FULLTEXT DEL 1 AV 2
10-Q – 2025-08-13 – gen-20250704.htm
gen-20250704 false 2026 Q1 0000849399 4/3 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure gen:segment gen:property gen:segments gen:patent gen:numberOfClaim gen:coinventor gen:multiplier iso4217:CZK 0000849399 2025-03-29 2025-07-04 0000849399 us-gaap:CommonStockMember 2025-03-29 2025-07-04 0000849399 gen:ContingentValueRightsMember 2025-03-29 2025-07-04 0000849399 2025-08-08 0000849399 2025-07-04 0000849399 2025-03-28 0000849399 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-07-04 0000849399 2024-03-30 2024-06-28 0000849399 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2025-03-28 0000849399 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-28 0000849399 us-gaap:RetainedEarningsMember 2025-03-28 0000849399 us-gaap:RetainedEarningsMember 2025-03-29 2025-07-04 0000849399 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-29 2025-07-04 0000849399 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2025-03-29 2025-07-04 0000849399 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2025-07-04 0000849399 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-07-04 0000849399 us-gaap:RetainedEarningsMember 2025-07-04 0000849399 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2024-03-29 0000849399 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-29 0000849399 us-gaap:RetainedEarningsMember 2024-03-29 0000849399 2024-03-29 0000849399 us-gaap:RetainedEarningsMember 2024-03-30 2024-06-28 0000849399 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-30 2024-06-28 0000849399 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2024-03-30 2024-06-28 0000849399 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2024-06-28 0000849399 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-06-28 0000849399 us-gaap:RetainedEarningsMember 2024-06-28 0000849399 2024-06-28 0000849399 srt:MaximumMember gen:ReceivablesPurchaseAgreementMember 2024-06-30 0000849399 gen:ReceivablesPurchaseAgreementMember 2024-06-30 2024-06-30 0000849399 gen:ReceivablesPurchaseAgreementMember 2025-03-29 2025-07-04 0000849399 gen:ReceivablesPurchaseAgreementMember 2025-07-04 0000849399 gen:MoneyLionInc.Member us-gaap:CommonClassAMember 2025-04-17 0000849399 gen:MoneyLionInc.Member 2025-04-17 0000849399 gen:MoneyLionInc.Member 2025-04-17 2025-04-17 0000849399 gen:MoneyLionInc.Member gen:MoneyLionInc.Member 2025-04-17 0000849399 gen:GenDigitalInc.Member gen:MoneyLionInc.Member 2025-04-17 0000849399 us-gaap:RestrictedStockUnitsRSUMember 2025-04-17 2025-04-17 0000849399 gen:MoneyLionInc.Member gen:CustomerAndPartnerRelationshipsMember 2025-04-17 2025-04-17 0000849399 gen:MoneyLionInc.Member us-gaap:DevelopedTechnologyRightsMember 2025-04-17 2025-04-17 0000849399 gen:MoneyLionInc.Member gen:FiniteLivedTradeNamesAndOtherMember 2025-04-17 2025-04-17 0000849399 gen:EnterprisePartnerRelationshipsMember 2025-04-17 2025-04-17 0000849399 gen:BankingPartnerRelationshipsMember 2025-04-17 2025-04-17 0000849399 us-gaap:CustomerRelationshipsMember 2025-04-17 2025-04-17 0000849399 gen:ContentLibraryMember 2025-04-17 2025-04-17 0000849399 gen:MoneyLionTradeNameMember 2025-04-17 2025-04-17 0000849399 gen:IncrementalTermLoanFacilityMember gen:MoneyLionInc.Member gen:SecondAmendmentAgreementMember 2025-04-17 0000849399 gen:MoneyLionInc.Member 2025-03-29 2025-07-04 0000849399 gen:MoneyLionInc.Member 2024-03-30 2024-06-28 0000849399 gen:SubscriptionAndServiceRevenueMember 2025-03-29 2025-07-04 0000849399 gen:SubscriptionAndServiceRevenueMember 2024-03-30 2024-06-28 0000849399 gen:NetInterestIncomeOnNotesReceivableMember 2025-03-29 2025-07-04 0000849399 gen:NetInterestIncomeOnNotesReceivableMember 2024-03-30 2024-06-28 0000849399 2024-07-05 2025-07-04 0000849399 2025-04-17 2025-07-04 0000849399 gen:CyberSafetyPlatformMember 2025-03-28 0000849399 gen:TrustBasedSolutionsMember 2025-03-28 0000849399 gen:CyberSafetyPlatformMember 2025-03-29 2025-07-04 0000849399 gen:TrustBasedSolutionsMember 2025-03-29 2025-07-04 0000849399 gen:CyberSafetyPlatformMember 2025-07-04 0000849399 gen:TrustBasedSolutionsMember 2025-07-04 0000849399 us-gaap:CustomerRelationshipsMember 2025-07-04 0000849399 us-gaap:CustomerRelationshipsMember 2025-03-28 0000849399 us-gaap:DevelopedTechnologyRightsMember 2025-07-04 0000849399 us-gaap:DevelopedTechnologyRightsMember 2025-03-28 0000849399 us-gaap:OtherIntangibleAssetsMember 2025-07-04 0000849399 us-gaap:OtherIntangibleAssetsMember 2025-03-28 0000849399 us-gaap:TradeNamesMember 2025-07-04 0000849399 us-gaap:TradeNamesMember 2025-03-28 0000849399 us-gaap:CustomerRelationshipsMember us-gaap:OperatingExpenseMember 2025-03-29 2025-07-04 0000849399 us-gaap:CustomerRelationshipsMember us-gaap:OperatingExpenseMember 2024-03-30 2024-06-28 0000849399 us-gaap:DevelopedTechnologyRightsMember us-gaap:CostOfSalesMember 2025-03-29 2025-07-04 0000849399 us-gaap:DevelopedTechnologyRightsMember us-gaap:CostOfSalesMember 2024-03-30 2024-06-28 0000849399 us-gaap:MaterialReconcilingItemsMember 2025-03-29 2025-07-04 0000849399 us-gaap:MaterialReconcilingItemsMember 2024-03-30 2024-06-28 0000849399 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2025-07-04 0000849399 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-07-04 0000849399 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-07-04 0000849399 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2025-03-28 0000849399 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-03-28 0000849399 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-03-28 0000849399 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2025-07-04 0000849399 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-07-04 0000849399 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-07-04 0000849399 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2025-03-28 0000849399 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-03-28 0000849399 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-03-28 0000849399 us-gaap:FairValueMeasurementsRecurringMember 2025-07-04 0000849399 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-07-04 0000849399 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-07-04 0000849399 us-gaap:FairValueMeasurementsRecurringMember 2025-03-28 0000849399 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2025-03-28 0000849399 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2025-03-28 0000849399 us-gaap:FairValueInputsLevel2Member 2025-07-04 0000849399 us-gaap:FairValueInputsLevel2Member 2025-03-28 0000849399 srt:MinimumMember gen:FacilitiesMember 2025-07-04 0000849399 srt:MaximumMember gen:FacilitiesMember 2025-07-04 0000849399 srt:MinimumMember us-gaap:EquipmentMember 2025-07-04 0000849399 srt:MaximumMember us-gaap:EquipmentMember 2025-07-04 0000849399 srt:MinimumMember gen:DataCenterColocationsMember 2025-07-04 0000849399 srt:MaximumMember gen:DataCenterColocationsMember 2025-07-04 0000849399 gen:ROAR2SPVCreditFacilityDueDecember2025Member us-gaap:SecuredDebtMember 2025-07-04 0000849399 gen:ROAR2SPVCreditFacilityDueDecember2025Member us-gaap:SecuredDebtMember 2025-03-28 0000849399 gen:TermAFacilityDueSeptember122027Member us-gaap:SecuredDebtMember 2025-07-04 0000849399 gen:TermAFacilityDueSeptember122027Member us-gaap:SecuredDebtMember 2025-03-28 0000849399 gen:A6.75SeniorNotesDueSeptember302027Member us-gaap:SeniorNotesMember 2025-07-04 0000849399 gen:A6.75SeniorNotesDueSeptember302027Member us-gaap:SeniorNotesMember 2025-03-28 0000849399 gen:TermBFacilityDueSeptember122029Member us-gaap:SecuredDebtMember 2025-07-04 0000849399 gen:TermBFacilityDueSeptember122029Member us-gaap:SecuredDebtMember 2025-03-28 0000849399 gen:A7.125SeniorNotesDueSeptember302030Member us-gaap:SeniorNotesMember 2025-07-04 0000849399 gen:A7.125SeniorNotesDueSeptember302030Member us-gaap:SeniorNotesMember 2025-03-28 0000849399 gen:IncrementalTermBFacilityDueApril162032Member us-gaap:SecuredDebtMember 2025-07-04 0000849399 gen:IncrementalTermBFacilityDueApril162032Member us-gaap:SecuredDebtMember 2025-03-28 0000849399 gen:A6.25SeniorNotesDueApril012033Member us-gaap:SeniorNotesMember 2025-07-04 0000849399 gen:A6.25SeniorNotesDueApril012033Member us-gaap:SeniorNotesMember 2025-03-28 0000849399 gen:ROAR2SPVCreditFacilityDueDecember2025Member us-gaap:SecuredDebtMember 2021-12-31 0000849399 gen:ROAR2SPVCreditFacilityDueDecember2025Member us-gaap:SecuredDebtMember 2022-01-01 0000849399 gen:AmendedAndRestatedCreditAgreementMember srt:WeightedAverageMember 2022-09-12 0000849399 gen:AmendedAndRestatedCreditAgreementMember srt:MaximumMember 2022-09-12 0000849399 gen:AmendedAndRestatedCreditAgreementMember 2022-09-12 0000849399 2022-09-12 0000849399 gen:TermAFacilityDueSeptember122027Member 2024-03-29 0000849399 us-gaap:InterestRateSwapMember gen:A3762FixedRateMember 2024-03-29 0000849399 us-gaap:InterestRateSwapMember gen:A355FixedRateMember 2024-03-29 0000849399 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember us-gaap:CashFlowHedgingMember 2025-07-04 0000849399 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember us-gaap:CashFlowHedgingMember 2025-03-28 0000849399 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2025-07-04 0000849399 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2025-03-28 0000849399 us-gaap:CashFlowHedgingMember 2025-07-04 0000849399 us-gaap:CashFlowHedgingMember 2025-03-28 0000849399 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember 2025-07-04 0000849399 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember 2025-03-28 0000849399 us-gaap:InterestRateSwapMember 2025-03-29 2025-07-04 0000849399 us-gaap:InterestRateSwapMember 2024-03-30 2024-06-28 0000849399 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2025-03-29 2025-07-04 0000849399 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2024-03-30 2024-06-28 0000849399 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2025-03-29 2025-07-04 0000849399 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-30 2024-06-28 0000849399 gen:September2022PlanMember 2025-07-04 0000849399 gen:MoneyLionInc.Member gen:April2025PlanMember 2025-07-04 0000849399 gen:April2025PlanMember 2025-07-04 0000849399 us-gaap:EmployeeSeveranceMember gen:April2025PlanMember 2025-03-29 2025-07-04 0000849399 us-gaap:SubsequentEventMember 2025-08-07 2025-08-07 0000849399 gen:LiabilityClassifiedAwardsMember 2025-07-04 0000849399 gen:MoneyLionInc.Member 2025-07-04 0000849399 gen:ShareRepurchaseProgramMember 2025-07-04 0000849399 us-gaap:AccumulatedTranslationAdjustmentMember 2025-03-28 0000849399 gen:UnrealizedGainLossOnDerivativeInstrumentsMember 2025-03-28 0000849399 us-gaap:AccumulatedTranslationAdjustmentMember 2025-03-29 2025-07-04 0000849399 gen:UnrealizedGainLossOnDerivativeInstrumentsMember 2025-03-29 2025-07-04 0000849399 us-gaap:AccumulatedTranslationAdjustmentMember 2025-07-04 0000849399 gen:UnrealizedGainLossOnDerivativeInstrumentsMember 2025-07-04 0000849399 us-gaap:CostOfSalesMember 2025-03-29 2025-07-04 0000849399 us-gaap:CostOfSalesMember 2024-03-30 2024-06-28 0000849399 us-gaap:SellingAndMarketingExpenseMember 2025-03-29 2025-07-04 0000849399 us-gaap:SellingAndMarketingExpenseMember 2024-03-30 2024-06-28 0000849399 us-gaap:ResearchAndDevelopmentExpenseMember 2025-03-29 2025-07-04 0000849399 us-gaap:ResearchAndDevelopmentExpenseMember 2024-03-30 2024-06-28 0000849399 us-gaap:GeneralAndAdministrativeExpenseMember 2025-03-29 2025-07-04 0000849399 us-gaap:GeneralAndAdministrativeExpenseMember 2024-03-30 2024-06-28 0000849399 gen:LiabilityClassifiedAwardsMember 2025-03-29 2025-07-04 0000849399 gen:EmployeeEquityAwardsMember 2025-03-29 2025-07-04 0000849399 gen:EmployeeEquityAwardsMember 2024-03-30 2024-06-28 0000849399 2024-03-30 2025-03-28 0000849399 us-gaap:OperatingSegmentsMember gen:CyberSafetyPlatformMember 2025-03-29 2025-07-04 0000849399 us-gaap:OperatingSegmentsMember gen:TrustBasedSolutionsMember 2025-03-29 2025-07-04 0000849399 us-gaap:CorporateNonSegmentMember 2025-03-29 2025-07-04 0000849399 us-gaap:OperatingSegmentsMember 2025-03-29 2025-07-04 0000849399 us-gaap:OperatingSegmentsMember gen:CyberSafetyPlatformMember 2024-03-30 2024-06-28 0000849399 us-gaap:OperatingSegmentsMember gen:TrustBasedSolutionsMember 2024-03-30 2024-06-28 0000849399 us-gaap:CorporateNonSegmentMember 2024-03-30 2024-06-28 0000849399 us-gaap:OperatingSegmentsMember 2024-03-30 2024-06-28 0000849399 srt:AmericasMember 2025-03-29 2025-07-04 0000849399 srt:AmericasMember 2024-03-30 2024-06-28 0000849399 us-gaap:EMEAMember 2025-03-29 2025-07-04 0000849399 us-gaap:EMEAMember 2024-03-30 2024-06-28 0000849399 srt:AsiaPacificMember 2025-03-29 2025-07-04 0000849399 srt:AsiaPacificMember 2024-03-30 2024-06-28 0000849399 country:US 2025-03-29 2025-07-04 0000849399 country:US 2024-03-30 2024-06-28 0000849399 country:US 2025-07-04 0000849399 country:US 2025-03-28 0000849399 us-gaap:NonUsMember 2025-07-04 0000849399 us-gaap:NonUsMember 2025-03-28 0000849399 gen:OtherForeignCountriesMember 2025-07-04 0000849399 gen:OtherForeignCountriesMember 2025-03-28 0000849399 gen:ECommercePartnerAMember us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember 2025-03-29 2025-07-04 0000849399 gen:ECommercePartnerAMember us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember 2024-03-30 2025-03-28 0000849399 2022-05-02 2022-05-02 0000849399 gen:A322PatentsRemainedInSuitMember 2022-05-02 0000849399 gen:A115PatentsRemainedInSuitMember 2022-05-02 0000849399 gen:TrusteesOfTheUniversityOfColumbiaInTheCityOfNewYorkV.NortonLifeLockMember 2022-05-02 2022-05-02 0000849399 gen:TrusteesOfTheUniversityOfColumbiaInTheCityOfNewYorkV.NortonLifeLockMember 2023-09-30 2023-09-30 0000849399 gen:TrusteesOfTheUniversityOfColumbiaInTheCityOfNewYorkV.NortonLifeLockMember 2025-07-04 0000849399 2020-02-27 0000849399 gen:MALKASellerMembersLitigationMember gen:SellerMembersMember 2023-07-21 2023-07-21 0000849399 gen:MALKASellerMembersLitigationMember gen:MoneyLionInc.Member gen:SellerMembersMember 2025-04-17 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 4, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 000-17781 Gen Digital Inc. (Exact name of the registrant as specified in its charter) Delaware 77-0181864 (State or other jurisdiction of incorporation or organization) (I.R.S. employer Identification no.) 60 E. Rio Salado Parkway, Suite 1000, Tempe, Arizona 85281 (Address of principal executive offices) (Zip code) Registrant’s telephone number, including area code: ( 650 ) 527-8000 Former name or former address, if changed since last report: Not applicable ________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 per share GEN The Nasdaq Stock Market LLC Contingent Value Rights GENVR The Nasdaq Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer þ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ The number of shares of Gen common stock, $0.01 par value per share, outstanding as of August 8, 2025 was 615,869,113 shares. Table of Contents GEN DIGITAL INC. FORM 10-Q Quarterly Period Ended July 4, 2025 TABLE OF CONTENTS Page PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Statements of Stockholders’ Equity (Deficit) 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3. Quantitative and Qualitative Disclosures About Market Risk 33 Item 4. Controls and Procedures 33 PART II. OTHER INFORMATION Item 1. Legal Proceedings 35 Item 1A. Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 57 Item 5. Other Information 57 Item 6. Exhibits 58 Signatures 59 “Gen,” “we,” “us,” “our,” and “the Company” refer to Gen Digital Inc. and all of its subsidiaries. Gen, Norton, Avast, LifeLock, MoneyLion, Avira, AVG, Reputation Defender, CCleaner and all related trademarks, service marks and trade names are trademarks or registered trademarks of Gen or other respective owners that have granted Gen the right to use such marks. Other names may be trademarks of their respective owners. 2 Table of Contents PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) GEN DIGITAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except par value per share amounts) July 4, 2025 March 28, 2025 ASSETS Current assets: Cash, cash equivalents and restricted cash $ 828 $ 1,006 Accounts receivable, net, including amounts held by a VIE of $ 93 million as of July 4, 2025 314 171 Other current assets 249 245 Assets held for sale 37 22 Total current assets 1,428 1,444 Property and equipment, net 64 60 Intangible assets, net 2,499 2,267 Goodwill 10,817 10,237 Deferred income tax assets 1,253 1,218 Other long-term assets 299 269 Total assets $ 16,360 $ 15,495 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 90 $ 94 Accrued compensation and benefits 85 105 Current portion of long-term debt, including amounts held by a VIE of $ 49 million as of July 4, 2025 288 291 Contract liabilities 1,783 1,846 Other current liabilities 612 515 Total current liabilities 2,858 2,851 Long-term debt 8,575 7,968 Long-term contract liabilities 90 77 Deferred income tax liabilities 234 222 Long-term income taxes payable 1,509 1,420 Other long-term liabilities 729 688 Total liabilities 13,995 13,226 Commitments and contingencies (Note 18) Stockholders’ equity (deficit): Common stock and additional paid-in capital, $ 0.01 par value: 3,000 shares authorized; 616 and 617 shares issued and outstanding as of July 4, 2025 and March 28, 2025, respectively 2,179 2,066 Accumulated other comprehensive income (loss) 26 ( 33 ) Retained earnings (accumulated deficit) 160 236 Total stockholders’ equity (deficit) 2,365 2,269 Total liabilities and stockholders’ equity (deficit) $ 16,360 $ 15,495 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 3 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share amounts) Three Months Ended July 4, 2025 June 28, 2024 Net revenues $ 1,257 $ 965 Cost of revenues 267 190 Gross profit 990 775 Operating expenses: Sales and marketing 297 183 Research and development 109 81 General and administrative 74 52 Amortization of intangible assets 54 43 Restructuring and other costs 10 ( 1 ) Total operating expenses 544 358 Operating income (loss) 446 417 Interest expense ( 156 ) ( 153 ) Other income (expense), net 10 12 Income (loss) before income taxes 300 276 Income tax expense (benefit) 165 95 Net income (loss) $ 135 $ 181 Net income (loss) per share - basic $ 0.22 $ 0.29 Net income (loss) per share - diluted $ 0.22 $ 0.29 Weighted-average shares outstanding: Basic 617 621 Diluted 624 627 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME (LOSS) (Unaudited, in millions) Three Months Ended July 4, 2025 June 28, 2024 Net income (loss) $ 135 $ 181 Other comprehensive income (loss), net of taxes: Foreign currency translation gain (loss) 59 ( 5 ) Other comprehensive income (loss), net of taxes 59 ( 5 ) Comprehensive income (loss) $ 194 $ 176 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited, in millions, except share amounts) Three months ended July 4, 2025 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) Shares Amount Balance as of March 28, 2025 617 $ 2,066 $ ( 33 ) $ 236 $ 2,269 Net income (loss) — — — 135 135 Other comprehensive income (loss), net of taxes — — 59 — 59 Common stock issued under employee stock incentive plans 6 — — — — Shares withheld for taxes related to vesting of stock units ( 2 ) ( 44 ) — — ( 44 ) Repurchases of common stock (1) ( 5 ) — — ( 134 ) ( 134 ) Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued — ( 3 ) — ( 77 ) ( 80 ) Stock-based compensation — 66 — — 66 Fair value of replacement awards issued in connection with business acquisitions — 21 — — 21 Fair value of CVR issued in connection with business acquisitions — 73 — — 73 Balance as of July 4, 2025 616 $ 2,179 $ 26 $ 160 $ 2,365 Three months ended June 28, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) Shares Amount Balance as of March 29, 2024 623 $ 2,227 $ 11 $ ( 98 ) $ 2,140 Net income (loss) — — — 181 181 Other comprehensive income (loss), net of taxes — — ( 5 ) — ( 5 ) Common stock issued under employee stock incentive plans 4 — — — — Shares withheld for taxes related to vesting of stock units ( 1 ) ( 24 ) — — ( 24 ) Repurchases of common stock (1) ( 11 ) ( 274 ) — — ( 274 ) Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued — ( 1 ) — ( 78 ) ( 79 ) Stock-based compensation — 31 — — 31 Balance as of June 28, 2024 615 $ 1,959 $ 6 $ 5 $ 1,970 (1) Amount includes excise tax on share repurchases. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements 6 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) Three Months Ended July 4, 2025 June 28, 2024 OPERATING ACTIVITIES: Net income (loss) $ 135 $ 181 Adjustments: Amortization and depreciation 123 106 Stock-based compensation expense 66 31 Loss on sale of Instacash Advances 36 — Deferred income taxes 11 ( 10 ) Loss on sale of property 1 — Non-cash operating lease expense 4 3 Other 96 ( 2 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net 10 9 Accounts payable ( 48 ) 17 Accrued compensation and benefits ( 21 ) ( 21 ) Contract liabilities ( 69 ) ( 56 ) Income taxes payable 61 81 Instacash Advances held for sale, net ( 47 ) — Other assets 58 17 Other liabilities ( 7 ) ( 92 ) Net cash provided by (used in) operating activities 409 264 INVESTING ACTIVITIES: Purchases of property and equipment ( 4 ) ( 2 ) Payments for acquisitions, net of cash acquired ( 876 ) — Proceeds from the sale of property 9 — Other ( 2 ) — Net cash provided by (used in) investing activities ( 873 ) ( 2 ) FINANCING ACTIVITIES: Repayments of debt ( 191 ) ( 88 ) Proceeds from issuance of debt, net of issuance costs of $ 9 million 741 — Tax payments related to vesting of stock units ( 44 ) ( 24 ) Dividends and dividend equivalents paid ( 82 ) ( 82 ) Repurchases of common stock ( 134 ) ( 272 ) Net cash provided by (used in) financing activities 290 ( 466 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash ( 4 ) 2 Change in cash, cash equivalents and restricted cash ( 178 ) ( 202 ) Beginning cash, cash equivalents and restricted cash 1,006 846 Ending cash, cash equivalents and restricted cash $ 828 $ 644 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents GEN DIGITAL INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Description of Business and Significant Accounting Policies Business Gen Digital Inc. is a global company powering Digital Freedom through its family of consumer brands including Norton, Avast, LifeLock, MoneyLion, and more. Our portfolio spans Cyber Safety Platform and Trust-Based Solutions, delivering services that enable people to grow, manage, and protect their digital and financial lives. From cybersecurity and online privacy to identity protection and financial empowerment, our products and services are designed to meet the real-world needs of today’s digital generation. Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements include the accounts of Gen Digital, Inc., its wholly-owned subsidiaries, and consolidated variable interest entity (VIE) for which we are the primary beneficiary. These statements contain all necessary adjustments, consisting solely of normal recurring items, unless otherwise noted, to fairly present our financial position, results of operations, and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. The results of operations for the three months ended July 4, 2025 are not necessarily indicative of the results expected for the entire fiscal year. Fiscal calendar We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three month periods in this report relate to fiscal periods ended July 4, 2025 and June 28, 2024. The three months ended July 4, 2025 consisted of 14 weeks, whereas the three months ended June 28, 2024 consisted of 13 weeks. Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026. Use of estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and accompanying Notes. Such estimates include, but are not limited to, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, provision for credit losses, valuation of our contingent value rights (CVRs), the recognition and measurement of current and deferred income taxes, including assessment of unrecognized tax benefits, and valuation of assets and liabilities. On an ongoing basis, management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Third-party valuation specialists are also utilized for certain estimates. Actual results could differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment as a result of macroeconomic factors such as inflation, fluctuations in foreign currency exchange rates relative to the U.S. dollar, our reporting currency, changes in interest rates, ongoing and new geopolitical conflicts, and such differences may be material to the Condensed Consolidated Financial Statements. Significant accounting policies Significant accounting policies assumed and adopted as a result of our acquisition of MoneyLion. Variable Interest Entity A portion of our originated receivables is financed through a special purpose vehicle arrangement with a third-party lender (SPV Credit Facility). In this arrangement, we sell certain loans and receivables to a wholly owned, bankruptcy-remote special purpose subsidiary (SPV Borrower), which in turn pledges these receivables and related cash flows as collateral to support the financing of additional receivables. The underlying loan and receivables are originated and serviced by other wholly-owned subsidiaries. The SPV Borrower is required to maintain pledged collateral consisting of cash and loan balances and receivables, in an amount equal to or exceeding the aggregate principal amounts of the loans financed under the respective SPV Credit Facility. The aggregate principal amount outstanding is $ 49 million as of July 4, 2025. We are required to evaluate the SPV Borrower for consolidation, which we have concluded is a VIE. We have the power to direct the activities of the SPV Borrower that most significantly affect its economic performance, primarily through our wholly owned subsidiaries that act as originators and servicers. Additionally, we are exposed to potentially significant risks and rewards of the SPV Borrower, including the obligation to absorb losses on the pledged collateral that exceed the principal amount of the receivables, and the right to receive residual cash flows after repayment of all obligations under the SPV Credit Facility. Based on these factors, we have determined that we are the primary beneficiary of the SPV Borrower and therefore consolidate it as an indirect wholly owned VIE in our Condensed Consolidated Financial Statements. For more information, see Note 10 for discussion of the ROAR 2 SPV Credit Facility. 8 Table of Contents Revenue Recognition We adopted additional revenue recognition policies for Trust-Based Solutions that differ from our prior subscription-based software revenue model. Refer to our revenue recognition policy in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. Specifically, MoneyLion recognizes revenue from stand-ready referral arrangements based on variable transaction prices within the period in which services are provided, to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Additionally, revenue from transactional services is recognized as the services are performed. Net Interest Income on Notes Receivables Net interest income on notes receivables is generated by interest earned on our Credit Builder Loan product, which are classified as notes receivables within accounts receivable, net on the Condensed Consolidated Balance Sheet. Interest income and the related accrued interest receivables on notes receivables are accrued based upon the daily principal amount outstanding except for loans that are on nonaccrual status. We recognize interest income using the effective interest method. Our policy is to suspend recognition of interest income on notes receivables and place the loan on nonaccrual status when the account is 60 days or more past due on a contractual basis or when, in our estimation, the collectability of the account is uncertain and has not yet been charged-off. Allowance for Losses We maintain an allowance for credit losses on trade receivables, notes receivables and related accrued interest, and retained Instacash Advances to cover current expected credit losses as of the balance sheet date. The allowance is recorded through a provision for credit losses, and subsequent charge-offs, net of recoveries, are applied directly against this allowance. The allowance is based on management’s assessment of several factors, but given the short-term nature of our receivables, primarily recent trends in delinquency and charge-offs. Our policy is to charge-off notes receivables, related accrued interest, and certain trade receivables, net of expected recoveries, in the month an account becomes 90 days contractually past due. If an account is deemed to be uncollectible prior to this date, we will charge-off the receivable in the month it is determined to be uncollectible. We determine the past due status using the contractual payment terms (credit quality indicator). Sale of Instacash Advances Sales of Instacash Advances (the amount advanced to the customer) are accounted for as a sale when we determine that the Instacash Advances meet all the necessary criteria, including legal isolation for transferred assets, lack of constraint on the transferee to pledge or exchange the transferred assets for their benefit and the transfer of control. As a result, we no longer record these Instacash Advances in our Condensed Consolidated Financial Statements. We have also concluded that our continuing involvement in the sales arrangement does not affect this determination. We retain the servicing rights for the Instacash Advances sold and receive a market-based service fee for servicing the assets sold. Instacash Advances held for sale are recorded at the lower of cost or fair value. If fair value is lower than cost, the difference between cost and fair value is recorded as a component of loss on sale within our sales and marketing expense in the Condensed Consolidated Statement of Operations. If we no longer have the intent to sell Instacash Advances held for sale, they are reclassified to Accounts Receivables, net. Contingent Value Rights We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging . The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of liability pursuant to ASC 480, and whether the warrants meet all the requirements for equity classification under ASC 815, including whether the warrants are indexed to our own common stock, among other conditions for equity classification. The currently outstanding CVRs issued as part of the MoneyLion acquisition consideration are classified as equity under these conditions. Government Regulation We are subject to various state and federal laws and regulations in each of the states in which we operate, which are subject to change and may impose significant costs or limitations on the way we conduct or expand our business. Our consumer loans are originated under individual state laws, which may carry different rate and rate limits, and have varying terms and conditions depending upon the state in which they are offered. We are also subject to state licensing requirements of each individual U.S. state in which we operate, including with respect to certain consumer lending, life insurance and mortgage products and services that we offer directly or to which we connect consumers through third parties. Other governmental regulations include, but are not limited to, imposed limits on certain charges, insurance products and required licensing and qualifications. Restricted Cash Restricted cash consists of cash required to be held in reserve by our vendors to support loan and Instacash Advance processing and funding activities, as well as cash held within our VIE. All cash accounts are held in federally insured institutions, which may at times exceed federally insured limits. 9 Table of Contents With the exception of those discussed in Note 2 and new significant accounting policies as a result of our acquisition of MoneyLion, there have been no material changes to our significant accounting policies as of and for the three months ended July 4, 2025, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. Note 2. Recent Accounting Standards Recently issued authoritative guidance not yet adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. In December 2023, the FASB issued new guidance to update income tax disclosure requirements, requiring disaggregated information about an entity’s effective tax rate reconciliation as well as income taxes paid. This is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. ASU 2024-03, Income Statement - Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures. In November 2024, the FASB issued new guidance requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. There have been no other material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. Although there are several other new accounting pronouncements issued or proposed by the FASB that we have adopted or will adopt, as applicable, we do not believe any of these accounting pronouncements have had, or will have, a material impact on our Condensed Consolidated Financial Statements and disclosures. Note 3. Sale of Instacash Advances Instacash Advance Product Overview Instacash Advances are our non-recourse earned wage access (EWA) product that provides customers with early access to their anticipated income deposits. Customers who link a RoarMoney or external bank account can access Instacash Advances at any time during a regular deposit period, up to an approved limit. This product gives customers financial flexibility to address short-term cash needs. Instacash Advance eligibility is based on verification of the customer’s identity, the linked bank account and identification of recurring income deposits. Repayments are made via pre-authorized bank debits, which customers may cancel without penalty, modify, defer, or reschedule within allowable limits. Customers must be current on Instacash Advance repayments in order to access new ones. Instacash Advances do not bear interest or mandatory fees. There are no fees for standard fund delivery, although expedited delivery is available for an optional fee (Turbo Fee). Customers may also leave an optional tip (Tip) for use of the service. Accounting for Instacash Advances Instacash Advances are not loans. The customer has no contractual obligation to repay an Instacash Advance although the customer must be current on Instacash Advance repayments to request another Instacash Advance. At the point of Instacash Advance origination, the customer requests an available Instacash Advance amount, decides whether to incur an optional Turbo Fee and leave a Tip, confirms the scheduled repayment date and authorizes automatic debit repayment. In the absence of directly applicable authoritative guidance, although Instacash Advances do not meet the U.S. GAAP definition of financial assets, we believe that financial asset accounting is the most relevant for financial reporting purposes, as there is a history of customers repaying the amount advanced. We originate Instacash Advances with an intent to immediately sell, and sales of Instacash Advances are accounted for as sales under ASC 860, Transfers and Servicing (ASC 860), when all required conditions are met, including legal isolation of the transferred assets, no constraints on the transferee’s ability to pledge or exchange the assets, and no effective control over the assets. Instacash Advances are sold pursuant to a Master Receivables Purchase Agreement (the Purchase Agreement) with Sound Point Capital Management LP (Sound Point). The Purchase Agreement allows the purchasers to acquire, on a committed basis and subject to certain conditions and concentration limits, a majority of our eligible Instacash Advances, up to an aggregate facility limit of $ 175 million at any given time. The Purchase Agreement has an initial two-year term beginning on June 30, 2024, with a one-year extension option upon mutual agreement. During the three months ended July 4, 2025, we sold $ 823 million of Instacash Advances under the Purchase Agreement and had $ 8 million of unused capacity as of July 4, 2025. Optional Turbo Fees and Tips associated with Instacash Advances are excluded from the sale and are not transferred under the Purchase Agreement. Each Instacash Advance portfolio is initially priced at a fixed discount based on historical portfolio performance and loss rates. Future purchase prices are subject to adjustment based on the updated portfolio performance and changes to the applicable discount rate. 10 Table of Contents Consistent with ASC 860, Instacash Advances sold under the Purchase Agreement are removed from our balance sheet. We retain the associated servicing rights and earn a market-based servicing fee. Turbo Fees and Tips associated with Instacash Advances are not transferred under the Purchase Agreement. Turbo Fees and Tips are recognized as performance is completed. Instacash Advances that have been originated and are pending sale under the Purchase Agreement are classified as held for sale and are measured at the lower of cost or fair value. During the three months ended July 4, 2025, we recognized $ 36 million in loss on the mark-to-market and sale of Instacash Advances, which is recorded in sales and marketing within the Condensed Consolidated Statement of Operations. If an Instacash Advance does not qualify for sale pursuant to the Purchase Agreement or if the intent to sell ceases, the Instacash Advance is reclassified to Accounts receivable, net, and carried at net realizable value. In connection with the Purchase Agreement, MoneyLion Technologies Inc. (the Servicer), a wholly owned subsidiary of ours, entered into a Servicing Agreement with Sound Point and the purchasers party thereto. Under this agreement, we are responsible for servicing the sold receivables, including collections, remittances, and reporting. We earn a fixed percentage of net collections as a servicing fee, which is recognized as income when collections are received. As of July 4, 2025, we were responsible for servicing $ 194 million of Instacash Advances sold under the Purchase Agreement. For the three months ended July 4, 2025, the Company recognized $ 12 million in servicing income, recorded in Net revenues within the Condensed Consolidated Statement of Operations. As of July 4, 2025, we have $ 35 million payable to Sound Point relating to the servicing activity which will be settled using restricted cash and receivables from payment processors recorded in Other current assets. Refer to Note 7 for a disaggregated breakdown of Instacash Advances, Turbo Fees and Tips, which are included in accounts receivable, net on our Condensed Consolidated Balance Sheets. Note 4. Business Combinations Acquisition of MoneyLion On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion. We completed the acquisition of MoneyLion on April 17, 2025. MoneyLion extends our identity solutions into offering comprehensive financial wellness through MoneyLion’s full-featured personal finance platform that includes credit building and financial management services. Under the terms of the definitive agreement, each share of Class A common stock, par value $ 0.0001 per share, of MoneyLion, that is issued and outstanding as of immediately prior to the effective time of the acquisition was automatically cancelled, extinguished, and converted into the right to receive cash in an amount equal to $ 82.00 , without interest thereon. Additionally, we cancelled all in-the money outstanding stock options, whether vested or unvested, and converted into the right to receive (i) an amount in cash, without interest thereon, equal to the product obtained by multiplying (a) the number of in-the-money outstanding stock option immediately prior to the close by (b) the excess, if any, of MoneyLion’s closing stock price over the exercise price per share of such in-the-money stock option and (ii) one CVR in respect of each in-the-money stock option immediately prior to the close. Any outstanding stock option with an exercise price greater than or equal to MoneyLion’s closing stock price per share was forfeited and canceled for no consideration. We paid cash consideration of approximately $ 935 million for 100 % of MoneyLion’s issued and outstanding common stock and in-the-money outstanding stock options. In addition, for each share owned, MoneyLion shareholders received at closing one CVR that entitles the holder to a contingent payment of $ 23.00 in the form of shares of our common stock (issuable based on an assumed share price of $ 30.48 per Gen share) if our average volume-weighted average share price reaches at least $ 37.50 per share over 30 consecutive trading days from December 10, 2024 until 24 months after close. As of the close of the acquisition, we issued 12 million CVRs representing a fair value of approximately $ 73 million. Refer to Note 14 for further discussion on the CVRs. Additionally, all outstanding and unvested restricted stock units (RSUs) and performance share units (PSUs) were assumed and converted into 4 million service-based RSUs of Gen’s common stock. The conversion was calculated by multiplying the total number of unvested RSUs and PSUs by an equity conversion ratio of 3.48 . All converted RSUs will vest in accordance with the vesting period set forth in the original award agreement assuming continued service by the recipients through such date. The total fair value of these converted restricted stock awards was approximately $ 92 million, which $ 21 million was for pre-combination services and therefore represents purchase consideration and $ 71 million will be recognized as stock-compensation expense over the requisite service period. 