Forward looking statements may often be identified with words such as we, expect, anticipate, or upcoming. These statements reflect our views only as of today, and should not be considered our views as of any subsequent date. We undertake no obligation to update or revise these forward looking statements Forward looking statements are not promises or guarantees of future performance. And are subject to a variety of risks and uncertainties that could cause actual results to differ materially from our expectations. For a discussion of material risks, and other important factors, that could affect our results, please refer to the information in our annual report on Form 10 ks and other reports filed with the SEC. Which are available on the Investor Relations section of our website and on the SEC's website at sec.gov. Please note that effective as of February 28, 2025, the date of the spin off of Resolute Holdings Management and as a result of the management agreement between Resolute Holdings Management and the company's wholly owned subsidiary, CompoSecure Holdings, the results of operations of CompoSecure Holdings, and the operating companies which are its subsidiaries, are not consolidated in the financial statements included in this report and instead are accounted for under the equity method of accounting.

In the earnings release we issued earlier today, and in the discussion on today's call, we also present non GAAP results to help investors reconcile and better understand our operating performance. In addition, our discussion will include non GAAP financial measures including EBITDA, adjusted EBITDA, pro form a adjusted EBITDA, consolidated net sales, consolidated gross profit, consolidated gross margin, consolidated total cash, adjusted EPS, and consolidated net debt. The company believes these non GAAP financial measures provide useful information to management and investors regarding certain financial and business trends impacting the company's financial condition and results of operations. These non GAAP financial measures, should not be considered as an alternative to net income or any other performance measures derived in accordance with U. S. GAAP and may be different from similarly titled non GAAP measures used by other companies. A reconciliation of GAAP to non GAAP measures is available in our press release and earnings presentation available on the IR section of our Thank you. And with that, let me turn the call over to Executive Chairman, Dave Cote.

Afternoon, everyone.

Since we last spoke to you in March, we have continued to spend a considerable amount time working with John and his team to strengthen CompoSecure's operating capabilities with the Compo operating system driving organic growth, and building a high performance culture that has the intensity and sense of urgency to deliver now and into the future. I'm pleased with the team's engagement. We're beginning to see early results from their efforts and while implementation of COS, and development of that critical institutional intensity will take time I'm encouraged by the progress we're making. I'm also pleased with the first quarter's results and believe CompoSecure Secure is well positioned to deliver through 2025 and beyond. As I have said since first investing in CompoSecure, we are far and away the leader in metal cards, but still have less than 1% penetration of the current credit card market. Even though the financial and brand benefits are metal cards offer to an issuer, are huge. We believe the upside for us and our customers is significant. To execute against this big opportunity, we believe our focus on this Compo operating system and the related investments we're making drive meaningful results over time.

Enhancing CompoSecure's ability to continue building a culture of excellence that delivers for our customers, employees, and investors. As we've proven before, it really does work. Before turning the call over to John, I wanna take a moment to address the accounting change we've had to make this quarter. Tim will discuss this in more detail later in the call, but we are now required to report CompoSecure's results using the equity method of accounting. Following the spinoff of Resolute Holdings. And Resolute Holdings is required to consolidate the financial results of CompoSecure's wholly owned operating subsidiary in accordance with US GAAP. This consolidation accounting is quite technical in nature, and does not reflect the underlying economics of CompoSecure or Holdings. To help investors better understand each business's financial performance, we have provided non GAAP financials that do reflect the economics of each business, and allow for direct comparisons to past periods at CompoSecure. We have also included a summary chart on page four of the earnings presentation to simply summarize how I think about the financials of both CompoSecure and Resolute Holdings. The non GAAP CompoSecure financials are the same as they have been historically. With the only change being a deduction of the management fee that is paid to Resolute Holdings.

