Track market-moving stories before they get noisy

Canada Pension Plan Investment Board acquired a new stake in Gen Digital Inc. (NASDAQ:GEN – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 18,600 shares of the company’s stock, valued at approximately $463,000.

Several other institutional investors have also recently made changes to their positions in GEN. State Street Corp raised its stake in Gen Digital by 3.4% during the 3rd quarter. State Street Corp now owns 30,558,806 shares of the company’s stock valued at $867,565,000 after purchasing an additional 1,015,755 shares during the period. Ameriprise Financial Inc. grew its holdings in Gen Digital by 6.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 22,473,917 shares of the company’s stock valued at $660,730,000 after buying an additional 1,406,869 shares in the last quarter. First Trust Advisors LP grew its holdings in Gen Digital by 22.3% during the 4th quarter. First Trust Advisors LP now owns 19,941,546 shares of the company’s stock valued at $542,211,000 after buying an additional 3,640,451 shares in the last quarter. Boston Partners raised its position in shares of Gen Digital by 14.3% during the fourth quarter. Boston Partners now owns 15,644,289 shares of the company’s stock valued at $425,336,000 after buying an additional 1,954,712 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Gen Digital by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 15,592,196 shares of the company’s stock valued at $422,461,000 after buying an additional 129,413 shares during the last quarter. Hedge funds and other institutional investors own 81.38% of the company’s stock.

Gen Digital Stock Up 2.1% NASDAQ GEN opened at $30.65 on Thursday. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.00. Gen Digital Inc. has a 52 week low of $17.78 and a 52 week high of $31.29. The firm has a market capitalization of $18.35 billion, a price-to-earnings ratio of 17.82, a PEG ratio of 0.95 and a beta of 1.22. The company has a fifty day moving average of $27.49 and a two-hundred day moving average of $23.93.

Gen Digital (NASDAQ:GEN – Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.71 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.02. The business had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. Gen Digital had a net margin of 20.73% and a return on equity of 55.93%. The business’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.64 earnings per share. Gen Digital has set its FY 2027 guidance at 2.870-2.970 EPS and its Q2 2027 guidance at 0.710-0.730 EPS. On average, analysts predict that Gen Digital Inc. will post 2.64 earnings per share for the current year. Gen Digital Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 17th will be given a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Monday, August 17th. Gen Digital’s dividend payout ratio is 29.07%.

Insider Activity In other news, Director Ondrej Vlcek sold 200,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total value of $6,000,000.00. Following the sale, the director directly owned 3,332,904 shares in the company, valued at approximately $99,987,120. This represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Travis Michael Witteveen sold 30,000 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $29.42, for a total value of $882,600.00. Following the sale, the insider directly owned 496,545 shares of the company’s stock, valued at $14,608,353.90. This represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 630,260 shares of company stock valued at $17,967,726. 9.70% of the stock is owned by insiders.

Wall Street Analyst Weigh In A number of equities analysts recently weighed in on GEN shares. Barclays upped their target price on shares of Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a research report on Friday, August 7th. Weiss Ratings upgraded shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. Royal Bank Of Canada increased their price objective on shares of Gen Digital from $27.00 to $30.00 and gave the company a “sector perform” rating in a report on Friday, August 7th. Wall Street Zen lowered Gen Digital from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Finally, Wells Fargo & Company raised their price objective on Gen Digital from $22.00 to $28.00 and gave the company an “equal weight” rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $31.60.

Get Our Latest Report on Gen Digital

Gen Digital Company Profile (Free Report)

Gen Digital (NASDAQ: GEN) is a global cybersecurity company specializing in consumer- and small-business-focused security, privacy, and identity protection solutions. The company offers a suite of products designed to safeguard devices, networks, and personal information against malware, ransomware, phishing attacks and other digital threats. With a focus on user-friendly interfaces and cross-platform compatibility, Gen Digital develops antivirus software, VPN services, parental controls, password management tools, and comprehensive identity-theft monitoring services.

Gen Digital traces its origins to the consumer software division of Symantec Corporation, which was spun off in late 2019 under the NortonLifeLock name.

See Also Five stocks we like better than Gen Digital Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test Want to see what other hedge funds are holding GEN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Gen Digital Inc. (NASDAQ:GEN – Free Report).