11 Table of Contents Consideration transferred The total preliminary consideration for the acquisition of MoneyLion was approximately $ 970 million, net of cash acquired, and consisted of the following: (In millions) April 17, 2025 Cash consideration for outstanding MoneyLion common shares $ 935 Fair value of assumed and converted equity awards 21 Fair value of CVRs 73 Total consideration 1,029 Less cash acquired 59 Net consideration transferred $ 970 Fair value of assets acquired and liabilities assumed We accounted for the acquisition of MoneyLion as a business combination. The identifiable assets acquired, and liabilities assumed of MoneyLion were recorded at their estimated fair values as of the acquisition date. The allocation of purchase price requires management to make significant estimates and assumptions in determining the fair values of the assets acquired and liabilities assumed, especially with respect to intangible assets. Third-party valuation specialists were also utilized for certain estimates. Our preliminary allocation of the aggregate purchase price, based on the estimated fair values of the assets acquired and liabilities assumed, as of the acquisition date, is as follows: (In millions) April 17, 2025 Assets: Accounts receivable (1) $ 155 Other current assets 51 Assets held for sale 14 Property and equipment 2 Operating lease assets 14 Intangible assets 347 Goodwill 527 Other long-term assets 42 Total assets acquired 1,152 Liabilities: Accounts payable 41 Current liabilities 97 Contract liabilities 6 Operating lease liabilities 14 Other long-term obligations 24 Total liabilities assumed 182 Total purchase price $ 970 (1) Gross accounts receivable at acquisition date and the amount of receivables expected to be collected are materially the same. The allocation of the purchase price is based upon a preliminary valuation, as additional information becomes available, our estimates and assumptions may be subject to refinement within the measurement period, which may be up to one year from the acquisition date. Adjustments to the purchase price may require adjustments to goodwill prospectively. The primary areas of preliminary purchase price allocation that are not yet finalized include intangible assets, deferred revenue, certain tax and litigation matters. The preliminary goodwill of $ 527 million represents the excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed. It is attributable to the expected synergies of the acquisition, including future cost savings from planned integration of infrastructure, facilities, personnel and systems, and other benefits that are anticipated to be generated by combining both companies. Goodwill is allocated to our Trust-Based Solutions Segment. The goodwill recognized is not expected to be deductible for U.S. tax purposes. See Note 6 for further information on goodwill. Preliminary identified intangible assets and their respective useful lives, as of April 17, 2025, are as follows: 12 Table of Contents (In millions, except for useful lives) Fair Value Weighted-Average Estimated Useful Life (Years) Customer and partner relationships (1) $ 102 3 Developed technology (2) 161 5 Finite-lived trade names and other (3) 84 8 Total identified intangible assets $ 347 (1) Customer and partner relationships include marketplace partner relationships, banking partner relationships, and customer relationships of $ 42 million, $ 4 million, and $ 56 million, respectively. Marketplace partner relationships were valued using the multi-period excess earnings method (MPEEM), which is a form of the income approach, which considers significant assumptions like discount rate, long-term growth rate, and attrition factor. Banking partner relationships and customer relationships were valued using the replacement cost approach. The replacement cost approach is a valuation method that relies on estimating the replacement costs of assets based on the cost that a market participant would incur to generate the acquired portfolio of relationships. (2) Developed technology was valued using the Relief-from-Royalty method, which is a form of the income approach, which considers significant assumptions like long-term growth rates, royalty rates, discount rates, and obsolescence rates. (3) Finite-lived trade names and other include content library and the MoneyLion trade name intangibles of $ 14 million and $ 70 million, respectively. Content library was valued using the replacement cost approach, which relies on estimating the replacement cost of the asset based on the cost of a market participant would incur to reconstruct a substitute asset of comparable utility. The MoneyLion trade name was valued using the Relief-from-Royalty method, which considers significant assumptions like long-term growth rates, royalty rates, discount rates, and probability of use. Financing In connection with our acquisition of MoneyLion, we entered into the Second Amendment to Amended and Restated Credit Agreement (the Second Amendment) with certain financial institutions to fund a portion of the cash consideration paid, in which they agreed to provide to us a $ 750 million Incremental Term B Facility, which matures on April 16, 2032. We incurred $ 9 million of debt issuance costs associated with the Incremental Term B Facility, which was capitalized and included in long-term debt in our Condensed Consolidated Balance Sheets. See Note 10 for further information about this debt instrument and the related debt covenants. Impact on operating results Our results of operations for the three months ended July 4, 2025 include $ 168 million of net revenues and $ 35 million of after-tax earnings attributable to MoneyLion beginning April 17, 2025. Additionally, we recognized transaction and integration costs of $ 4 million for the three months ended July 4, 2025. These costs were primarily associated with legal and professional services, which were expensed as incurred and included in general and administrative expenses in our Condensed Consolidated Statement of Operations. Unaudited pro forma information The following unaudited pro forma financial information represents the combined historical results for the three months ended July 4, 2025 and June 28, 2024, as if the acquisition had been completed on March 30, 2024, the first day of fiscal 2025. The results below include the impact of nonrecurring proforma adjustments, including amortization of acquired intangible assets, interest on debt issued to finance the acquisition, stock-based compensation related to awards issued in conjunction with the acquisition, acquisition-related transaction costs, and the income tax effect of other pro forma adjustments. The unaudited pro forma results do not include any anticipated synergies or other expected benefits of the acquisition. The following table summarizes the unaudited pro forma financial information: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Net revenues $ 1,289 $ 1,086 Net income (loss) $ 141 $ 162 13 Table of Contents Note 5. Revenues Disaggregation of revenues The following table summarizes the components of our net revenues: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Subscription and service revenue $ 1,253 $ 965 Net interest income on notes receivable 4 — Net revenues $ 1,257 $ 965 Contract liabilities During the three months ended July 4, 2025, we recognized $ 800 million from the contract liabilities balances as of March 28, 2025. During the three months ended June 28, 2024, we recognized $ 722 million from the contract liabilities balances as of March 29, 2024. Remaining performance obligations Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and, when applicable, amounts that will be billed and recognized as revenue in future periods. As of July 4, 2025, we had $ 1,303 million of remaining performance obligations, excluding customer deposit liabilities of $ 570 million, of which we expect to recognize approximately 93 % as revenue over the next 12 months. See Note 17 for tabular disclosures of disaggregated revenue by reportable segment and geographic region. Note 6. Goodwill and Intangible Assets Goodwill Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions. See Note 17 for additional information on our reportable segments and Note 4 for additional information on our acquisition of MoneyLion. We perform an impairment assessment of goodwill at the reporting unit level at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. As a result of the change in reportable segments, our reporting units also changed. We used the relative fair value method to allocate goodwill to the associated reporting units. In connection with the preparation of our Condensed Consolidated Financial Statements for the fiscal quarter ended July 4, 2025, we tested goodwill for impairment immediately before and after the change. As a result of these analyses, we determined that goodwill was not impaired before or after the change. To determine the fair value of a reporting unit, we utilized a combination of the income and market approaches, applying equal weighting to both. The income approach is estimated through discounted cash flow analysis, which requires us to use significant estimates and assumptions, including long-term growth rates, discount rates, and other inputs. The market approach estimates the fair value of the reporting unit by utilizing the market comparable method, which is based on various market-based valuation multiples. The changes in the carrying amount of goodwill allocated to our reportable segments are as follows: (In millions) Cyber Safety Platform Trust-Based Solutions Total Balance as of March 28, 2025 $ 7,371 $ 2,866 $ 10,237 Acquisitions — 527 527 Translation adjustments 38 15 53 Balance as of July 4, 2025 $ 7,409 $ 3,408 $ 10,817 14 Table of Contents Intangible assets, net The following table summarizes the components of our intangible assets, net: July 4, 2025 March 28, 2025 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,265 $ ( 492 ) $ 773 $ 1,159 $ ( 442 ) $ 717 Developed technology 1,497 ( 661 ) 836 1,332 ( 595 ) 737 Other 182 ( 31 ) 151 98 ( 24 ) 74 Total finite-lived intangible assets 2,944 ( 1,184 ) 1,760 2,589 ( 1,061 ) 1,528 Indefinite-lived trade names 739 — 739 739 — 739 Total intangible assets $ 3,683 $ ( 1,184 ) $ 2,499 $ 3,328 $ ( 1,061 ) $ 2,267 Amortization expense for purchased intangible assets is summarized below: Three Months Ended Condensed Consolidated Statements of Operations Classification (In millions) July 4, 2025 June 28, 2024 Customer relationships and other $ 54 $ 43 Operating expenses Developed technology 65 57 Cost of revenues Total $ 119 $ 100 As of July 4, 2025, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) Remainder of 2026 $ 363 2027 473 2028 469 2029 290 2030 113 Thereafter 52 Total $ 1,760 15 Table of Contents Note 7. Supplementary Information Cash, cash equivalents and restricted cash: (In millions) July 4, 2025 March 28, 2025 Cash $ 377 $ 462 Cash equivalents 443 544 Restricted cash 8 — Total cash, cash equivalents and restricted cash $ 828 $ 1,006 Accounts receivable, net: (In millions) July 4, 2025 March 28, 2025 Trade receivable $ 194 $ 173 Notes receivable 108 — Instacash Advances 1 — Turbo Fees and Tips 16 — Allowance for doubtful accounts ( 5 ) ( 2 ) Total accounts receivable, net $ 314 $ 171 Assets held for sale: (In millions) July 4, 2025 March 28, 2025 Properties held for sale $ 11 $ 22 Instacash Advances held for sale 26 — Total assets held for sale $ 37 $ 22 Properties held for sale As of July 4, 2025, one property remains classified as held for sale. This property, consisting of land and buildings in Dublin, Ireland, was reclassified during fiscal 2023, and is currently carried at the lower of its carrying value or fair value less costs to sell of approximately $ 11 million. During the three months ended July 4, 2025 and three months ended June 28, 2024, there were no impairments on our held for sale properties. Instacash Advances held for sale Instacash Advances held for sale as of July 4, 2025, represent Instacash Advances that we originated and are pending sale under the Purchase Agreement. Refer to Note 3 for additional information regarding the sale of our Instacash Advances. Short-term contract liabilities: (In millions) July 4, 2025 March 28, 2025 Deferred revenue $ 1,213 $ 1,189 Customer deposit liabilities 570 657 Total short-term contract liabilities $ 1,783 $ 1,846 Supplemental cash flow information: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Income taxes paid (received), net of refunds $ ( 6 ) $ 7 Interest expense paid $ 183 $ 191 Cash paid for amounts included in the measurement of operating lease liabilities $ 6 $ 5 Originations of certain Instacash Advances held for sale $ ( 835 ) $ — Proceeds from the sale of certain Instacash Advances $ 788 $ — Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 17 $ — Reduction (increase) of operating lease assets as a result of lease terminations and modifications $ ( 4 ) $ ( 7 ) Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ 3 $ — Note 8. Financial Instruments and Fair Value Measurements For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, 16 Table of Contents we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability. The three levels of inputs that may be used to measure fair value are: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. Assets measured and recorded at fair value on a recurring basis The following table summarizes our financial instruments measured at fair value on a recurring basis: July 4, 2025 March 28, 2025 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 443 $ 443 $ — $ 544 $ 544 $ — Interest rate swaps 3 — 3 3 — 3 Total assets $ 446 $ 443 $ 3 $ 547 $ 544 $ 3 Financial instruments not recorded at fair value on a recurring basis include our non-marketable equity investments and long-term debt. Non-marketable equity investments As of July 4, 2025 and March 28, 2025, the carrying value of our non-marketable equity investments was $ 109 million and is included in Other long-term assets on our Condensed Balance Sheets. Current and long-term debt As of July 4, 2025 and March 28, 2025, the total fair value of our current and long-term fixed rate debt was $ 2,536 million and $ 2,475 million, respectively. The fair value of our variable rate debt approximated their carrying value. The fair values of all our debt obligations were based on Level 2 inputs. Note 9. Leases We lease certain facilities, equipment and data center co-locations under operating leases that expire on various dates through fiscal 2033. Our leases generally have terms that range from 1 year to 9 years for our facilities, 1 year to 4 years for equipment and 1 year to 7 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives. The following summarizes our lease costs: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Operating lease costs $ 5 $ 3 Short-term lease costs 1 1 Variable lease costs 1 — Total lease costs $ 7 $ 4 Other information related to our operating leases was as follows: July 4, 2025 March 28, 2025 Weighted-average remaining lease term 4.6 years 4.7 years Weighted-average discount rate 6.17 % 5.71 % See Note 7 for cash flow information related to our operating leases. 