Allen Lutz: Okay. That’s helpful. Thanks, Jon. And then there was a $9 million sequential benefit in custodial revenue. I think we talked about this last quarter. There’s a couple of different buckets that are driving that enhanced yields. And then the SOFR, LIBOR increases. And then you’re also guiding for a 5% quarter-over-quarter increase in yield from 2% to 2.10%, I believe, or 2.1%. Obviously, some of that’s going to be from the repricing. But I guess as we think about the benefit that you saw over the course of fiscal 2023, a lot of cash being deployed. How should we think about the step-up quarter-over-quarter in fiscal 2024? Is that going to be more of a kind of flattish year where the yield you get exiting the fiscal fourth quarter this year is going to be more or less the yield that you’re going to have over the course of the year. Is there anything else we should be thinking about modeling for that? Thanks.
Tyson Murdock: Well, just to make sure the guide for the year is 190 basis points. So I just wanted to make sure that’s clear. I know we put a lot of yield numbers out there. So we’re just all kind of getting level set on those. And I think when you think about Q4, right, it’s a partial quarter, and you have those placements and you have the roll off of the latter coming through there, Allen. So you do get a little bit of upside relative to those new placements on the old contracts that were there because we’re going to place at higher rates, and we’re going to place it higher advanced rates as well. So it would €“ you’ll have some increase there. But again, it’s built into the guide that I gave already on that one.
Jon Kessler: I think what Allen was asking is really about with the regard to fiscal 2023, we had this €“ relative to where we started the year, we had this pretty big step up quarter-over-quarter in yield €“ yield on HSA cash. And I think Allen was sort of asking about how to think about that .
Tyson Murdock: I see. Yes. I mean the one thing that won’t be there as well, I don’t know if it will be there or not, but we try to take this into account is the fact that we’ll have less variable cash. And I don’t €“ whether the Fed continues to raise rates, it will be on less variable HSA cash that’s in there. So that was one of the things that you saw continually kind of pushing that rate quarter-on-quarter. So that would €“ that’s your question, Allen, it would temper that because it wouldn’t be as big a base number on that Fed yield improvement, if that were to occur.
Jon Kessler: But it’s probably safe to say without stepping into your territory, Tyson, that there is still some quarterization just less dramatic than this year, and that’s going to be reflected in the fact that our view is that over time, these under any mainstream economic scenario, these yields are going to continue to go up as we’re still €“ we’re going to be replacing these contracts during €“ that came in during the pandemic and all that kind of stuff. So there is going to be some level of tilt from first quarter to fourth quarter. This won’t be as dramatic as it was this year.
Tyson Murdock: On that variable side, yes.
Jon Kessler: Thanks, Allen.
Allen Lutz: Got it. Thank you.
Operator: Our next question comes from Sandy Draper with Guggenheim. Please go ahead.
Jon Kessler: Hi, Sandy.
Alexander Draper: Hi. How are you? Not a lot left to ask here, but maybe just a balance sheet question. On the other side of the interest rate environment, you mentioned Tyson variable rate debt. Could we be thinking about, it looks like you’re on track to do, I don’t know, say, round numbers, $100 million of free cash flow this year, that would likely grow next year. Is the primary focus going to be on paying down the debt? And how should we be thinking about the cash €“ that free cash flow and how to bring that debt down? Thanks.
