SEC EDGAR · 10-Q

10-Q – 2026-02-06 – gen-20260102.htm

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Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 59
Operating expenses: | Sales and marketing 307 182 901 549 | Research and development 96 84 305 248
741 — | Net proceeds from sales of common stock under employee stock incentive plans 7 6 | Tax payments related to vesting of stock units ( 52 ) ( 25 )
Significant accounting policies assumed and adopted as a result of our acquisition of MoneyLion. | 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 cumulati
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 cumulati | Net Interest Income on Notes Receivables
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 contin | 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.
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 contin | 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
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 applic | 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 $ 225 million at any given time. The Purchase Agreement has an initial two-year term beginning on June 30, 2024, with a

Rörelseresultat

Total operating expenses 539 419 1,599 1,155 | Operating income (loss) 433 374 1,317 1,193 | Interest expense ( 137 ) ( 141 ) ( 439 ) ( 443 )
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 result | 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).
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 result | 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.
316 295 — 611 | Operating income (loss) | $ 503 $ 126 $ ( 196 ) $ 433
969 846 — 1,815 | Operating income (loss) | $ 1,533 $ 369 $ ( 585 ) $ 1,317
320 89 — 409 | Operating income (loss) $ 479 $ 98 $ ( 203 ) $ 374
953 264 — 1,217 | Operating income (loss) $ 1,415 $ 293 $ ( 515 ) $ 1,193
Net revenues $ 1,240 $ 986 $ 3,717 $ 2,925 | Operating income (loss) $ 433 $ 374 $ 1,317 $ 1,193 | Net income (loss) $ 192 $ 159 $ 461 $ 501

Periodens resultat

Income tax expense (benefit) 117 49 381 241 | Net income (loss) $ 192 $ 159 $ 461 $ 501
Net income (loss) per share - basic $ 0.31 $ 0.26 $ 0.75 $ 0.81 | Net income (loss) per share - diluted $ 0.31 $ 0.26 $ 0.74 $ 0.80
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 | Net income (loss) $ 192 $ 159 $ 461 $ 501 | Other comprehensive income (loss), net of taxes:
Balance as of October 3, 2025 617 $ 2,236 $ 4 $ 217 $ 2,457 | Net income (loss) — — — 192 192 | Other comprehensive income (loss), net of taxes — — 15 — 15
Balance as of March 28, 2025 617 $ 2,066 $ ( 33 ) $ 236 $ 2,269 | Net income (loss) — — — 461 461 | Other comprehensive income (loss), net of taxes — — 52 — 52
Balance as of September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098 | Net income (loss) — — — 159 159 | Other comprehensive income (loss), net of taxes — — ( 60 ) — ( 60 )
Balance as of March 29, 2024 623 $ 2,227 $ 11 $ ( 98 ) $ 2,140 | Net income (loss) — — — 501 501 | Other comprehensive income (loss), net of taxes — — ( 57 ) — ( 57 )
OPERATING ACTIVITIES: | Net income (loss) $ 461 $ 501 | Adjustments:

Kassaflöde

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 | 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 v | The changes in the carrying amount of goodwill allocated to our reportable segments are as follows:
Supplemental cash flow information:
See Note 7 for cash flow information related to our operating leases. | As of January 2, 2026, the maturities of our lease liabilities by fiscal year are as follows:
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, | Foreign currency exchange forward contracts
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 fix | 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 Consoli | As of January 2, 2026 and March 28, 2025, the notional amount of interest rate swap contracts designated as cash flow hedges were $ 1,000 million. As of January 2, 2026, we estimate that an immaterial amount of net deferred losses related to our interest rate hedges will be recognized in earnings over the next 12 months.
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 Consoli | As of January 2, 2026 and March 28, 2025, the notional amount of interest rate swap contracts designated as cash flow hedges were $ 1,000 million. As of January 2, 2026, we estimate that an immaterial amount of net deferred losses related to our interest rate hedges will be recognized in earnings over the next 12 months. | Summary
Cash flows | The following summarizes our cash flow activities:
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

Likvida medel

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 MoneyLion through at least the next 12 months and to meet our known lo | Cash flows
Net cash used in financing activities of $634 million for the nine months ended January 2, 2026 was primarily due to mandatory and voluntary prepayments of our Term A and B Facilities, repurchases of common stock under our repurchase program and quarterly dividend payments. This was partially offset by proceeds from the issuance of our Incremental Term Loan B of $741 million, net of debt issuance cost. | Cash and cash equivalents | As of January 2, 2026, we had cash and cash equivalents of $616 million, excluding restricted cash, of which $403 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 additiona
Cash and cash equivalents | As of January 2, 2026, we had cash and cash equivalents of $616 million, excluding restricted cash, of which $403 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 additiona | Debt
Interest rate risk | As of January 2, 2026, we had $2,450 million in aggregate principal amount of fixed-rate Senior Notes outstanding, with a carrying amount and a fair value of $2,514 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 r | As of January 2, 2026, we also had $6,044 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 $60 million increase in interest expense on an annualized basis.

