $1.74 billion of senior secured notes, extending maturity to 2029, which provides financial flexibility [9][15] - A $28 million gain from a legal settlement was recognized, contributing to reported results but excluded from same-store metrics [11][12] Q&A Session Summary Question: Thoughts on outpatient volume recovery - Management noted that economic headwinds and consumer confidence have impacted outpatient surgeries, but improvements in payer mix and consumer sentiment are encouraging [19][20] Question: Free cash flow outlook and capital deployment - Positive free cash flow is expected for 2025, allowing for strategic capital deployment, including potential tuck-in acquisitions [24][25] Question: Trends in payer denials and underpayments - Denials have stabilized since a spike last year, with investments in internal revenue cycle management and AI tools to improve efficiency [55] Question: Impact of flu season on guidance - Flu season has started slowly, but this has been factored into guidance, with no significant uptick observed yet [56][57]

Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.46 per share and AFFO of $0.42 per share, with year-to-date portfolio same-store growth of 3.8% [12][18] - Cash NOI increased by 9.4% for the quarter, driven by strong performance in the CCRC portfolio [13][18] Business Line Data and Key Metrics Changes - CCRC portfolio experienced a 150 basis points year-over-year occupancy gain, with sequential occupancy up 70 basis points [9][14] - Outpatient medical leasing demand remains favorable, with 1.2 million sq ft of leases executed during the quarter and total occupancy up 10 basis points at 91% [14][18] - Lab leasing saw 339,000 sq ft of leases executed, with total occupancy at 81% and a positive 5% releasing spread on renewals [16][18] Market Data and Key Metrics Changes - The leasing pipeline has doubled to 1.8 million sq ft since the beginning of the year, with a favorable mix of new and renewal leases [17][22] - The company is experiencing increased demand from tech and AI-based companies, contributing to a strengthening demand profile [17][43] Company Strategy and Development Direction - The company aims to recycle outpatient sale proceeds into higher return lab opportunities, with potential proceeds of $1 billion or more from asset sales [7][18] - The internalization of property management allows for quicker deployment of technology and deeper tenant relationships, enhancing growth opportunities [5][11] - The company is focused on maintaining a flexible balance sheet to pursue strategic investments and fund portfolio growth [18][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the life science sector, with leading indicators turning positive and a strong pipeline of leasing activity [4][17] - The company anticipates a decline in occupancy over the next few months but believes it will reach a bottom before starting to recover [8][17] - Management highlighted the importance of the outpatient medical sector, which has shown consistent positive NOI growth over the years [26][27] Other Important Information - The company has completed $158 million of asset sales and loan repayments year-to-date, with an additional $204 million of dispositions under a purchase and sale agreement [18][19] - The company is advancing its technology initiatives to create a tech-enabled platform aimed at streamlining operations and expanding tenant services [10][11] Q&A Session Summary Question: Can you elaborate on the lab leasing pipeline and its changes? - Management noted that the lab leasing pipeline has doubled, with a favorable mix of new and renewal leases driven by improved sentiment in the sector [22][23] Question: What are the potential opportunities for capital recycling? - Management indicated that outpatient medical has been a strong business, and they are looking to take advantage of strong demand for assets to sell less strategic properties [25][26] Question: How does the company view tenant risk and the current market sentiment? - Management reported a decrease in tenant risk exposure and expressed confidence in the ability of tenants to raise capital, improving overall sentiment [38][41] Question: What is the expected timeline for occupancy recovery? - Management expects occupancy to trend down to the high 70% range before starting to recover, with a focus on maintaining a strong leasing pipeline [76][93]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 FY 2026 was INR 8,805 crore ($992 million), reflecting a year-over-year growth of 9.8% and a sequential growth of 3% [5][6] - EBITDA margin stood at 26.7%, a decrease of 174 basis points year-over-year but flat sequentially [8][9] - Profit after tax attributable to equity holders was INR 1,437 crore ($162 million), a growth of 14% year-over-year, remaining