For Resolute Holdings, the non GAAP financials show management fee revenue from CompoSecure Secure less salaries and ongoing operating expenses. Both are that simple, and are how we look at both businesses. So you may find yourself saying, gee, Dave, if it does not make sense for how investors should look at the results economically for both companies, Why are you doing the accounting this way? The best answer I think comes from paraphrasing Warren Buffett who once said about Berkshire Hathaway accounting, that, quote, the GAAP earnings are 100% misleading and they serve to misinform investors. So to restate how best for investors to understand the economics of both companies, [indiscernible] look at Compo historical reporting and deduct the management fee. And two, look at RHLD as management fee revenue minus costs of the investment team. So with that, I'll turn the call over to John.

Thank you, Dave. Good afternoon, everyone, and thank you for joining us for our first quarter conference call. We started the year in line with our expectations across our payment Card and Arculus business. With consolidated net sales essentially flat compared to prior year. Pro form a adjusted EBITDA which incorporates a full quarter of Resolute management fees on a pro form a basis for both the current and year ago period decreased slightly due to higher G and A expenses tied to growth investments and the implementation of the CompoSecure Operating System, or COS.

We also had strong program activity during the quarter with several high profile customers while Arculus delivered a net positive contribution and record results for the quarter. With new vertical industry wins. Our focus on operational excellence through the CompoSecure operating system remains a critical enabler.

Positioning us to drive more efficiencies and long term value creation.

Importantly, we are already beginning to see the benefits from implementing COS particularly at the factory and production level. Which we believe will deliver positive net impact in 2025. As expected and highlighted in our March conference call, we are seeing momentum building in the second quarter for both payment card and Arculus, and we anticipate this sustained growth trajectory will carry through the remainder of the year.

As mentioned in our press release earlier today, we are reaffirming our full year 2025 guidance with expectations for mid single digit growth in both consolidated net sales and pro form a adjusted EBITDA.

As Dave mentioned a moment ago, have provided slide four to help you understand how we think about the financials of both CompoSecure and Resolute Holdings.

Our non GAAP CompoSecure financials remain consistent with our historical practice with the only change being the deduction of the Resolute Management Fee.

For Resolute Holdings, the non GAAP financials show the management fee revenue from CompoSecure less salaries and ongoing operating expenses. Tim will go into some additional detail around this later on. Now turning to slide five. We had a strong quarter of program activity with several high profile metal payment cards across the globe. These included Citibank, Robinhood, Carta, Coho, Wealthsimple and Scotiabank, spanning both the traditional issuers and fintechs.

Several new vertical industry wins for Arculus, include MetaMask and MoneyGram, showcasing our ability to diversify across industries.

Moving on to slide six.

We continue to see a strong metal payment card market, both in terms of issuer adoption and end user preference. As Dave mentioned, the financial and brand benefits our metal cards offer to an issuer are huge, and we see this clearly reflected in our pipeline as demand has continued to strengthen in the second quarter, we anticipate this sustained growth trajectory will carry through the remainder of the year.

Turning to Slide seven in Arculus. As I mentioned earlier, we delivered record results generating another net positive contribution in the quarter. I highlighted some recent examples of vertical success earlier with MoneyGram and MetaMask, In addition, we are encouraged to see metal card customers beginning to future proof their offerings by bundling Arculus Authenticate with payment capabilities.

We believe Arculus remains a powerful differentiator that sets CompoSecure apart in the evolving Web three point and digital security landscape. I'll now hand it over to Tim to review our financials before returning for closing remarks.

Thank you, John, and good afternoon, everyone. I will provide a detailed overview of our Q1 twenty twenty five financial performance Unless stated otherwise, all comparisons and variance commentary on a year over year basis. In Q1, consolidated net sales were essentially flat $103,900,000 compared to our prior year. Consolidated gross margin for the quarter was 52.5% of net sales, compared to 53.1% for the same quarter of the prior year. Pro form a adjusted EBITDA in Q1 decreased by 2% to 33,700,000.0 with the decline driven by higher general and administrative expenses. The pro form a adjusted EBITDA comparison includes approximately $3,200,000 in expense in both the first quarter in twenty twenty five and the first quarter in twenty twenty four. We include the full quarter of management fees in 2024 and 2025 to allow for comparability across periods. The actual payment to Resolute Holdings in the first quarter of twenty twenty five was 1,100,000.0 because the contract became effective February 28. Nothing was paid in the first quarter of twenty twenty four as Resolute Holdings did not exist. Pro form a adjusted EBITDA margin was 32.4%, compared to 33.2% in the prior year. On slide 10, you can see that the domestic net sales were down $3,300,000 or 4% the prior year, while international net sales were up 3,100,000.0 or 28% from the prior year.