Nettoskuld

Other liabilities 9 ( 125 ) | Net cash provided by (used in) operating activities 1,066 748 | INVESTING ACTIVITIES:
Other ( 1 ) ( 1 ) | Net cash provided by (used in) investing activities ( 822 ) ( 17 ) | FINANCING ACTIVITIES:
Repurchases of common stock ( 434 ) ( 272 ) | Net cash provided by (used in) financing activities ( 634 ) ( 674 ) | Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash
(In millions) January 2, 2026 December 27, 2024 | Net cash provided by (used in): | Operating activities $ 1,066 $ 748
Cash from operating activities | Net cash provided by operating activities of $1,066 million for the nine months ended January 2, 2026 was primarily comprised of net income adjusted for the net effect of non-cash items. Changes in working capital sources and uses of cash include decreases in Instacash Advances held for sale, income taxes payable, accounts receivable, net and accounts payable. | Cash from investing activities
Cash from investing activities | Net cash used in investing activities of $822 million for the nine months ended January 2, 2026 was primarily related to the cash consideration paid for our acquisition of MoneyLion. | Cash from financing activities
Cash from financing activities | Net cash used in financing activities of $634 million for the nine months ended January 2, 2026 was primarily due to mandatory and voluntary prepayments of our Term A and B Facilities, repurchases of common stock under our repurchase program and quarterly dividend payments. This was partially offset by proceeds from the issuance of our Incremental Term Loan B of $741 million, net of debt issuance cost. | Cash and cash equivalents

Eget kapital

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) | 6
Total assets $ 15,831 $ 15,495 | LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | Current liabilities:
Stockholders’ equity (deficit): | Common stock and additional paid-in capital, $ 0.01 par value: 3,000 shares authorized; 606 and 617 shares issued and outstanding as of January 2, 2026 and March 28, 2025, respectively
Retained earnings (accumulated deficit) 32 236 | Total stockholders’ equity (deficit) 2,332 2,269 | Total liabilities and stockholders’ equity (deficit)
Total stockholders’ equity (deficit) 2,332 2,269 | Total liabilities and stockholders’ equity (deficit) | $ 15,831 $ 15,495
GEN DIGITAL INC. | CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) | (Unaudited, in millions, except share amounts)
Three months ended January 2, 2026 | Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) | Shares Amount
Nine months ended January 2, 2026 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) | Shares Amount

Antal aktier

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 February 3, 2026 was 605,663,774 shares.
Weighted-average shares outstanding: | Basic 611 616 615 618
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 | Number of shares repurchased 11 — 16 11 | Average price per share $ 26.57 $ — $ 26.94 $ 24.65
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 sha | The components of basic and diluted net income (loss) per share are as follows:
Weighted-average shares outstanding - basic 611 616 615 618 | Dilutive potentially issuable shares:
Employee equity awards 7 7 7 6 | Weighted-average shares outstanding - diluted 618 623 622 624
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 January 2, 2026, the remaining balance of our stock repurchase authorization was $2,294 million and does not have an expiration date. The timing and actual number of shares repurchased will depend on a variety of factors, including pr | Restructuring
significant for people with the specific skills that we require, including in the areas of AI and machine learning, and especially in the locations where we have a substantial presence and need for such personnel. | In order to attract and retain personnel in a competitive marketplace, we must provide competitive pay packages, including cash and equity-based compensation. Additionally, changes in immigration laws could impair our ability to attract and retain highly qualified employees. If we fail to attract, retain and motivate new or existing personnel, our business, results of operations and future growth prospects could suffer. Volatility in our stock price may from time to time adversely affect our abi | Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution. From time to time, key personnel leave our company and the frequency and number of such departures have widely varied and have, in the past, resulted, and may in the future result in significant changes to our executive leadership team. The loss of any key employee could result

