FirstService (FSV) Q1 2026 Earnings Transcript

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DATE

Thursday, April 23, 2026 at 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — D. Scott Patterson
• Chief Financial Officer — Jeremy Rakusin

TAKEAWAYS

• Consolidated Revenue -- $1.32 billion, up 5%, with organic growth accounting for more than half of the increase.
• Consolidated Adjusted EBITDA -- $106 million, representing 2% growth and an 8% margin, down 30 basis points from 8.3%.
• Adjusted EPS -- $0.95, an increase of 3%.
• FirstService Residential Revenue -- $546 million, up 4%, entirely driven by organic growth.
• FirstService Residential EBITDA -- $46 million, a 10% increase, with margin expansion of 50 basis points to 8.4% due to labor cost efficiencies, ongoing client accounting initiatives, and portfolio management productivity gains.
• FirstService Brands Revenue -- $771 million, up 6%, with organic growth at Century Fire and tuck-under acquisitions, but flat organic revenues in restoration, roofing, and home services.
• FirstService Brands EBITDA -- $64 million, down 5.5%, with an 8.3% margin, representing a 100 basis points decline due to margin pressure in roofing and home services businesses amidst a competitive environment and heightened promotional spending.
• Restoration Brands Revenue -- Mid-single digit growth overall, but flat organic performance; restoration backlog ended at similar levels to year-end, modestly down year over year, with Q2 revenues expected to be flat to slightly down.
• Roofing Segment Revenue -- Up 7% driven by acquisitions; organic revenues flat, with commercial reroof market flat to slightly up, and new construction market described as depressed.
• Century Fire Revenue -- Over 10% growth, with high single-digit organic rate; strength attributed to service, repair, and inspection revenues as well as installation and contract revenue contributions, supported by a robust backlog and expectation for continued similar performance.
• Home Services Revenue -- Up slightly, but below expectation; experienced double-digit decrease in lead flow and margin impact from increased marketing and promotional spend.
• Operating Cash Flow -- $88 million, more than double the prior year, achieved during a typically weak seasonal quarter.
• Capital Expenditures -- $28 million, slightly below the prior year, with full-year CapEx now expected modestly below $140 million.
• Leverage (Net Debt/EBITDA) -- Reduced to 1.5x, down from 1.6x at year-end and 2.0x a year ago.
• Liquidity -- Exceeds $1 billion in available cash and undrawn facility balances, a historical company high, positioning the company for acquisition opportunities.
• Acquisition Activity -- Two large franchise acquisitions completed; additional tuck-under deals are expected, but no acceleration planned for franchise conversions.
• Guidance for Q2 -- Mid-single digit top-line growth is projected; EBITDA performance is expected to be flat to slightly up, with Residential margin expanding further and ongoing margin pressure in Brands, particularly from roofing and home services.

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RISKS

• Management forecasts continued margin pressure in the roofing and home services businesses due to heightened competition, persistent deferral of major projects, and increased promotional spending to maintain share, with the CFO stating, We expect to continue with these at least over the short term covering the second quarter, but we will be keeping a close pulse on our leading indicators to pull back the spending once the environment improves.
• Home services lead flow declined double-digit, with a steeper drop in March, and remains depressed in line with consumer sentiment, which is 10% lower, and is expected to further dampen home improvement demand in Q2 due to increased gas prices and inflation in general
• Organic growth in pool construction, renovation, and ancillary commercial maintenance services remains a drag on Residential segment growth, and this pressure is expected to persist through the balance of the year.

SUMMARY

FirstService Corporation (NASDAQ:FSV) delivered consolidated results aligned with prior guidance, demonstrating top-line and earnings expansion despite a challenging demand environment across several business lines. Home Services encountered pronounced weakness as consumer sentiment, inflation, and external geopolitical conditions drove significant lead declines, prompting an increase in promotional investment to preserve revenue and capacity utilization. Management confirmed robust free cash flow, disciplined capital expenditure, and a strong liquidity position above $1 billion, providing strategic flexibility for pipeline acquisitions while maintaining historically low leverage. Commitment to growth was reiterated with the completion of two franchise acquisitions and plans for continued tuck-under activity in multiple segments, with no intention to expand the pace of franchise conversions.