Adjusted net income increased 21% to 28,400,000.0 Adjusted diluted EPS was $0.25 compared to $0.24 per diluted share in the prior year. With the slight increase driven by higher net income offset by higher share count. I want to add some additional commentary related to the required accounting change. As of February 28, following the spin of Resolute Holdings, and the execution of a new management agreement, CompoSecure is required to use the equity method of accounting and Resolute is required to consolidate the financials of CompoSecure's wholly owned operating subsidiary accordance with US GAAP. As a result of this change, the results of our operating businesses are no longer consolidated in our GAAP financials. Instead, our share of earnings from CompoSecure Holdings is presented as a single line item in our income statement and the carrying value in the assets of holdings is now reflected on our balance sheet. To reiterate what Dave and John said, our non GAAP CompoSecure financials are the same as they have been historically. With the only change being the deduction of the management fee paid to Resolute Holdings. For Resolute Holdings, the non GAAP financials show management fee revenue from CompoSecure less salaries and ongoing operating expenses.

To help you better understand, let's turn to slide 13. Slide 13 provides further clarity and shows our reconciliation GAAP results to the consolidated non GAAP following the February 28 spin off of Resolute Holdings and the adoption of the equity method of accounting. Let me walk you through this. Column A provides GAAP results which include two months of consolidated holdings financials and one month under the equity method of accounting. Column B shows the elimination of the equity method investment which represents the removal of the net income that we recorded from the equity method in holdings. Column C has the addition of holdings one month results as that they would have historically been presented. Column D shows the statement of operations as the company had reported historically. Row E provides adjustments for one time spin costs And Row F shows pro form a adjustments to show CompoSecure results on a go forward basis assuming full management fees in both periods. We're providing this view to help bridge the gap between our new equity method presentation and the full underlying performance of our operating companies. Turning to the balance sheet. As of March 31, 2025, on a non GAAP basis, had $71,700,000 of cash and cash equivalents, and total debt of $195,000,000 This compares to cash and cash equivalents of $55,100,000 and total debt of 335,600,000.0 at 03/31/2024.

Our bank senior secured debt leverage ratio was 1.05 times at 03/31/2025, a trailing twelve month adjusted bank EBITDA of 156,000,000 This compares to 1.34 times at 03/31/2024. Turning to our cash flow statement on slide 15. You can see that the net cash provided by operating activities for the quarter was $18,200,000 compared to $33,700,000 in the prior year period. I'll now turn it back to John to discuss our guidance and closing remarks.

Thanks, Tim.

As mentioned earlier, we are reiterating our previously issued full year 2025 guidance which calls for mid single digit growth in both consolidated net sales and pro form a adjusted EBITDA, with sales momentum building through the year. This guidance includes payment of the Holdings management fee in 2025 and 2024 on a pro form a basis. We continue to operate from a position of strength, with a solid balance sheet, strong customer relationships, and growing demand across both Metal Cards and Arculus. We are planting the seeds to drive organic and inorganic growth supported by the CompoSecure operating system to further improve efficiencies and execution. We are already beginning to see the benefits from implementing COS particularly at the factory and production level, which we believe will deliver positive net impact in 2025. At the same time, we remain mindful of macro headwinds, including rising labor costs and broader economic uncertainty.

We believe our focused strategy and disciplined execution position us well to navigate these challenges and continue building long term value. Finally, on slide 18, I want to conclude by highlighting a few points we covered today.

First, we are focused on accelerating organic growth supported by strategic investments as well as new and growing customer relationships. Second, the CompoSecure operating system is driving results, and remains core to how we scale execution and unlock efficiency.