Antal anställda

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 January 2, 2026, 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 | April 2025 Plan
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 ind | Litigation contingencies
• 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;
Our future success depends on our ability to attract and retain personnel in a competitive marketplace. | Our future success depends upon our ability to recruit and retain key management, technical (including cyber security and AI experts), sales, marketing, e-commerce, finance and other personnel. Our officers and other key personnel are “at will” employees and we generally do not have employment or non-compete agreements with our employees. Competition is | 45
significant for people with the specific skills that we require, including in the areas of AI and machine learning, and especially in the locations where we have a substantial presence and need for such personnel. | In order to attract and retain personnel in a competitive marketplace, we must provide competitive pay packages, including cash and equity-based compensation. Additionally, changes in immigration laws could impair our ability to attract and retain highly qualified employees. If we fail to attract, retain and motivate new or existing personnel, our business, results of operations and future growth prospects could suffer. Volatility in our stock price may from time to time adversely affect our abi | Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution. From time to time, key personnel leave our company and the frequency and number of such departures have widely varied and have, in the past, resulted, and may in the future result in significant changes to our executive leadership team. The loss of any key employee could result
In order to attract and retain personnel in a competitive marketplace, we must provide competitive pay packages, including cash and equity-based compensation. Additionally, changes in immigration laws could impair our ability to attract and retain highly qualified employees. If we fail to attract, retain and motivate new or existing personnel, our business, results of operations and future growth prospects could suffer. Volatility in our stock price may from time to time adversely affect our abi | Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution. From time to time, key personnel leave our company and the frequency and number of such departures have widely varied and have, in the past, resulted, and may in the future result in significant changes to our executive leadership team. The loss of any key employee could result | 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.
Information security risks in the financial technology services industry in particular are significant, in part because of new technologies, the use of the internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized criminals, perpetrators of fraud, hackers, terrorists and other malicious third parties. Recently, there have been a number of well-publicized attacks or brea | Given the digital nature of our platform, we are an attractive target and expect to continue to be an attractive target of attacks specifically designed to impede the performance and availability of our offerings and harm our reputation as a leading cyber security company. In addition, we face the risk of cyberattacks by nation-states and state-sponsored actors, which may increase or heighten due to geopolitical tensions. These attacks may target us, our partners, suppliers, vendors or customers | 46
When a data breach occurs, our information technology systems and infrastructure can be subject to damage, compromise, disruption, and shutdown due to attacks or breaches by hackers or other circumstances, such as error or malfeasance by employees or third-party service providers, phishing, social engineering, account takeovers, vulnerability exploitation, misconfigurations, ransomware, or technology malfunction. A data breach may result in significant legal, financial, and reputational harm, in | Techniques used to obtain unauthorized access or to sabotage systems change frequently, are constantly evolving and generally are difficult to recognize and react to effectively, and are increasingly becoming more sophisticated and harder to detect due to the use of “deepfakes”, voice imitation technology and other AI tools. Despite our efforts, we are not always able to anticipate these techniques or to implement adequate or timely preventive or reactive measures. Our brands and their third-par

Organisk tillväxt

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 trend

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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 January 2, 2026
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 February 3, 2026 was 605,663,774 shares.

Table of Contents

GEN DIGITAL INC.
FORM 10-Q
Quarterly Period Ended January 2, 2026
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
8

Notes to Condensed Consolidated Financial Statements
9

Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
27

Item 3.
Quantitative and Qualitative Disclosures About Market Risk
35

Item 4.
Controls and Procedures
36

PART II. OTHER INFORMATION

Item 1.
Legal Proceedings
38

Item 1A.
Risk Factors
38

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
59

Item 5.
Other Information
60

Item 6.
Exhibits
61

Signatures
62

“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)
January 2, 2026 March 28, 2025
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$ 619   $ 1,006  

Accounts receivable, net
361   171  
Other current assets 257   245  
Assets held for sale 16   22  
Total current assets 1,253   1,444  
Property and equipment, net 69   60  
Intangible assets, net 2,212   2,267  
Goodwill 10,847   10,237  
Deferred income tax assets
1,258   1,218  
Other long-term assets 192   269  
Total assets $ 15,831   $ 15,495  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 83   $ 94  
Accrued compensation and benefits 116   105  
Current portion of long-term debt
240   291  
Contract liabilities 1,822   1,846  
Other current liabilities 427   515  
Total current liabilities 2,688   2,851  
Long-term debt 8,167   7,968  
Long-term contract liabilities 84   77  
Deferred income tax liabilities 220   222  
Long-term income taxes payable 1,583   1,420  
Other long-term liabilities 757   688  
Total liabilities 13,499   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; 606 and 617 shares issued and outstanding as of January 2, 2026 and March 28, 2025, respectively
2,281   2,066  
Accumulated other comprehensive income (loss) 19   ( 33 )
Retained earnings (accumulated deficit) 32   236  
Total stockholders’ equity (deficit) 2,332   2,269  
Total liabilities and stockholders’ equity (deficit)
$ 15,831   $ 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 Nine Months Ended
  January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Net revenues $ 1,240   $ 986   $ 3,717   $ 2,925  
Cost of revenues 268   193   801   577  
Gross profit 972   793   2,916   2,348  
Operating expenses:
Sales and marketing 307   182   901   549  
Research and development 96   84   305   248  
General and administrative 70   108   204   224  

Amortization of intangible assets 55   43   164   130  
Restructuring and other costs 11   2   25   4  
Total operating expenses 539   419   1,599   1,155  
Operating income (loss) 433   374   1,317   1,193  
Interest expense ( 137 ) ( 141 ) ( 439 ) ( 443 )
Other income (expense), net 13   ( 25 ) ( 36 ) ( 8 )
Income (loss) before income taxes 309   208   842   742  
Income tax expense (benefit) 117   49   381   241  
Net income (loss) $ 192   $ 159   $ 461   $ 501  

Net income (loss) per share - basic $ 0.31   $ 0.26   $ 0.75   $ 0.81  
Net income (loss) per share - diluted $ 0.31   $ 0.26   $ 0.74   $ 0.80  

Weighted-average shares outstanding:
Basic 611   616   615   618  
Diluted 618   623   622   624  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME (LOSS)
(Unaudited, in millions)