• The Commercial Roofing market is described as The reroof market is certainly stabilizing, but stubbornly weak. with anticipated organic growth deferred until later in the year; sequential improvement is expected in the second half as previously delayed projects are now being sold or scheduled.
• Century Fire continues to drive Brand segment growth, owing to its internal focus on service and repair capabilities rather than external regulatory changes, with management stating, There is a real focus on it across all the branches,
• Current M&A valuations are multiples are not trending up or down—they remain very high but a slowdown in transaction volumes and an increase in distressed situations, particularly in roofing, have been observed; fewer bidders are present, though pricing remains elevated, per management commentary.
• Residential segment margin gains stem from cost discipline, offshoring, and applied AI tools to client accounting and portfolio management, with impacts expected to extend into the next quarter before leveling off in the second half of the year.
• Management is not increasing share repurchase activity despite available capital and an outstanding NCIB, as priority remains on potential acquisition opportunities and brand investments, with CFO Rakusin emphasizing a First and foremost, we are a growth company, and we are looking to deploy capital towards those growth initiatives and supporting the brands where we have capital allocation opportunities. focus.

INDUSTRY GLOSSARY

• Tuck-under Acquisition: The purchase of a smaller company or franchise that is integrated into an existing business platform to expand operations or fill service gaps within a segment.
• NCIB: Normal Course Issuer Bid; a Canadian regulatory framework through which a public company may buy back its own shares on the open market.
• Backlog: The total value of contracted work yet to be started or completed, representing expected, but not yet realized, future revenue.
• Ancillary Services: Additional services provided alongside core offerings, such as pool construction, renovation, or janitorial staffing, that supplement primary property management contracts.

Full Conference Call Transcript

D. Scott Patterson: Thank you for joining our Q1 conference call. We reported solid results this morning that were generally in line with expectation. I will provide a high-level review, touch on some highlights, and then pass to Jeremy Rakusin for a more in-depth discussion of the results. Total revenues were up 5% over the prior year, with organic growth accounting for over half of the increase. EBITDA for the quarter was up 2%, reflecting a modest and expected decline in our consolidated margin. Jeremy will walk through the detail in a few minutes. And finally, our earnings per share for the quarter were $0.95, up 3% over the prior year.

Looking at our divisional results, FirstService Residential revenues were up 4% in the seasonally weak first quarter. All of the growth was organic. We had a solid quarter of contract wins and renewals in our core management business at the upper end of expectation, and as we discussed in our year-end call, divisional growth was tempered by modest declines in ancillary services, including pool construction and renovation, and contracted labor for commercial maintenance. Looking forward at FirstService Residential, we expect similar or slightly better organic growth in Q2 and some sequential improvement for Q3 and Q4. Moving on to FirstService Brands. Revenues for the quarter were up 6%, balanced between organic growth and tuck-under acquisition.

Organic growth was again this quarter driven by increases at Century Fire. Organic revenues within restoration, roofing, and home services were all approximately flat with the prior year. Looking more closely at our segments, our restoration brands, First Onsite and Paul Davis together were up mid-single digit over the prior year and, as I said, flat organically. We are pleased with the performance in Q1 after entering the quarter with a soft pipeline relative to prior year due to the mild weather we experienced in Q4. We saw increased activity from winter storm work that benefited both our brands. The work was primarily quick-turn water mitigation and very little carried into Q2.

As a result, our overall restoration backlogs at quarter-end are at similar levels to year-end, and down modestly from the prior year. Based on current activity levels and the quarter-end backlog, we expect Q2 revenues to be flat to slightly down from prior-year levels. Moving now to our Roofing segment. Q1 revenues were up 7% over the prior year, driven by tuck-under acquisitions, primarily Lakeland, Florida-based Springer-Peterson during Q3 last year. Organically, revenues were flat with the prior year and in line with our expectation. We expect a similar result in Q2, with single-digit top-line growth from acquisitions and approximately flat revenue organically relative to a year ago. Outside of data center work, the new construction market remains depressed.

The commercial reroof market is flat to slightly up while becoming increasingly competitive. We have a strong team in our roofing platform and solid underlying branch operations. We firmly believe we are in a position to accelerate when the market improves. Moving to Century Fire, we had a strong quarter, with total revenues up over 10% and organic growth at a high single-digit level. The Century results continue to be balanced between strong growth in repair, service, and inspection revenues supported by solid growth in installation and contract revenues. The backlog is robust, and we expect a similar result in Q2 and for the balance of the year.