Receive News & Ratings for Gen Digital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gen Digital and related companies with MarketBeat.com's FREE daily email newsletter.

Genuit Group LON: GEN said first-half trading remained challenging amid subdued construction demand, higher polymer costs and uncertainty linked to the Middle East conflict, but maintained its full-year expectations after reported revenue rose 3% and underlying operating profit declined only modestly.

Chief Executive Officer Joe Vorih said the company had responded with “balanced cost and price action,” simplification initiatives and continued investment in growth areas including ventilation, water management and lower-carbon products. He said the group expects its simplification programme to generate more than £4 million in annualised savings, primarily from 2027 onward.

Get Genuit Group alerts:

First-half results and cash generation Chief Financial Officer Tim Pullen reported revenue growth of 3% on a reported basis, supported by acquisitions completed in 2025. On a like-for-like basis, revenue declined about 5%, though this improved from an approximately 8% decline reported in the four months to April.

Underlying operating profit was £43.9 million, down 1.6% from the prior year, while EBIT margin declined by around 70 basis points. Pullen said gross margins remained resilient, reflecting cost control and price management, although results were affected by a lag between polymer cost inflation in March and April and price increases that took effect in May.

Water represented about 70% of group revenue, while climate represented just under 30%. Housebuilding accounted for roughly one-third of revenue, with repair, maintenance and improvement representing nearly another third. Non-housing markets, including commercial, civil engineering and infrastructure, contributed about 27% of revenue. International operations represented around 10% of revenue. Cash conversion exceeded 70% in the first half, in line with normal seasonal phasing, and the company remains on track for more than 90% cash conversion for the full year. Net debt was about £190 million, resulting in leverage of 1.6 times, within Genuit’s targeted range of one to two times. The interim dividend was held at 4.2 pence per share.

Climate division affected by Adey issues Climate division revenue rose 2.4% on a reported basis but fell 8% on a like-for-like basis. Pullen said ventilation had been among the group’s stronger markets, helped by commercial demand, particularly from schools, and residential demand linked to addressing damp and mould in social housing.

That performance was offset by weaker demand in heating-related repair, maintenance and improvement activity. Genuit’s Adey business, which supplies water treatment and filtration products associated with heating systems, faced lower renovation and refurbishment activity during the period.

Adey also incurred two specific first-half issues: a £1.5 million slow-moving stock provision and a supplier issue with an approximately £0.8 million impact, including lost sales and remediation costs. Pullen said both matters had been root-caused and were not expected to recur in the second half.

Vorih said Adey remains a quality, high-market-share business and has products relevant to both boilers and heat pumps. He said hydronic systems require cleaning and protection regardless of the heat source.

Genuit also highlighted progress at Monodraught, the ventilation business acquired in 2025. Orders in the 11 months following the acquisition were up 24% compared with the equivalent pre-acquisition period, according to Vorih. The company has developed an interface box that connects Monodraught hybrid ventilation systems with Nuaire mechanical ventilation equipment, creating a combined offering for schools and other commercial buildings.

The product went on sale in June, with production shipments expected in September. The company received its first orders in July, totaling more than £1 million across two projects.

Water business, Davidson integration and stormwater opportunity Water division revenue increased about 4% on a reported basis and declined approximately 3% on a like-for-like basis. Genuit cited subdued residential demand and delays in civil engineering and infrastructure projects, which it attributed to weaker business confidence.

However, Manthorpe, Genuit’s Italian business and its Irish operations all grew year over year during the first half. Pullen said the Middle East operation, which experienced direct revenue loss when conflict escalated in March and April, had returned “pretty much” to normal by June.

The water business was particularly exposed to polymer inflation. Pullen said virgin polymer grades had experienced cost increases ranging from 10% to more than 30%, while recycled material costs had risen less sharply. Genuit spent about £80 million on polymers last year, including roughly £50 million on virgin polymer and £30 million on recycled material.

The company introduced double-digit price increases across around 60% of the business. Pullen said costs had stabilized at elevated levels, but the situation remained volatile and could require further management if inflation or deflation emerged.