 
Three Months Ended Nine Months Ended
 
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Net income (loss) $ 192   $ 159   $ 461   $ 501  
Other comprehensive income (loss), net of taxes:
Foreign currency translation gain (loss) 16   ( 69 ) 55   ( 47 )
Net unrealized gain (loss) on interest rate derivative instruments ( 1 ) 9   ( 3 ) ( 10 )

Other comprehensive income (loss), net of taxes 15   ( 60 ) 52   ( 57 )
Comprehensive income (loss) $ 207   $ 99   $ 513   $ 444  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited, in millions, except share amounts)

Three months ended January 2, 2026
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 October 3, 2025 617   $ 2,236   $ 4   $ 217   $ 2,457  
Net income (loss) —  —  —  192   192  
Other comprehensive income (loss), net of taxes —  —  15   —  15  

Shares withheld for taxes related to vesting of stock units —  ( 4 ) —  —  ( 4 )
Repurchases of common stock (1)
( 11 ) ( 3 ) —  ( 300 ) ( 303 )
Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued
—  ( 2 ) —  ( 77 ) ( 79 )
Stock-based compensation —  54   —  —  54  

Balance as of January 2, 2026 606   $ 2,281   $ 19   $ 32   $ 2,332  

Nine months ended January 2, 2026 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) —  —  —  461   461  
Other comprehensive income (loss), net of taxes —  —  52   —  52  
Common stock issued under employee stock incentive plans 7   7   —  —  7  
Shares withheld for taxes related to vesting of stock units
( 2 ) ( 52 ) —  —  ( 52 )
Repurchases of common stock (1)
( 16 ) ( 3 ) —  ( 434 ) ( 437 )
Cash dividends declared ($ 0.375 per share of common stock) and dividend equivalents accrued
—  ( 7 ) —  ( 231 ) ( 238 )
Stock-based compensation —  176   —  —  176  

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 January 2, 2026 606   $ 2,281   $ 19   $ 32   $ 2,332  

(1)    Amount includes excise tax on share repurchases.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements

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GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited, in millions, except share amounts)

Three months ended December 27, 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 September 27, 2024 616   $ 1,995   $ 14   $ 89   $ 2,098  
Net income (loss) —  —  —  159   159  
Other comprehensive income (loss), net of taxes —  —  ( 60 ) —  ( 60 )

Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued
—  ( 2 ) —  ( 77 ) ( 79 )
Stock-based compensation —  33   —  —  33  

Balance as of December 27, 2024 616   $ 2,026   $ ( 46 ) $ 171   $ 2,151  

Nine months ended December 27, 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) —  —  —  501   501  
Other comprehensive income (loss), net of taxes —  —  ( 57 ) —  ( 57 )
Common stock issued under employee stock incentive plans 5   6   —  —  6  
Shares withheld for taxes related to vesting of restricted stock units ( 1 ) ( 25 ) —  —  ( 25 )
Repurchases of common stock (1)
( 11 ) ( 274 ) —  —  ( 274 )
Cash dividends declared ($ 0.375 per share of common stock) and dividend equivalents accrued
—  ( 5 ) —  ( 232 ) ( 237 )
Stock-based compensation —  97   —  —  97  

Balance as of December 27, 2024 616   $ 2,026   $ ( 46 ) $ 171   $ 2,151  

(1)     Amount includes excise tax on share repurchases.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements

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GEN DIGITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
Nine Months Ended
January 2, 2026 December 27, 2024
OPERATING ACTIVITIES:
Net income (loss) $ 461   $ 501  
Adjustments:

Amortization and depreciation 374   315  
Impairments and write-offs of current and long-lived assets —   2  
Stock-based compensation expense 175   97  
Loss on sale of Instacash Advances
146   —  
Deferred income taxes —   ( 50 )

Gain on sale of nonfinancial assets ( 15 ) —  
Non-cash operating lease expense 13   11  
Change in fair value and impairment of non-marketable equity investments 79   30  
Legal contract dispute cost —   42  
Foreign currency remeasurement loss (gain) 86   ( 14 )
Other 35   10  
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net ( 66 ) ( 34 )
Accounts payable ( 52 ) 35  
Accrued compensation and benefits 11   16  
Contract liabilities ( 1 ) ( 27 )
Income taxes payable ( 113 ) ( 136 )
Instacash Advances held for sale, net
( 148 ) —  
Other assets 72   75  
Other liabilities 9   ( 125 )
Net cash provided by (used in) operating activities 1,066   748  
INVESTING ACTIVITIES:
Purchases of property and equipment ( 19 ) ( 12 )
Purchase of non-marketable equity investments —   ( 4 )
Payments for acquisitions, net of cash acquired ( 876 ) —  
Proceeds from sale of non-marketable equity investments 13   —  

