Good morning, and welcome to the Trulieve Cannabis Corp Q1 2023 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Christine Hersey, Vice President of Investor Relations. Please go ahead. Thank you. Good morning, and thank you for joining us. During today's call, Kim Rivers, Chief Executive Officer, and Alex D'Amico, Chief Financial Officer, will deliver prepared remarks on the financial performance and outlook for Trulieve. Following the prepared remarks, we will open the call to questions. Steve White, President, will also be available to answer questions. This morning, we reported Q1 2023 results. A copy of our earnings press release and PowerPoint presentation may be found on the investor relations section of our website, www.trulieve.com. An archived version of today's conference call will be available on our website later today. As a reminder, statements made during this call that are not historical facts constitute forward-looking statements, and these statements are subject to risks, uncertainties, and other factors that could cause our actual results to differ materially from our historical results or from our forecasts, including the risks and uncertainties described in the company's filings with the Securities and Exchange Commission, including Item 1A, Risk Factors of the Company's Annual Report on Form 10-K for the year ended December 31st, 2022. Although the company may voluntarily do so from time to time, it undertakes no commitment to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During the call, management will also discuss certain financial measures that are not calculated in accordance with the United States generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. These measures should not be considered in isolation or as a substitute for Trulieve's financial results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is available in our earnings press release, which is an exhibit to our current report on Form 8-K that we furnished to the SEC today, and can be found in the investor relations section of our website. At times during our prepared remarks or, responses to your questions, we may offer metrics to provide greater insight into the dynamics of our business or our financial results. Please be advised that we may or may not continue to provide these additional details in the future. I'll now turn the call over to our CEO, Kim Rivers. Thanks, Christine. Good morning, everyone, and thank you for joining us today. We are pleased to report Q1 results and share recent wins as we execute on our strategic plan. Before we dive into results, I'd like to briefly discuss the cannabis industry and the tremendous opportunity set ahead. Today, more than 80% of the U.S. population resides within states that have adult use and/or medical cannabis programs. Adoption continues to rise with greater access to regulated and tested products. Consumers are increasingly turning to cannabis to deliver a variety of experiences, including relief from severe and chronic conditions, anxiety, insomnia, and pain, as well as recreation. Over the next few years, we expect more states to enact programs that not only provide access to cannabis but also create jobs and generate tax revenue. Barring any federal reform, U.S. legal cannabis sales are expected to reach over $70 billion by 2030, almost tripling from $26 billion in sales last year. Turning now to our results. First quarter revenue of $289 million was in line with our expectations and historical seasonal performance. GAAP gross margin improved to 52%, up from 50% in the fourth quarter. On top of margin improvement, the team delivered a $24 million reduction in SG&A expenses. Adjusted EBITDA was $78 million or 27% margin, representing our 21st consecutive profitable quarter. As we highlighted during the fourth quarter call, our near-term focus is on cash preservation and generation while leaning into strategic priorities that will continue to differentiate Trulieve in the years ahead. For the full year, we are targeting operating cash flow of $100 million. We expect to generate positive free cash flow in 2023. Cash preservation efforts are geared toward expense reduction and harnessing greater efficiencies across the organization. As I mentioned, this quarter, SG&A was reduced by roughly 20% as we further refined staffing and production levels to more closely align with current traffic and consumption. Adjustments to procurement processes and rationalization of vendors and duplicative services also contributed to lower expenses. These efforts will be ongoing. We generate cash through both scale and service. Since inception, Trulieve has invested heavily to build scale and develop world-class customer service. Those are true competitive differentiators, particularly within the current macroeconomic environment. Taking a closer look at our scaled operations. Trulieve has the largest retail network in legal cannabis with 186 dispensaries. This is supported by over four million sq ft of production capacity. In addition to having significant capacity, it is also flexible. We can ramp up or pull back utilization as needed to align with shifting demand trends. The ability to increase volume significantly and change production mix to match evolving