Greg Palm: Yes, makes sense. And just to be clear, I was talking calendar 2025. I think they mentioned 12 to 24 in calendar 2024. Is that right?
Mark Yost: Yeah, that’s correct.
Greg Palm: Okay. Makes sense. Okay. I will leave it there. Thanks.
Mark Yost: Thanks, Greg.
Operator: Thank you. Our next question coming from Daniel Moore with CJS Securities. Please proceed with your question.
Daniel Moore: Yes, thanks. Good morning, Mark. Good morning, Lori.First off, just wanted to clarify comments, Mark. I think you said fiscal Q3 revenue up mid-to-high single digit sequentially. Is that correct? And if so, is that organically or inclusive of regional?
Mark Yost: That’s inclusive of regional.Dan in that number. Yeah, we expect somewhere at least in that range mid to high single digits at least for the quarter. Sequentially.
Daniel Moore: Got it. And it sounds like some communities returning, some still destocking. Are there any discernible differences be it regional or other that you can identify or is it more community versus community by community?
Mark Yost: It’s really more community by community. We have seen actually a handful of communities return. They have been starting to order and get back on a normal cadence. Others are still in that destocking process.So it’s I don’t want to say it’s fifty-fifty, Dan, but it’s definitely, there’s a split between the communities that are starting to move and others are still kind of in that pause mode.
Daniel Moore: Got it.And what can you say just in terms of longer term progress that the Genesis Solution is making, we focus on those top 100 builders, but even beyond that, in terms of sort of converting to your solution, I recognize it takes years, not quarters, but what’s the sort of momentum or cadence of those dialogues?
Mark Yost: The momentum is, it is phenomenal, actually. I think now that interest rates have stayed up a little bit in in their forecasted to stay up a little longer, according to the Fed.It’s really causing builders to take a look at what that outlook is. Right now, a majority of builders are buying down loans to really drive their volumes and I look at our quarter we had order growth of 20%sequentially and orders year-over-year grew by 250% and that’s with no buy downs, no real incentives to drive volumes.So I think the affordable price point is there and with their cost to cap it for small to midtierbuilders kind of ranging in that 14% range for development that’s a huge incentive for them to switch to our solutions to where we can save them 9 to 12 months of cost capital time.So it’s tremendous.
So I would say the momentum is definitely picking up, especially now that people are looking at the fact that buy downs can’t last forever and the Fed’s extending longer.I think that really is a motivation for builders look at an alternative because they can’t do it otherwise.
Daniel Moore: Got it. Helpful. And last for me, just circling back to the gross margin, I appreciate the color and commentary. You know, 200 bps, kind of back down to the 23% range, maybe a little conservative,we’ll see.Just talk, Laurie, about, when we get through the, purchase accounting and get to maybe back to 60% to 65% utilization, where you see margins leveling off even at this new, let’s say, if it’s a new norm for a longer period time in terms of lower price points, mix, etc., where you sort of see us leveling off over the next, you know, 4 to 8 quarters?
Laurie Hough: Yes, Dan, thanks for the question. We still think that our long term structural margin targets are in that mid 20%. So I do believe that we’re going to get back to the targets that we talked about, historically, it’s just going to be bumpy for the next few quarters.
Daniel Moore: Alright, very helpful. I’ll jump back with any follow ups. Thanks.
Operator: Thank you. Our next question comes from Phil Ng with Jefferies. Please go ahead. Please proceed with your question.