Third, we are building on our momentum with Arculus delivering a net positive contribution this quarter and gaining traction across multiple verticals And finally, we remain committed to delivering a accretive M and A as we evaluate opportunities that enhance our growth profile and create long term value. With that, I'd like to open up the call for Q and A. Thank you. To withdraw your question, please press 11 again. Our first question comes from Orenbuch with TD Cowen. You may proceed.

Great. Thanks. And congratulations on the progress and these results. The John, you talked about, kind of the you know, momentum kind of accelerating through the quarter. And obviously we've seen strong results from the premium card issuers. Is the fact that you maintain the guidance kind of conservatism because of the macro environment? Or how many more months of that kind of strengthening do you need to see till you can kind of be more confident in a higher level or an ongoing level of revenues?

Moshe, thanks for the question. So just tying back to our last call and when we described what we expected this year with the mid single digit growth, Q1 being in line with expectations, roughly flat to last year and that sales momentum building into Q2, Q3 and into Q4. And the message today is we are seeing the activity levels, the orders, the backlog to help support that full year forecast. We feel good about where we are in that cycle and what we're delivering there. So the momentum is clearly building. It was building at the end of Q1 into Q2 and that's what we're feeling now. Gotcha. Maybe as a follow-up, is there any way that either John or Dave can just you can talk a little bit about the areas that are the biggest focus near term for acquisition. Are there any that kind of stand out in terms of things that are the most interesting and where there are actual kind of opportunities at this stage? Thanks.

Thanks, Moshe. I'll jump in here and then if Dave wants to follow, he's welcome to. But Moshe, the answer I'll give you is same as I would have given you prior, which is we will look at things in and around the space that Compo plays in today. You'll look at things up and down the value chain that Compo plays in. And we will look at things that align well to things that Dave has done exceptionally well in over time. We recognize that is a very broad remit. But it leads to, I think, a great portfolio of opportunities that the Resolute team and we are currently evaluating.

At the same time, we will be incredibly disciplined about what we do to ensure that we deliver accretive results for our customers. Long way of saying, Moshe, we're not going to narrow that for you at this time. Just not in our interest to do so.

Okay. Alright. Thank you.

Well said, John.

Alright.

Next question comes from Cassie Chen with Bank of America. You may proceed.

Hi, thanks for taking my question. I just wanted to ask, you know, I guess, how you guys are thinking about the remainder of the year in terms of the cadence of revenue growth versus adjusted EBITDA? As well as what your assuming for the macro environment into the back half of the year. And just, you know, tacking on in onto that as well, are you assuming any increased supply chain challenges or anything that we should be thinking about from the macro volatility that we've seen? Thank you.

Thanks, Cassie. So just for us to deliver that kind of mid single digit growth right, we need to see that growth certainly tick up into Q2. And building through three and four for us. That is what we expected coming in and it is what we expect today. We are seeing it play out I think exactly as we felt it would coming into the year. And we feel that on both the revenue and the EBITDA side. Regarding the macros, yes there is a lot of noise out there around tariffs. And recession risk and other things that are out there. We continue to be extremely proactive and how we think about or manage our supply chain Cassie, it's been that way for us since before COVID. We put routines in place around supply chain to ensure that we didn't have challenges in those kinds of environments. Those routines continue to serve us well today. So we issue our guidance today understanding the tariff environment and the uncertainty and how quickly that can move up and down. And on the broader sort of question of consumer behavior, what's happening there, We're just not seeing signs of of the impact where our activity level of client activity, design sessions, orders just aren't reflecting concerns there at this point.

It's a watch item. We'll continue to watch it closely. But feel good about where we are and our ability to deliver what we talked about today.

Got it. That's helpful. And if I could just ask a follow-up about Arculus. Obviously, it was nice to see some of the wins that you highlighted. I guess what specifically do you see as resonating? Are those live now? And when do those typically ramp into revenue? And just a quick housekeeping question is just I think I missed how much revenue and adjusted EBITDA did that build in one 1Q? And is that supposed to increase every quarter for the remainder of the year? Thank you.