Now on to our home services brands, which as a group generated revenues that were up slightly from year-ago levels, modestly lower than our expectation. We started the quarter with an uptick in lead flow and some optimism. However, this dissipated moving into February, and reversed with the onset of the Middle East conflict. Leads and activity levels dropped immediately. Our teams made a decision to increase promotional spending and marketing spend to maintain momentum and capacity utilization as we ride out the storm. We were successful in holding our revenue, driving higher conversion rates and larger job size, and certainly taking share in a tough market.

It did impact our margin for the quarter, and Jeremy will speak to this in his comments. Our lead flow for Q1 was down double digit, with a steeper decline in March. It remains at depressed levels and is moving in line with consumer sentiment, which is 10% lower than a year ago. It is expected that increased gas prices and inflation in general will dampen home improvement demand in Q2 beyond what we foresaw at the beginning of the year. Based on our sales and backlogs currently, we expect to get close to prior-year revenues in Q2. This outlook is impressive in the current environment and, again, reflects the tenacity and commitment of our teams.

We do remain optimistic that there is pent-up demand in the market and believe we could see a pop in activity with stability in the Middle East and reduced concerns around inflation. On the acquisition front, we acquired two of our larger franchises during the quarter: our Paul Davis franchise covering the Cleveland and Akron markets, and our California Closets operation that owns the franchise territories encompassing Indianapolis, Louisville, Lexington, and Cincinnati. As a reminder, we have had company-owned operations at Paul Davis and California Closets for many years now. We selectively acquire franchises if we believe we can drive incremental growth in the market in partnership with local operators, always in the best long-term interest of the brands.

We have other tuck-unders in the pipeline across our segments and expect to complete further deals over the balance of the year. I will now pass over to Jeremy for his comments.

Jeremy Rakusin: Thank you, Scott. Good morning, everyone. We reported consolidated first quarter results in line with the outlook we provided on our prior year-end call, and in particular, the top-line performance in each of our brands matched our expectations as you just heard from Scott’s walkthrough of each business line. Highlights of the consolidated quarterly results included revenues of $1.32 billion, reflecting 5% growth over the $1.25 billion last year, adjusted EBITDA of $106 million, up 2% year over year with an 8% margin, down 30 basis points versus the 8.3% margin in Q1 2025, and adjusted EPS at $0.95, a 3% increase over the prior year.

Our adjustments to operating earnings and GAAP EPS arriving at adjusted EBITDA and adjusted EPS, respectively, are consistent with our approach in prior periods. Turning now to the segmented results for our two divisions. I will lead off with FirstService Residential. The division generated revenues of $546 million, up 4% over last year’s first quarter, while EBITDA was $46 million, a 10% growth rate over the prior year. This resulted in an EBITDA margin of 8.4%, a 50 basis points increase over the 7.9% level in Q1 2025. The margin expansion was driven by broad-based labor cost efficiencies across our operation.

This encompassed both a continuation from last year of the initiatives around our client accounting and portfolio management functions as well as other productivity gains across our teams. Now to FirstService Brands, where we reported revenues of $771 million for the current quarter, up 6% over last year’s Q1. Our EBITDA for the division was $64 million, a 5.5% decline versus the prior-year quarter. The resulting margin was 8.3%, down 100 basis points compared to last year’s 9.3% level, and primarily driven by our roofing and home services businesses. The performance at our roofing platform was expected.

As we indicated on our February year-end call, the forecast decline was due to job margin pressures in a heightened competitive environment against the backdrop of dormant commercial new development activity. At our home services businesses, we saw the need during the quarter to increase our marketing spend to preserve our top-line performance in the face of macroeconomic uncertainty and the weakening consumer sentiment that Scott referenced. Remodeling spending in our home improvement brands is influenced by interest rate levels and consumer sentiment and home affordability indices, all of which have been undermined by recent geopolitical developments.

Periodically in the past, when we have encountered these types of exogenous challenges impacting our key performance indicators, we have tactically deployed promotional initiatives to support the brand and our market share. We expect to continue with these at least over the short term covering the second quarter, but we will be keeping a close pulse on our leading indicators to pull back the spending once the environment improves. A second factor contributing to the first-quarter margin compression at our home services brands was reduced capacity utilization of our frontline teams.