17 Table of Contents As of July 4, 2025, the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2026 $ 12 2027 22 2028 15 2029 13 2030 11 Thereafter 8 Total lease payments 81 Less: Imputed interest ( 11 ) Present value of lease liabilities $ 70 Note 10. Debt The following table summarizes components of our debt: (In millions, except percentages) July 4, 2025 March 28, 2025 Effective Interest Rate 12.50 % ROAR 2 SPV Credit Facility due December 2025 $ 49 $ — 12.50 % Term A Facility due September 12, 2027 3,346 3,519 SOFR + % 6.75 % Senior Notes due September 30, 2027 900 900 6.75 % Term B Facility due September 12, 2029 2,368 2,386 SOFR + % 7.125 % Senior Notes due September 30, 2030 600 600 7.13 % Incremental Term B Facility due April 16, 2032 750 — SOFR + % 6.25 % Senior Notes due April 1, 2033 950 950 6.25 % Total principal amount 8,963 8,355 Less: unamortized discount and issuance costs ( 100 ) ( 96 ) Total debt 8,863 8,259 Less: current portion ( 288 ) ( 291 ) Total long-term debt $ 8,575 $ 7,968 As of July 4, 2025, the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2026 $ 229 2027 240 2028 3,949 2029 44 2030 2,237 Thereafter 2,264 Total future maturities of debt $ 8,963 Other Debt In December 2021, ROAR 2 SPV Finance LLC, an indirect wholly owned VIE of MoneyLion Inc. (the ROAR 2 SPV Borrower), entered into a $ 125 million credit agreement, which was subsequently reduced to $ 75 million (the ROAR 2 SPV Credit Facility), with a lender for the funding of notes receivables, which secure the ROAR 2 SPV Credit Facility. The ROAR 2 SPV Credit Facility allows for increases in maximum borrowings under the agreement of up to $ 300 million, bears interest at a rate of 12.5 % and matures on December 21, 2025, unless it is extended to December 21, 2026. Debt covenant compliance The Amended Credit Agreement contains customary representations and warranties, affirmative and negative covenants. Each of the Revolving Facility and Term A Facility are subject to a covenant that we maintain a consolidated leverage ratio less than or equal to (i) 6.0 to 1.0 from the second quarter of fiscal 2023 through the last day of the second quarter of fiscal 2024, (ii) 5.75 to 1.0 following the last day of the second quarter of fiscal 2024 through the last day of the second quarter of fiscal 2025 and (iii) 5.25 to 1.0 for each fiscal quarter thereafter; provided that such maximum consolidated leverage ratio will increase to 5.75 to 1.0 for the four fiscal quarters ending immediately should we acquire property, business or assets in an aggregate amount greater than $ 250 million. In addition, the Amended Credit Agreement contains customary events of default under which our payment obligations may be accelerated, including, among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of certain covenants, payment and acceleration cross defaults with certain other indebtedness, certain undischarged judgments, bankruptcy, insolvency or inability to pay debts, change of control, the 18 Table of Contents occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and the Company experiencing a change of control. Under the terms of the ROAR 2 SPV Credit Facility, the ROAR 2 SPV Borrower is subject to certain covenants including minimum asset requirements to be held by ROAR 2 SPV Borrower. Assets held by the ROAR 2 SPV Borrower include $ 93 million of accounts receivable, net in our Condensed Consolidated Balance Sheets. As of July 4, 2025, we were in compliance with all financial debt covenants. Note 11. Derivatives Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flow associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate the impact of adverse foreign exchange rates and interest rate movements. We do not use our derivative instruments for speculative trading purposes. By using derivative financial instruments to hedge exposures to changes in foreign exchange and interest rates, we are exposed to credit risk; however, we mitigate this risk by entering into hedging instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts. Foreign currency exchange forward contracts We conduct business in numerous currencies throughout our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues, or incur costs in currencies other than the entity’s functional currency. As a result, we are exposed to foreign exchange gains or losses, which impacts our operating results. As part of our foreign currency risk mitigation strategy, we have entered into monthly foreign exchange forward contracts to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. We do not hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates. Interest rate swap In March 2023, we entered into interest rate swap agreements to mitigate risks associated with the variable interest rate of our Term A Facility. These pay-fixed, receive-floating rate interest rate swaps have the economic effect of hedging the variability of forecasted interest payments until their maturity on March 31, 2026. Pursuant to the agreements, we have effectively converted $ 1 billion of our variable rate borrowings under our Term A Facility to fixed rates, with $ 500 million at a fixed rate of 3.762 % and $ 500 million at a fixed rate of 3.55 %. These arrangements are designated as cash flow hedges for accounting purposes and as such, we will recognize the changes in the fair value of these interest rate swaps in Accumulated other comprehensive income (loss) (AOCI), and the periodic settlements or accrued settlements of the swap will be recognized within or against interest expense in our Condensed Consolidated Statements of Operations. Cash flows related to these hedges are classified under operating activities in our Condensed Consolidated Statements of Cash Flows. Summary of derivative instruments The following table summarizes our outstanding derivative instruments as of July 4, 2025 and March 28, 2025: Notional Amount Fair Value of Derivative Assets Fair Value of Derivative Liabilities (In millions) July 4, 2025 March 28, 2025 July 4, 2025 March 28, 2025 July 4, 2025 March 28, 2025 Foreign exchange contracts not designated as hedging instrument (1) $ 238 $ 230 $ — $ — $ — $ — Interest rate swap contracts designated as cash flow hedge 1,000 1,000 3 3 — — Total $ 1,238 $ 1,230 $ 3 $ 3 $ — $ — (1) The fair values of the foreign exchange contracts are less than $ 1 million as of July 4, 2025 and March 28, 2025. The following table summarizes the effect of our cash flow hedges on AOCI during the periods indicated: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Interest rate swap contracts designated as cash flow hedge $ ( 2 ) $ ( 4 ) 19 Table of Contents The related gain (loss) recognized in our Condensed Consolidated Statements of Operations was as follows: Three Months Ended Condensed Consolidated Statements of Operations Classification (In millions) July 4, 2025 June 28, 2024 Foreign exchange contracts not designated as hedging instrument $ 9 $ ( 3 ) Other income (expense), net Interest rate swap contracts designated as cash flow hedge 2 4 Interest expense Total $ 11 $ 1 As of July 4, 2025, we estimate that $ 3 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months. Note 12. Restructuring and Other Costs Our restructuring and other costs consist primarily of severance and termination benefits, contract cancellation charges, asset write-offs and impairments and other exit and disposal costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets. Other exit and disposal costs include costs to exit and consolidate facilities in connection with restructuring events. September 2022 Plan In connection with our acquisition of Avast, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of acquisition on September 12, 2022. Actions under this plan included the reduction of our workforce, contract terminations, facilities closures, the sale of underutilized facilities, and stock-based compensation charges for accelerated equity awards to certain terminated employees. As of July 4, 2025, we have incurred cumulative costs of $ 138 million related to the September 2022 Plan. The majority of actions under the plan were completed by March 28, 2025, and thus the remaining activity and accrual balance are immaterial and we anticipate incurring only immaterial additional expenses during fiscal year 2026 as the plan winds down. April 2025 Plan In connection with our acquisition of MoneyLion, our Board of Directors approved a restructuring plan (the April 2025 Plan). Actions under this plan include the reduction of our workforce, contract terminations, facilities consolidation, asset write-offs and other restructuring costs. The total estimated cost of the plan is approximately $ 30 million, of which $ 4 million has been incurred to date under the April 2025 Plan. As of July 4, 2025, we had a restructuring liability of $ 4 million related to the April 2025 Plan. Note 13. Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended (In millions, except percentages) July 4, 2025 June 28, 2024 Income (loss) before income taxes $ 300 $ 276 Income tax expense (benefit) $ 165 $ 95 Effective tax rate 55 % 34 % Our effective tax rate for the three months ended July 4, 2025 and three months ended June 28, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, and the U.S. taxation on foreign earnings. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States. The Act includes various provisions that are applicable to Gen beginning in FY26. These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses. As the Act was signed into law on the last day of our first quarter, the impacts are included in our operating results for the three months ended July 4, 2025. Based on our preliminary assessment, the Act is not expected to have a material impact on the Company’s effective tax rate. Note 14. Stockholders' Equity Dividends On August 7, 2025, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in September 2025. All shares of common stock issued and outstanding and all RSUs and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend equivalent rights, respectively, which will be paid out if and when the underlying shares are released. However, the 4 million unvested RSUs assumed in connection with the acquisition of Avast and the 4 million assumed RSUs under the MoneyLion Plan will not be entitled to dividend equivalent rights (DERs). See Note 15 for further information about these equity awards. Any future dividends and DERs will be subject to the approval of our Board of Directors. 20 Table of Contents Contingent value rights In connection with the acquisition of MoneyLion, we issued 12 million equity-classified CVRs to MoneyLion shareholders. The CVRs entitle holders to receive a contingent payment of $ 23.00 per CVR, payable in shares of Gen’s common stock, if our average volume-weighted average share price equals or exceeds $ 37.50 over any 30 consecutive trading days from December 10, 2024 until 24 months after close. The CVRs were recorded as a component of additional paid-in capital at a fair value of approximately $ 73 million as of the acquisition date, based on a Monte-Carlo simulation valuation model. As of July 4, 2025, there were 12 million CVRs outstanding, subject to the achievement of specified stock price conditions. Refer to Note 4 for additional information regarding the CVRs and our acquisition of MoneyLion. Stock repurchase program Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market and through accelerated stock repurchase transactions. As of July 4, 2025, we had $ 2,594 million remaining under the authorization to be completed in future periods. The following table summarizes activity related to our stock repurchase program during three months ended July 4, 2025 and June 28, 2024: Three Months Ended (In millions, except per share amounts) July 4, 2025 June 28, 2024 Number of shares repurchased 5 11 Average price per share $ 27.86 $ 24.65 Aggregate purchase price $ 134 $ 272 Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss), net of taxes, consisted of foreign currency translation adjustments and unrealized gain (loss) on derivative instruments: (In millions) Foreign Currency Translation Adjustments Unrealized Gain (Loss) On Derivative Instruments Total Balance as of March 28, 2025 $ ( 36 ) $ 3 $ ( 33 ) Other comprehensive income (loss), net of taxes 59 — 59 Balance as of July 4, 2025 $ 23 $ 3 $ 26 Note 15. Stock-Based Compensation MoneyLion equity awards In connection with our acquisition of MoneyLion, all the outstanding RSUs and certain PSUs of the MoneyLion Inc. Amended and Restated Omnibus Incentive Plan (the MoneyLion Plan) were assumed and converted into 4 million unvested RSUs. The assumed and converted awards generally retain the terms and conditions under which they were originally granted. Upon vesting, the assumed and converted RSUs and any additional shares granted will settle into shares of our common stock. The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Cost of revenues $ 2 $ 1 Sales and marketing 24 9 Research and development 14 9 General and administrative 26 12 Total stock-based compensation expense $ 66 $ 31 Income tax benefit for stock-based compensation expense $ ( 9 ) $ ( 4 ) As of July 4, 2025, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 432 million, which will be recognized over an estimated weighted-average amortization period of 2.13 years. Note 16. Net Income (Loss) Per Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share also includes the incremental effect of dilutive potentially issuable common shares outstanding. Dilutive potentially issuable common shares include the dilutive effect of employee equity awards. The 12 million CVRs are excluded from the diluted net income per share calculation as the contingent conditions for issuance of common shares have not yet been met within the period. The components of basic and diluted net income (loss) per share are as follows: 21 Table of Contents Three Months Ended (In millions, except per share amounts) July 4, 2025 June 28, 2024 Net income (loss) $ 135 $ 181 Net income (loss) per share - basic $ 0.22 $ 0.29 Net income (loss) per share - diluted $ 0.22 $ 0.29 Weighted-average shares outstanding - basic 617 621 Dilutive potentially issuable shares: Employee equity awards 7 6 Weighted-average shares outstanding - diluted 624 627 Anti-dilutive shares excluded from diluted net income per share calculation: Employee equity awards 3 3 Note 17. Segment and Geographic Information Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages and reviews financial information presented on an operating segment basis for the purpose of making decisions and assessing financial performance. The CODM assesses operating performance of each segment based on regularly provided segment revenue, segment operating income (loss) and margin, by comparing actual margin results to historical results and previously forecasted financial information. Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our portfolio and therefore allocated between our two segments. Our CODM reviews expenses on a consolidated basis and the expenses associated with our corporate investments. Prior to fiscal year 2026, we operated as one reportable segment, with consolidated net income (loss) serving as the primary measure of segment profit or loss. Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions, with the primary measure of segment profit or loss being updated to segment operating income (loss). Cyber Safety Platform includes our security, comprehensive suites, and privacy products, which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and with confidence. Trust-Based Solutions includes our identity, reputation, and financial wellness products, which provide innovative solutions and insights that empower consumers to manage their identity, reputation and finances confidently to achieve freedom. The “Corporate” category includes expenses that are not allocated to either Cyber Safety Platform or Trust-Based Solutions for purposes of making operating decisions or assessing segment-level financial performance. The expenses include restructuring and other costs, acquisition and integration costs, litigation settlement charges, and amortization of intangible assets. Our operating segments are not evaluated using asset information. Our CODM delegates the review of the segment performance to the general manager of each respective segment. There are no intersegment transactions. The accounting policies for segment reporting are the same as for our consolidated financial statements. The following table presents details of our reportable segments and the “Corporate” category: Cyber Safety Platform Trust-Based Solutions Corporate Consolidated (In millions) Three Months Ended July 4, 2025 Net Revenues $ 869 $ 388 $ — $ 1,257 Other segment items (1) 339 268 607 Operating income (loss) $ 530 $ 120 $ ( 204 ) $ 446 Three Months Ended June 28, 2024 Net Revenues $ 780 $ 185 $ — $ 965 Other segment items (1) 314 87 401 Operating income (loss) $ 466 $ 98 $ ( 147 ) $ 417 (1) Other segment items for our Cyber Safety Platform and Trust-Based Solutions include product costs, infrastructure and facilities expense, and compensation and benefits excluding stock-based compensation and expenses identified in “Corporate”. The table below are the reconciling items included in “Corporate” category: 22 Table of Contents Three Months Ended (In millions) July 4, 2025 June 28, 2024 Amortization of intangible assets $ 119 $ 100 Stock-based compensation 66 31 Unallocated cost of revenue and operating expenses 19 16 Total $ 204 $ 147 Geographic information Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Americas $ 879 $ 636 EMEA 268 233 APJ 110 96 Total net revenues $ 1,257 $ 965 Note: The Americas include U.S., Canada and Latin America; EMEA includes Europe, Middle East and Africa; APJ includes Asia Pacific and Japan. Revenues from customers inside the U.S. were $ 819 million and $ 579 million during the three months ended July 4, 2025 and June 28, 2024, respectively. No other individual country accounted for more than 10% of revenues. The table below represents cash, cash equivalents and restricted cash held in the U.S. and internationally in various foreign subsidiaries: (In millions) July 4, 2025 March 28, 2025 U.S. $ 421 $ 647 International 407 359 Total cash, cash equivalents and restricted cash $ 828 $ 1,006 The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented: (In millions) July 4, 2025 March 28, 2025 U.S. $ 53 $ 50 Other countries (1) 11 10 Total property and equipment, net $ 64 $ 60 (1) No individual country represented more than 10% of the respective totals. Significant customers and e-commerce partners No individual end-user customer accounted for 10% or more of our net revenues during the three months ended July 4, 2025 and June 28, 2024. E-commerce partners that accounted for over 10% of our total billed and unbilled accounts receivable, prior to allowance of doubtful accounts, were as follows: July 4, 2025 March 28, 2025 E-commerce partner A — % 11 % Note 18. Commitments and Contingencies Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters, including, but not limited to, product warranties and losses arising out of our breach of agreements or representations and warranties made by us, including claims alleging that our software infringes on the intellectual property rights of a third party. In addition, our bylaws contain indemnification obligations to our directors, officers, employees, and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the 23 Table of Contents limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Historically, we have not incurred material costs as a result of obligations under these agreements, and we have not accrued any material liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. Litigation contingencies From time to time, we are involved in legal proceedings, including, but not limited to, regulatory proceedings, claims, mediations, arbitrations and litigation, arising out of the ordinary court of business. We evaluate contingent liabilities including threatened or pending litigation in accordance with the authoritative guidance on contingencies. We assess the likelihood of any adverse judgements or outcomes from potential claims or proceedings for accrual or disclosure in our Condensed Consolidated Financial Statements. A determination of the amount of an accrual required, if any, for these contingencies is made after the analysis of each separate matter. Because of uncertainties related to these matters, we base our estimates on the information available at the time of our assessment. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates and disclosures. We classify our accruals for litigation contingencies in our Condensed Consolidated Balance Sheets as part of Other current liabilities or Other long-term liabilities based on when we expect to pay the claim, if at all. If the period of expected payment is within one year, we classify the amount as short-term; otherwise, it is classified as long-term. The exact timing of payment is subject to uncertainty and could change significantly from our estimated payment period. Trustees of the University of Columbia in the City of New York v. NortonLifeLock As previously disclosed, on May 2, 2022, a jury returned its verdict in a patent infringement case filed in 2013 by the Trustees of Columbia University in the City of New York (Columbia) in the U.S. District Court for the Eastern District of Virginia. Columbia originally brought suit alleging infringement of six patents owned by the university. We won a favorable claim construction order on all six patents, and the claim construction was upheld by the Federal Circuit in 2016 on all but U.S. Patent Nos. 8,601,322 and 8,074,115. We also sought inter partes review by the Patent Trial and Appeal Board of the claims of the ‘322 and ‘115 Patents and all but two claims of the ‘322 Patent and three claims of the ‘115 Patent were invalidated. The remaining claims of the ‘322 and ‘115 Patents were the only claims that remained in suit at trial. The jury found that our Norton Security products and Symantec Endpoint Protection products (the latter of which were sold by us to Broadcom as part of an Asset Purchase Agreement dated November 4, 2019) willfully infringe the ‘322 and ‘115 Patents through the use of SONAR/BASH behavioral protection technology. The jury awarded damages in the amount of $ 185 million. Columbia did not seek injunctive relief against us. We believe that we have ceased the use of the technology found by the jury to infringe. The jury also found that we did not fraudulently conceal its prosecution of U.S. Patent No. 8,549,643 but did find that two Columbia professors were coinventors of this patent. No damages were awarded related to this patent. On September 30, 2023, the court entered its judgment, which awarded Columbia (i) enhanced damages of 2.6 times the jury award; (ii) prejudgment interest, post-judgment interest, and supplemental damages to be calculated in accordance with the parties’ previous agreement; and (iii) attorneys’ fees subject to the parties meeting and conferring as to amount. We have complied with the court’s order and submitted a stipulation regarding the final calculations of all outstanding interest, royalties and attorneys’ fees. We have posted the required surety bond and have appealed the judgement to the Federal Circuit Court of Appeals, which remains pending. At this time, our current estimate of probable losses from this matter is approximately $ 601 million, which we have accrued and recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets . There is a reasonable possibility that a loss may be incurred in excess of our accrual for this matter; however, such incremental loss cannot be reasonably estimated. Jumpshot Matters At the end of 2019, Avast came under media scrutiny for provision of Avast customer data to its data analytics subsidiary Jumpshot Inc. Jumpshot was a subsidiary of Avast with its own management team and technical experts. Avast announced the decision to terminate its provision of data to, and wind down, Jumpshot on January 30, 2020. As Avast has previously disclosed, it has been in communication with certain regulators and authorities prior to completion of the acquisition of Avast, and we will continue cooperating fully in respect of all regulatory enquiries. On December 23, 2019, the United States Federal Trade Commission (FTC) issued a Civil Investigative Demand (CID) to Avast seeking documents and information related to its privacy practices, including Jumpshot's past use of consumer information that was provided to it by Avast. Avast responded cooperatively to the CID and related follow-up requests from the FTC. On October 29, 2021, staff at the FTC sent Avast a draft complaint and proposed settlement order. We engaged in ongoing negotiations with the FTC staff and have reached a negotiated agreement on the terms of a Consent Decree resolving this investigation, the terms of which are now final. This includes a provision for a non-material amount of monetary relief, which has been paid. On February 27, 2020, the Czech Office for Personal Data Protection (the Czech DPA) initiated offense proceedings concerning Avast`s practices with respect to Jumpshot, the Czech DPA issued a decision in March 2022 finding that Avast had violated the GDPR and issued a fine of CZK 351 million, which is approximately $ 15 million. Avast appealed the decision, which was affirmed by the Czech DPA on April 10, 2024. Avast has now paid the fine levied by the DPA. On June 15, 2024, Avast brought a judicial action in the administrative law court challenging the decision of the Czech DPA. At this stage, the matter 24 Table of Contents remains pending, and we are unable to assess whether any material loss or adverse effect is probable or estimate the range of any potential loss. On March 27, 2024, Stichting CUIC – Privacy Foundation for Collective Redress, a Dutch foundation (the Foundation), filed its writ of summons to initiate a collective action. The Foundation has asserted it represents the interests of Avast customers in the Netherlands whose data was provided to Jumpshot and that by doing so Avast violated the requirements of the GDPR and other provisions in Dutch and European Union privacy and consumer law entitling those customers to damages and other compensation, all of which we dispute. No specific amount of damages has been alleged to date. At this stage, the matter remains pending, and we are unable to assess whether any material loss or adverse effect is probable or estimate the range of any potential loss. On April 18, 2024, we received a letter before action from counsel in the United Kingdom asserting it may bring a representative action on behalf of a class of Avast users in the United Kingdom and Wales for breach of contract and misuse of private information and seeking unspecified damages and a permanent injunction. No lawsuit has commenced. At this stage, we are unable to assess whether any material loss or adverse effect is probable or estimate the range of any potential loss. On December 12, 2022, a putative class action, Lau v. Gen Digital Inc. and Jumpshot Inc. (later restyled as Karwowski v. Gen Digital Inc. et al.), was filed in the Northern District of California alleging violations of the Electronic Communications Privacy Act, California Invasion of Privacy Act, statutory larceny, unfair competition and various common law claims related to the provision of customer data to Jumpshot. The claims related to Jumpshot, and Jumpshot, Inc. as a defendant, were dismissed on July 9, 2024, as a result of a Motion to Dismiss brought by the Company. The remaining claims were then voluntarily dismissed, with prejudice, by the Plaintiffs. Judgment was entered by the Court on October 23, 2024, as to those claims and on November 22, 2024, Plaintiffs filed a Notice of Appeal regarding the earlier dismissed Jumpshot-related claims and the appeal remains pending. At this stage, we are unable to assess whether any material loss or adverse effect is probable as a result of this action or estimate the range of any potential loss. We dispute these claims and intend to defend ourselves against them vigorously. The outcome of the regulatory proceedings, government enforcement actions and litigation is difficult to predict, and the cost to defend, settle or otherwise resolve these matters may be significant. Plaintiffs or regulatory agencies or authorities in these matters may seek recovery of large or indeterminate amounts or seek to impose sanctions, including significant monetary penalties, as well as equitable relief. The monetary and other impact of these litigations, proceedings or actions may remain unknown for substantial periods of time. Further, an unfavorable resolution of litigations, proceedings or actions could have a material adverse effect on our business, financial condition, and results of operations and cash flows. The amount of time that will be required to resolve these matters is unpredictable, and these matters may divert management’s attention from the day-to-day operations of our business. Any future investigations or additional lawsuits may also adversely affect our business, financial condition, results of operations and cash flows. MALKA Seller Members Litigation On July 21, 2023, Jeffrey Frommer, Lyusen Krubich, Daniel Fried and Pat Capra, the former equity owners of MALKA (collectively, the “Seller Members”), brought a civil action in the SDNY against MoneyLion Technologies Inc. alleging, among other things, breaches of the Membership Interest Purchase Agreement (the “MIPA”) governing the acquisition of MALKA. Among other claims, the Seller Members allege that they are entitled to payment of $ 25 million of Class A common stock of MoneyLion pursuant to the earnout provisions set forth in the MIPA, based on the Seller Members’ assertion that MALKA achieved certain financial targets for the year ended December 31, 2022 (such payment, the “2022 Earnout Payment”). The Company believes that the Seller Members are not entitled to any portion of the 2022 Earnout Payment under the terms of the MIPA and filed counterclaims against the Seller Members, alleging, among other things, fraud, negligent misrepresentation, conversion, breach of fiduciary duties and breach of contract and seeking compensatory damages and other remedies as a result of wrongdoing by the Seller Members. We continue to vigorously pursue our remaining counterclaims and defend against the Seller Members’ claims. The bench trial of all remaining claims concluded on May 5, 2025, and a decision is currently pending. As part of our preliminary allocation of the purchase price to the underlying assets acquired and liabilities assumed in the MoneyLion acquisition, we estimated the contingency at $ 22 million as of the acquisition date and it is included in Other long-term obligations. If there is any change in our estimate, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period. See Note 4 for details regarding our purchase price allocation for our acquisition of MoneyLion. CFPB Litigation On September 29, 2022, the Consumer Financial Protection Bureau (the “CFPB”) initiated a civil action in the United States District Court for the Southern District of New York (“SDNY”) against MoneyLion Technologies Inc., ML Plus LLC and the Company's 38 state lending subsidiaries, alleging violations of the Military Lending Act and the Consumer Financial Protection Act. The CFPB is seeking injunctive relief, redress for allegedly affected consumers and civil monetary penalties. On January 10, 2023, the Company moved to dismiss the lawsuit, asserting various constitutional and merits-based arguments. On March 24, 2025, the Court granted in part and denied in part the Company's motion to dismiss, substantially narrowing the case. On April 22, 2025, the CFPB filed a second amended complaint. We continue to maintain that the CFPB’s claims are meritless and we are vigorously defending against the lawsuit. However, if a loss is incurred, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period. NYAG Litigation On April 14, 2025, the Office of the Attorney General of the State of New York filed a civil action in the Supreme Court of the State of New York, County of New York, against MoneyLion Inc. The complaint alleges, among other things, that MoneyLion’s earned wage access product violates New York’s civil and criminal usury laws and asserts claims of fraud, deceptive, and false 25 Table of Contents advertising practices under state law, as well as abusive and deceptive practices under the federal Consumer Financial Protection Act. On April 28, 2025, the Attorney General filed an amended complaint, adding MoneyLion Technologies Inc. and ML Plus LLC as defendants. We removed the action to the District Court of the SDNY and the State of New York is seeking to remand the case. That motion remains pending. We believe the Attorney General’s claims are without merit and intend to vigorously defend against the lawsuit. However, if a loss is incurred, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period. Other We are involved in a number of other judicial, arbitrable and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows. During the three months ended July 4, 2025 and June 28, 2024, we incurred $ 5 million and $ 15 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Forward-looking statements and factors that may affect future results The discussion below contains forward-looking statements, which are subject to safe harbors under the Securities Act of 1933, as amended (the Securities Act) and the Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements include statements that represent our expectations or beliefs concerning future events, including, without limitation, references to our ability to utilize our deferred tax assets, as well as statements including words such as “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “goal,” “intent,” “momentum,” “projects,” “forecast,” “outlook,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” and similar expressions. In addition, projections of our future financial performance; beliefs regarding our business and strategies; anticipated growth and trends in our businesses and in our industries; the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies from acquisitions, including, but not limited to, Avast and MoneyLion), expectations about certain markets, divestitures, restructurings, stock repurchases, financings, debt repayments, investment activities and our liquidity; the outcome or impact of pending litigation, claims or disputes; risks associated with third party providers; evolving regulations and increased scrutiny from regulators; our intent to pay quarterly cash dividends in the future; plans for and anticipated benefits of our products and solutions; anticipated tax rates, benefits and expenses; the global macroeconomic outlook, including but not limited to, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates, and the impact of new trade policy, including the implementation of global tariffs; retaliatory trade regulations and policies; economic disruptions caused by the potential impact of volatility and conflict in the geopolitical and economic environment; general uncertainty in the financial and capital markets; and other global macroeconomic factors on our operations and financial performance; and other characterizations of future events or circumstances are forward-looking statements. These statements are only predictions, based on our current expectations about future events and may not prove to be accurate. We do not undertake any obligation to update these forward-looking statements to reflect events occurring or circumstances arising after the date of this report. These forward-looking statements involve risks and uncertainties, and our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements on the basis of several factors, including economic recessions, inflationary pressures and those other factors that we discuss in Part II Item 1A. Risk Factors, of this Quarterly Report on Form 10-Q and Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or that are not described in our periodic filings with the Securities and Exchange Commission (SEC), 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. OVERVIEW Gen Digital Inc. is a global company powering Digital Freedom through its family of trusted consumer brands including Norton, Avast, LifeLock, MoneyLion, and more. Our portfolio spans Cyber Safety Platform and Trust-Based Solutions, delivering intuitive, AI-powered services that enable people to confidently grow, manage, and protect their digital and financial lives. From cybersecurity and online privacy to identity protection and financial empowerment, our products and services are designed to meet the real-world needs of today’s digital generation. Through a foundation of trust and innovation, our brands deliver the protection and confidence people need to thrive in a digital-first world. Our Cyber Safety Platform delivers technology solutions and superior threat protection to help people navigate the digital world, securely, privately and with confidence. Our Trust-Based Solutions provide innovative solutions and insights that empower consumers to manage their identity, reputation and finances confidently to achieve freedom. Fiscal calendar We have a 52/53-week fiscal year ending on the Friday closest to March 31. The three months ended July 4, 2025 consisted of 14 weeks, whereas the three months ended June 28, 2024 consisted of 13 weeks. Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026. 26 Table of Contents Key financial metrics The following tables provide our key financial metrics for the periods presented: Three Months Ended (In millions, except for per share amounts) July 4, 2025 June 28, 2024 Net revenues $ 1,257 $ 965 Operating income (loss) $ 446 $ 417 Net income (loss) $ 135 $ 181 Net income (loss) per share - diluted $ 0.22 $ 0.29 As Of (In millions) July 4, 2025 March 28, 2025 Cash, cash equivalents and restricted cash $ 828 $ 1,006 Contract liabilities $ 1,873 $ 1,923 Below are our financial highlights for the first quarter of fiscal 2026, compared to the corresponding period in the prior year: • Net revenues increased $292 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $168 million in Trust-Based Solutions due to the acquisition of MoneyLion, and an increase of $87 million due to the favorable impact from the additional week in the first quarter of fiscal 2026. • Operating income increased $29 million, primarily due to increased net revenues, offset by an increase in cost of revenues and operating expenses. • Net income decreased $46 million and net income per share decreased $0.07, primarily due to an increase in income tax expense offset by an increase in operating income as discussed above. Acquisition of MoneyLion On April 17, 2025, we completed our acquisition of MoneyLion Inc. (MoneyLion). MoneyLion extends our identity solutions into offering comprehensive financial wellness through MoneyLion’s full-featured personal finance platform that includes credit building and financial management services. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for further information about the acquisition. GLOBAL MACROECONOMIC CONDITIONS As a global company, our results of operations and cash flows may be influenced by global macroeconomic conditions, including, but not limited to, increased tariffs and an uncertain global trade environment, foreign currency exchange rate fluctuations, the impact of interest rate fluctuations, elevated inflation, ongoing and new geopolitical conflicts, including the impacts of current and future trade regulations, instability in the global banking sector, economic slowdown and recession risks, any of which may be difficult to predict and may persist for an extended period. Despite challenging global macroeconomic conditions and although we recognize that inflation and broader economic uncertainty can influence customer behavior, we are confident in the long-term overall health of our business, the strength of our product offerings and our ability to continue to execute on our strategy, including bringing award-winning products and services in cybersecurity and offering comprehensive financial wellness to our customers. We continue to monitor the direct and indirect impacts of these global macroeconomic or other geopolitical factors. If the economic uncertainty continues, we may experience additional negative impacts on customer renewals, customer collections, sales and marketing efforts, customer deployments, product development, or other financial metrics. Additional broader implications of these events on our business, results of operations, and overall financial position still remain uncertain and could result in further adverse impacts to our reported results. For further discussion of the potential impacts of global macroeconomic conditions on our business, please see Part 1, Item III and “Risk Factors” in Part II, Item 1A below. CRITICAL ACCOUNTING ESTIMATES The preparation of our Condensed Consolidated Financial Statements and related notes in accordance with generally accepted accounting principles in the U.S. requires us to make estimates, including judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We have based our estimates, judgements and assumptions on historical experience and on various other factors we believe to be reasonable under the circumstances. We evaluate our estimates, judgements and assumptions on a regular basis and make changes accordingly. Management believes that the accounting estimates employed and the resulting amounts are reasonable; however, actual results may differ from these estimates. Making estimates, judgments and assumptions about future events is inherently unpredictable and is subject to significant uncertainties, some of which are beyond our control. Should any of these estimates, judgements or assumptions change or prove to have been incorrect, it could have a material impact on our results of operations, financial position and cash flows. Our critical accounting policies and estimates were disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025 and significant policies adopted as a result of our acquisition of MoneyLion are included in Note 1 on this Form 10-Q. There have 27 Table of Contents been no other material changes in the matters for which we make critical accounting estimates in the preparation of our Condensed Consolidated Financial Statements during the three months ended July 4, 2025. RESULTS OF OPERATIONS The following table sets forth our Condensed Consolidated Statements of Operations data as a percentage of net revenues for the periods indicated: Three Months Ended July 4, 2025 June 28, 2024 Net revenues 100 % 100 % Cost of revenues 21 20 Gross profit 79 80 Operating expenses: Sales and marketing 24 19 Research and development 9 8 General and administrative 6 5 Amortization of intangible assets 4 4 Restructuring and other costs 1 0 Total operating expenses 43 37 Operating income (loss) 35 43 Interest expense (12) (16) Other income (expense), net 1 1 Income (loss) before income taxes 24 29 Income tax expense (benefit) 13 10 Net income (loss) 11 % 19 % Note: Percentages may not add due to rounding. Net revenues Three Months Ended (In millions, except for percentages) July 4, 2025 June 28, 2024 Change in % Net revenues $ 1,257 $ 965 30 % Three Months Ended July 4, 2025 Compared with Three Months Ended June 28, 2024 Net revenues increased $292 million, due to an $89 million increase in sales of our Cyber Safety Platform products and a $203 million increase in sales of our Trust-Based Solutions, including a $168 million increase in Trust-Based Solutions due to the acquisition of MoneyLion. Net revenues also increased $87 million due to the favorable impact from the additional week in the first quarter of fiscal 2026, impacting both segment financials. Specifically, the additional week contributed $56 million to our Cyber Safety Platform and $31 million to Trust-Based Solutions. Performance Metrics We regularly monitor a number of metrics in order to measure our current performance and estimate our future performance. