SS&C Technologies Holdings, Inc. (SSNC) Q3 2026 Earnings Call Transcript

Operator: Good day, and thank you for standing by. Welcome to the SS&C Technologies Third Quarter 26 Earnings Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question and answer session. To ask a question, please press 11 on your telephone, and wait for your name to be announced. To withdraw your question, please press 11 again. I would now like to hand the conference over to your speaker today, Justine Stone, Head of Investor Relations.

Justine Stone: Hi, everyone. Welcome and thank you for joining us for our third quarter 26 earnings call. I am Justine Stone, Head of IR for SS&C. With me today is Bill Stone, Chairman and Chief Executive Officer Rahul Kanwar, President and Chief Operating Officer and Brian Norman Schell, our chief financial officer. Before we get started, we need to review the safe harbor statement. Please note the various remarks we make today about future expectations, plans, prospects, including the financial outlook we provide constitute forward looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 2 thousand. Actual results may differ materially from those indicated by these forward looking statements as a result of various important factors. Including those discussed in the Risk Factors section of our most recent annual report on Form 10-K, which is on file with the SEC and can also be asked on our website. These forward looking statements represent our expectations only as of today, October 22, 2026, While the company may elect to update these forward looking statements, it specifically disclaims any obligation to do so. During today's call, we will be referring to certain non GAAP financial measures. A reconciliation of these non GAAP financial measures to comparable GAAP financial measures included in today's earnings release, which is located on the Investor Relations section of our website at www.ssctech.com. I will now turn the call over to Bill.

William C. Stone: Thanks, Justine, and welcome, everyone. Happy to report another strong quarter for SS&C with growth in revenues, earnings, and margin expansion. We have momentum to finish the year strong. Our third quarter results were adjusted revenues of $1.691 billion up 7.8%. And adjusted diluted earnings per share of $1.78 a 14.8% increase. We delivered record adjusted consolidated EBITDA of $674.8 million up 9%. And an adjusted EBITDA margin of 39.9%, a 40 basis points improvement. Adjusted organic revenue growth was 5.2% with continued performance by our largest businesses. Throughout the quarter, we had strong sales to both new and existing customers achieved implementation milestones, and benefited from market tailwinds. Our pipelines continue to grow, and we are bullish on several large mandates as we look into 2027. For the 9 months ended September 30, 2026, cash from operating activities were $1.216 billion, up 10.4% year over year. This quarter, we returned $225 million to shareholders, which included 1.9 million shares repurchased for $154.8 million and $70.5 million in dividends. In August, we increased our common stock dividend 11.1% to $1.20 per share annually, which reflects the strength and consistency of our cash flow. Our business keeps generating strong recurring free cash flow. And that gives us real flexibility in how we put capital to work. We can raise our dividend, keep buying back shares, pay down debt, and pursue high quality acquisitions. All at once. We do not have to choose. On M&A, the opportunity set is growing as private equity firms look to exit some of their holdings. We continue to pursue the right deals aggressively, but we will stay disciplined on price. Financial services technology and services m and a continue to command high valuations, making our own stock 1 of the most attractive investments we can make. Last month, more than 1 thousand leaders from financial services and health care clients joined us in Orlando for SS&C Deliver, our annual client The message from that room was clear. Our clients are no longer asking whether to transform, They are asking how. How fast, and with whom. At Deliver, we unveiled a portfolio of generation solutions built on 2 SS&C platforms, AI gateway, our AI governance platform, and WorkHQ, our award-winning agentic orchestration platform. Together, they let our clients put AI agents to work on their most complex, highly regulated workflows. These agents work securely with governance built in from day 1. Agentic AI is moving quickly from experimentation into production. We see it inside SS&C, where our customer zero program is driving innovation and efficiency across all operations. To date, over 900 agentic workflows, 200 AI agents, and over 60 digital workers have been built in the WorkHQ development environment as our business units explore dozens of use cases. We are bringing the same approach to tokenization as traditional and digital assets come together. Our clients need infrastructure that handles both. And SS&C already sits. At the center of that infrastructure. Across all of this, our clients are rethinking their operating models end to end. that is a transformation, not a single technology purchase. It takes a partner with deep domain expertise global scale, and a proven track record of execution. Few companies can bring all 3. SS&C can, and we are doing it today. I will now turn the call over to Rahul to discuss the quarter in more detail.

