Chris Cocks

i think the companies that are focused on gamified entertainment driven multi-purchase multi-generational play something we call gem square or a lot of people use shorthand for kidults they're really thriving their multiples are strong 20 plus their growth rates are in the mid single digits to high single digits and they're you know growing with the growing marketplace

I think toy companies that are focused more on traditional toys, toys aimed at kids, kind of one-offs, not truly systematized, you know, that's a hit-driven business without a very strong moat.

And I think you're seeing it in terms of what their multiples look like and contraction in that business.

Oh yeah, I mean, for sure.

There's a couple things at play.

First off, those collector-oriented businesses, gamified and adult-oriented businesses tend to not be tariff-exposed.

Imagine The Gathering, the majority of the product that we sell in the U.S.

is printed in the U.S., so there's no tariffs associated with it.

Digital games don't have tariffs because they're made and published here in the U.S.

for U.S.

audiences.

So that really helps.

And then last but not least, because you're dealing with audiences that, you know, 20, 30, 40, in my case, 50 years old or more,

They tend to have a better personal balance sheet.

They tend to have less elasticity of demand.

And so you just have a bit more pricing power even when you have to take prices if there's something that's tariff exposed.

With kids, you tend to be dealing with families on budgets.

They're pinching pennies a little bit more.

Parents are always gonna prioritize their kids, but there's only so many dollars to go around during Christmas or a birthday.

So I think 70% of our business, maybe upwards of 80% of our business are focused on that collector gamified business.