Proceeds from the sale of property 21   —  
Proceeds from sale of nonfinancial assets 40   —  
Other ( 1 ) ( 1 )
Net cash provided by (used in) investing activities ( 822 ) ( 17 )
FINANCING ACTIVITIES:
Repayments of debt ( 660 ) ( 147 )
Proceeds from issuance of debt, net of issuance costs of $ 9 million
741   —  
Net proceeds from sales of common stock under employee stock incentive plans 7   6  
Tax payments related to vesting of stock units ( 52 ) ( 25 )
Dividends and dividend equivalents paid ( 236 ) ( 236 )
Repurchases of common stock ( 434 ) ( 272 )
Net cash provided by (used in) financing activities ( 634 ) ( 674 )
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash
3   ( 20 )
Change in cash, cash equivalents and restricted cash
( 387 ) 37  
Beginning cash, cash equivalents and restricted cash
1,006   846  
Ending cash, cash equivalents and restricted cash
$ 619   $ 883  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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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 contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of 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 and nine months ended January 2, 2026 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 and nine month periods in this report relate to fiscal periods ended January 2, 2026 and December 27, 2024. The three months ended January 2, 2026 and December 27, 2024 each consisted of 13 weeks. The nine months ended January 2, 2026 consisted of 40 weeks, whereas the nine months ended December 27, 2024 consisted of 39 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.
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. Refer to Note 3 for discussion on revenue recognition related to our Instacash Advances.
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.
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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, with primary consideration given to recent trends in delinquencies and charge-offs, given the short-term nature of our receivables.
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. All cash accounts are held in federally insured institutions, which may at times exceed federally insured limits.
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 and nine months ended January 2, 2026, 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 will adopt the standard in our Annual Report on Form 10-K for the fiscal year ended April 3, 2026. The adoption of the standard will modify our disclosures but will not have an impact on our consolidated financial position, results of operations or statement of cash flows.
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
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December 15, 2027. We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures.
ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. In September 2025, the FASB issued new guidance to improve the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future. This is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. We are currently evaluating the impact of the adoption of this guidance 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 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 $ 225 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 and nine months ended January 2, 2026, we sold $ 1,084 million and $ 2,912 million, respectively, of Instacash Advances under the Purchase Agreement and had $ 24 million of unused capacity as of January 2, 2026. 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.
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 after performance is completed and cash is collected.
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 and nine months ended January 2, 2026, we recognized $ 55 million and $ 146 million, respectively, in loss on the mark-to-market and sale of Instacash Advances, which is recorded in sales and marketing in our 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 January 2, 2026, we were responsible for servicing $ 275 million of Instacash Advances sold under the Purchase Agreement. For the three and nine months
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ended January 2, 2026, we recognized $ 16 million and $ 42 million, respectively, in servicing income, recorded in Net revenues in our Condensed Consolidated Statement of Operations. As of January 2, 2026, we have $ 23 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 breakdown of our Instacash Advances balance, which are included in accounts receivable, net in 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 was 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 April 17, 2027. 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.
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, inclusive of measurement period adjustments, is as follows:
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(In millions) April 17, 2025
Assets:
Accounts receivable (1)
$ 140  
Other current assets 51  
Assets held for sale
14  
Property and equipment 2  
Operating lease assets 14  
Intangible assets 347  
Goodwill 567  
Other long-term assets 51  
Total assets acquired 1,186  
Liabilities:
Accounts payable
41  
Current liabilities 108  
Contract liabilities 1  
Operating lease liabilities 14  
Other long-term obligations 52  
Total liabilities assumed 216  
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 certain tax and litigation matters. During the third quarter of fiscal 2026, we recorded measurement period adjustments resulting in an increase to goodwill of $ 8 million, net of tax, primarily related to pre-acquisition litigation of MoneyLion, which resulted in an increase of $ 2 million to other long-term assets and an increase of $ 10 million to other long-term obligations.
The preliminary goodwill of $ 567 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:
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(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 and nine months ended January 2, 2026 includes $ 218 million and $ 588 million, respectively, of net revenues attributable to MoneyLion beginning April 17, 2025. It is impracticable to provide after-tax earnings attributable to MoneyLion subsequent to the acquisition due to the integration of our operations. We do not consider MoneyLion to be a separate operating unit or separate reporting segment, but rather an integrated brand, selling and marketing strategy within our Trust-Based Solutions segment.
We recognized immaterial transaction costs for the three and nine months ended January 2, 2026. 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 and nine months ended January 2, 2026 and December 27, 2024, as if the acquisition had been completed on March 30, 2024, the first day of fiscal 2025. The results below include the alignment of fiscal reporting periods and 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, accounting policy alignment 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 Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Net revenues $ 1,240   $ 1,118   $ 3,749   $ 3,304  
Net income (loss) $ 205   $ 129   $ 488   $ 433  

The unaudited pro forma financial information is provided for informational purposes only and is not indicative of future operations or results that would have been achieved had the acquisition been completed as of the beginning of fiscal 2025.
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Note 5. Revenues
Disaggregation of revenues
The following table summarizes the components of our net revenues:

Three Months Ended Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Subscription and service revenue (1)
$ 1,236   $ 986   $ 3,705   $ 2,925  
Net interest income on notes receivable
4   —   12   —  
Net revenues
$ 1,240   $ 986   $ 3,717   $ 2,925  