Rahul Kanwar: Thanks, Bill. As you noted, we delivered strong third quarter results with 5.2% organic revenue growth and 39.9% EBITDA margins. These results are driven by deep customer relationships and the critical role our products and services play. Our clients keep growing with us and the multiple ways we deliver broad and deep including outsourcing, co sourcing, and lift outs, are a competitive advantage. In our technology businesses, we see a steady rate of multiyear renewals, reflecting our customers' confidence in the enduring benefit they will receive from our applications. We also see sustained interest in our new product services reinforcing that as a technology provider and outsourcer with scale, is uniquely positioned to deliver the next generation of AI enhanced applications. We handle huge volumes of trades, reconciliations, NAV calculations, and best transactions, regulatory filings, and hundreds of other functions that require expertise. Our intelligent automation and analytics business built around the Blue Prism acquisition in 2022 is at the center of how we capture the opportunity its new technologies bring. As Bill mentioned, we have hundreds of AI enhanced processes and agents in production, many more in development. These make us faster and more accurate and expand our capacity to take on new business as our clients grow. Externally, our new products are gaining traction. We are also bringing AI directly to clients through collaborations with Frontier model companies, integrations with the leading AI platforms, and new features built into our applications. Our global footprint is growing and remains a competitive advantage. We are expanding our presence in The Middle East, Australia, and Europe, and have recently expanded our offices in Luxembourg and Thailand. With that, I will turn it over to Brian Norman Schell to walk through the financials.

Brian Norman Schell: Thanks, Rahul, and good day, everyone. Unless noted otherwise, the quarterly comparisons are to Q3 25. As disclosed in our press release, our Q3 26 GAAP results reflect revenues of $1.69 billion net income of $199 million, and diluted earnings per share of $0.83. Our adjusted non GAAP results include revenues of $1.691 billion, an increase of 7.8% and adjusted diluted EPS of $1.78, a 14.8% increase. The adjusted revenue increase of $122 million included acquisitions of $39 million and a small favorable impact from foreign exchange of approximately $1.7 million. As a result, adjusted organic revenue growth on a constant currency basis was 5.2%, and our core expenses increased 4.3% or $42 million, which also excludes acquisitions and impact of FX. Adjusted consolidated EBITDA was $675 million, reflecting an increase of $56 million or 9%, a margin of 39.9%, a 40 basis point expansion. Interest expense for the third quarter was $107 million, an increase of $3 million compared to last year. Adjusted net income was $429 million, up 9.6% resulting in the adjusted diluted EPS of $1.78. Our effective non GAAP tax rate was 22.5% this quarter. Note, for comparison purposes, we have recast the 2025 adjusted net income to reflect the full-year effective tax rate of 22%. The diluted share count is down nearly 5% to 241 million from 252.6 million shares. Year over year, primarily due to the continued impact of treasury share purchases. Cash flow from operating activities grew 10%, largely driven by growth in earnings. Cash earnings. SS&C ended the third quarter with $525 million in cash and cash equivalents, and $7.5 billion in gross debt. SS&C's net debt was $7 billion, and our last 12 months' consolidated EBITDA was $2.7 billion The resulting net leverage ratio is 2.63. We are currently in the process of refinancing our $2 billion of notes due next year and will provide an update when that has been completed. As we look forward to the fourth quarter and full year 2026, with respect to guidance, we will continue to focus on client service and expect that retention rates will be in the range of our most recent results. We will continue to manage our business to support our long-term growth and manage our expenses by controlling and aligning variable expenses, increasing productivity, and leveraging technology, and AI tools to improve our operating margins, strategically investing in the business, especially with respect to R&D and sales and marketing. Specifically, we have assumed short term interest rates. To remain at current levels. And effective tax rate of approximately 22.5%, on an adjusted basis. Capital expenditures to be 4.4% to 4.8% of revenues, and a stronger weighting to share repurchases versus debt reduction. For the fourth quarter of 2026, we expect revenue to be in the range of $1.7 billion to $1.74 billion and 4% organic revenue growth at the midpoint. Adjusted net income in the range of $454 million to $470 million. Interest expense, excluding amortization of deferred financing costs, and original issue discount, in the range of $103 million to $105 million and adjusted diluted EPS in the range of $1.88 to $1.94. For the full year 2026, we increased several revenue and earnings expectations as follows. Revenue to be in the range of $6.736 billion to $6.776 billion and 5.5% organic revenue growth at the midpoint. Adjusted net income in the range of $1.726 billion to $1.742 billion, adjusted diluted EPS in the range of $7.11 to $7.17, Reflecting approximately 16.3% growth at the midpoint We are now targeting EBITDA growth of 10%, EBITDA margin expansion of 90 basis points for the year, and exiting the year with 41% EBITDA margins. And now back to Bill.

