Brent Thill: Thanks Dan.
Operator: Our next question comes from Brian Peterson with Raymond James. Please proceed with your question.
Unidentified Analyst: Hi, this is [indiscernible] on for Brian. As companies inside are exploring new use cases with AI and in the live with your partnership with scale AI, are you considering M&A opportunities in this space? And more broadly, how are you thinking about our overall capital strategy as things stand today? Thanks.
Dan Rosensweig: Yes, I’ll do the first part and let Andy do the second part on our capital strategy because I think people should see the work that they’ve done and recognize what he’s done with the debt and buying back stock has been really effective for shareholders, which is why we — I think people were confused that we weren’t net cash positive to our debt, but we are. And that’s really Andy and his team’s great work. In terms of M&A, look, the thing that you want that companies are going to need is the data, and the database, and the customer list, we have all that. So it’s — for us to achieve what we’re trying to achieve in this space right now doesn’t feel like M&A is the answer because the moat that we have actually gets amplified as a result of AI, because what we can do with what we have will be so much more than anybody can do with what they have today or what they’ll be able to do simply, because of the way our data structures have been built.
And the over 10 years of understanding student behavior and content and behavior by each school and each class and each professor. These are things — and the way the questions are crafted informed and even our ability to take them through images, which others can’t do, we’re slight years ahead of where other people are. So there really isn’t an obvious need in the short-term for us to be able to do what we need to do. There’s always — there may always be something that will just accelerate it or speed it up. But right now, that’s not a priority. I think Andy has better uses for the cash. So Andy?
Andrew Brown: Yes. So I mean, when you look at capital allocation, I mean in the ideal world, you’d use your capital to drive and grow the business. Those opportunities, as Dan had mentioned, really don’t exist and don’t make sense for us at this point in time. But what we have been doing over the last several quarters has been very opportunistic with respect to some of our securities buyback. Last quarter, for example, we retired debt at a sizable discount, almost $54 million. You saw that and we will continue to be, I’ll call it, opportunistic and potentially active depending upon the value, but we’ve got a very strong balance sheet, like Dan said. We’re driving significant free cash flow. So we’ve got the ability and confidence to make those moves should the opportunities exist.
Unidentified Analyst: Got it. Thank you.
Operator: Our next question comes from Jason Celino with KeyBanc Capital Markets. Please proceed with your question.
Unidentified Analyst: Great. Thanks. This is Devin on for Jason today. Thanks for taking our question. Nice beat on the revenue and EBITDA results. I just want to dive in on the subscriber number a little bit more. I think in the quarter, 4.8 million subscribers came in a little bit lighter than expected and also represents a decel there. But any additional color you can provide on what drove the decel in the quarter? Is it mainly on the softer new account side of the house? Or did you see higher expected churn in the quarter?
Dan Rosensweig: I’ll let Andy give more detail, but we — that’s not our read on what we did. I mean we beat revenue and we beat EBITDA substantially, which is very hard to do on a $17 product in a lower season, particularly as the season end. So I don’t know that we felt that we were light at all. And I think what we saw was better than what we expected, so I’m not sure what you’re comparing it to, but Andy?