So on the Artila side, Cassie, we are seeing the Arculus authentication value proposition. I think really start to resonate in the market [indiscernible] talked about this in the past, but we are trying to change behavior inside of financial institutions. But the move to pass keys generally I think, has been incredibly helpful. You're seeing Microsoft, Apple, Google, and others talk about pass keys. We are essentially turning a credit or debit card into a pass key or an authentication token. And so as the world moves that way, I think we certainly benefit from that. And we're seeing more and more customers that understand that value proposition to help them grow revenue and or reduce fraud cost. We also continue to see a tick up on the the crypto and digital asset side of things. With what's happening in the market. So really pleased across multiple fronts there. We did not break out specific numbers for Arculus in terms of revenue or contribution. As we have made the accounting shift to the equity method We have sort of new requirements for how and what we must report and break out. We are meeting those requirements, and we haven't broken out into additional detail.

I've tried to add the color Cassie, to let you know it was a our best quarter and strong net positive contribution there.

Understood. Thank you.

Thank you.

Our next question comes from Hal Ghosh with B. Riley Securities. You may proceed.

Guys, thanks for the question. You know, John, you mentioned the the combination of authentication and payment in Arculus. Can you can you give can you give us a hint if you can of in that value proposition? Does for you to do extra.

Speak us a little bit with what that does for you guys. Because that that's pretty cool in Hal, if you could repeat that. One more time, I'm getting some background noise, I couldn't hear it. [indiscernible] You mentioned a combination of, like, Arculus and payment.

And if if you could, like, what does that do for your hidden economics?

And if you can just with us any thoughts you could share on how that's driving adoption, maybe pricing.

Sure.

So you know, how will we think about that? There's sort of two things for, the hardware It'd be higher ASP, sort of adding additional value or service to the product that we are delivering. [indiscernible] small to medium sized clients. Some bigger you know, we would look to earn software revenue from providing authentication service as well over time. That will please hear me over time. We would like to see that build. So improved economics, better contribution margin, and over time software revenue that would go along with that.

If I could ask one follow-up on metal cars, just can you give us some thoughts? I know you had some new program wins, some how is the market, in your opinion, you know, in a from a high level kind of broadening out from elite to, you know, to the more mass affluent from your perspective today. We we know it has been happening, but wanted to get your thoughts on the current status of it. Thank you.

Hal, thank you for the question. I'd say we continue to see the market broaden. So while it started with private banks high net worth, it expanded to the mass affluent space. It expanded, in my view, to the upper end of the mass market space. As well and has continued to do so. And I think one of the interesting things that we see how in the research is that it is some of those up and coming customers, the younger demographic, that 25 to 35, that love metal cards almost more than anyone. They want to show it as a status symbol of I'm going somewhere, And it's really important to them. And that's counter to what I get told all the time that young people, all they're interested in is surfing. It's just not true. So we do see it continuing to broaden out both domestically and internationally. So very pleased in that regard.

That's terrific. Thanks a lot, John. Good luck. All right. Talk to you soon.

Thanks, Al.

Thank you. Next question comes from John Tadaro with Needham. You may proceed. Hey, guys. Congrats on the some of those logo wins. For Arculus.

First question pertains to this. I very much got the sense that stablecoins were gonna be kind of a a big part of this piece. We've certainly seen a lot of interesting things recently around traditional payment rails with those. Would love to get your view on that. Is that where you ultimately see Arculus going as kind of almost a tool for stable point payments?

Or do you envision it still kinda more as like a multi asset crypto cold storage solution?

John, thanks for the question. Look, it clearly has the capability of the sort of multi asset wallet And we think that capability is literally the best in the world. And from an ease of use and security standpoint, we just think it's extremely strong. That said, I carry a card in my wallet today, John, where I am I can tap anywhere Visa or Mastercard is accepted. And I'm spending stablecoin from cold storage. And so yes, we absolutely believe that that is an important component of the payment landscape and the ecosystem for how digital assets and traditional payment rails come together. And Adam Lowe and the Artlist team have built exceptional capabilities to do it down traditional rails and or to do sort of wallet to wallet. So we are very excited about that opportunity. And we'll continue to push on that quite hard.

