With new CEO Adolfo Villagomez (who joined FLWS in May) focused on improving marketing contribution margins, revenue in 1Q:F26 declined 11.1% year over year to $215.2 million; we expected $217.6 million. On a brighter note, as detailed in Exhibit 1, gross profit and operating loss were better than we estimated. However, with an unexpected tax expense (we assumed a large tax benefit), the reported loss was $0.83 per share versus our projected loss of $0.70 per share. FLWS recently started to sell its top sellers on third-party marketplaces and is expanding to other sales channels, which we find encouraging.