customer preferences is a direct result of the flexibility built into our modular production. Our data and technology platforms enable quick adjustments to marketplace changes, providing an edge compared to peers. At various times, we have pivoted due to rapid change. For example, with accelerated growth during COVID, when we quickly ramped production to meet higher demand. More recently, in light of economic conditions, value-tier products have represented the fastest-growing segment. In response, we have expanded offerings within our value brand Roll One product line. New launches include larger volume products such as 28-gram ground flower and super-sized 4.5-gram eighths, as well as minis, pre-rolls, and cured crumble, wax, and shatter. The ability to quickly pivot is a competitive advantage versus peers who lack sufficient capacity and capital to make impactful changes in this environment. When the current cycle inevitably turns and consumer preferences shift, we will be able to identify trends and adapt yet again to meet demand. Given our unique scale in our home state of Florida, there are opportunities to differentiate our position. 4 years ago, we set out to build a state-of-the-art indoor cultivation facility with automation and a unique workflow layout. The facility was designed to lower production costs while allowing higher touches for each plant. We began ramping production at this facility last summer, and we are just beginning to reap the rewards of the strategic asset. In Q1, output at this new facility exceeded our plan by 17%. Even with the outperformance at the new facility, inventory in Q1 was flat as we executed our strategic plan to wind down inventory this year. We expect the site will be fully planted by the end of Q2 and fully ramped by the end of this year. Once fully ramped, output from the new facility will be the equivalent of roughly 30 legacy design buildings, but with reduced cycle time and labor cost, and lower usage of electricity, water, and fertilizer. Lower production costs at this site allow us to pass on a portion of savings to customers while protecting margin. As the new facility comes online, we continue to pull back utilization at legacy design sites, banking capacity for future use when demand accelerates. With these adjustments, indoor cultivation capacity represented the majority of our online capacity exiting Q1. We believe large scale production of high quality indoor flower is another meaningful differentiator relative to peers. Moving on to our second pillar for cash generation: service. We often say at Trulieve that we are customer-obsessed. We know that providing exceptional customer service on a consistent basis is absolutely required to reinforce loyalty and attract new customers. Service standards are met through a combination of convenience, ease of transaction, branded product availability and promotion, and attentive and knowledgeable staff. Data and technology are utilized to understand the customer journey and gather feedback that informs our approach. Clear delineation of brand segmentation and value proposition plays an important role in customer acquisition and retention. In-store customer education programs designed to expand product knowledge and empower the customer to take ownership of their cannabis journey elevate our service. Success is measured through a variety of metrics, including customer retention. Q1 customer retention was 64% company-wide and 73% in medical-only markets. Later this year, we are relaunching our customer loyalty program with enhanced features, including a points-based rewards program designed to increase brand loyalty and customer retention. The power of our scale and service was evident during 4/20, with new records set for transactions and units sold across our branded retail network. On 4/20, we sold approximately 360,000 units and completed over 68,000 individual transactions, up 10% and 9% respectively from last year. Our dedicated retail and customer service staff, wide-ranging product assortment, depth of inventory, and data and technology infrastructure all contributed to our success on 4/20. Alongside initiatives to optimize scale and service, we are making strategic investments to prepare for future growth. First, we are investing in new markets and expansion opportunities within our footprint. Second, we are allocating resources to build out critical infrastructure to provide a stronger foundation for our strategic plan. Near-term growth opportunities include new market expansion in Georgia and Ohio in Q2, the launch of adult use sales in Maryland in July, and adult use sales in Florida in mid-2025. We recently celebrated the grand opening of two medical dispensaries in Georgia, the first to operate in the state. We plan to open three more this year, supported by our production facility in Adel. The Georgia program is reminiscent of the initial market in Florida, and we look forward to participating in market development and growth. In Ohio, we will open our first medical dispensary soon, pending regulatory approvals. In Maryland, where Trulieve operates a production site and three retail locations, we are preparing for the launch of recreational sales on July 1st. The adult use opportunity