Genuit is also accelerating the integration of the Davidson acquisition. Two of Davidson’s three sites will be closed and their operations consolidated into larger Genuit facilities by the end of 2026, with no loss of capacity expected. The action is a major contributor to the anticipated £4 million-plus annualised cost savings from 2027.

Vorih pointed to growing opportunity in stormwater management under the AMP8 water investment cycle. The group’s active quote bank in this area rose to £9 million from £2 million a year earlier. Genuit has begun delivering projects, including an order for Yorkshire Water, though Vorih said the opportunity would have a more material impact in 2027.

Regulation and outlook Management said regulatory and sustainability drivers were moving closer. Vorih highlighted the Future Homes Standard, which requires new housing permits to comply from March 2027, followed by the expiry of the main grace period a year later. He said some larger housebuilders have already begun adopting relevant solutions, including underfloor heating.

Genuit estimates that its revenue opportunity per home could rise from approximately £800 to £1,200 for conventional plastic plumbing to between two and three times that amount, and potentially as much as five times in configurations using products such as underfloor heating, mechanical ventilation with heat recovery, filtration and wastewater heat recovery.

The group also cited school rebuilding standards, Awaab’s Law, water-sector investment and increasing demand for Environmental Product Declarations. More than 60% of Genuit revenue is now covered by such declarations, according to Vorih, and the company aims to exceed 80% coverage.

Looking ahead, Genuit expects market conditions to remain difficult through the rest of 2026. However, it expects second-half margins to benefit from the full impact of pricing actions, the absence of the Adey operational issues and productivity gains. Management confirmed that full-year expectations remain unchanged.

About Genuit Group (LON:GEN)Genuit Group plc is the UK's largest provider of sustainable water, climate and ventilation products for the built environment. Genuit's solutions allow customers to mitigate and adapt to the effects of climate change and meet evolving sustainability regulations and targets. The Group is divided into three Business Units, each of which addresses specific challenges in the built environment: - Climate Management Solutions - Addressing the drivers for low carbon heating and cooling, and clean and healthy air ventilation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Genuit Group Right Now?Before you consider Genuit Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Genuit Group wasn't on the list.

While Genuit Group currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

, /PRNewswire/ -- Gen Digital Inc. (NASDAQ: GEN), a global leader dedicated to powering Digital Freedom, released its results for its first quarter fiscal year 2027, which ended July 3, 2026.

Q1 FY27 Beat and Raise Annual Guidance "We are deepening our trusted relationships with customers, helping them stay secure and confident across their digital and financial lives," said Vincent Pilette, CEO of Gen. "The Gen platform brings Cyber Safety, Identity Protection, and Financial Wellness together, creating more value for customers and driving stronger performance across our portfolio. Our Q1 results show the model is working: a beat-and-raise start to fiscal 2027. And we are only beginning to unlock what this platform can deliver."

Q1 Fiscal Year 2027 Financial Highlights
Q1 FY27 consisted of 13 weeks, while Q1 FY26 consisted of 14 weeks. Non-GAAP adjusted growth rates are calculated on a comparable basis, excluding the extra fiscal week in Q1 FY26 and including MoneyLion's stub period financial results in the prior year period. The reconciliation is available below.

Q1 GAAP Results

Revenue of $1.336 billion, up 6%      Operating income of $443 million, down 1% Diluted EPS of $0.36, up 65% Operating cash flow of $434 million Q1 Non-GAAP Results

Bookings of $1.284 billion, up 11% Revenue of $1.336 billion, up 11% Operating income of $668 million, up 9% Diluted EPS of $0.71, up 19% Free cash flow of $430 million "Our first quarter results reflect the strength and consistency of our business model, with broad-based growth across both of our segments," said Natalie Derse, CFO of Gen. "We delivered revenue above our guidance range and beat expectations and achieving high-teens growth in non-GAAP EPS while continuing to invest in innovation.  As we continue to execute our strategy, we are confident in our outlook, the durability of our operating model and our ability to unlock stronger platform economics as we scale."