William C. Stone: Thanks, Brian Norman Schell. Pleased with our third quarter and the momentum we are carrying into the rest of the year. We exceeded expectations on revenue and margins and we are raising our outlook for the full year. Clients continue to invest in SS&C and expand their relationships with us. And our pipelines are healthy across our businesses and regions. As we look ahead to 2027, we are excited about the opportunities in front of us. Demand for our outsourcing solutions remains strong, Our technology keeps getting better. And the capabilities we are building are changing how we serve clients. As always, we will stay disciplined in how we operate, invest, and allocate capital to create long-term shareholder value. And with that, we will start taking questions.

Operator: Thank you. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. 2, withdraw your question, please press 11 again. Please limit yourself to 1 question and 1 follow-up, and then you may rejoin the queue. 1 moment for questions. Our first question comes from Daniel Perlin with RBC Capital Markets.

Dan Perlin: Thanks. Good evening. I had a question on the kind of midpoint of the organic growth assumptions for 4Q. Obviously, you had big renewals in the second quarter this quarter at 5.2% seemed like more normal. And so I am just trying to make sure I understand kind of what is the gating factor to get this to decelerate? I know that there is the anniversarying of a partial Insignia that probably plays into that. But everything else seems to be going fairly well. So any details around what would be the key drivers, that would be helpful.

William C. Stone: Oh, Dan, I think in general, right, it is again, that we have a lot of pretty big mandates in our pipelines, and, while we are getting buy signals all over the place, you know, we prefer ink on contracts. You know? And so that. that is the thing that changes you know, organic revenue growth, you know, 100, 150, basis points, 200 basis points. You know, that. that is just the nature of large scale contracts. You know? And so, you know, our contracts now could be $2.55 billion dollars and up. And so there is a lot of lawyers out there. They have not gone away. Know? And so it is getting that down and negotiated and signed. And then getting them live. Got it. That makes total sense.

Rahul Kanwar: Hey. Hey, Dan. Very quickly. Yeah. If I could just add to the back of that, You know, the other thing is, of course, as you will note, absolute revenue is actually up in Q4 relative to Q3. Right? And Yep. And very much in line with, kind of, I would say, ahead of where we thought we were going to be for the year. So most of this is really quarter over quarter timing. So if you look back at Q3 and Q4 last year, that is probably the part of the explanation. That was 1 of the largest growth quarters we had last year fourth quarter of last year, as you recall too. Yep. that is a very good point.

Dan Perlin: Just a quick follow-up. Bill, on the M&A commentary looking more interesting, I guess. Is PE firms are kind of looking at the active portfolios. I am just wondering what are, you know, what are the areas that you are most interested in looking to expand as you think about these opportunities that are facing the company in 2027 and ultimately 2028? Thank you.