in Florida is the most significant near-term catalyst for Trulieve. We continue to support Smart & Safe Florida, an adult use ballot initiative. As of early May, the campaign has gathered sufficient raw signatures for inclusion on the November 2024 ballot. With 22 million residents and 138 million annual tourist visits, we believe Florida will be a top legal cannabis market, reaching $6 billion in annual revenue. Trulieve's outsized leading market share of 40% eclipses the next three closest competitors at 10%-12% market share. Given our leading market share, scale, and service, and ability to quickly flex up production with minimal investment, Trulieve is uniquely positioned for this opportunity. Turning now to our data and technology infrastructure. We are continuing to invest in expanding our capabilities this year. Driving improved customer experiences and retention are critical components of our long-term strategy. In-house data collection and analytics capabilities enhance our customer outreach, providing a meaningful competitive edge. Hyper-personalized marketing, geotargeting, and strategically driven promotional activity are all made possible by our advanced data and technology platforms. We believe these investments are necessary to remain one step ahead in today's evolving landscape and set the foundation for a future defined by integrated commerce. In summary, our team is laser-focused on cash preservation and generation as we set the stage for the next phase of accelerated growth. With our scale and service, operational flexibility, and strong balance sheet, I'm fully confident in our strategic positioning and our team's ability to unlock the full potential of Trulieve. With that, I'll turn the call over to Alex. Thank you, Kim. Good morning, everyone. Turning to our results, Q1 revenue was $289 million. Retail results were influenced by continued wallet pressure on consumer behavior. First quarter GAAP gross profit was $150 million, or 52% margin, compared to 50% during the fourth quarter. The impact of inventory reduction efforts was more than offset by fewer one-time expenses. Gross margin will continue to fluctuate quarter to quarter depending on product and market mix and inventory flow through. SG&A expenses in Q1 were $102 million, or 35% of revenue, an improvement of $24 million or roughly 20% from $126 million or 42% during the fourth quarter. Reduced SG&A expenses are the result of ongoing efforts to lower core business expenses. First quarter net loss was $64 million compared to net loss of $77 million in the fourth quarter. First quarter loss per share was $0.34 compared to loss of $0.41 in the fourth quarter. Net loss includes non-cash impairment charges of $30 million associated with our Massachusetts operations, including $27 million tied to the impairment of dispensary licenses. Excluding non-recurring charges, Q1 loss per share would have been $0.11 compared to a loss of $0.18 in the fourth quarter. First quarter Adjusted EBITDA was $78 million or 27% compared to $85 million or 28% during the fourth quarter. First quarter Adjusted EBITDA reflects optimization efforts to maximize cash preservation and generation. We ended the quarter with $195 million in cash. Trulieve is well-positioned to retire the only near-term debt outstanding of $130 million due in June 2024. This debt carries a 9.75% rate and can be repaid without penalty within one year of maturity. Absent an off-cycle cash tax payment, cash from operations would have been $47 million. In addition, cash generation would have been even higher if not for the outperformance at our new 750K indoor facility. In 2023, we expect to realize improved operating cash flow through a combination of expense and inventory reduction. Second quarter results will include two tax payments. Capital expenditures totaled $14 million in Q1. We expect 2023 capital expenditures will be at least 50% lower than 2022. We plan to open 15-20 new dispensaries and relocate up to six stores this year. Factoring in results quarter to date and limited visibility, we anticipate Q2 revenue will be down low single digits sequentially. While April included strong traffic around the 4/20 holiday, we expect continued wallet pressure on consumer behavior and strategic promotions to drive inventory reduction will impact revenue and gross margin. Given the complexity of our business and the timing of various initiatives throughout the year, we expect operational improvements, inventory reduction, and cash generation will be nonlinear throughout 2023. With that, I'll turn the call back over to Kim. Thanks, Alex. With increasing adoption and expanding state-level access, the industry is well beyond the tipping point. It is only a matter of when and not if meaningful federal reform will happen. Recent activity in Congress has been encouraging. Two weeks ago, a bipartisan group introduced SAFE legislation in both the House and Senate through a coordinated effort. Tomorrow, the Senate Banking Committee will hold a hearing on SAFE Banking. Separately in the House, Representative Nancy Mace secured a committee debate and vote on the States Reform Act. We believe that any reform represents a meaningful step in the right direction towards legalization. We continue