Gen Digital : Q4 FY25 Earnings Q4 FY25 Press Release

Published: 2025-05-07 04:12:41 ET GEN

Published on 05/07/2025 at 04:12

Investor Contact Jason Starr

Media Contact Audra Proctor

Gen Gen

Gen raises the bar with accelerated revenue growth in FY26

"Our record results and accelerated growth are driven by our mission to meet the ever-evolving needs of today's digital consumers," said Vincent Pilette, CEO of Gen. "Now with the successful acquisition of MoneyLion, we've taken the next step forward in building the most comprehensive platform of trusted solutions that empowers millions of people around the world to confidently grow, manage, and protect every aspect of their digital and financial lives."

Revenue of $3,935 million, up 4%

Operating income of $1,610 million, up 45%

Operating margin of 41%, up 12 pts

Diluted EPS of $1.03, up 9%

Operating cash flow of $1,221 million

Revenue of $3,935 million, up 4% in USD and constant currency

Bookings of $3,989 million, up 3% in USD and 4% in constant currency

Operating income of $2,298 million, up 4% in USD and constant currency

Operating margin of 58.4%, up 30 bps

Diluted EPS of $2.22, up 14% in USD and 15% in constant currency

Revenue of $1,010 million, up 5%

Operating income of $417 million, up 5%

Operating margin of 41%, flat year-over-year

Diluted EPS of $0.23, up 11%

Operating cash flow of $473 million

Revenue of $1,010 million, up 5% in USD and constant currency

Bookings of $1,076 million, up 3% in USD and 5% in constant currency

Operating income of $590 million, up 4% in USD and constant currency

Operating margin of 58.4%, down 30 bps

Diluted EPS of $0.59, up 12% in USD and 13% in constant currency

"We ended fiscal year 2025 with record revenue and profit, reflecting the strength of our operating model and disciplined execution," said Natalie Derse, CFO of Gen. "Over the past several years, Gen has significantly transformed, and this year marks an important milestone in that journey. Our leadership in Cyber Safety enables our strategic expansion into Trust-Based Solutions and opens new pathways to accelerate growth. As we enter the new fiscal year, we are confident in our ability to deliver against our operational and financial objectives."

Non-GAAP Q1 Fiscal Year 2026 Guidance

Q1 FY26 Revenue expected to be in the range of $1,180 million to $1,210 million

Q1 FY26 EPS expected to be in the range of $0.59 to $0.61

Non-GAAP Fiscal Year 2026 Guidance

FY26 Revenue expected to be in the range of $4,700 million to $4,800 million

FY26 EPS expected to be in the range of $2.46 to $2.54

Quarterly Cash Dividend

Gen's Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on June 11, 2025, to all shareholders of record as of the close of business on May 19, 2025.

Q4 Fiscal Year 2025 Earnings Call

May 6, 2025

2 p.m. PT / 5 p.m. ET

Webcast & Dial-in instructions at Investor.GenDigital.com. A replay will be posted following the call. For additional details regarding Gen's results and outlook, please see the Financials section of the Investor Relations website at Investor.GenDigital.com.

About Gen

Gen (NASDAQ: GEN) is a global company dedicated to powering Digital Freedom through its trusted consumer brands, including Norton, Avast, LifeLock, MoneyLion and more. The Gen family of consumer brands is rooted in providing financial empowerment and cyber safety for the first digital generations. Today, Gen empowers people to live their digital lives safely, privately, and confidently for generations to come. Gen brings award-winning products and services in cybersecurity, online privacy, identity protection and financial wellness to nearly 500 million users in more than 150 countries. Learn more at GenDigital.com.

Forward-Looking Statements

This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, the quotes under "Fiscal Year 2025 Results" and "Q4 Fiscal Year 2025 Results" including expectations relating to achievement of longterm objectives, and the statements under "Non-GAAP Q1 Fiscal Year 2026 Guidance" and "Non-GAAP Fiscal Year 2026 Guidance" including expectations relating to Q1 Fiscal Year 2026 and Fiscal Year 2026 non-GAAP revenue and non-GAAP EPS, and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated cost savings from any such acquisitions); divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities; the outcome or impact of pending litigation, claims or disputes; difficulties in executing the operating model for the consumer Cyber Safety business; lower than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer and partner relationships; the anticipated growth of certain market segments; fluctuations and volatility in our stock price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices; and general business and macroeconomic changes in the U.S. and worldwide, including economic recessions, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates, and ongoing and new geopolitical conflicts, and other global macroeconomic factors on our operations and financial performance. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or are not described in our periodic filings, generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments.

Use of Non-GAAP Financial Information

We use non-GAAP measures of operating margin, operating income, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, and constant currency revenues. These non-GAAP financial measures are provided to enhance the user's understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing Gen's performance, as well as in planning and forecasting future periods.

These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the

reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release, and which can be found, along with other financial information including the Earnings Presentation, on the investor relations page of our website at Investor.GenDigital.com. No reconciliation of the forecasted range for non-GAAP revenues and EPS guidance is included in this release because most non-GAAP adjustments pertain to events that have not yet occurred. It would be unreasonably burdensome to forecast, therefore we are unable to provide an accurate estimate.

GEN DIGITAL INC.

Condensed Consolidated Balance Sheets (1)

(Unaudited, in millions)

March 28, 2025

March 29, 2024

ASSETS

Current assets:

Cash and cash equivalents

$ 1,006

$ 846

Accounts receivable, net

171

163

Other current assets

245

334

Assets held for sale

Total current assets

1,444

1,358

Property and equipment, net

Intangible assets, net

2,267

2,638

Goodwill

10,237

10,210

Other long-term assets

1,487

1,515

Total assets

$ 15,495

$ 15,793

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 94

$ 66

Accrued compensation and benefits

105

Current portion of long-term debt

291

175

Contract liabilities

1,846

1,808

Other current liabilities

515

599

Total current liabilities

2,851

2,726

Long-term debt

7,968

8,429

Long-term contract liabilities

Deferred income tax liabilities

222

261

Long-term income taxes payable

1,420

1,490

Other long-term liabilities

688

671

Total liabilities

13,226

13,653

Total stockholders' equity (deficit)

2,269

2,140

Total liabilities and stockholders' equity

$ 15,495

15,793

(1) During the first quarter of fiscal year 2025, we identified and made a revision to our historical practice of when we recognize revenue from certain customers. We concluded that the impact of the revision was an immaterial correction to prior period financial statements. However, for comparative purposes we have corrected for this in prior periods reported above.

Disclaimer

Gen Digital Inc. published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 07:46 UTC.