Great. Thank you for that. And then just one more, if I could. It kind of is similar to I think the first question was asked almost around conservatism to the guide, but when we look at a company like Robinhood, for we keep hearing very positive things about that card offering.

Think it's only around 200,000 customers, but it it could grow quite substantially.

When you guys put together guidance, a lot of that growth factored in? Or could we almost expect that to be upside if that product and some of the others see a lot of growth here?

Look, I'm not going to comment program by program for you. But on Robinhood, they have commented publicly that that they are taking a measured approach to how they go after that market, making sure they learn their way into it. And manage that business well. We're excited about the partnership.

The potential of what we think it can bring into the future. So yes, generally we are conservative in how we think about things. That is our DNA. It's aligns well to Dave's DNA as well. And we're gonna execute on what we said, and we're going to deliver the things that we've talked about today. So we are also excited about those logo wins They're also excited about the potential some of those programs could be quite big and meaningful.

Great. That's terrific. Thanks, John. I appreciate it. Our next question comes from Jacob Steffen with Lake Street Capital Markets. You may proceed.

Hey, guys. Appreciate you taking my questions.

Some nice wins with Arculus and the legacy issuers as well. But I want to ask on Arculus. Maybe could you help us understand what kind of traction are you seeing with legacy issuers and anything from a private company standpoint or know, even just broader kind of know, tech companies with regards to passkey.

Yeah. So look, as we think about the authentication technology I'd say we're seeing the impact in three places. One, traditional banks. Two, fintechs, and three, we're starting to see opportunities in spaces like gaming. That we are quite excited about. As well. So Jacob, those would be kind of the the three areas where I think we are seeing impact today for that product. Beyond that, I'd need to give some thought to My comments about broader tech is this idea that we want the world to move away from things like SMS authentication, to passkey technology, to FIDO technology, underlying that. And we continue to see that happening. And yes, I do think it opens up avenues in broader opportunities. That could include corporate government and other verticals.

Got it.

Thanks. And maybe just touching on the M and A pipeline a little bit more. With the all the recent tariffs and all the noise surrounding them, has your M and A pool opened up a little bit? Or what are you seeing from kind of a deal flow perspective?

I'd say, the pipeline remains very healthy. And one of the reasons it remains healthy, I think, is you know, and I'll speak for him on this point, but the Dave Cote factor Jacob, that we think about If you look at what he was able to accomplish at Honeywell, if you look at he was able to accomplish at Vertiv, if you look at what we've been able to do with Compo and the stock so far, recognizing we've got to deliver what's in front of us here We think we're an attractive acquirer out there in the market. And that's one of the reasons we will show the patience and discipline to ensure that we get a great deal for our investors. And yes, I'd say people are knocking on the door. Recognizing some of those key facts.

Got it. Very helpful. I appreciate it, guys.

Thank you.

Our next question comes from Joe Flynn with Compass Point Research and Trading. May proceed. Hi. Most of my questions were asked on the Arcos front, but I guess I was just wondering if there was any areas or design wins in particular that you think helps get you over the edge to positive contribution? Or would you say it's more of just broad based and continue execution on past you know, past success. And then one on just capital allocation as well. Just given the uncertain macro environment and maybe just unpredictable markets here, [indiscernible] or or flexibility in regard to potential buybacks or special dividends as we've seen in prior years? How should we think about that relative to [indiscernible] M and A pipeline and other growth avenues you've talked about? Thanks.