to advocate for prohibition repeal and remain optimistic that eventually change will come. Tremendous growth opportunities remain ahead for companies that can successfully adapt within evolving landscapes. Trulieve has the strategy, scale, and service and capital necessary to navigate the current climate while investing for the future. Thank you for joining us today, and as I always say, onward. At this time, Kim Rivers, Alex D'Amico, and Steve White will be available to answer any questions. Operator, please open up the call for questions. We will now begin the Q&A session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. The first question comes from Derek Dley with Canaccord Genuity. Please go ahead. Yeah. Hi, good morning. I just wanted to follow up on some of the commentary on inventory, which was flat quarter-over-quarter. You know, it appears like that was just mainly driven to some outperformance from Jefferson. Should we expect this inventory to move downwards or draw down over the balance of the year? Is that, you know, going to be a big portion or at least a portion of how you get to positive free cash flow in the back half of the year? Yeah. Thanks, Derek. Absolutely. Again, we were, you know, we call it a champagne problem here at Trulieve and having outperformance at our 750K facility at Jeffco. We were incredibly pleased with the performance of that facility and think that it's obviously bodes very well for Trul's future as it relates to harnessing those efficiencies through the back half of the year as that facility continues to come online. Obviously, that needs to be balanced with our existing production footprint, and that balancing will continue to occur. Yes, to answer your question directly, inventory wind down continues to be a core initiative for the organization throughout 2023, and will absolutely be a contributor to cash generation as we continue to execute against those plans. Would have been, you know, more evident in Q1, if not for, again, the overproduction of higher efficient capacity out of that 750K building. Okay. In terms of the rationalization of some of the legacy facilities, is that, you know, is that something that we would expect to happen more in the back half of the year as you get a little bit more comfortable with the production levels and capacity levels and efficiency levels at Jefferson? Have you started some of that already? Yes, we have started that. That actually began in the last quarter or so of last year. Will continue as we're ramping up Jeffco. Those facilities have, you know, correspondingly been idled up to our projected output. Again, we've exceeded that output. We are, of course, making sure that we're comfortable with that as an ongoing trend, not only for the existing footprint that's online, but of course, monitoring how the remaining footprint comes online and how that produces. It, you know, will take a little while to get that dialed in. It's a large facility, and there's significant output. We wanna make sure that, again, we're confident as it relates to a trend line, as we again, you know, meter down legacy capacity as a result. Yes, those efforts, that balancing effort, if you will happen throughout 2023. Okay. That's helpful. Just one more. Just on the SG&A side, you know, obviously there were some significant cost savings. Should we think about this new level, $102 million, as an appropriate run rate, you know, for the balance of the year? Or do you think there's more to come on that front? Yeah, I think we're always, you know, we're happy with being able to cut $24 million quarter-over-quarter. We talked about annualized cost savings, reduction of core business expenses at year-end. We were able to make significant headway on that in Q1. We're always assessing our cost structure as market dynamics dictate. Yeah, I mean, that's something we're always assessing. We're proud of where we are in Q1, and those savings should carry throughout the year. Okay, great. Thank you very much. The next question comes from Matt McGinley with Needham. Please go ahead. Thank you. It's pretty unusual for you to see a quarter-to-quarter decline from Q1 to Q2, given seasonality and promotion around 4/20. I have two questions on that. One is, should we assume that you have these modest quarter-over-quarter declines in revenue throughout 2023? I think you'll likely have ongoing price compression, and really only big offsets that I see are the store growth and the retail units that you'll or the retail units that'll convert in Maryland and Connecticut to adult use sales. Two, specific to Q2, if the revenue is down quarter over quarter, you know, how should we expect the EBITDA to trend? Will this quarter look like Q1, or do you have more in terms of the G&A cuts or gross margin benefits that you may see in this quarter in Q2 relative to what we saw in the first? Yeah. Thanks, Matt. You know, I mean, look, we're in an environment where we're controlling the controllables, and that's really the theme of our, of our execution focus for 2023. You know, it's been widely reported; obviously, there's pricing compression in the market. I think, you know, what we're seeing that is a positive is this, is the continued resilience of our customer base and