flat on a quarter-over-quarter basis [10][11] - Operating working capital as of September 30, 2025, was INR 13,331 crore ($1.5 billion), with a free cash flow of INR 1,046 crore ($118 million) generated during the quarter [11][12] Business Line Data and Key Metrics Changes - North America generic business generated revenues of $373 million, a decline of 16% year-over-year and 7% sequentially, impacted by price erosion in key products [19] - European business reported revenue of €135 million, a growth of 150% year-over-year and 3% quarter-over-quarter, driven by the acquired nicotine replacement therapy portfolio [20] - Emerging market business delivered revenue of INR 1,655 crore, reflecting a growth of 14% year-over-year and 18% sequentially, supported by new product launches [20] - India business reported revenues of INR 1,578 crore, achieving a double-digit growth of 13% year-over-year and 7% sequentially [21] Market Data and Key Metrics Changes - The U.S. generics faced pressure from product-specific price erosion and lower Revlimid sales, while overall growth was supported by the integration of the consumer healthcare business [6][14] - The company moved up one place to the ninth position in the India pharmaceutical market, outpacing market growth with a moving annual total growth of 9.4% compared to the industry growth of 7.8% [21] Company Strategy and Development Direction - The company aims to grow its base, scale its presence in consumer healthcare, and advance innovative therapies and biosimilars [13][14] - Focused R&D investments are being made in complex generics, APIs, and biosimilars, with a strategic collaboration to enhance innovation [8][22] - The company is actively pursuing strategic collaborations and acquisitions to support sustainable growth and enhance capabilities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth and steady profitability, despite challenges in the U.S. generics market [13][14] - The effective tax rate for the quarter was lower at 22.2%, primarily due to a favorable jurisdictional mix [10] - Management remains committed to returning to a 25% EBITDA margin in the next two years, focusing on key products and operational efficiency [58] Other Important Information - The company has received positive opinions for its biosimilar candidates and is making progress on key pipeline products [15][16] - The company retained its MSCI ESG rating of A for the second consecutive year, indicating strong sustainability performance [17][18] Q&A Session Summary Question: Expectations for Revlimid sales in Q3 - Management indicated that Revlimid sales will continue in Q3 but at a lower level than in Q2, possibly tapering off towards Q4 [27] Question: U.S. product pipeline and meaningful launches - Management acknowledged the challenges in the U.S. product pipeline but highlighted that significant growth will come from biosimilars and complex generics [28] Question: Legal status of Semaglutide in India - Management confirmed ongoing litigation regarding Semaglutide patents in India, awaiting a court decision [38] Question: Abatacept filing and risk mitigation strategies - Management confirmed plans to submit the BLA for Abatacept by December 2025, with a CMO in place to mitigate risks [40][41] Question: Growth drivers in India and impact of GST - Management stated that GST was not a significant obstacle and attributed growth to strategic execution and brand acquisitions [47] Question: Future margin outlook - Management remains confident in returning to a 25% EBITDA margin, addressing the impact of Revlimid sales decline through strategic initiatives [58]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per common share increased to $1.36 from an adjusted loss of $0.73 in the prior year quarter, primarily due to a lower net loss ratio, higher net premiums earned, net investment income, and commission revenue [4][5] - Core revenue reached $400 million, up 4.9% year over year, driven by higher net premiums earned, net investment income, and commission revenue [4] - Direct premiums written were $592.8 million, a 3.2% increase from the prior year quarter, with a notable 22.2% growth in other states, partially offset by a 2.6% decrease in Florida [4] Business Line Data and Key Metrics Changes - Net premiums earned rose to $359.7 million, up 4% from the prior year quarter, mainly due to higher direct premiums earned, despite a higher ceded premium ratio [5] - The net combined ratio improved to 96.4%, down 20.5 points compared to the prior year quarter, reflecting a lower net loss ratio [5][6] - The net loss ratio decreased to 70.2%, down 21.5 points from the prior year quarter, attributed to the absence of significant hurricane activity in the current quarter [6] Market Data and Key Metrics Changes - The company experienced a 