Non-GAAP Q2 Fiscal Year 2027 Guidance

Q2 FY27 Revenue expected to be in the range of $1.325 billion to $1.350 billion Q2 FY27 EPS expected to be in the range of $0.71 to $0.73 Raises Non-GAAP Fiscal Year 2027 Guidance

FY27 Revenue expected to be in the range of $5.375 billion to $5.475 billion, compared to prior guidance of $5.325 billion to $5.425 billion FY27 EPS expected to be in the range of $2.87 to $2.97, compared to prior guidance of $2.85 to $2.95 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 September 9, 2026, to all shareholders of record as of the close of business on August 17, 2026.

Q1 Fiscal Year 2027 Earnings Call
August 6, 2026
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 "Q1 Fiscal Year 2027 Financial Highlights" including expectations relating to achievement of long-term objectives, and the statements under "Non-GAAP Q2 Fiscal Year 2027 Guidance" and "Non-GAAP Fiscal Year 2027 Guidance" including expectations relating to Q2 Fiscal Year 2027 and Fiscal Year 2027 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, and to provide more meaningful comparisons of our current results to our historical performance by adjusting items that affect comparability between periods. 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.

CONTACTS  

Investor Contact
Ben Lu 
Gen
[email protected] 

Media Contact       
Audra Proctor
Gen       
[email protected] 

GEN DIGITAL INC.

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

July 3, 2026

April 3, 2026

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$            564

$            411

Accounts receivable, net

378

361

Other current assets

286

295

Assets held for sale

40

14

     Total current assets

1,268

1,081

Property and equipment, net

70

71

Intangible assets, net

2,046

2,096

Goodwill

10,938

10,996

Deferred income tax assets

1,135

1,153

Other long-term assets

187

192

        Total assets

$        15,644

$       15,589

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:

Accounts payable

$               96

$              96

Accrued compensation and benefits

75

115

Current portion of long-term debt

181

181

Contract liabilities

1,843

1,904

Other current liabilities

527

414

     Total current liabilities

2,722

2,710

Long-term debt

7,975

8,015

Long-term contract liabilities

76

73

Deferred income tax liabilities

190

198

Long-term income taxes payable

1,614

1,588

Other long-term liabilities

411

394

        Total liabilities

12,988

12,978

        Total stockholders' equity (deficit)

2,656

2,611

Total liabilities and stockholders' equity (deficit)

$         15,644

$         15,589

GEN DIGITAL INC.

Condensed Consolidated Statements of Operations

(Unaudited, in millions, except per share amounts)

Three Months Ended

July 3, 2026

July 4, 2025

Net revenues

$          1,336

$          1,257

Cost of revenues

307

267

Gross profit

1,029

990

Operating expenses:

Sales and marketing

300

297

Research and development

118

109

General and administrative

80

74

Amortization of intangible assets

56

54

Restructuring and other costs

32

10

     Total operating expenses

586

544

Operating income (loss)

443

446

Interest expense

(124)

(156)

Other income (expense), net

4

10

Income (loss) before income taxes

323

300

Income tax expense (benefit)

108

165

Net income (loss)

$            215

$            135

Net income (loss) per share - basic

$           0.36

$           0.22

Net income (loss) per share - diluted

$           0.36

$           0.22

Weighted-average shares outstanding:

Basic

599

617

Diluted

603

624

GEN DIGITAL INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in millions)

Three Months Ended

July 3, 2026

July 4, 2025

OPERATING ACTIVITIES:

Net income (loss)

$            215

$            135

Adjustments:

Amortization and depreciation

123

123

Stock-based compensation expense

54

66

Loss on sale of Instacash Advances

60

36

Deferred income taxes

(9)

11

Loss on sale of property

—

1

Non-cash operating lease expense

4

4

Foreign currency remeasurement loss (gain)

(1)

86

Other

9

10

Changes in operating assets and liabilities, net of acquisitions:

     Accounts receivable, net

(13)

10

     Accounts payable

1

(48)

     Accrued compensation and benefits

(39)

(21)

     Contract liabilities

(56)

(69)

     Income taxes payable

75

61

     Instacash Advances held for sale, net

(86)

(47)

     Other assets

(3)

58

     Other liabilities

100

(7)

        Net cash provided by (used in) operating activities

434

409

INVESTING ACTIVITIES:

Purchases of property and equipment

(4)

(4)

Payments for acquisitions, net of cash acquired

—

(876)

Payments for originations of notes receivable

(85)