While we delivered revenues in line with prior year, job volumes declined and we were reluctant to flex our labor costs down in proportion to these reduced activity levels until conditions stabilize and we have greater clarity of market demand trends. With respect to our consolidated operating cash flow, we generated $88 million during the first quarter, a sizable level during our seasonal trough first quarter and up more than double compared to Q1 2025. Capital expenditures during the quarter were $28 million, slightly below prior year, and we now expect to have our full-year CapEx coming modestly lower than the initial guidance of $140 million.

The resulting high free cash flow conversion rate is a function of our business model and focus around generating cash even when we have periods of more tempered growth on the P&L. This translated into further deleveraging on our balance sheet where our leverage, as measured by net debt to EBITDA, ticked down to a very conservative 1.5 times compared to 1.6 times at prior year-end and versus the 2 times level at Q1 last year. We have a well-balanced mix of floating and fixed rate and varying maturities of debt instruments.

And lastly, our liquidity reflecting cash and undrawn credit facility balances exceeds $1 billion, the highest level in the history of the company, which puts us in a strong financial position to deploy capital as opportunities in our acquisition pipeline arise. Looking forward, in the upcoming second quarter, we are forecasting similar year-over-year trends as we just saw in Q1 across both divisions. We see a continuation of similar EBITDA margin expansion and growth in the FirstService Residential division. This will be largely offset by Brands division declines reflecting the ongoing margin pressures in roofing and home services I referenced earlier and which are dictated by the current uncertain geopolitical and macroeconomic environment.

This all aggregates on a consolidated basis for Q2 to mid-single digit top-line growth and EBITDA performance flat to slightly up compared with the prior year. That concludes our prepared comments. Olivia, you can now open up the call to questions. Thank you.

Operator: To ask a question, please press star 11 and wait for your name to be announced. To withdraw your question, simply press 11 again. Please stand by while we compile the Q&A roster. First question coming from the line of Stephen MacLeod with BMO Capital Markets. Your line is now open. Thank you.

Stephen MacLeod: Morning. Morning, guys. Just wanted to ask about the roofing vertical, which obviously you are seeing some pressure in, both in the end markets as well as from competitive intensities. Are you still expecting that some of those reroofing jobs are being delayed into later points in the year or beyond this period of geopolitical and macro uncertainty?

D. Scott Patterson: I think it has delayed a rebound. The reroof market is certainly stabilizing, but stubbornly weak. The persistent uncertainty does continue to impact decisions around major projects. We are seeing it in some of our other businesses. We do believe we will grow organically this year. We expect to. We expected to see some organic growth in Q2, but I think the rebound has been pushed out. We do expect to see sequential improvement in Q3 and Q4. There are opportunities that were delayed last year that we are seeing scheduled now. We are bidding work. We are winning work. Generally, we are feeling optimistic.

We believe that we have a very solid branch network, and we are poised to really take advantage when the market improves.

Stephen MacLeod: Okay. That is helpful color, Scott. Thank you. Then maybe with respect to capital allocation, you have strong free cash flow, leverage is not very high, and you do have an NCIB outstanding. Would you consider being active on the buyback given where the stock is and some of the weakness in the outlook?

Jeremy Rakusin: Yes, Stephen. It is one of the alternatives that is always on the forefront of our minds, particularly given the current environment and, as you said, leverage giving us ample room. First and foremost, we are a growth company, and we are looking to deploy capital towards those growth initiatives and supporting the brands where we have capital allocation opportunities. I think that is our primary focus. You are right, we can pull the trigger on the NCIB at any point in time. We have given consideration to it, but for now it is a pause given potential opportunities in the pipeline, the growth mindset, and the uncertainty in the geopolitical environment and how that influences stock market valuations.

Stephen MacLeod: Okay. That is great. Thanks, Jeremy. And then just on M&A, Scott, you referenced that you have done some tuck-ins recently. When you think about M&A and the outlook from here, would it mostly be turning franchises into company-owned, or do you see other alternatives in your other verticals as well?

D. Scott Patterson: No. I really think it is tuck-unders in the other verticals. Nothing has really changed as we approach the company-owned strategies at Paul Davis or California Closets. Those will be very episodic, one or two a year at each brand. We are not looking to accelerate that.