22.2% growth in direct premiums written in states outside Florida, indicating a positive trend in its multi-state operations [4] - Florida's market remains competitive with new players entering, but the company maintains a focus on rate adequacy and service quality [11][12] Company Strategy and Development Direction - The company is positioned to succeed in the improved Florida market, with a conservative reserving process aimed at enhancing balance sheet resilience [3] - The management emphasizes maintaining a conservative approach to reserving and capital management, with potential share repurchase activity as part of ongoing business strategy [14] Management's Comments on Operating Environment and Future Outlook - Management noted a significant reduction in claims count and faster claims processing, contributing to a positive outlook for the future [9] - The competitive environment is described as highly competitive, particularly outside Florida, with a focus on maintaining established relationships with agents [11][12] Other Important Information - The company repurchased approximately 347,000 shares at a cost of $8.1 million, with $7.1 million remaining in the share repurchase authorization program [7] - A quarterly cash dividend of $0.16 per share was declared, payable on August 9, 2025 [7] Q&A Session Summary Question: Insights on reserving and profit margins - Management indicated that they have come through a challenging period in the Florida market and are optimistic about future reserving practices, with a focus on maintaining a conservative approach [9][10] Question: Competitive environment in Florida - Management acknowledged the competitive landscape in Florida, noting the presence of new players and the importance of rate adequacy and service quality [11][12] Question: Capital management priorities - Management expressed confidence in share repurchase activity as part of capital management, while also considering future growth opportunities [14]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $0.53 per share, a significant improvement from a loss of $0.29 in Q2 2025 [5] - Book value increased to $7.33 as of September 30, 2025, compared to $7.21 on June 30, 2025 [5] - Total return for Q3 was 6.7%, a recovery from -4.7% in Q2 [5] - Average portfolio balance rose to $7.7 billion in Q3 from $6.9 billion in Q2 [5] - Liquidity improved to 57.1% at September 30, 2025, up from 54% at June 30, 2025 [5] Business Line Data and Key Metrics Changes - The average coupon of the portfolio increased from 5.45% to 5.53%, and the effective yield rose from 5.38% to 5.51% [30] - The net interest spread expanded from 2.43% to 2.59% [30] - The portfolio remains 100% agency RMBS, with a focus on call-protected specified pools [30] Market Data and Key Metrics Changes - The cash Treasury curve and SOFR swap curve showed a slight steepening, reflecting market expectations of Fed rate cuts due to labor market deterioration [7][8] - The long end of the Treasury curve performed well, with strong demand in the investment-grade corporate market despite tight credit spreads [10] Company Strategy and Development Direction - The company is focused on maintaining a conservative leverage posture while enhancing the carry and prepayment stability of its portfolio [30][39] - The strategy includes investing in high coupon specified pools to insulate against adverse payment behavior and stabilize income streams [30][43] - The company anticipates potential tailwinds from continued Fed rate cuts and the end of quantitative tightening, which could support the agency RMBS market [44] Management's Comments on Operating Environment and Future Outlook - Management noted a potential crossroads for the economy, with labor market weakness prompting Fed rate cuts, while also observing strong consumer resilience and government stimulus [46][47] - The company expects to adjust hedges to lock in lower funding costs and prepare for potential rate hikes following anticipated Fed cuts [48] Other Important Information - The company raised $152 million in equity capital during the quarter, which was fully deployed into high-quality specified pools [29][43] - The weighted average price of the portfolio increased to over $101, indicating a premium position [72] Q&A Session Summary Question: Any macro factors that might change overall risk positioning? - Management indicated that if the Fed continues to cut rates and the economy rebounds, they might consider increasing leverage [51][52] Question: View on payouts upside potential with refi momentum? - Management noted that payouts have increased sharply recently, but they do not expect to return to the high levels seen in 2020 or 2021 [54][55] Question: Scenarios for dollar roll specialness returning? - Management expressed skepticism about the return of dollar roll specialness, citing the Fed's focus on buying Treasuries and bills rather than mortgages [61][62] Question: Supply and availability for longer-dated repo? - Management mentioned that spreads for longer-dated repo are currently too wide, but they are opportunistically looking to lock in funding [63][64] Question: Percentage of portfolio covered with call protection? - Almost 100% of the portfolio has some form of call protection, which is expected to mitigate risks in a declining rate environment [72]