William C. Stone: Well, as you see, right, I mean, there is been a lot of fintech M&A in the last you know, 90 days even. And the multiples are pretty eye popping. You know? So we think we have very valuable businesses, you know? A number of our businesses are bigger. In those areas than some of the M&A that is going on. And more profitable. So, you know, we have big successful businesses, and, you know, we will probably expand and you know, if we could find stuff in fund administration, we would. But, you know, we probably bought 20 fund administration companies, you know, over the last 20 years, and, you know, we were kind of the pioneer in that, and now they drive prices to points where, you know, you wonder if that is we should go. And we have also done a really a great job of transforming our global Investor & Distribution services that we acquired with DST and you know, that is now got great momentum with Insignia. that is still a very large client with a lot of work for us to do, but, you know, on what we have done for them so far at the, you know, the outsourcing their business-as-usual to us has been a you know, a very big success. You know? And I believe that is what is gonna happen with a number of other large institutions that you know, become somewhat constricted in what they can do and how fast they can do it and you know, we move a little faster. We are a little more decisive in what we do, and you know, as I have said many times, we do not dabble. As Rahul said earlier, we bought Blue Prism in 2022. For about 1.6 billion. Last year, we bought Calastone which gives us a real leg up in tokenization, and they also run a you know, about a 7 thousand-fund network. So we, you know, we do not dabble. We get in. We get the expertise. And we distribute it on a global scale. Excellent. Thank you.

Operator: Thank you. Our next question comes from Kevin McVeigh with UBS You may proceed.

Kevin McVeigh: Great. Thank so much. Congratulations on the results. I mean, just really continue to execute at a super high level. I guess the margin continues to really-- Those are in these ever larger engagements. Maybe talk to that a little bit and where you are on the AI journey and I guess, related to all of that, does that change the acquisition strategy in terms of you know, willing to even size up something more just given-- You know, Kevin, you have been around us for a while, and you how strong you are operationally at this point?

William C. Stone: understand the, you know, the process we go through to you know, kinda validate what acquisitions we want and what areas we want to get larger in. You know, we would do a big acquisition, and there is a lot of companies out there that you know, ever since, you know, the mass scare on SaaS businesses, You know, some of them have not recovered nearly like we have. You know, I do not believe they have as strong a business as we do, but, you know, that is somewhat in the eye of the beholder. But, you know, we continue. Like, earnings were up 14.8%. You know? And you know, we generate $1.22 billion in cash flow in 9 months. And, you know, as we said in our prepared remarks, we do not have to choose on what we want to do. We can do all of them. We can fund them ourselves. You know, we can execute The capital markets are very friendly to us. You know, they know we borrow money, we pay it back. Right? And we work hard for our shareholders. Know? And that is a constant theme with anyone you talk to at SS&C. So we are you know, we are we are pretty focused. We are pretty ambitious. And we are also pretty judicious. So I think that is kind of what we are looking at with M&A. Know, I am pretty certain there is some really big places that are for sale. And we just have to make sure that if we were to buy 1, we got it at the right price. Super helpful. And then just real quick, the AUA just continues to move ahead despite you know, the volatility and, you know, concern about private equity so on and so forth. Anything to call out in terms of just the sequential build because it is just that the pacing of it is just really, really impressive. Is that just you know, spin outs that you are winning or just normal pace, anything to call out on the AUA?

Analyst: Well, you know, Kevin, again, we have almost all of the large scale global macro funds. You know? So. And they tend to be the ones hoovering up the most assets that are out there. So we get a very large chunk of those. And, you know, we invest heavily to make sure that we can satisfy their needs and then also branch into where they wanna go. You know, whether that is Abu Dhabi or that is private markets. You know? So it is something that we invest a lot of money and it has proven as you have seen on how big those assets grow every quarter, to have been a pretty successful strategy.

Rahul Kanwar: And I think, you know, Rahul's really close to that business. Yeah. So in addition to know, our big clients having a lot of success in getting bigger, The other thing that is happening is with all the focus on technology, folks are starting to realize that ownership of the entire technology stack that runs the fund administration business is a huge advantage, right, and gives us the opportunity to deploy AI and new functionality at a very, very quick pace And so that is helped us. it is helped us in the win rate. Yeah.