—

Proceeds from principal repayments of notes receivable

77

—

Proceeds from the sale of property

—

9

Other

(3)

(2)

        Net cash provided by (used in) investing activities

(15)

(873)

FINANCING ACTIVITIES:

Repayments of debt

(45)

(191)

Proceeds from issuance of debt, net of issuance costs (1)

—

741

Tax payments related to vesting of stock units

(41)

(44)

Dividends and dividend equivalents paid

(81)

(82)

Repurchases of common stock

(100)

(134)

        Net cash provided by (used in) financing activities

(267)

290

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

1

(4)

Change in cash, cash equivalents and restricted cash

153

(178)

Beginning cash, cash equivalents and restricted cash

411

1,006

Ending cash, cash equivalents and restricted cash

$            564

$            828

______________________

 (1)  Issuance costs paid for issuance of debt for three months ended July 4, 2025 were $9 million.

GEN DIGITAL INC.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (2)

(Unaudited, in millions, except per share amounts)

Three Months Ended

July 3, 2026

July 4, 2025

Operating income (loss)

$           443

$           446

Stock-based compensation

50

66

Amortization of intangible assets

119

119

Restructuring and other costs

32

10

Acquisition and integration costs

1

5

Litigation costs

23

5

Other

—

(1)

Operating income (loss) (Non-GAAP)

668

650

Extra week

—

(44)

MoneyLion stub period

—

8

Adjusted operating income (loss) (Non-GAAP) (3)

$           668

$           614

Operating margin

33.2 %

35.5 %

Operating margin (Non-GAAP)

50.0 %

51.7 %

Net income (loss)

$           215

$           135

Adjustments to net income (loss):

Stock-based compensation

50

66

Amortization of intangible assets

119

119

Restructuring and other costs

32

10

Acquisition and integration costs

1

5

Litigation costs

23

5

Other

—

(3)

Non-cash interest expense

5

7

Loss (gain) on sale of properties and nonfinancial assets

—

1

     Total adjustments to GAAP income (loss) before income taxes

230

210

     Adjustment to GAAP provision for income taxes

(14)

53

        Total adjustment to income (loss), net of taxes

216

263

Net income (loss) (Non-GAAP)

431

398

Extra week

—

(30)

MoneyLion stub period

—

8

Adjusted net income (loss) (Non-GAAP) (3)

$           431

$           376

Diluted net income (loss) per share

$          0.36

$          0.22

Adjustments to diluted net income (loss) per share:

Stock-based compensation

0.08

0.11

Amortization of intangible assets

0.20

0.19

Restructuring and other costs

0.05

0.02

Acquisition and integration costs

0.00

0.01

Litigation costs

0.04

0.01

Other

—

(0.00)

Non-cash interest expense

0.01

0.01

Loss (gain) on sale of properties and nonfinancial assets

—

0.00

     Total adjustments to GAAP income (loss) before income taxes

0.38

0.34

     Adjustment to GAAP provision for income taxes

(0.02)

0.08

        Total adjustment to income (loss), net of taxes

0.36

0.42

Diluted net income (loss) per share (Non-GAAP)

0.71

0.64

Extra week

—

(0.05)

MoneyLion stub period

—

0.01

Adjusted diluted net income (loss) per share (Non-GAAP) (3)

$          0.71

$          0.60

Diluted weighted-average shares outstanding

603

624

Diluted weighted-average shares outstanding (Non-GAAP)

603

624

Three Months Ended

July 3, 2026

July 4, 2025

Net cash provided by (used in) operating activities

$          434

$          409

Adjustments to net cash provided by (used in) operating activities:

Purchases of property and equipment

(4)

(4)

Free cash flow (Non-GAAP)

$          430

$          405

______________________

(1)

This presentation includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP.  For a detailed explanation of these non-GAAP measures, see Appendix A.

(2)

Amounts may not add due to rounding.

(3)

The three months ended July 3, 2026 consisted of 13 weeks whereas the three months July 4, 2025 consisted of 14 weeks. Non-GAAP adjusted growth rates are calculated on a comparable basis, excluding the extra fiscal week in the three months July 4, 2025 and including MoneyLion's stub period financial results in the prior year period.

GEN DIGITAL INC.

