With likely continued soft demand, especially for everyday gift giving in what is the company's seasonally softest quarter, we estimate that 1Q:F26 revenue dropped about 10% from the year ago period to $217.6 million. Assuming some gross margin pressure was partly offset by lower operating expenses, we estimate a loss of $0.70 per share in 1Q:F26 versus a loss of $0.51 per share in 1Q:F25. Under the leadership of Adolfo Villagomez (CEO since May), we expect the company to focus more on better controlling variable contribution margins through more efficient marketing and advertising spending. Along with likely further traction from the previously announced $40 million annual cost reduction plan, we expect FLWS to narrow its year-over-year losses in 2H:F26 before returning the company to full year profitability in F2027. Our moderate risk rating factors in our assumption for better earnings in F2026 and F2027 and the company's solid balance sheet.