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of 28 Table of Contents our business and the effectiveness of our marketing and operational strategies. Our metrics may be calculated in a manner different than similar metrics used by other companies. The following table summarizes supplemental key performance metrics: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Cyber Safety Platform $ 869 $ 780 Trust-Based Solutions 388 185 Total net revenues $ 1,257 $ 965 Direct revenues $ 1,068 $ 852 Partner revenues 189 113 Total net revenues $ 1,257 $ 965 Total bookings $ 1,202 $ 913 Total paid customers 76.2 66.2 Revenue from Cyber Safety Platform increased $89 million due to growth across our cyber safety membership offerings and the additional week in the first quarter of fiscal 2026. Revenue from Trust Based Solutions increased $203 million, primarily due to the acquisition of MoneyLion, continued growth in our identity point solutions and the additional week in the first quarter of fiscal 2026. 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 reflects partner-sourced and channel revenue via retailers, employee benefits, telcos, publishers, and strategic partnerships, including revenue generated from products sold through our financial marketplace. Total 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. We define total paid customers as active paid users of our products and solutions at the end of the reported period. It also includes individuals with a unique account and at least one paid transaction in the trailing twelve months, whether through our first-party personal finance products, or transacting through our financial marketplace. We exclude users on free trials and those who have not actively transacted in the trailing twelve months. The methodologies used to measure these metrics require judgment and are subject to change due to improvements or revisions to our methodology. From time to time, we review our metrics and may discover inaccuracies or make adjustments to improve their accuracy, which can result in adjustments to our historical metrics. 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. Net revenues by geographical region Three Months Ended July 4, 2025 June 28, 2024 Americas 70 % 66 % EMEA 21 % 24 % APJ 9 % 10 % The Americas include the U.S., Canada and Latin America; EMEA includes Europe, the Middle East and Africa; APJ includes Asia Pacific and Japan. Percentage of revenue in Americas increased primarily due to our acquisition of MoneyLion during the three months ended July 4, 2025 as compared to the three months ended June 28, 2024. Cost of revenues Three Months Ended (In millions, except for percentages) July 4, 2025 June 28, 2024 Change in % Cost of revenues $ 267 $ 190 41 % Three Months Ended July 4, 2025 Compared with Three Months Ended June 28, 2024 29 Table of Contents Cost of revenues, including the impact of one additional week, increased $77 million, primarily due to a $50 million increase in marketing affiliate expenses, a $13 million increase in payment processing fees and an $8 million increase in amortization of intangible assets. Operating expenses Three Months Ended (In millions, except for percentages) July 4, 2025 June 28, 2024 Change in % Sales and marketing $ 297 $ 183 62 % Research and development 109 81 35 % General and administrative 74 52 42 % Amortization of intangible assets 54 43 26 % Restructuring and other costs 10 (1) (1,100) % Total operating expenses $ 544 $ 358 52 % Three Months Ended July 4, 2025 Compared with Three Months Ended June 28, 2024 Sales and marketing expense, including the impact of one additional week, increased $114 million, primarily due to a $36 million increase in loss on sale of Instacash Advances, a $34 million increase in marketing expenses, a $21 million increase in headcount costs and a $15 million increase in stock-based compensation expense. Research and development expense, including the impact of one additional week, increased $28 million, primarily due to a $16 million increase in headcount costs and a $5 million increase in stock-based compensation expense. General and administrative expense, including the impact of one additional week, increased $22 million, primarily due to a $14 million increase in stock-based compensation expense and a $12 million increase in headcount costs, partially offset by a $10 million decrease in litigation settlement expense. Amortization of intangible assets increased $11 million, primarily due to our acquisition of MoneyLion. Restructuring and other costs increased $11 million, primarily due to an increase in severance and termination benefits in connection with the September 2022 and April 2025 Plans. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for details of the fiscal 2026 restructuring activities. Non-operating income (expense), net Three Months Ended (In millions) July 4, 2025 June 28, 2024 Interest expense $ (156) $ (153) Interest income 9 8 Foreign exchange gain (loss) — 4 Gain (loss) on sale of property (1) — Other 2 — Total non-operating income (expense), net $ (146) $ (141) Three Months Ended July 4, 2025 Compared with Three Months Ended June 28, 2024 Non-operating income (expense), net, remained relatively flat. Provision for income taxes Three Months Ended (In millions, except for percentages) July 4, 2025 June 28, 2024 Income (loss) before income taxes $ 300 $ 276 Income tax expense (benefit) $ 165 $ 95 Effective tax rate 55 % 34 % Our effective tax rate for the three months ended July 4, 2025 and three months ended June 28, 2024 differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, and the U.S. taxation on foreign earnings. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States. The Act includes various provisions that are applicable to Gen beginning in fiscal year 2026. These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses. As the Act was signed into law on the last day of our first quarter, the impacts are included in our operating results for the three months ended July 4, 2025. Based on our preliminary assessment, the Act is not expected to have a material impact on the Company’s effective tax rate. The Organization for Economic Cooperation and Development (OECD) and many countries have proposed to reallocate a portion of profits of large multinational enterprises (MNE) with an annual global turnover exceeding €20 billion to markets where 30 Table of Contents sales arise (Pillar One), as well as enact a global minimum tax rate of at least 15% for MNE with an annual global turnover exceeding €750 million (Pillar Two). On December 12, 2022, the European Union reached an agreement to implement the Pillar Two directive of the OECD’s reform of international taxation at the European Union level. The agreement affirms that all Member States must transpose the Pillar Two directive by December 31, 2023. The rules were therefore applicable for fiscal years starting on or after December 31, 2023. Ireland, Czech Republic, and certain jurisdictions in which we operate have enacted legislation to implement Pillar Two and other countries are actively considering changes to their tax laws to adopt certain parts of the OECD’s proposals. The enactment of Pillar Two legislation is not expected to have a material adverse effect on our effective tax rate and Condensed Consolidated Financial Statements in the near term. Moreover, in June 2025, the G7 agreed to exclude United States MNEs from certain aspects of the Pillar Two global minimum tax rules (the G7 Statement) in exchange for the United States not imposing retaliatory taxes in the Act. We will continue to monitor and reflect the impact of such legislative changes, including the G7 Statement, which has not yet been incorporated into the OECD framework, in future Condensed Consolidated Financial Statements as appropriate. LIQUIDITY, CAPITAL RESOURCES AND CASH REQUIREMENTS Liquidity and Capital Resources We have historically relied on cash generated from operations, borrowings under credit facilities, issuances of debt and proceeds from divestitures for our liquidity needs. Our capital allocation strategy is to balance driving stockholder returns, managing financial risk and preserving our flexibility to pursue strategic options, including acquisitions and mergers. Historically, this has included a quarterly cash dividend, the repayment of debt and the repurchase of shares of our common stock. Based on past performance and current expectations, we believe that our existing cash and cash equivalents, together with cash generated from operations, amounts available under our Revolving Facility and our future refinancing plans related to our upcoming maturities, will be sufficient to meet our working capital needs, support on-going business activities and finance the expected synergy costs related to the acquisition of Avast and MoneyLion through at least the next 12 months and to meet our known long-term contractual obligations. We are currently not aware of any trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months. However, our future liquidity and capital requirements may vary materially from those as of July 4, 2025, depending on several factors, including, but not limited to, economic conditions; political climate; the expansion of sales and marketing activities; the costs to acquire or invest in businesses; outcome of income tax audits with relevant tax authorities; resolution of legal proceedings, including, but not limited to, regulatory proceedings, claims, mediations, arbitrations and litigation; and the risks and uncertainties discussed in “Risk Factors” in Part II, Item 1A below. Cash flows The following summarizes our cash flow activities: Three Months Ended (In millions) July 4, 2025 June 28, 2024 Net cash provided by (used in): Operating activities $ 409 $ 264 Investing activities $ (873) $ (2) Financing activities $ 290 $ (466) See Note 7 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for our supplemental cash flow information. Cash from operating activities Our cash flows provided by operating activities increased $145 million, primarily due to higher profit before taxes adjusted by non-cash items and the extra week of collections in the first quarter of fiscal year 2026. Changes in working capital sources of cash include increases in income taxes payable and other assets offset by decreases in contract liabilities, accounts payable, Instacash Advances held for sale and accrued compensation and benefits. Cash from investing activities Our cash flows provided by and used in investing activities decreased $871 million, primarily related to the cash consideration paid for our acquisition of MoneyLion. Cash from financing activities Our cash flows provided by and used in financing activities increased $756 million, primarily due to proceeds from the issuance of our Incremental Term Loan B of $741 million, net of debt issuance cost, and lower repurchases of common stock under our repurchase program. This was partially offset by an increase in mandatory and voluntary prepayments of our Term A and B Facilities. 31 Table of Contents Cash and cash equivalents As of July 4, 2025, we had cash and cash equivalents of $820 million, excluding restricted cash, of which $407 million was held by our foreign subsidiaries. Our cash, cash equivalents and short-term investments are managed with the objective to preserve principal, maintain liquidity and generate investment returns. The participation exemption system under current U.S. federal tax regulations generally allows us to make distributions of non-U.S. earnings to the U.S. without incurring additional U.S. federal tax, however, these distributions may be subject to applicable state or foreign taxes. Debt We have an undrawn revolving credit facility of $1,494 million, net of our letters of credit, which expires in September 2027. Stock repurchases During the three months ended July 4, 2025 and June 28, 2024, we executed repurchases of 5 million and 11 million of our common stock under our existing stock repurchase program for an aggregate amount of $134 million and $272 million, respectively. Material Cash Requirements Our principal cash requirements are primarily to meet our working capital needs, support on-going business activities, including payment of taxes and cash dividends, payment of contractual obligations, funding capital expenditures, servicing existing debt, repurchasing shares of our common stock and investing in business acquisitions and mergers. Debt instruments As of July 4, 2025, our total outstanding principal amount of indebtedness is summarized as follows. See Note 10 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information on our debt. (In millions) July 4, 2025 Term Loans $ 6,464 Senior Notes 2,450 Other Debt 49 Total debt $ 8,963 The Amended Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including compliance with specified financial ratios. As of July 4, 2025, we were in compliance with all debt covenants. See Note 10 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding financial ratios and debt covenant compliance. Dividends On August 7, 2025, we announced a cash dividend of $0.125 per share of common stock to be paid in September 2025. Any future dividends and dividend equivalents will be subject to the approval of our Board of Directors. Stock repurchase program Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market (including through trading plans intended to qualify under Rule 10b5-1 under the Exchange Act) and through accelerated stock repurchase transactions. As of July 4, 2025, the remaining balance of our stock repurchase authorization was $2,594 million and does not have an expiration date. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions and other investment opportunities. Restructuring See Note 12 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for cash flow information associated with our restructuring activities. Significant contractual obligations Our principal commitments consist of principal and interest payments related to our debt instruments, obligations under our purchase agreements, repatriation tax payments under the Tax Cuts and Jobs Acts, obligations under various non-cancellable leases and potential other legal contingencies. Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits and other long-term taxes as of July 4, 2025, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $1,508 million in long-term income taxes payable has been excluded from our quarterly review of timing of contractual obligations. There have been no material changes, outside the ordinary course of business, to the contractual obligations reported in our Annual Report. For additional information about our debt obligations and certain other contingencies, see Note 10 and Note 18, respectively, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. 32 Table of Contents Item 3. Quantitative and Qualitative Disclosures About Market Risk We are exposed to various market risks related to fluctuations in interest rates and foreign currency exchange rates. We may use derivative and non-derivative financial instruments to reduce the volatility of earnings and cash flow that may result from adverse economic conditions and events or changes in interest rates and foreign currency exchange rates. Interest rate risk As of July 4, 2025, we had $2,499 million in aggregate principal amount of fixed-rate Senior Notes and other fixed-rate debts outstanding, with a carrying amount and a fair value of $2,536 million, based on Level 2 inputs. The fair value of these notes fluctuates when interest rates change. Since these notes bear interest at fixed rates, the financial statement risk associated with changes in interest rates is limited to future refinancing of current debt obligations. If these notes were refinanced at higher interest rates prior to maturity, our total interest payments could increase by a material amount; however, this risk is mitigated by our strong cash position and expected future cash generated from operations, which will be sufficient to satisfy this increase in obligation. As of July 4, 2025, we also had $6,464 million outstanding debt with variable interest rates based on the Secured Overnight Financing Rate (SOFR). A hypothetical 100 basis point change in SOFR would have resulted in a $65 million increase in interest expense on an annualized basis. In March 2023, we entered into interest rate swap agreements to mitigate risks associated with the variable interest rate of our Term A Facility. These pay-fixed, receive-floating rate interest rate swaps have the economic effect of hedging the variability of forecasted interest payments until their maturity on March 31, 2026. Pursuant to the agreements, we have effectively converted $1 billion of our variable rate borrowings under Term A Facility to fixed rates, with $500 million at a fixed rate of 3.762% and $500 million at a fixed rate of 3.55%. A hypothetical 100 basis point increase or decrease in interest rates would have resulted in a $6 million increase or $6 million decrease in the fair values of our floating to fixed rate interest swaps on July 4, 2025. The objective of our interest rate swaps, all of which are designated as cash flow hedges, is to manage the variability of future interest expense. In addition, we have a $1,494 million revolving credit facility, net of our letters of credit, that if drawn bears interest at a variable rate based on SOFR and would be subject to the same risks associated with adverse changes in SOFR. Foreign currency exchange rate risk We conduct business in numerous currencies through our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues or incur costs in currencies other than the entity’s functional currency, primarily in Euro, Japanese Yen, British Pound, Australian Dollar, Czech Koruna and Canadian Dollar. In addition, we charge our international subsidiaries for their use of intellectual property and technology and for certain corporate services provided. Our cash flow, results of operations and certain of our intercompany balances that are exposed to foreign exchange rate fluctuations may differ materially from expectations, and we may record significant gains or losses due to foreign currency fluctuations and related hedging activities. As a result, we are exposed to foreign exchange gains or losses which impacts our operating results. Growth in our international operations will incrementally increase our exposure to foreign currency fluctuations as well as volatile market conditions, including the weakening of foreign currencies relative to USD, which has and may in the future negatively affect our revenue expressed in USD. We manage these exposures and reduce the potential effects of currency fluctuations by executing monthly foreign exchange forward contracts to hedge foreign currency balance sheet exposures. The gains and losses on these foreign exchange contracts are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations. We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates. As our international operations grow, we will continue to reassess our approach to managing risks related to fluctuations in foreign currency. Additional information related to our debt and derivative instruments is included in Note 10 and Note 11, respectively, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. Item 4. Controls and Procedures (a) Evaluation of Disclosure Controls and Procedures The SEC defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. “Disclosure controls and procedures” include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide reasonable assurance that such information is accumulated and communicated to our management. Our management (with the participation of our Chief Executive Officer and Chief Financial Officer) has conducted an evaluation of the effectiveness 33 Table of Contents of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report . Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report. (b) Changes in Internal Control over Financial Reporting There were no changes in Gen’s internal control over financial reporting or in other factors that occurred during the first quarter of fiscal 2026, except for our acquisition of MoneyLion discussed below, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. On April 17, 2025, we completed our acquisition of MoneyLion and are currently integrating MoneyLion into our operations and internal control processes. Pursuant to the SEC’s guidance that an assessment of a recently acquired business may be omitted from the scope of the evaluation for a period up to one year following the acquisition, the scope of our assessment of internal control over financial reporting is ongoing. We are currently assessing the control environment related to our acquisition of MoneyLion and have designed and implemented new controls as needed. MoneyLion Material Weakness A material weakness is a deficiency or a combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a registrant’s financial statement will not be prevented or detected on a timely basis. Prior to the acquisition by Gen, MoneyLion reported an identified material weakness in its internal control over financial reporting. As a result, MoneyLion concluded that, as of December 31, 2024, its disclosure controls and procedures were not effective in providing reasonable assurance that information required to be disclosed in reports filed or submitted under the Exchange Act was recorded, processed, summarized and reported within the time periods specified by SEC rules and forms. The material weakness identified relates to MoneyLion’s Credit Builder Loan product, involving certain cash disbursements made to customer escrow accounts that were not in accordance with the product’s terms. While the related transactions were properly reflected in the financial statements and no misstatements were identified, the control deficiency could have resulted in unauthorized disbursements of cash. Accordingly, this deficiency was determined to constitute a material weakness. MoneyLion has undertaken steps to remediate the material weakness and we are evaluating the steps that have been taken under Gen’s control framework. (c) Limitations on Effectiveness of Controls Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. The design of a control system also is based in part upon assumptions and judgments made by management about the likelihood of future events, and there can be no assurance that a given control will be effective under all potential future conditions. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. 34 Table of Contents PART II. OTHER INFORMATION Item 1. Legal Proceedings Information with respect to this Item may be found under the heading “Litigation contingencies” in Note 18 of the Notes to the Condensed Consolidated Financial Statements in this Form 10-Q, which information is incorporated herein by reference. Item 1A. Risk Factors SUMMARY RISK FACTORS We are subject to a number of risks that, if realized, could materially and adversely affect our business, financial condition, results of operations, and cash flows and our ability to make distributions to our stockholders. Some of our more significant challenges and risks include, but are not limited to, the following, which are described in greater detail below: • If we are unable to develop new and enhanced solutions and products, or if we are unable to continually improve the performance, features, and reliability of our existing solutions and products, our business and operating results could be adversely affected. • We operate in a highly competitive and dynamic environment, and if we are unable to compete effectively, we could experience a loss in market share and a reduction in revenue. • Issues in the development and deployment of artificial intelligence (“AI”) may result in reputational harm and legal liability and could adversely affect our results of operations. • Our acquisitions and divestitures create special risks and challenges that could adversely affect our financial results. • Our revenue and operating results depend significantly on our ability to retain our existing customers and expand sales to them, convert existing non-paying customers to paying customers and add new customers. • If we fail to manage our sales and distribution channels effectively, if our partners choose not to market and sell our solutions to their customers, or if we have an adverse change in our relationships with key third-party partners, service providers or vendors, our operating results could be materially and adversely affected. • Changes in industry structure and market conditions have and may continue to lead to charges related to discontinuance of certain of our products or businesses and asset impairments. • Our international operations involve risks that could increase our expenses, adversely affect our operating results and require increased time and attention of our management. • Our future success depends on our ability to attract and retain personnel in a competitive marketplace. • If the information provided to us by customers or other third parties is incorrect or fraudulent, we may misjudge a customer’s qualifications to receive our products and services and our results of operations may be harmed and could subject us to regulatory scrutiny or penalties. • Our solutions, systems, websites and the data on these sources have been in the past and may continue to be subject to cybersecurity events that could materially harm our reputation and future sales. • We collect, use, disclose, store or otherwise process personal information and other sensitive data, which is subject to stringent and changing state and federal laws and regulations. • Our inability to successfully recover from a disaster or other business continuity event could impair our ability to deliver our products and services, which could harm our business. • We are dependent upon Broadcom for certain engineering and threat response services, which are critical to many of our products and business. • If we fail to offer high-quality customer support, our customer satisfaction may suffer and have a negative impact on our business and reputation. • Our solutions are complex and operate in a wide variety of environments, systems and configurations, which could result in failures of our solutions to function as designed. • Negative publicity regarding our brand, solutions and business could harm our competitive position. • Our reputation and/or business could be negatively impacted by sustainability and governance matters and/or our reporting of such matters. • We are affected by seasonality, which may impact our revenue and results of operations. • Our solutions are highly regulated and the legal and regulatory regimes governing certain of our products and services are uncertain and evolving, which could impede our ability to market and provide our solutions or adversely affect our business, financial position and results of operations. • The regulatory regime governing blockchain technologies and digital assets is uncertain, and new laws, regulations or policies, including licensing laws, may alter our business practices with respect to digital assets. • If we do not protect our proprietary information and prevent third parties from making unauthorized use of our products and technology, our financial results could be harmed. 35 Table of Contents • From time to time we are party to lawsuits and investigations which has previously and could in the future require significant management time and attention, cause us to incur significant legal expenses and prevent us from selling our products. • Third parties have claimed and additional third parties in the future may claim that we infringe their proprietary rights. • Some of our products contain “open source” software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business. • There are risks associated with our outstanding and future indebtedness that could adversely affect our financial condition. • Our Amended Credit Agreement imposes operating and financial restrictions on us. • We may be unsuccessful in managing the effects of changes in the cost of capital on our business. • The failure of financial institutions or transactional counterparties could adversely affect our current and projected business operations and our financial condition and result of operations. • If our existing funding arrangements are not renewed or replaced or our existing funding sources are unwilling or unable to provide funding to us on terms acceptable to us, or at all, it could have a material adverse effect on our business, financial condition, results of operations and cash flows. • Hedging or other mitigation actions to mitigate against interest rate exposure may adversely affect our earnings, limit our gains or result in losses, which could adversely affect cash available for distributions. • Adverse macroeconomic conditions and government efforts to combat inflation, along with other interest rate pressures, have led to and may continue to lead to higher financing costs and may particularly have negative effects on the consumer finance industry and our MoneyLion business. • Fluctuations in our quarterly financial results have affected the trading price of our stock in the past and could affect the trading price of our stock in the future. • We may be required to issue shares under our contingent value rights agreement with certain former holders. • Changes to our effective tax rate could increase our income tax expense and reduce (increase) our net income (loss), cash flows and working capital and audits by tax authorities could result in additional tax payments for prior periods. • We could be obligated to pay additional taxes in various jurisdiction, which would harm our results of operations. • Our ability to use our deferred tax assets to offset future taxable income may be limited. The above list is not exhaustive, and we face additional challenges and risks. Please carefully consider all of the information in this Quarterly Report on Form 10-Q, including the matters set forth below. A description of the risk factors associated with our business is set forth below and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Legal Proceedings,” “Quantitative and Qualitative Disclosures About Market Risk” and “Controls and Procedures.” The list is not exhaustive, and you should carefully consider these risks and uncertainties before investing in our common stock. RISKS RELATED TO OUR BUSINESS STRATEGY AND INDUSTRY If we are unable to develop new and enhanced solutions, or if we are unable to continually improve the performance, features, and reliability of our existing solutions, our business and operating results could be adversely affected. Our future success depends on our ability to effectively respond to evolving threats to consumers, as well as competitive technological developments and industry changes, by developing or introducing new and enhanced solutions and products on a timely basis. In the past, we have incurred, and will continue to incur, significant research and development expenses as we focus on organic growth through internal innovation. We believe that we must continue to dedicate significant resources to our research and development efforts to deliver innovative market competitive products and avoid being reliant on third-party technology and products. If we do not achieve the benefits anticipated from these research and development investments, or if the achievement of these benefits is delayed, our operating results may be adversely affected. We must continually address the challenges of dynamic and accelerating market trends and competitive developments. Customers may require features and capabilities that our current solutions do not have. Our failure to develop new solutions and improve our existing solutions to satisfy customer preferences and effectively compete with other market offerings in a timely and cost-effective manner may harm our ability to retain our customers and attract new customers. For example, the process of developing and integrating new technologies, including generative artificial intelligence (“Gen AI”) and machine learning models, is complex, time-consuming and may cause errors or inadequacies that are not easily detectable. As we integrate more Gen AI technology into our platform to improve the experience of our users and meet the demands of our customers, it may result in unintentional or unexpected outputs that are incorrect or biased and cause customer dissatisfaction or subject us to lawsuits, reputational harm and increased regulatory scrutiny. The development and introduction of new solutions involve significant commitments of time and resources and are subject to risks and challenges including but not limited to: • Lengthy development cycles; 36 Table of Contents • Evolving industry and regulatory standards and technological developments, including AI and machine learning, by our competitors and customers; • Rapidly changing customer preferences and accurately anticipating technological trends or needs; • Evolving platforms, operating systems, and hardware products, such as mobile devices; • Product and service interoperability challenges with customer’s technology and third-party vendors; • The integration of products and solutions from acquired companies; • Availability of engineering and technical talent; • Entering new or unproven market segments; • New and evolving regulation; and • Executing new product and service strategies. In addition, third parties, including, but not limited to, operating systems and internet browser companies, have in the past and may in the future limit the interoperability of our solutions with their own products and services, in some cases to promote their own offerings or those of our competitors. Any such actions by third parties could delay the development of our solutions and products or our solutions and products may be unable to operate effectively. This could also result in decreased demand for our solutions and products, decreased revenue, harm to our reputation, and adversely affect our business, financial condition, results of operations, and cash flows. If we are not successful in managing these risks and challenges, or if our new or improved solutions or products are not technologically competitive or do not achieve market acceptance, our business and operating results could be adversely affected. We operate in a highly competitive and dynamic environment, and if we are unable to compete effectively, we could experience a loss in market share and a reduction in revenue. We operate in intensely competitive and dynamic markets that experience frequent and rapid technological developments, changes in industry and regulatory standards, evolving market trends, changes in customer requirements and preferences, and frequent new product introductions and improvements. If we are unable to anticipate or react to these continually evolving conditions, we could experience a loss of market share and a reduction in our revenues, which could materially and adversely affect our business and financial results. To compete successfully, we must maintain an innovative research and development effort to develop new solutions and products and enhance our existing solutions and products, and effectively adapt to changes in the technology, financial technology, privacy and data protection standards or trends. We face competition from a broad range of companies, including software vendors focusing on cyber safety solutions such as Bitdefender, Kaspersky, McAfee and Trend Micro, operating system providers such as Apple, Google and Microsoft, and companies such as Nord, Life360, LastPass and others that currently specialize in one or a few particular segments of the market and many of which are expanding their product portfolios into different segments. We also face growing competition from other technology companies, as well as from companies in the identity threat protection space such as credit bureaus. Further, many of our competitors are increasingly developing and incorporating into their products data protection software and other competing cyber safety products, such as antivirus protection or VPN, often free of charge, that compete with our offerings. Our competitive position could be adversely affected by the functionality incorporated into these products rendering our existing solutions obsolete and therefore causing us to fail to meet customer expectations. For our MoneyLion business, we face competition from a broad range of companies across our business lines, including traditional banks and credit unions; new entrants obtaining banking licenses; non-bank digital providers offering banking-related services; specialty finance and other non-bank digital providers offering consumer lending-related or earned wage access products; digital wealth management platforms such as robo-advisors offering consumer investment services and other brokerage-related services; and digital financial platform, embedded finance and marketplace competitors, which aggregate and connect consumers to financial product and service offerings. We also compete with advertising agencies and other service providers to attract marketing budget spending from