Performance Metrics

(Unaudited, in millions)

Performance Metrics

Three Months Ended

July 3, 2026

July 4, 2025

Cyber Safety Platform

$             846

$            869

Trust-Based Solutions

490

388

Total net revenues

1,336

1,257

Direct revenues

$          1,063

$         1,054

Partner revenues

273

203

Total net revenues

$          1,336

$         1,257

Total net revenues

$          1,336

$         1,257

Extra week impact

—

(87)

MoneyLion stub period

—

38

Total adjusted net revenues (Non-GAAP) (1)                                                                                

$          1,336

$         1,208

Total bookings

$          1,284

$         1,202

Extra week impact

—

(82)

MoneyLion stub period

—

38

Total adjusted bookings (1)

$          1,284

$         1,158

As of

July 3, 2026

July 4, 2025

Total paid customers

81

76

______________________

(1)

The three months ended July 3, 2026 consisted of 13 weeks whereas the three months ended July 4, 2025 consisted of 14 weeks. Non-GAAP adjusted growth rates are calculated on a comparable basis, excluding the extra fiscal week in the three months ended July 4, 2025 and including MoneyLion's stub period financial results in the prior year period.

GEN DIGITAL INC.
Appendix A
Explanation of Non-GAAP Measures and Other Items

Objective of non-GAAP measures: We believe our presentation of non-GAAP financial measures, when taken together with corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance for the reasons discussed below. Our management team uses these non-GAAP financial measures in assessing our performance, as well as in planning and forecasting future periods. Due to the importance of these measures in managing the business, we use non-GAAP measures in the evaluation of management's compensation. 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 and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. 

Stock-based compensation: This consists of expenses for employee restricted stock units, performance-based awards, stock options and our employee stock purchase plan, determined in accordance with GAAP.  We evaluate our performance both with and without these measures because stock-based compensation is a non-cash expense and can vary significantly over time based on the timing, size, nature and design of the awards granted, and is influenced in part by certain factors that are generally beyond our control, such as the volatility of the market value of our common stock. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation to facilitate the comparison of our results to those of other companies in our industry. 

Amortization of intangible assets: Amortization of intangible assets consists of amortization of acquisition-related intangibles assets such as developed technology, customer relationships and trade names acquired in connection with business combinations. We record charges relating to the amortization of these intangibles within both cost of revenues and operating expenses in our GAAP financial statements.  Under purchase accounting, we are required to allocate a portion of the purchase price to intangible assets acquired and amortize this amount over the estimated useful lives of the acquired intangible assets. However, the purchase price allocated to these assets is not necessarily reflective of the cost we would incur to internally develop the intangible asset. Further, amortization charges for our acquired intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We eliminate these charges from our non-GAAP operating results to facilitate an evaluation of our current operating performance and provide better comparability to our past operating performance.

Restructuring and other costs: Restructuring charges are costs associated with a formal restructuring plan and are primarily related to employee severance and benefit arrangements, contract termination costs, and assets write-offs, as well as other exit and disposal costs. Included in other exit and disposal costs are costs to exit and consolidate facilities in connection with restructuring events. We exclude restructuring and other costs from our non-GAAP results as we believe that these costs are incremental to core activities that arise in the ordinary course of our business and do not reflect our current operating performance, and that excluding these charges facilitates a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.

Acquisition-related and integration costs: These represent the transaction and business integration costs related to significant acquisitions that are charged to operating expense in our GAAP financial statements. These costs include incremental expenses incurred to affect these business combinations such as advisory, legal, accounting, valuation, and other professional or consulting fees. We exclude these costs from our non-GAAP results as they have no direct correlation to the operation of our business, and because we believe that the non-GAAP financial measures excluding these costs provide meaningful supplemental information regarding the spending trends of our business. In addition, these costs vary, depending on the size and complexity of the acquisitions, and are not indicative of costs of future acquisitions.

Litigation costs: We may periodically incur charges or benefits related to litigation settlements, legal contingency accruals and third-party legal costs related to certain legal matters. We exclude these charges and benefits when associated with a significant matter because we do not believe they are reflective of ongoing business and operating results. 