Byline Bancorp (NYSE:BY) Q3 2025 Earnings Call October 24, 2025 10:00 AM ET Company ParticipantsAlberto Paracchini - PresidentTom Bell - CFOBrooks Rennie - Head of Investor RelationsRoberto Herencia - Chairman and CEOConference Call ParticipantsMatthew Renck - AnalystDavid Long - AnalystBrian Martin - AnalystBrandon Rud - AnalystAdam Kroll - AnalystAna Casanueva - AnalystOperatorGood morning and welcome to the Byline Bancorp third quarter 2025 earnings call. My name is Carly and I'll be the conference opera ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $37 million or $0.82 per diluted share on revenue of $116 million, reflecting a quarter-on-quarter revenue growth of 13.6% and EPS growth of 19% year-on-year [10][11] - Pre-tax, pre-provision income was $55 million, with a pre-tax, pre-provision ROA of 2.25%, ROA of 1.5%, and ROTC of 15.1%, indicating strong profitability metrics [10][11] - The net interest margin expanded by 9 basis points to 4.27%, supported by an improved deposit mix and higher asset yields [11][15] Business Line Data and Key Metrics Changes - Total loans grew by 6% linked quarter and 11% year-to-date, ending at $7.5 billion, with originations of $264 million driven by commercial banking and equipment leasing teams [11][13] - Non-interest income totaled $15.9 million, up 9.5% from the last quarter, primarily due to a $7 million gain on the sale of loans [16] - Non-interest expense increased to $60.5 million, reflecting higher salary and employee benefits, including $2 million in higher incentive compensation accruals [16][17] Market Data and Key Metrics Changes - Deposits totaled $7.8 billion, up 1% linked quarter and 7% year-to-date, with non-interest-bearing accounts increasing by $160 million or 9% linked quarter [11][14] - The company experienced stable demand for credit, with loan commitments growing and draw activity contributing to loan growth [11][13] Company Strategy and Development Direction - The company aims to build a preeminent commercial banking franchise in Chicago, focusing on expanding its commercial payments business and onboarding customers in 2026 [19][20] - The company remains open to disciplined M&A opportunities that align with its strategic goals, emphasizing capital flexibility and the ability to fund growth [7][36] Management's Comments on Operating Environment and Future Outlook - Management noted stable to improving credit quality despite macroeconomic uncertainties and geopolitical tensions, with vigilance over potential risks [7] - The company anticipates crossing the $10 billion asset threshold in Q1 2026, which will delay the impact of the Durbin amendment until 2027 [20][38] Other Important Information - The company was recognized with multiple awards, including the 2024 SBA 7A, 504, and Expert Lender of the Year awards, and ranked as one of Chicago's best workplaces [8] - The company refinanced $75 million in subordinated debt, benefiting from improved credit ratings and market demand [12] Q&A Session Summary Question: Discussion on margin and net interest income - Management discussed the assumptions behind the model and the impact of competitive rates on deposit resets [26][27] Question: Thoughts on M&A activity - Management expressed openness to M&A opportunities, emphasizing the importance of financial and strategic attractiveness [35][36] Question: Impact of government shutdown on SBA business - Management explained that while origination continues, the shutdown affects the ability to sell and settle loans, potentially delaying gain on sale income [43][44] Question: Insights on commercial payments business - Management provided details on the commercial payments business, focusing on ACH transactions and payroll processing, with expectations for growth in 2026 [67][70] Question: Clarification on NDFI exposure - Management clarified that NDFI exposure is around $221 million, primarily consisting of commercial-related transactions [81][82]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per common share was $1.36 compared to an adjusted loss per common share of $0.73 in the prior year quarter, primarily due to a lower net loss ratio, higher net premiums earned, net investment income, and commission revenue [4] - Core revenue reached $400 million, up 4.9% year over