the fact that, we are retaining that base and they are coming back. What we're also seeing is pressure on category and quite frankly, just wallet pressure and that they're spending less, on a per visit basis. You know, I would say that even with strong traffic, on 4/20 and us outperforming as it relates to transactions and units sold, right. It's not necessarily the same basket that we've seen in the past. I think with that realization and reality, we're, you know, we're again, focused on bringing those costs of production down, focused on efficiencies throughout the platform, as we go into Q2 and throughout the remainder of the year. Limited visibility, as I'm sure you can appreciate, throughout the remainder of the year, so not here today to say that, you know, where we'll be throughout the remainder of the year. Certainly I would say 4/20 is encouraging for us because it was a stress test in terms of us having the ability to move higher volumes throughout the combined platform of the company. You know, certainly as we think about, again, consumer patterns and potentially, you know, not even potentially, with value being the highest growth category currently, being able to again handle that volume and those number of units is really an important differentiator in our platform. As it relates to margin, Matt, we certainly, again, will see the benefit of cost savings, particularly as it relates to our cost per gram come through back half of the year as that 750K facility continues to ramp. Again, I think that that's gonna be, you know, compounded or coupled with our inventory wind down efforts, which we'll be leaning into, and so those things may offset a bit. Of course, we have to overlay consumer preferences. You know, we need to make sure that we're making the products and that we're bringing to market, those products with that value proposition that is attractive to today's consumer. Those three things work interchangeably, and, you know, we'll have, and, you know, will show up right in margin throughout the year. Great. Then on the comment you gave on the Jeffco facility ramping with the expectation to be fully planted, I think you said by the end of Q2, and then fully ramped by year-end. You're obviously gonna bleed down that older inventory with the higher cost basis. When would you expect that peak of that inventory depletion to occur? I mean, is that something that you have to wait really until the fourth quarter to begin that when it's fully ramped, or is that something we should see probably over the next quarter or two, you know, to see that, you know, higher rate of compression as you kind of, you know, work through the older stuff before the new lower cost inventory is in the system? Not all inventory is the same, right? Even though you have a single plant, if you will, that the components of that plant go into many different products. Those have different velocities and different, you know, again, consumer absorption rates. You know, even today, we're seeing some benefit from Jeffco, particularly on the flower side of the business. The oil inventory, you know, we believe will take a bit longer to work through. I can't sit here today and give you a prediction again 'cause you have the consumer dynamic that's layered on top of all of this. You know, and that's why we're saying, you know, throughout 2023. We'll obviously give you all updates, and you'll see it in the numbers as we work through it. You're starting to see that now when you look at the table of what we have in raw material versus work in progress versus finished goods. That's gonna continue to progress, Matt. I can't sit here today and give you a definite on it, but obviously, our goal is to work through as soon as possible, so that we can begin to get full benefit, if you will, from that Jeffco facility, but it should be steadily increasing throughout the year. Great. Thank you. Yep. The next question comes from Russell Stanley with Beacon Securities. Please go ahead. Good morning, and thank you for taking my question. Congrats on the progress on the adult use front in Florida. I guess I'm thinking about next steps, assuming it clears the Supreme Court review, what kind of further investments do you envision making in the campaign in order to build awareness before a potential vote in November 2024? Yeah. We are certainly excited to be at a point where the signature phase is coming to an end, and the campaign will transition to a more public-facing posture, which will of course ramp as we get closer to the actual election, which is November of next year. You know, I would say that some of the answer depends of course on investment from peers. We certainly would welcome and would hope that particularly as other companies, for example, during this earnings cycle are talking about how excited they are as it relates to Florida and the opportunity ahead, that now that we've cleared this phase, that folks would potentially be interested in investing in the next part of the campaign rest. Again, to be determined. Certainly we are committed to continuing to support and get this across the finish line, hopefully with some help from the peer set here. Un-understood there. Maybe if I could, a question on Georgia. Congrats on the