Non-cash interest expense and amortization of debt issuance costs: In accordance with GAAP, we separately account for the value of the conversion feature on our convertible notes as a debt discount that reflects our assumed non-convertible debt borrowing rates. We amortize the discount and debt issuance costs over the term of the related debt. We exclude the difference between the imputed interest expense, which includes the amortization of the conversion feature and of the issuance costs, and the coupon interest payments. We extinguished our remaining convertible debt on August 15, 2022. During fiscal 2023, we also started amortizing the debt issuance costs associated with our senior credit facilities, which were secured upon close of the acquisition of Avast. We believe that excluding these costs provides meaningful supplemental information regarding the cash cost of our debt instruments and enhance investors' ability to view the Company's results from management's perspective.

Gain (loss) on extinguishment of debt: We record gains or losses on extinguishment of debt. Gains or losses represent the difference between the fair value of the exchange consideration and the carrying value of the liability component of the debt at the date of extinguishment. We exclude the gain or loss on debt extinguishment in our non-GAAP results because they are not reflective of our ongoing business.

Change in fair value and impairment of non-marketable equity investments: We record gains or losses, unrealized and realized, on equity investments in privately-held companies. We exclude the net gains or losses because we do not believe they are reflective of our ongoing business.

Gain (loss) on sale of properties and nonfinancial assets: We periodically recognize gains or losses from the disposition of land, buildings and nonfinancial assets. We exclude such gains or losses because they are not reflective of our ongoing business and operating results.

Income tax effects and adjustments: We use a non-GAAP tax rate that excludes (1) the discrete impacts of changes in tax legislation, (2) most other significant discrete items, (3) unrealized gains or losses from remeasurement of foreign currency denominated deferred tax items and uncertain tax benefits, and (4) the income tax effects of the non-GAAP adjustment to our operating results described above. We believe making these adjustments facilitates a better evaluation of our current operating performance and comparisons to past operating results. Our tax rate is subject to change for a variety of reasons, such as significant changes in the geographic earnings mix due to acquisition and divestiture activities or fundamental tax law changes in major jurisdictions where we operate.

Diluted GAAP and non-GAAP weighted-average shares outstanding: Diluted GAAP and non-GAAP weighted-average shares outstanding are generally the same, except in periods when there is a GAAP loss from continuing operations. In accordance with GAAP, we do not present dilution for GAAP in periods in which there is a loss from continuing operations. However, if there is non-GAAP net income, we present dilution for non-GAAP weighted-average shares outstanding in an amount equal to the dilution that would have been presented had there been GAAP income from continuing operations for the period.

Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers' demand for our products and services and to assist readers in analyzing our performance in future periods.

Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.

(Unlevered) Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Unlevered free cash flow excludes cash interest expense payments, net of payments received through interest rate swap hedges. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.

Cyber Safety Platform: Includes our security and privacy products, as well as our cyber safety comprehensive suites which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and confidently.

Trust-Based Solutions: Trust-Based Solutions includes our identity, reputation, and financial wellness products, which provide innovative solutions and insights that empower consumers to grow and manage their identity, reputation and finances confidently.

Direct revenue: Direct revenue reflects subscriptions sold directly through e-commerce or mobile channels, and revenue generated from financial transactions directly made through Gen properties or marketplaces.

Partner revenue: Partner revenue reflects partner-sourced and channel revenue via retailers, employee benefits, telcos, publishers, and strategic partnerships, including revenue generated from product usage or products sold through our financial marketplace.

Paid customers: We define paid customers as active users of our products and solutions, including subscribers with an active paid subscription to our products at the end of the reported period. Paid customers also includes product users with a unique account and at least one revenue-generating transaction in the relevant active period of each respective product category, whether through our first-party personal finance products, transacting through our financial marketplaces, or generating revenue through product usage. We exclude users on free trials and those who have not actively transacted in the relevant period of each respective product category. In order to properly reflect Gen's customer cohorts that contribute to revenue given the dynamic nature of consumers and our product portfolio, our methodology is subject to change from time to time. The methodologies used to measure these metrics require judgment and we regularly review our metrics to improve their accuracy. However, our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. We generally do not intend to update previously disclosed metrics for any such inaccuracies or adjustments that are deemed not material.

SOURCE Gen Digital Inc.