As we see it, 2Q:F26 was a better than expected quarter. Sales of $702.2 million edged out our forecast of $698.2 million and adjusted EPS of $1.20 came in well ahead of our $0.80 forecast, mainly due to disciplined expense management (especially marketing and sales costs) and to a lesser extent, better than estimated gross margin. Unlike the last few quarters, FLWS issued revenue and profitability guidance; management expects revenue to decline in the low-double digit range in 2H:F26 and “adjusted” EBITDA to decrease slightly from 2H:F25. As these metrics are below our previous projections, we now assume larger losses in 2H:F26, although we still model year over year improvement in 4Q:F26. After the expected 10.6% sales decline in F2026, we estimate a 3.7% sales recovery in F2027 and assuming an operating margin of 2.2%, we still estimate F2027EPS of $0.31. We maintain our $6 price target, based on 18x our F2027 EPS estimate of $0.31. Our moderate risk rating factors in our assumption for improved results in 2H:F26 and F2027 and expected return to positive free cash flow in F2027.