our clients. We expect our competition to continue to increase, as there are generally no substantial barriers to entry into the markets we serve. Some of our current and potential competitors have longer operating histories, particularly with respect to financial services products similar to ours, significantly greater resources and a larger customer base than we do. This allows them, among other things, to potentially offer more competitive pricing or other terms or features, a broader range of financial or other products or a more specialized set of specific products or services, as well as respond more quickly than we can to new or emerging technologies and changes in consumer preferences. In addition, the introduction of new products or services by existing or future competitors, and/or market acceptance of products or services based on emerging or alternative technologies, could make it easier for other products or services to compete with our solutions and reduce our market share in the future. Further consolidation among our competitors and within our industry or, in addition to other changes in the competitive environment, such as greater vertical integration from key computing and operating system suppliers could result in larger competitors that compete more frequently with us. Specifically, in addition to competing with cyber safety vendors directly for sales to end-users of our solutions, we compete with them for the opportunity to have our solutions bundled with the offerings of our strategic partners, such as computer 37 Table of Contents hardware OEMs, internet service providers, operating systems and telecom service providers. Our competitors could gain market share from us if any of these strategic partners replace our solutions with those of our competitors or with their own solutions or promote our competitors’ solutions or their own solutions more frequently or more favorably than our solutions. In addition, software vendors who have bundled our solutions with theirs may choose to bundle their solutions with their own or other vendors’ solutions or may limit our access to standard interfaces and inhibit our ability to develop solutions for their platform. Further product development by these vendors could cause our solutions to become redundant, which could significantly impact our sales and operating results. We cannot be sure that we will accurately predict how the markets in which we compete or intend to compete will evolve. Failure on our part to anticipate changes in our markets and to develop solutions and enhancements that meet the demands of those markets or to effectively compete against our competitors will significantly impair our business, financial condition, results of operations, and cash flows. Issues in the development and deployment of artificial intelligence (“AI”) may result in reputational harm and legal liability and could adversely affect our results of operations. We have incorporated, and are continuing to develop and deploy, AI, including Gen AI, into many of our products, solutions and services. AI, including AI internally developed and AI present in third party solutions, presents challenges and risks that could affect our products, solutions and services, and therefore our business. For example, AI algorithms may be flawed, insufficient, of poor quality, reflect unwanted forms of bias, or contain other errors or inadequacies, any of which may not be easily detectable; AI has been known to produce false or “hallucinatory” inferences or outputs; AI can present ethical issues and may subject us to new or heightened legal, regulatory, ethical, or other challenges, including issues relating to discrimination, intellectual property infringement or misappropriation, violation of rights of publicity, inability to assert ownership of inventions and works of authorship, loss of trade secrets, defamation, data privacy and cybersecurity; and inappropriate or controversial data practices by developers and end-users, or other factors adversely affecting public opinion of AI, could impair the acceptance of AI solutions, including those incorporated in our products and services. If the AI solutions that we create or use are deficient, inaccurate or controversial, we could incur operational inefficiencies, competitive harm, legal liability, brand or reputational harm, or other adverse impacts on our business and financial results. In addition, if we do not have sufficient rights to use the data or other material or content on which our AI tools rely, we also may incur liability through the violation of applicable laws and regulations, third-party intellectual property, privacy or other rights, or contracts to which we are a party. The use or adoption of AI technologies in our products may also result in exposure to claims by third parties of copyright infringement or other intellectual property misappropriation, which may require us to pay compensation or license fees to third parties. For example, the large datasets used to train Gen AI technologies or output generated by Gen AI technologies may contain materials that may subject us to third-party claims of intellectual property infringement or violations of rights of publicity. This risk is exacerbated with respect to our use of third-party Gen AI technologies, as it can be very difficult, if not impossible, to validate the processes used by third-party Gen AI technology providers in their collection and use of training data or the algorithm to produce outputs. In addition, regulation of Gen AI is rapidly evolving worldwide as legislators and regulators are increasingly focused on these powerful emerging technologies. The technologies underlying Gen AI and its uses are currently subject to a variety of laws and regulations, including intellectual property, privacy, data protection and information security, consumer protection, competition, and equal opportunity laws, and are expected to be subject to increased regulation and new laws or new applications of existing laws and regulations. Gen AI is the subject of ongoing review by various U.S. governmental and regulatory agencies, and various U.S. states and other foreign jurisdictions are applying, or are considering applying, their platform moderation, cybersecurity, and data protection laws and regulations to Gen AI or are considering general legal frameworks for Gen AI. For example, the EU AI Act, which came into force on August 1, 2024, will generally become fully applicable after a two-year transitional period, with certain obligations taking effect at an earlier or later time. The EU AI Act introduces various requirements for AI systems and models placed on the market or put into service in the EU, including specific transparency and other requirements for general purpose AI systems and the models on which they are based. In addition, several U.S. states are considering enacting or have already enacted regulations concerning the use of AI technologies. At the federal and state level, there have been various proposals (and in some cases laws enacted) addressing “deepfakes” and other AI-generated synthetic media. Furthermore, because AI technology itself is highly complex and rapidly developing, it is not possible to predict all of the legal, operational or technological risks that may arise relating to the use of AI. The rapid evolution of AI, including potential government regulation of AI, requires us to invest significant resources to develop, test, and maintain AI in our products and services in a manner that meets evolving requirements and expectations and we may need to expend resources to adjust our offerings in certain jurisdictions if the legal frameworks are inconsistent across jurisdictions. Developing, testing, and deploying AI systems may also increase the cost profile of our offerings due to the nature of the computing costs involved in such systems. Our acquisitions and divestitures create special risks and challenges that could adversely affect our financial results. As part of our business strategy, we may acquire or divest businesses or assets. For example, in 2019, we completed the sale of certain of our enterprise security assets to Broadcom Inc. (the Broadcom sale), in January 2021, we completed the acquisition of Avira, in September 2022, we completed the acquisition of Avast, and in April 2025, we completed the acquisition of MoneyLion. Our acquisition and divestiture activities have and may continue to involve a number of risks and challenges, including: 38 Table of Contents • Complexity, time and costs associated with managing these transactions, including the integration of acquired and the winding down of divested business operations, workforce, products, services, IT systems and technologies; • Challenges in maintaining uniform standards, controls, procedures and policies within the combined organization; • Challenges in retaining the customers of acquired businesses, providing the same level of service to existing customers with reduced resources, or retaining the third-party relationships, including with suppliers, service providers, and vendors, among others; • Diversion of management time and attention; • Loss or termination of employees, including costs and potential institutional knowledge loss associated with the termination or replacement of those employees; • Assumption of liabilities of the acquired and divested business or assets, including pending or future litigation, investigations or claims related to the acquired business or assets; • Addition of acquisition-related debt; • Difficulty entering into or expanding into new markets or geographies; • Increased or unexpected costs and working capital requirements; • Dilution of stock ownership of existing stockholders; • Ongoing contractual obligations and unanticipated delays or failure to meet contractual obligations; • Regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary approvals, as well as being subject to new regulators with oversight over an acquired business; • Substantial accounting charges for acquisition-related costs, asset impairments, amortization of intangible assets and higher levels of stock-based compensation expense; and • Difficulty in realizing potential benefits, including cost savings and operational efficiencies, synergies and growth prospects from integrating acquired businesses. We may not be able to identify appropriate business opportunities that benefit our business strategy or otherwise satisfy our criteria to undertake such opportunities. Even if we do identify potential strategic transactions, we may not be successful in negotiating favorable terms in a timely manner or at all or in consummating the transaction, and even if we do consummate such a transaction, it may not generate sufficient revenue to offset the associated costs, may not otherwise result in the intended benefits or may result in unexpected difficulties and risks. Macroeconomic factors, such as fluctuating tariffs, trade wars. high inflation, high interest rates, and volatility in foreign currency exchange rates and capital markets could negatively influence our future acquisition opportunities. Moreover, to be successful, large complex acquisitions depend on large-scale product, technology, and sales force integrations that are difficult to complete on a timely basis or at all and may be more susceptible to the special risks and challenges described above. Any of the foregoing, and other factors, could harm our ability to achieve anticipated levels of profitability or other financial benefits from our acquired or divested businesses, product lines or assets or to realize other anticipated benefits of divestitures or acquisitions. Our revenue and operating results depend significantly on our ability to retain our existing customers and expand sales to them, convert existing non-paying customers to paying customers and add new customers. It is important to our cyber and financial technology businesses that we retain existing customers and that our customers expand their use of our solutions and products over time. If our efforts to sell additional functionality, products and services to our customers and clients are not successful, our business and growth prospects would suffer. Customers may choose not to renew their membership with us at any time and may stop utilizing our products that generate us revenue from transaction, interchange or transfer fees, among others. For our solutions sold to customers on a monthly or annual subscription basis, renewing customers may require additional incentives to renew, may not renew for the same contract period, or may change their subscriptions. We therefore may be unable to retain our existing customers on the same or more profitable terms, if at all. In addition, we may not be able to accurately predict or anticipate future trends in customer retention or effectively respond to such trends. Our customer retention rates may decline or fluctuate due to a variety of factors, including the following: • Our customers’ levels of satisfaction or dissatisfaction with our solutions, the value they place on our solutions and availability of the solutions; • The quality, breadth, and prices of our solutions, including solutions offered in emerging markets; • Our general reputation and events impacting that reputation; • The services and related pricing offered by our competitors; including increasing the availability and efficacy of free solutions; • Increases in costs we incur and may pass on to our customers in order to offer our products or services; • Disruption by new services or changes in law or regulations that impact the need for or efficacy of our products and services; 39 Table of Contents • Changes in auto-renewal and other consumer protection regulations; • Our customers’ dissatisfaction with our efforts to market additional products and services; • Our customer service and responsiveness to the needs of our customers; • Changes in our target customers’ spending levels as a result of general economic conditions, inflationary pressures or other factors; and • The quality and efficacy of our third-party partners who assist us in renewing customers’ subscriptions. Declining customer retention rates could cause our revenue to grow more slowly than expected or decline, and our operating results, gross margins and business will be harmed. In addition, our ability to generate revenue and maintain or improve our results of operations partly depends on our ability to cross-sell our solutions to our existing customers and to convert existing non-paying customers to paying customers and add new customers. We may not be successful in cross selling our solutions because our customers may find our additional solutions unnecessary or unattractive. Our failure to sell additional solutions to our existing customers, failure to convert existing non-paying customers to paying customers or add new customers could adversely affect our ability to grow our business. An important part of our growth strategy involves continued investment in direct marketing efforts, indirect partner distribution channels, expanding partner relationships, freemium channels, our sales force, and infrastructure to add new customers. The number and rate at which new customers purchase our products and services depends on a number of factors, including those outside of our control, such as customers’ perceived need for our solutions and products, competition, general economic conditions, market transitions, product obsolescence, technological change, public awareness of security threats to IT systems, macroeconomic conditions, and other factors. New customers, if any, may subscribe or renew their subscriptions, or utilize our products and solutions, at lower rates than we have experienced in the past, introducing uncertainty about their economic attractiveness and potentially impacting our financial results. Additionally, there are inherent challenges in measuring the usage of our products and solutions across our brands, platforms, regions, and internal systems, and therefore, calculation methodologies for direct customer counts may differ, which may impact our ability to measure the addition of new customers and our understanding of certain details of our business. The methodologies used to measure these metrics require judgment and are also susceptible to algorithms or other technical errors. From time to time, we review our metrics and may discover inaccuracies or make adjustments to improve their accuracy, which can result in adjustments to our historical metrics. 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. If investors do not perceive our operating metrics to be accurate, or if we discover material inaccuracies with respect to these figures, our reputation may be significantly harmed, and our results of operations and financial condition could be adversely affected. We may need to change our pricing models to compete successfully. The intense competition we face, in addition to general and economic business conditions (including rising government debt levels, potential government policy shifts, changing U.S. consumer spending patterns, economic volatility, bank failures, fluctuating tariff rates, trade wars, and high inflation and interest rates, among other things), may put pressure on us to change our pricing practices. In particular, the ongoing global conflicts could amplify disruptions to the financial and credit markets, increase risks of an information security or operational technology incident, cause cost fluctuations to us or third parties upon which we rely and increase costs to ensure compliance with global and local laws and regulations. If our competitors offer deep discounts on certain solutions, provide offerings, or offer free introductory products that compete with ours, we may experience pricing pressure and may be unable to retain current customers and clients or attract new customers and clients at consistent prices within our operating budget. Or we may need to lower our prices or offer similar free introductory products to compete successfully. Similarly, if external factors, such as economic conditions, market trends, or business combinations require us to raise our prices, our ability to acquire new customers and retain existing customers may be diminished. Any such changes may reduce revenue and margins and could adversely affect our financial results. Additionally, changes in the macroeconomic environment have previously and may continue to affect our business. Our solutions are discretionary purchases, and customers may reduce or eliminate their discretionary spending on our solutions during a difficult macroeconomic environment. We may experience a material increase in cancellations by customers or a material reduction in our retention rate in the future, especially in the event of a prolonged recession or a worsening of current conditions as a result of trade wars, fluctuating tariff rates, inflation, changes in interest rates, government shutdowns, political developments and unrest or other macroeconomic events. We may have to lower our prices or make other changes to our pricing model to address these dynamics, any of which could adversely affect our business and financial results. Many of Avira’s and Avast’s users are freemium subscribers, meaning they do not pay for its basic services. Much of our anticipated growth in connection with the Avira and Avast acquisitions are attributable to attracting and converting Avira’s and Avast’s freemium users to a paid subscription option. Numerous factors, however, have previously and may continue to impede our ability to attract and retain free users, convert these users into paying customers and retain them as paying customers. 40 Table of Contents