(1)    Subscription and service revenue includes amounts related to our Instacash Advances of $ 127 million and $ 338 million, during the three and nine months ended January 2, 2026, respectively. Refer to Note 3 for additional information regarding our Instacash Advances.
Contract liabilities
During the three and nine months ended January 2, 2026, we recognized $ 740 million and $ 1,677 million from the contract liabilities balances at October 3, 2025 and March 28, 2025, respectively. During the three and nine months ended December 27, 2024, we recognized $ 742 million and $ 1,620 million from the contract liabilities balances as of September 27, 2024 and March 29, 2024, respectively.
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 January 2, 2026, we had $ 1,250 million of remaining performance obligations, excluding customer deposit liabilities of $ 656 million, of which we expect to recognize approximately 94 % 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 —   567   567  

Translation adjustments
31   12   43  
Balance as of January 2, 2026 $ 7,402   $ 3,445   $ 10,847  

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Intangible assets, net
The following table summarizes the components of our intangible assets, net:

  January 2, 2026 March 28, 2025
(In millions) Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount
Customer relationships $ 1,222   $ ( 572 ) $ 650   $ 1,159   $ ( 442 ) $ 717  
Developed technology 1,451   ( 766 ) 685   1,332   ( 595 ) 737  
Other 180   ( 42 ) 138   98   ( 24 ) 74  
Total finite-lived intangible assets 2,853   ( 1,380 ) 1,473   2,589   ( 1,061 ) 1,528  
Indefinite-lived trade names 739   —  739   739   —  739  
Total intangible assets $ 3,592   $ ( 1,380 ) $ 2,212   $ 3,328   $ ( 1,061 ) $ 2,267  

Amortization expense for purchased intangible assets is summarized below:
Three Months Ended Nine Months Ended Condensed Consolidated Statements of Operations Classification
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Customer relationships and other $ 55   $ 43   $ 164   $ 130   Operating expenses
Developed technology 67   56   198   171   Cost of revenues
Total $ 122   $ 99   $ 362   $ 301  

As of January 2, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:
(In millions)
Remainder of 2026 $ 115  
2027 460  
2028 456  
2029 281  
2030 110  
Thereafter 51  
Total $ 1,473  

Asset purchase agreement
In October 2025, we entered into a purchase agreement to sell certain developed technology and assets for $ 40  million plus the assumption of liabilities related to our digital identity offering to a third-party, who previously licensed the use of the intellectual property from us. We completed the transaction in November 2025. Pursuant to the sale, we derecognized developed technology and other assets, net of associated liabilities, with an aggregate carrying value of approximately $ 22  million. We accounted for the transaction as a sale of nonfinancial assets under ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial assets . We recognized a gain on sale of nonfinancial assets of approximately $ 15  million during the three and nine months ended January 2, 2026, which is included as part of Other income (expense), net in our Condensed Consolidated Statement of Operations.
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Note 7. Supplementary Information
Cash, cash equivalents and restricted cash:

(In millions) January 2, 2026 March 28, 2025
Cash $ 332   $ 462  
Cash equivalents 284   544  
Restricted cash
3   —  
Total cash, cash equivalents and restricted cash
$ 619   $ 1,006  

Accounts receivable, net:

(In millions) January 2, 2026 March 28, 2025
Trade receivable $ 237   $ 173  
Notes receivable
132   —  
Instacash Advances
1   —  
Allowance for doubtful accounts ( 9 ) ( 2 )
Total accounts receivable, net $ 361   $ 171  

Assets held for sale:

(In millions) January 2, 2026 March 28, 2025
Properties held for sale $ —   $ 22  
Instacash Advances held for sale
16   —  
Total assets held for sale
$ 16   $ 22  

Properties held for sale
In October 2025, we completed the sale of certain land and buildings in Dublin, Ireland, which were previously classified to assets held for sale during the fourth quarter of fiscal year 2023 for cash consideration of $ 12  million, net of transaction costs, and recognized an immaterial gain on sale.
Instacash Advances held for sale
Instacash Advances held for sale as of January 2, 2026, 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) January 2, 2026 March 28, 2025
Deferred revenue $ 1,166   $ 1,189  
Customer deposit liabilities 656   657  
Total short-term contract liabilities $ 1,822   $ 1,846  

Supplemental cash flow information:

Nine Months Ended
(In millions) January 2, 2026 December 27, 2024
Income taxes paid (received), net of refunds $ 371   $ 394  
Interest expense paid $ 465   $ 445  
Cash paid for amounts included in the measurement of operating lease liabilities $ 15   $ 13  

Originations of certain Instacash Advances held for sale
$ ( 2,912 ) $ —  
Proceeds from the sale of certain Instacash Advances
$ 2,764   $ —  
Non-cash operating activities:
Operating lease assets obtained in exchange for operating lease liabilities $ 18   $ 4  
Reduction (increase) of operating lease assets as a result of lease terminations and modifications $ ( 6 ) $ ( 13 )
Non-cash investing and financing activities:
Purchases of property and equipment in current liabilities $ —   $ 1  

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,
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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:

January 2, 2026 March 28, 2025
(In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2
Assets:
Money market funds $ 264   $ 264   $ —   $ 544   $ 544   $ —  
Time deposits 20   —   20   —   —   —  