Operator: Thank you. And our next question coming from the line of Daryl Young with Stifel. Your line is now open.

Daryl Young: Good morning, everyone. I just wanted to touch on Century Fire for a second. It seems to continue to defy gravity amid a soft commercial construction market. Have there been any regulatory changes that might help explain some of the growth there in terms of maybe frequency of inspections or system retrofits, or anything else that can explain that growth?

D. Scott Patterson: No. The growth has really been in the service, repair, inspection side. It has been very consistent in the last number of years, and it continues to be a driver for them. There is a real focus on it across all the branches, and they are still in the process of layering in service expertise at some of the branches that were primarily installation-focused. There is nothing on the regulatory environment that we are aware of that has accelerated the growth in the service side. It is just a continued focus on it.

Daryl Young: And then with respect to restoration, the outlook is maybe a little bit lighter than I would have expected in the short term. Is there any loss of market share or anything going on with national accounts that might explain that as well? I would have thought there is a lot of white space from a geographic expansion perspective.

D. Scott Patterson: No. I think we are definitely holding our own. These storm events are all very, very different from one to the other in what areas they impact, where we have branches relative to the affected areas. We continue to feel very good about our position in the marketplace as it relates to national accounts. This is a weather-influenced business, and it is hard for us to call from quarter to quarter. We do see some activity. We have some large-loss opportunities, so there is potential upside. But based on where our backlogs are, we do think the revenues will be flat, perhaps even down a bit.

Daryl Young: In Q2?

D. Scott Patterson: That is our current view based on the backlog and activity levels.

Daryl Young: Okay. I will jump back in the queue for now. Thanks.

Operator: Thank you. Our next question coming from the line of Stephen Sheldon with William Blair. Your line is now open.

Stephen Sheldon: Hey. Good morning. Thanks. Nice to see strong margin improvement once again in the residential segment. With the labor efficiency gains you called out, do you see opportunities to leverage AI in other businesses and segments similar to what you have done in residential around client accounting and call center operations?

Jeremy Rakusin: Yes, Stephen. In our Brands businesses, all of them are exploring tools to be more efficient on the front lines. One example is restoration, where on walkthroughs, job estimating, and scoping, AI tools are being used to speed up the process, be more productive for those estimating teams, and also help enhance accuracy, making sure nothing is missed and really captured in that scoping exercise. That would be one example to call out, but all of our brands are using AI in early-stage, incremental ways as we speak.

Stephen Sheldon: Got it. Makes sense. And then on roofing, how are you thinking about the margin trajectory over the coming years as activity hopefully picks back up? Are there still a lot of levers to pull where there could be structural margin improvement over the medium term and a better backdrop with more pricing power?

Jeremy Rakusin: Short to medium term, meaning 2026, we have called the margin compression right from the outset, largely due to competitive pressure. Once we get through that and once new construction, new development resumes its normal course, we think the competitive pressures in reroof will abate and we will get more pricing power. The other thing that is tempering our margins a little bit is we are pulling together one ERP and financial reporting platform across all of our branches. That is a bit of investment that we knew about into 2026 and 2027.

Once we get that in place and have a better environment, I think there could be opportunities on the cost synergy side around procurement, using our scale to garner materials at better prices, and just as we scale up the platform. It is too early to map that out, but directionally there would be opportunities medium to long term.

Operator: Great. Thank you. Our next question coming from the line of Erin Kyle with CIBC. Your line is now open.

Erin Kyle: Hi. Good morning. Thanks for taking the questions. Jeremy, just to follow up on the margin side for Residential. Good to see that margin strength in the quarter. Can you expand a bit more on the labor and cost efficiencies achieved? It was my understanding that most of those cost savings were implemented in 2025. Is it the AI efficiency that you are speaking to that is contributing to the efficiency in the quarter? How should we think about that?

Jeremy Rakusin: Yes. A portion of the 50 basis points would have been a continuation of last year’s initiatives around client accounting—offshoring some of the financial statement and accounting functions to lower-cost opportunities—as well as AI-driven portfolio management efficiencies, where we can reduce headcount in our call centers and enhance portfolio manager productivity. That is a continuation. Then a little bit on mix: Scott spoke about the exit from low-margin accounts at the beginning of the year around our ancillary commercial maintenance and pool renovation services. Those are lower margin, so we get a modest tick up. And then really little pockets across our 200-plus offices. Those would be the three or four reasons that aggregate to the 50 basis points.

