• Set to rebound QoQ – Softening fundamentals in Q1-3 FY7/26 results stemmed from increased recruitment with lower-than-expected sales outcomes for new business, culminating in a downward revision to FY7/26 guidance. However, we believe the key issue is that the mismatch between increased headcount and capacity, with a limited sales pipeline, is a one-time event; this is indicated by implied guidance for Q4 FY7/26, where both sales and OP are expected to return to a YoY growth profile. While management has also toned down growth expectations for FY7/27 relative to targets outlined in their medium- to long-term vision, the earnings outlook remains one of YoY recovery.