BZH's 1Q:F26 was more challenging than anticipated, leading to most metrics coming in below expectations. A one-time litigation related expense weighed on GAAP EPS results by $0.23 in the quarter. Soft demand was coupled with aggressive competitor discounting weighing on 1Q:F26 quarterly results. While January activity shows signs of stabilization, 2Q:F26 guidance calls for challenges to persist, and we lower 2Q:F26 and F2026 estimates as a result. Two bright spots from yesterday afternoon's conference call were the expanding of BZH's product differentiation strategy, and a commitment to meaningfully accelerate share repurchases. BZH is leaning into its differentiated value proposition around “super low utility bills”, by introducing solar-included homes; BZH expects that by year-end F2026, 20% of sales will be from communities that offer included solar-panels. BZH is committed to fully execute the remaining $72 million of share repurchases over the next three quarters (10% of the market cap at the current share price). The company expects to further reduce net leverage in F2026, even as it expects to buy back shares. We view the solid balance sheet as supporting the moderate risk rating. Our $25 price target continues to be based on 7x our unchanged F2027 EPS estimate of $3.50.