Thanks. So on the first, Joe, it really is kind of the three things I talked about, and I'll try and just restate it. It is Arculus Authenticate, and its ability to penetrate traditional banks, fintechs, additional sectors like gaming, government. Other corporate. Two, the hardware wallet itself which we think is an exceptional competitor out there in that space. And third, the intersection of digital assets and payments. So the question John had asked about kind of stablecoins and and that impact. And so the first two are where we have been focused and help lead us to the positive contribution we are seeing We think those two continue. And we begin to see some of the upside from the additional capabilities that we've built out. Around that third leg of the stool. With respect to capital allocation, I think we announced think it was last quarter, the increase in the buyback. Which relative to the market cap of where our original buyback was, it was 40,000,000 at a time when our market cap was 600 or $700,000,000 And we increased that to 100,000,000 Our market cap today is roughly 1,200,000,000.0 So we kept that in line. But at the end of the day, it is one tool one arrow in the quiver of things that we can use depending on how the the macro environments play out.

But so all of those things remain on the table in terms of organic growth, accretive M and A, paying down debt, looking at other uses, that's what the board and we will decide. And we'll update the market as our priorities change there.

Then maybe just one more since it's been was already asked about in regard to the RobNotek program and then also, you know, announced, like, MetaMask Day. So I mean, given the maybe increased regulatory clarity within digital assets, you see continued opportunities to for design wins of hot wallets or, you know, white label programs with crypto exchanges? Or anything along those lines? [indiscernible] speak to?

The answer is yes. We do see increased opportunity with momentum back in that sector And that's been, I think, some of the important things that have gotten us to the performance from last quarter and the performance this quarter as well. So yes, we are excited and very pleased with that.

Great. Thanks.

Yep.

Thank you. Our next question comes from Reggie Smith with JPMorgan. You may proceed.

Hey, good evening. Thanks for taking the question. I think you alluded to maybe some early gains or some early insights or improvements related to manufacturing. I was hoping maybe you could talk a little bit about that and to the extent that you could maybe quantify or just explain kind of what what improvements or enhancements were made? And I have one follow-up. Thanks.

Thanks, Rajeev. So as I've talked about the operating system, on this call before, I've talked about the fact that it literally ranges from the time and order comes in the door until the time cash flows in at the end.

And every step in between. And so we are going after all of the steps in that process as part of the COS work. My comments on the call is we got out of the gates [indiscernible] more of the production and manufacturing Some of the first things which we tackled. And if you think about Honeywell, where we're operating two factories Dave operated in an environment with more than 100 factories. As he was trying to roll this work out. The intensity and focus that we have brought to our manufacturing operations to deliver improvements in our output, our yield and things like that. We've seen just tremendous work by the team that is starting to bear fruit, Reggie, And my comments were, we believe that it will deliver positive net impact or that you'll start to see that in our results. In '25 as opposed to necessarily having to wait, for example, until 2026. So I think I will speak for myself. I'm very pleased with how the team has responded to this work, how we've jumped on it, how we've gone after it. And you heard that in Dave's comments as well. And in my view, don't take those comments lightly.

He doesn't give compliments lightly.

Okay.

That makes sense. That's helpful. And this last question, I guess, is for Dave. To the extent that you can, would love to hear, I guess, how you think about Resolute and for something, I imagine that the these are long range type projects but like how do you evaluate or think about and measure progress there? Thank you.

Dave, I'm not if you were able to hear Reggie's question.

I'm sorry, John. What's that?

Reggie, you want to try and repeat it? I'll repeat it. Yeah.

Yeah. Yeah. So, Dave, I was I was really curious, how you like, your approach to Resolute. And so I don't know if it's, you know, you guys look at the number of deals you evaluate but like how you think about and measure progress there for the team there?

Yep.

What are the KPIs are? Like, Yeah. It'd be very typical to what we did at Honeywell. It just starts with do you have a big enough pipeline of deals that have a great position in a good industry You can differentiate with technology, inorganic organic growth [indiscernible] And the best thing to do is have a lot of things in the pipeline. Because for every hundred you look at, there's probably three that are gonna make a make a difference. So Tom and his team are have a very, let's say full, as John said, and robust pipeline. And we're looking at all of this. I'm not looking at it in terms of number of deals done or anything like that for KPIs. It's more a case of how good is the pipeline [indiscernible] both in number and quality?

Got it. Okay. Cool. Thank you.

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.