William C. Stone: And it gives us. You know, we talk about across the entire fund administration to tech stack. You know, we have very powerful trading systems. We have a very powerful network that is in, you know, 60, 70 countries. You know? So, you know, we have a big fixed network. Right? So there is not many things that we do not do. We have models that will value fixed income. You know, we have tons of different strategies across all the different, fund type companies. And so, you know, we are pretty optimistic about where we sit. And we remain very competitive. Terrific. Congrats again.

Operator: Thank you. Thank you. Our next question comes from Jeff Schmitt with William Blair. You may proceed.

Jeff Schmitt: Hi. Thank you. So debt leverage is low compared with historical levels. With interest rates rising and then you have debt refinancing coming up next year. How are you thinking about capital allocation in 2027 especially if the Fed keeps hiking?

William C. Stone: Well, you know, again, like, right now, if you look at our stock trading in the mid eighties that you know, we are going to generate, you know, $7.25 in cash or something like that. And we pay a $1.20 dividend, so that gets you up to say, $8.50 maybe. So $8.50 on an $85 stock is 10%. So we think buying back our stock where we say that $8.50 on every share is a little more attractive than paying down 6.5%, 7% debt, whose interest is tax deductible? So that. that is kind of the math we do. We still pay down some debt all the time, and we buy back shares all the time. And we look at acquisitions all the time. We raise our dividend. Most of the time. So I think that is kind of how we look at the capital allocation.

Jeff Schmitt: And, you know, people say, you know, why do you have. Why do you talk to your debt holders? Because we might wanna do a big acquisition, and we are gonna have to borrow money. Right? So it is it is making sure that we have constant communications with the banks. We have constant communications with our clients. You know, as well as with, obviously, our workforce and that. that is something that I think we really pride ourselves on. Okay. Great. And then for the intelligent automation and analytics, organic growth declined 4.5% in the quarter. Just curious how much of that reflects kind of continued pressure in Blue Prism And could newer offerings like WorkHQ return that business to growth?

Rahul Kanwar: I think it is 2 things. 1, the second part of what you said there is what we think. there is a fair amount of product development, new product being brought to market, you know, in that process. Right? And so I think there is probably a natural lag that is reflected in the numbers. But I think the other thing that I would highlight is you know, that business is at the center of all the AI related commentary that you have heard you know, us make in our prepared remarks and, really, the new products, the new services, strength in our fund administration business, the strength in our technology businesses, A lot of that is driven out of that. So sometimes the growth and the success we have is reflected in different places. As opposed to just in that business.

Analyst: Right. Okay. Thank you. Yeah.

William C. Stone: And, you know, as you well know, we also. it is kind of a crossover. You know, what we think some of our smarter clients recognize that RPA works very well for them in some large sections of what they do. And, you know, ripping out your infrastructure is long, painful, breaking rocks in the desert. Right? So. But if you can keep your RPA bots working for you and then add AgenTic agents, you get the best of both worlds. Because you get to transition at your speed and you still are automating and automating and automating. And that is something that we think is very attractive we are attracting some very big clients to our platform. Got it. that is helpful. Thank you.

Operator: Thank you. Our next question comes from Peter Heckmann with D. A. Davidson. You may proceed.

Peter Heckmann: Hey, good afternoon. I had a similar question that. Let me get back in the queue and look at my list. I am sorry.

Operator: Thank you. And as a reminder, to ask a question, please press 11 on your telephone. Our next question comes from Alexei Gogolev with JPMorgan. You may proceed.

Isabella Camaj: Hi. This is Isabella Camaj on for Alexei. Thanks so much for taking our questions. So for the first 1, looking at the GIDS segment's organic growth deceleration after much stronger nearly 10% growth last quarter, Could you help us dig a little more into what drove that change? And whether investors should view that as mainly timing related or possibly indicative of a more normalized demand environment.

William C. Stone: Well, you know, we had very large renewal in the last quarter in GIDS and those things. With 606, you are gonna get spikes in revenue. And so there is no way to. Around that. And, you know, I would say that, you know, what they are doing is extending their contracts, you know, for multiple years, you know, 5 to 10 years And that is a great big, great big flush to earnings or to revenue. Which also goes to earnings pretty much. So I would say it is not a, you know, our demand in GIDS is high, remains high, It remains widespread. Global. And so I do not think that the reduction in organic revenue in Q3 compared to Q2 is anything other than that really big renewal.