launch there. You've mentioned how the market is reminiscent of Florida's early days. Just wondering, you know, in terms of the barriers to accelerating growth of the medical market, you know, be it THC content or form factors, what have you, I guess, where are your efforts likely to focus in a relatively near term on lobbying for change or growth there? Yeah. You know, we are certainly gonna be focused on education, and think it's really important for the patients in the state of Georgia, which look, there are over 25,000 patients that actively have cards today. I was able to interact with some of those during the grand opening, and we have folks who are very interested to get involved and to work alongside alongside of us as well as the physician community to educate the legislature around what is needed to adequately provide medication to address specific conditions that are already approved in the state of Georgia and to make it a more robust and adequate, quite frankly, program for again, for patients who have cards that the legislature has determined that their particular conditions qualify under the program. I think that there's gonna be efforts on a couple of fronts, but it really is going to be a lot of education and, I believe, you know, powerful, most powerful, tool is really those patients coming in and being on the front lines, which I'm very encouraged that that group is ready and willing to lean in with us as we approach next session. That's great. Thanks. I'll get back in the queue. Thanks. The next question comes from Andrew Partheniou with Stifel GMP. Please go ahead. Thanks. Good morning, and thanks for taking my questions. Maybe just going back to gross margin here and thinking about how that could trend for the rest of the year. You know, you talked about Jeffco outperforming in Q1. One would think that maybe that translates to lower than expected production costs. You still have some efficient buildings online and you're still ramping up Jeffco. Understand there's a lot of dynamics here. Wondering if you could give a little bit more detail on where you are maybe with just Jeffco on production costs versus your expectations for Jeffco when it's at steady state. You know, obviously I wouldn't expect, you know, exact numbers or anything, but maybe in broad strokes. The second part of the question is: how could this maybe offset or partially offset gross margin pressure from market dynamics? Yeah, I mean, again, I think that we've got three components of gross margin. While you have Jeffco, that obviously is a positive, you also have pressure from our inventory wind-down efforts, as well as again, wallet pressure on a macro from consumer dynamics. It really is a kind of we call it a three-dimensional puzzle, and it depends on product mix, where, you know, and how velocities are moving through a quarter, as it relates to that product mix, as well as of course, you know, market dynamics, and quite frankly, price compression overall. You know, it will continue. I don't want folks to mishear me. We will continue to fight margin pressure throughout this year; again, that is to be expected given the business focus of cash generation and preservation. That is what we are focused on as an organization. That is the goal for 2023. Winding down that inventory and getting inventory to steady state exiting 2023 is a measure of success for us. Again, you know, margin will be a metric that is going to flux alongside of those prime goals. Thanks for that. If I could think about more at a high level, the $100 million 2023 OCF guidance. I believe you mentioned next quarter we'll have two tax payments. Correct me if I'm wrong, but Q3 and Q4 may have one payment each as well. This sets up for, you know, a second half-weighted cash flow profile, which I think you also referred to as nonlinear, which makes sense. It also seems that OCF may need to increase from current levels for you to reach the $100 million. Main drivers could be expense reduction and inventory reduction. Just wondering if you could compartmentalize the two. Should we be thinking about kind of like a 50/50 or, you know, above, below? Anything, any kind of color there would be helpful. Sure. You know, I think that, obviously we are going to continue to pay our taxes on time. That's something that we've done historically and that we are going to continue to do in 2023. We had the deferral because of the hurricane, for which was realized this quarter. You know, we absolutely are going to continue our efforts around expense reduction, which we've talked about a little bit. That's gonna include core business expense reduction, continued effort and focus around streamlining business operations, as well as, right, that capacity rationalization both on the production and supply chain side of the business. You know, all of those efforts are going to continue along with, again, that strategic priority of rationalizing inventory throughout the year to get to a run rate that we're comfortable with and accelerating the ability to bring in that lower cost and inventory as a higher part of our inventory portfolio. Not prepared to give you an exact number as it relates to splits, but both of those efforts are absolutely key to our business resilience