year, driven by higher net premiums earned, net investment income, and commission revenue [4] - Direct premiums written were $592.8 million, up 3.2% from the prior year quarter, with a notable 22.2% growth in other states, partially offset by a 2.6% decrease in Florida [4] - Net premiums earned increased to $359.7 million, up 4% from the prior year quarter, attributed to higher direct premiums earned [5] Business Line Data and Key Metrics Changes - The net loss ratio was 70.2%, down 21.5 points compared to the prior year quarter, reflecting the absence of hurricane activity in the current quarter [6] - The combined ratio improved to 96.4%, down 20.5 points from the prior year quarter, indicating better overall operational efficiency [6] - The net expense ratio was 26.2%, up one point compared to the prior year quarter, driven by a higher ceded premium ratio and increased policy acquisition costs [6] Market Data and Key Metrics Changes - The company experienced a 22.2% growth in direct premiums written in states outside Florida, indicating a successful expansion strategy [4] - Florida's market remains competitive with new players entering, but the company maintains a focus on rate adequacy and service quality [11][12] Company Strategy and Development Direction - The company is positioned to succeed in the improved Florida market, with a conservative reserving process aimed at enhancing balance sheet resilience [3] - The management emphasizes maintaining a conservative approach to reserving and capital management, with potential share repurchase activity as a priority [14] Management's Comments on Operating Environment and Future Outlook - Management noted a significant reduction in claims count and faster claims processing, contributing to a positive outlook for the future [9] - The competitive environment is described as highly competitive, particularly outside Florida, but the company remains committed to its established market strategies [11][12] Other Important Information - The company repurchased approximately 347,000 shares at an aggregate cost of $8.1 million, with $7.1 million remaining in the current share repurchase authorization program [7] - A quarterly cash dividend of $0.16 per share was declared, payable on August 9, 2025 [7] Q&A Session Summary Question: Insights on reserving and profit margins - Management indicated that they have come through a challenging period in the Florida market and are optimistic about their reserving philosophy moving forward [9][10] Question: Competitive environment in Florida - Management acknowledged the competitive nature of the Florida market with new entrants but emphasized their focus on rate adequacy and service quality [11][12] Question: Capital management priorities - Management expressed confidence in share repurchases as part of their capital management strategy, contingent on market conditions [14]

Financial Data and Key Metrics Changes - GrafTech International reported a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025, with a cumulative sales volume growth of over 20% since the end of 2023 [4][5] - The company generated positive adjusted EBITDA of $13 million for the quarter and $25 million in net cash from operating activities, with an ending liquidity position of $384 million as of September [6][24][26] - A net loss of $28 million, or $1.10 per share, was reported for the third quarter, an improvement from a net loss of $36 million, or $1.40 per share, in the prior year [23][24] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a year-to-date growth of 39% in this region [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, reflecting a 7% decline compared to the prior year [16][17] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in Q3 2025, up nearly 2% year-over-year, with a global utilization rate of approximately 66% [7][8] - The U.S. steel production grew by 2% year-to-date compared to 2024, while EU steel output decreased by 4% year-to-date [8][9] Company Strategy and Development Direction - The company is focusing on increasing sales volume and market share, improving average pricing by shifting geographic sales mix to higher price regions, and reducing costs [29][30] - GrafTech is committed to serving customers with excellence and maintaining long-term partnerships built on performance and reliability [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential catalysts for a rebound in the steel market, driven by infrastructure and defense spending [42][43] - The company remains bullish on the structural tailwinds supporting the shift towards electric arc furnace steelmaking, with significant new capacity planned in the U.S. [30][31] Other Important Information - The company achieved a 10% year-over-year reduction in cash cost per metric ton for Q3 and anticipates a