Isabella Camaj: Got it. That makes sense. And as a quick follow-up, you mentioned being bullish on several large mandates as you look into 2027. Maybe broadly speaking, can you help us understand what areas of the business those opportunities are concentrated in and maybe whether they reflect traditional outsourcing demand or some newer AI and transformation related initiatives especially with WorkHQ on the horizon? Yes.

William C. Stone: Well, I think, you know, I think we really believe that you know, the large scale financial institutions around the world you know, need to have a partner that can understand their business and then platform them away from where they are now. So that they get a chance to improve their business. Right? So, you know, when you think about a large scale system going into a large scale institution, sometimes the institution does not stay up with the releases. And they can get multiple releases behind. And then it becomes almost impossible to catch up. You know? And that means they sacrifice all the improvements in those applications when companies like us come out with new releases. So that is what is driving that. I do not think it is gonna change. I think the more and more institutions are gonna recognize that, you know, SS&C is a specialist firm. Right? We have thousands and thousands of CPAs and chartered accountants and MBAs and CFAs and mathematicians and so, you know, it is specialized. No. We are not investment bankers, and we are not investment professionals from the standpoint of you know, which sector or which area of the world that you should be investing in, But wherever you are investing, we are expert in how to process them, how to make sure the regulators are satisfied, how to get information back to you very quickly, and have it in a format that you want. Got it. that is very helpful. Thanks again, and congrats on the quarter.

Operator: Thank you. Star 1 on your telephone. Our next question comes from James Faucette with Morgan Stanley. You may proceed.

James Faucette: Thanks. A couple of I guess, strategic and development questions here. Just wondering how. And you have talked about AI and how that is starting to buy some benefits. Wondering, Alan, if that is been impacting customer pricing dynamics I mean, as you have had more conversations with customers around AI and AgenTic, how's that influencing commercial part of the negotiations on those? Are customers are demonstrating a willingness to pay more for the enhanced automation? Or are they increasingly viewing AI driven productivity as a reason to push back on pricing? And I am just wondering how we should think about the net impact on your long term organic growth opportunity?

William C. Stone: Well, you know, of course, you know, really smart organizations are pushing back on price the whole time. You know, this is just 1 more you know, kind of arrow in their quiver about, you know, where to come at You know, technology companies such as us, you know? And what we have to do is make sure that our offering is differentiated. You know, you really cannot walk into the Mercedes dealership and think you are gonna pay for a Volkswagen. You are not gonna be able to do that, and that is what we do. We spend more money on R&D. We spend more money on people. We spend more money making sure we have a global footprint so that companies such as yours and others can feel comfortable that we have the expertise the broad based knowledge of different markets and different time zones, and that we are gonna be there. And that peace of mind for senior executives is pretty important. And that is what we strive to do is to give you know, whether it is Ted Pick or James Dimon the feeling that, hey. We are there. We are not going anywhere. And we can process volume. And we can process it globally. Got it. Got it. Appreciate that perspective.

James Faucette: I want to-- it is a good 1. And then wanted to ask about tokenization and just what you are seeing there. We have seen a lot of headlines, and we have ourselves have done quite a bit of research on how we are seeing some assets come on-chain that could end up being widespread. How should we think about the impact of the Calastone business and what the opportunities slash challenges may be there. Thank you.

William C. Stone: We talked about it a little bit before, and Rahul's done a lot of work in this area too. I just learned how to spell tokenization. But, you know, we really believe that you know, the concept that, you know, the token is like a poker chip. So it becomes very portable. And it also is not something that you have to go do a 10-Q and a 10-K and everything in order to get some liquidity. So we think it is gonna continue to be attractive in all kinds of different markets and Calastone continues to grow handsomely in the double digits. Let's see.