and again, our stated goals of both cash generation and cash preservation. Thanks for that. I'll get back in the queue. The next question comes from Scott Fortune with ROTH MKM. Please go ahead. Hey, good morning. This is Nick on for Scott. First question from us. Just looking for some more color on the transaction volume side. You mentioned 4/20 volume up, which is encouraging, but just kind of looking for a sense of the quarterly cadence overall and maybe what you've seen so far in Q2 outside of the 4/20 holiday. Thank you. Sure. you know, basically, as we mentioned, certainly 4/20 was record-breaking as it relates to transactions and units sold. Again, we did highlight in the prepared remarks that the fastest growing category that we're seeing across all markets is value. You know, again, with value products being the fastest growing segment, certainly, transactions and units, right, increasing, as a result, you know, making additional units in that category, introducing new form factors in that category, and having the ability and capability to continue to service an increased number of customers. In that category specifically. You know, I think natural, certainly when we see price compression, and looking to continue to grow or steady state the business, volumes then naturally need to come up in that environment, and that is certainly what we're continuing to see across the platform. Okay. Thanks for that, Carla. Second from us, just around Twitter and the advertising opportunity there. Congrats on being the first U.S. cannabis company to advertise on the platform. Can you just kinda call out any puts and takes you've seen from the early campaigns there? Just kinda give us a sense on how you're looking to leverage that platform moving forward. Yeah, absolutely. We have been really encouraged by our initial launch and initial results, so much so that we actually expanded into other markets with Twitter. We really are looking forward to being able to share more as we've got some additional, you know, months and data sets behind us. Look for that probably on the next call actually. You know, certainly as we think about the future of cannabis marketing and the restrictions that we have given the checkerboard and regulations as well as the federal through kind of more traditional channels, right? Federal restrictions as it relates to traditional TV, radio, et cetera, really being able to lean into digital as well as thinking about other potential channels that quite frankly are becoming more and more mainstream, you know, as we think about how Americans today are absorbing information and utilizing media. Really encouraged is what I can say. Strong returns, and excited about our relationship with Twitter and the opportunity that we've had to expand that relationship. Great. That's it for me. I'll jump back in the queue. Thanks. The next question comes from Aaron Grey with Alliance Global Partners. Please go ahead. Hi, good morning, and, thank you for the question. Just one for me here, so... It kinda tails off that last one. Just wanna talk a little bit more about, you know, the loyalty program. I know it's something that we've talked about in the past, and changes that you guys were looking to make as you look to kind of, you know, protect your moat and stay particularly in Florida. Just wanna get any color in terms of, you know, how you feel about the program today, potential improvements that you might be able to make as you continue to look to defend your market leadership in Florida, and how potentially these new marketing tactics such as Twitter, you know, could then be used, you know, in tandem with changes to the loyalty program. Thank you. Yep. Thanks, Aaron. We are really excited to be relaunching a new loyalty platform in the back half of this year. We have been working on this for quite some time, and actually we paused it because we wanted to get further down the road as it relates to our consumer profile roadmap and really defining in more detail the customer journey so that we can make the program more focused and personalized and really intuitive for specific personas that we've been working to build out. Really excited that we are at a point finally that we are going to be able to launch that officially in the back part of the year. It will be, I think, a game changer for us as, again, we're able to combine our, a bunch of different aspects of our, data insights into that platform and really, again, speak more directly to our consumer base. Then of course, being able to leverage, some different platforms to invite folks to take advantage of that program certainly will be something that we're also going to be utilizing with that launch. More to come, but, certainly excited to be able to do that in the back half of the year. Okay, great. Thanks very much for the call, and I look forward to more details on that. I'll jump back in the queue. Thanks, Aaron. This concludes our Q&A session. I would like to turn the conference back over to Christine Hersey for any closing remarks. Great. Thank you everyone for your time today. We look forward to sharing additional updates during our next earnings call. Thanks again, and have a great day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.