cumulative reduction of over 30% since the end of 2023 [6][20][21] - GrafTech is actively assessing potential tariff outcomes and their influence on the steel industry and graphite electrode market [32][36] Q&A Session Summary Question: Expectations on deferred revenue benefits - Management indicated that the recent deferred revenue benefit is one-time in nature and there are no further deferred amounts on the balance sheet [39] Question: Current demand and pricing environment - Management acknowledged the oversupplied market but noted positive momentum in steel demand and production, which could support pricing improvements [41][43] Question: Supply into the battery-related materials market - Management highlighted the importance of trade cases and the need for non-Chinese supply chains to unlock the battery materials market [46][47] Question: Impact of tariffs on imports from India - Management expressed confidence that tariffs would support market share gains and negotiations for 2026 commitments [54][56] Question: Engagement in public-private partnerships - Management emphasized the importance of a healthy electrode industry to support the domestic steel supply chain and expressed confidence in GrafTech's role in this space [59][60] Question: U.S. pricing trends - Management noted that U.S. pricing has remained flat to slightly up compared to the prior quarter, with annual contracts limiting price movement [64]

Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter level due to net outflows despite favorable market performance [8] - Earnings per share (EPS) increased to $6.69 from $6.25 in the second quarter, reflecting a 7% increase, while year-over-year EPS decreased by 3% due to lower average assets [10][19] - Operating margin improved by 170 basis points to 33%, with an incremental margin above 50% [10][18] Business Line Data and Key Metrics Changes - The ETF business saw significant growth, with AUM reaching $4.7 billion, a 79% increase year-over-year, and the highest quarterly sales and net flows at $0.9 billion each [5][14] - Total sales increased by 12% to $6.3 billion, driven by higher sales in fixed income and alternative strategies [15] - Net outflows for the quarter were $3.9 billion, unchanged from the previous quarter, with institutional net outflows improving from $2.2 billion to $1.5 billion [8][15] Market Data and Key Metrics Changes - Positive net flows were observed in fixed income and alternative strategies, while equity strategies faced headwinds due to a focus on quality-oriented strategies [9][10] - The company noted that flows across products and asset classes in October were trending similarly to the third quarter, with strong ETF sales continuing [9] Company Strategy and Development Direction - The company aims to increase retail separate account offerings, expand ETF availability in key channels, and grow the wealth management business [4][5] - Inorganic growth opportunities remain a focus, with a disciplined approach to adding capabilities or increasing scale [7][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for quality-oriented strategies, which have underperformed compared to momentum strategies over the past two years [27][33] - The company remains optimistic about the potential for quality strategies to regain favor, which could enhance performance and flows [27][33] Other Important Information - The company completed a debt refinancing, providing significant liquidity and flexibility to invest in the business and return capital to shareholders [11][20] - The quarterly dividend was increased for the eighth consecutive year, reflecting a commitment to returning capital to shareholders [5][11] Q&A Session Summary Question: What are the key strategies attracting interest in ETFs? - Management indicated that both the ETF wrapper and specific strategies are driving interest, with a focus on expanding access and offerings [24][25] Question: Any updates on inorganic opportunities? - Management confirmed that the environment remains active for potential acquisitions, focusing on high-performing capabilities and private market expansion [26][28] Question: How to improve net flows moving forward? - Management highlighted positive flows in fixed income and alternative strategies, while addressing the need to grow areas less correlated to quality-oriented strategies [32][33] Question: Details on office space consolidation and operating expenses? - Management noted that the benefits of office consolidation are now reflected in the run rate, with expectations for lower operating expenses moving forward [37][38] Question: Status of discrete expenses and buyback activity? - Management stated that discrete expenses related to inorganic activities are ongoing, and buybacks remain a core part of the capital strategy [43][45]