Interest rate swaps (1)
—   —   —   3   —   3  
Total assets
$ 284   $ 264   $ 20   $ 547   $ 544   $ 3  

(1)    The fair value of the interest rate swaps are less than $ 1  million as of January 2, 2026.
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 January 2, 2026 and March 28, 2025, the carrying value of our non-marketable equity investments was $ 16 million and $ 109 million, respectively, and is included in Other long-term assets in our Condensed Consolidated Balance Sheets.
During the three and nine months ended January 2, 2026, we sold an equity interest in a non-marketable equity investment. In connection with the sale, we received both cash proceeds and non-cash proceeds in the form of an equity investment. We recognized a gain of $ 11 million, which is included in Other income (expense), net in our Condensed Consolidated Statement of Operations. We also recognized other immaterial losses on sale of our non-marketable equity investments during the three and nine months ended January 2, 2026, in Other income (expense), net in our Condensed Consolidated Statement of Operations.
We recognized impairments of $ 10 million and $ 90 million on our non-marketable equity investments during the three and nine months ended January 2, 2026, respectively, in Other income (expense), net in our Condensed Consolidated Statement of Operations. We recognized an impairment of $ 30 million on our non-marketable equity investments during the three and nine months ended December 27, 2024, in Other income (expense), net in our Condensed Consolidated Statement of Operations.
Current and long-term debt
As of January 2, 2026 and March 28, 2025, the total fair value of our current and long-term fixed rate debt was $ 2,514 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 5 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 Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Operating lease costs $ 5   $ 3   $ 14   $ 10  
Short-term lease costs —   1   1   2  
Variable lease costs 1   1   3   3  
Total lease costs $ 6   $ 5   $ 18   $ 15  

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Other information related to our operating leases was as follows:

January 2, 2026 March 28, 2025
Weighted-average remaining lease term 4.3 years 4.7 years
Weighted-average discount rate 6.09   % 5.71   %

See Note 7 for cash flow information related to our operating leases.
As of January 2, 2026, the maturities of our lease liabilities by fiscal year are as follows:
(In millions)
Remainder of 2026 $ 3  
2027 23  
2028 16  
2029 14  
2030 12  
Thereafter 8  
Total lease payments 76  
Less: Imputed interest ( 9 )
Present value of lease liabilities $ 67  

Note 10.  Debt
The following table summarizes components of our debt:

(In millions, except percentages)
January 2, 2026 March 28, 2025 Effective
Interest Rate

Term A Facility due September 12, 2027 $ 2,949   $ 3,519   SOFR + %

6.75 % Senior Notes due September 30, 2027
900   900   6.75   %
Term B Facility due September 12, 2029 2,349   2,386   SOFR + %

7.125 % Senior Notes due September 30, 2030
600   600   7.13   %

Incremental Term B Facility due April 16, 2032 746   —   SOFR + %

6.25 % Senior Notes due April 1, 2033
950   950   6.25   %
Total principal amount
8,494   8,355  
Less: unamortized discount and issuance costs
( 87 ) ( 96 )
Total debt 8,407   8,259  
Less: current portion ( 240 ) ( 291 )
Total long-term debt $ 8,167   $ 7,968  

As of January 2, 2026, the future contractual maturities of debt by fiscal year are as follows:

(In millions)
Remainder of 2026 $ 60  
2027 240  
2028 3,649  
2029 44  
2030 2,237  
Thereafter 2,264  
Total future maturities of debt $ 8,494  

Other debt
In December 2021, ROAR 2 SPV Finance LLC, a wholly owned indirect subsidiary of MoneyLion Inc. that was previously consolidated as a variable interest entity (VIE) (the ROAR 2 SPV Borrower), entered into a credit agreement (the ROAR 2 SPV Credit Facility) to finance a portion of MoneyLion’s notes receivables. Under this arrangement, MoneyLion sold certain originated loans and receivables to the ROAR 2 SPV Borrower, which pledged these receivables and related cash flows, along with required cash collateral, to secure borrowings under the ROAR 2 SPV Credit Facility. The underlying loans and receivables were originated and serviced by other wholly owned subsidiaries. The ROAR 2 SPV Borrower was evaluated for consolidation and previously was determined to be a VIE requiring consolidation. In December 2025, the ROAR 2 SPV Credit Facility was repaid and expired in accordance with its terms and there is no longer a variable interest. We continue to consolidate ROAR 2 SPV Finance LLC as a wholly-owned subsidiary under the voting equity interest model.
Debt covenant compliance
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The Amended Credit Agreement, which includes our Term Loans and Revolving Facility, 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 occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and a change of control event.
As of January 2, 2026, 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.
As of January 2, 2026 and March 28, 2025, the notional amounts of foreign exchange contracts not designated as hedging instruments were $ 279 million and $ 230 million, respectively.
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.
As of January 2, 2026 and March 28, 2025, the notional amount of interest rate swap contracts designated as cash flow hedges were $ 1,000 million. As of January 2, 2026, we estimate that an immaterial amount of net deferred losses related to our interest rate hedges will be recognized in earnings over the next 12 months.
Summary
The activity related to our foreign currency exchange forward contracts and interest rate swaps was immaterial as of January 2, 2026 and March 28, 2025, and for the three and nine months ended January 2, 2026 and December 27, 2024.