We will see more of it in Q2, and then I believe it will flatten out in the second half of the year.

Erin Kyle: Thank you. That is helpful color. Then maybe just on the M&A side, looking forward for the rest of the year, you touched on the two tuck-in acquisitions of franchise operations that were announced a few weeks ago. More broadly, what are you seeing in terms of the market? Do valuations remain elevated, and what would the strategy look like if deals remain elevated? Do you expect to do more of those franchise operation acquisitions this year?

D. Scott Patterson: I think this year will play out similar to last year, where we allocated about $100 million for acquisitions. Multiples do remain high across all the platforms. The market is still active, but it is still slower than we have seen in previous years. Many sellers are waiting for more stability in the economy. Certainly in roofing and restoration, we have seen deals pull back. Results are generally down, so sellers are waiting until there is a rebound. We do have prospects in the pipeline across most of our segments and believe we will close incremental tuck-unders over the next three quarters, but probably not incremental franchise acquisitions, because we are not aggressively pursuing those.

We obviously know all our franchisee owners, and we are taking that one step at a time as a transition makes sense for those owners and families.

Erin Kyle: Thanks, Scott. I will pass the line. Thank you.

Operator: Thank you. Our next question coming from the line of Tim James with TD Cowen.

Tim James: Hi. Thanks very much. Good morning. First question, returning to the Residential segment. You mentioned some headwinds there in property management related to pool construction and some commercial maintenance. Could you elaborate on what the drivers are and how sustainable you expect that pressure to be through the balance of the year?

D. Scott Patterson: We have been in the pool management, renovation, and construction business for many years. The renovation and construction side is facing the same headwinds we are facing in roofing and many of our businesses, with a reluctance to allocate CapEx to major projects and deferrals. We are entering the seasonal period and will see a resumption of that activity, probably not at the same level as the prior year. It will continue to be a bit of a drag on our organic growth. We also referenced the other ancillary service, which is the provision of janitorial and front desk personnel to the multifamily market, primarily in the Northeast.

There were a few contracts—these tend to be REITs and owners of several buildings—and often when you win or lose a contract, it can be for a number of buildings. We made a decision on price to move away from some contracts, which will continue to be a modest drag. But we feel very good about where we are with our core management business. We had a solid quarter and end of 2025 in terms of renewals, retention, and wins, and expect that the core business will hold our growth in this division at mid-single digit. We expect to see incremental sequential improvement through the year.

Tim James: Okay. That is super helpful. Thank you. Turning to home services and the promotional activity you increased in the first quarter, it sounds like that is due to the macro demand environment. When you step up promotional activity in an environment impacting all competitors, is the idea that competitors are getting more aggressive on pricing and you are offsetting that and getting the brand back in front of them? I know you have had experience with this in the past, so maybe refresh us on the success that drove and how it works.

D. Scott Patterson: There is some of what you suggest. The key for us is to maintain momentum, take share in a very tough environment, and keep our teams busy. We invest a lot in training our people. With the lack of clarity we have today, we do not want to move quickly to adjust unless we have more clarity about the market. As I said in my prepared comments, we believe it could turn positive quickly with some stability and clarity around the Middle East and inflation. We are trying to ride out the storm. We have our fingers on the dial around the marketing spend and the cost structure.

If we do see or believe that this is a prolonged downturn, we will adjust quickly.

Tim James: Thank you. Last question, focusing on the M&A environment. Are you seeing any evidence that recent challenges related to funding for private equity have impacted their approach to M&A in your markets—activity levels, pricing behavior—any knock-on effects?

D. Scott Patterson: The one thing I would say is that while it appears that the multiples are not trending up or down—they remain very high—the number of bidders for opportunities is probably lower right now. As you suggest, some funds and buyers have pulled back. There are not as many people at the table, but valuations appear to be holding. The other thing I would say is that for the first time we are seeing and hearing about distressed platforms, particularly in the roofing space, where the bank is getting involved either through their special loans group or, in more than a few cases, conceivably taking control.

Tim James: That is great. That is really helpful. Thank you. Those are all the questions I have.

Operator: Thank you. Our next question coming from the line of Himanshu Gupta with Scotiabank. Your line is now open.

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