Rahul Kanwar: And I think that maybe the 1 thing that I would add is what we have always tried to do across all of our services and capabilities is be ready for what our customers might need us for. This is a perfect example of that. Right? So we have got customers at every end of the spectrum, some that are embracing it wholeheartedly, some that are experimenting, some that wanna learn more. And the fact that we have this capability is yet another differentiator.

James Faucette: Thanks for the input there, guys.

Operator: Thank you. Our next question comes from Patrick O'Shaughnessy with Raymond James. You may proceed.

Patrick O'Shaughnessy: Hey. Good afternoon. Is there anywhere in your business where you are seeing some competitive disruption from AI native start ups or clients looking to take activities in house by leveraging AI capabilities themselves?

William C. Stone: Patrick, I think that there is a lot of noise And I think there is a lot of companies that are trying things. You know, and you get you know, some of the people that are on the you know, on the on the front office side of asset managers and different funds that you know, basically say, look. I can get my kid with AI and, you know, and 2 weeks, we could rewrite Geneva. Yeah. Good luck. You know, I would suggest you get well provisioned for those 2 weeks. Because at the end of the 2 weeks, you will go, wow. Where do. Where should we get started? So, you know, the complexity, the scale, all of that comes in into being able to deploy. And as you know, you are highly regulated. You know? And as soon as something comes out and agentic did not do it right and something got duped or something like that, you know, the brakes come on so fast that you cannot get it you know, you cannot get it released again. So I think that is what we have tried to be is a trusted partner that can show you come into our offices, We process trades to the millions every day. All kinds of transactions all over the world in every currency, Come see how we do it. Come see how we do WorkHQ. Come see how our governance and AI gateway protects us and just how we can deliver to you so it protects you So that is what we are doing, and we think it is a very, very sound strategy. We have won some very nice accounts, and I know we have mentioned Marsh before, but there is others that we have been adding. You know? But it. it is new technology, and you have to get people to adopt it. They have to get comfortable. And then you have to go. You know, when I started this business, you know, people said, I would never put my assets on a PC. Oh, you are not putting your assets on a PC. You know, kinda dumb or whatever. So you know, your assets are a DTC. Right? And this is just an accounting system. You know? So it is something where we need to continue to teach and educate. Have people be comfortable with what they are doing and how they can use, you know, AI and all the different models which, you know, are coming out every week or every day. And trying to make it so that you know, you succeed with the technology. You do not drown in it. And I think we have been doing this for a long time, whether it is when they first came out with Excel or you know, dBase and then and then Novell Networks. And then everything's client server. You know, we always. We tried to be true client server. I never quite knew what that meant. We were not ever false client server that I knew of. You know? And so that. that is how technology goes. You know? And you were around when you know, the Internet and the bubble, and then the bubble pops and, oh, that hurt. Know? So I think that is what we are trying to do is take a measured approach. We have very I think, very slick technology that works. And we have a lot of confidence that it is going to drive a lot of revenue.

Patrick O'Shaughnessy: Understood. Thank you. And then getting back to the wealth and investment technologies business, is there an opportunity for that business to consistently kind of get to mid single digit or better revenue growth? Or is it just kind of structurally a more mature, competitive end market?

Rahul Kanwar: I think if you normalize the growth rate, it probably is at mid single digits now. Right? You just have to-- it is what Bill said earlier, is you really do have to strip out the. You know, and normalize the 606 related spikes and things like that. But if you. You know, we had a really big Q2 as 1 example. In general, when we think about that business and we look at it terms of you know, annual recurring revenue and correct for some of those kinds of things. We are seeing a business pretty close to mid single digits. Digits.

William C. Stone: Right. With certain of their assets growing at quite a bit higher than that. So, like, Black Diamond, which is our primary wealth platform, is growing at double digits. You know, and continues to show strength, you know, against all the other wealth platforms that are out there. And we think that will continue. Alright. Perfect. Thank you.

Operator: Thank you. I would now like to turn the call back over to Bill Stone for any closing remarks.

William C. Stone: Once again, we really appreciate everybody being on our third quarter conference call and we are working hard in the fourth quarter and we hope to talk to you in February and discuss another strong quarter, which will be Q4. Of 2026. Thank you.

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