Given the uncertain macroeconomic and tariff environment, we lower our June quarter revenue forecast to $2.0 million (was $2.8 million). While lower operating expenses were a partial offset, in our view, we now estimate that XELB posted a loss of $0.50 per share in 2Q:25 (was a loss of $0.23 per share). Our moderate risk rating reflects the company's improved liquidity following its stock offering, expected earnings gains, and better free cash flow estimated in 2026.