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.
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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 January 2, 2026, 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 $ 19 million has been incurred to date under the April 2025 Plan. As of January 2, 2026, we had a restructuring liability of $ 8 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 Nine Months Ended
(In millions, except percentages)
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Income (loss) before income taxes $ 309   $ 208   $ 842   $ 742  
Income tax expense (benefit) $ 117   $ 49   $ 381   $ 241  
Effective tax rate 38   % 24   % 45   % 32   %

Our effective tax rate for the three and nine months ended January 2, 2026 and three and nine months ended December 27, 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, increases in valuation allowances, 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 us 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. The impacts of the Act are included in our operating results for the three and nine months ended January 2, 2026. The Act has not had, and is not expected to have, a material impact on our effective tax rate.

Note 14.  Stockholders' Equity
Dividends
On February 5, 2026, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in March 2026. 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.
Contingent value rights
In connection with the acquisition of MoneyLion, we issued 12 million equity-classified CVRs to MoneyLion shareholders and optionholders. 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 April 17, 2027. 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 January 2, 2026, there were 12 million CVRs outstanding. 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 January 2, 2026, we had $ 2,294 million remaining under the authorization to be completed in future periods.
The following table summarizes activity related to our stock repurchase program during three and nine months ended January 2, 2026 and December 27, 2024:
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Three Months Ended Nine Months Ended
(In millions, except per share amounts)
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Number of shares repurchased 11   —   16   11  
Average price per share $ 26.57   $ —   $ 26.94   $ 24.65  
Aggregate purchase price $ 300   $ —   $ 434   $ 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 55   ( 3 ) 52  
Balance as of January 2, 2026 $ 19   $ —   $ 19  

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 Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Cost of revenues $ ( 4 ) $ 1   $ ( 1 ) $ 3  
Sales and marketing 21   9   64   27  
Research and development 12   9   39   27  
General and administrative 23   14   71   40  
Restructuring and other costs 1   —   2   —  

Total stock-based compensation expense $ 53   $ 33   $ 175   $ 97  
Income tax benefit for stock-based compensation expense $ ( 9 ) $ ( 4 ) $ ( 26 ) $ ( 12 )

As of January 2, 2026, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 412 million, which will be recognized over an estimated weighted-average amortization period of 2.56 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:
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Three Months Ended Nine Months Ended
(In millions, except per share amounts)
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Net income (loss) $ 192   $ 159   $ 461   $ 501  

Net income (loss) per share - basic $ 0.31   $ 0.26   $ 0.75   $ 0.81  
Net income (loss) per share - diluted $ 0.31   $ 0.26   $ 0.74   $ 0.80  

Weighted-average shares outstanding - basic 611   616   615   618  
Dilutive potentially issuable shares:

Employee equity awards 7   7   7   6  
Weighted-average shares outstanding - diluted 618   623   622   624  

Anti-dilutive shares excluded from diluted net income per share calculation:

Employee equity awards 6   —   6   —  

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.
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:
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Cyber Safety Platform
Trust-Based Solutions
Corporate
Consolidated

(In millions)
Three Months Ended January 2, 2026
Net Revenues
$ 819   $ 421   $ —   $ 1,240  
Other segment items (1)
316   295   —   611  
Operating income (loss)
$ 503   $ 126   $ ( 196 ) $ 433  

Nine Months Ended January 2, 2026

Net Revenues
$ 2,502   $ 1,215   $ —   $ 3,717  
Other segment items (1)
969   846   —   1,815  
Operating income (loss)
$ 1,533   $ 369   $ ( 585 ) $ 1,317  

Three Months Ended December 27, 2024
Net Revenues $ 799   $ 187   $ —   $ 986  
Other segment items (1)
320   89   —   409  
Operating income (loss) $ 479   $ 98   $ ( 203 ) $ 374  

Nine Months Ended December 27, 2024
Net Revenues $ 2,368   $ 557   $ —   $ 2,925  
Other segment items (1)
953   264   —   1,217  
Operating income (loss) $ 1,415   $ 293   $ ( 515 ) $ 1,193  

(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:

Three Months Ended Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Amortization of intangible assets
$ 122   $ 99   $ 362   $ 301  
Stock-based compensation
53   33   175   97  
Unallocated cost of revenue and operating expenses
21   71   48   117  
Total
$ 196   $ 203   $ 585   $ 515  

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 Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Americas $ 880   $ 647   $ 2,623   $ 1,924  
EMEA 263   240   788   706  
APJ 97   99   306   295  
Total net revenues
$ 1,240   $ 986   $ 3,717   $ 2,925  

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 $ 824 million and $ 2,452 million during the three and nine months ended January 2, 2026, respectively, and $ 589 million and $ 1,752 million during the three and nine months ended December 27, 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:
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(In millions) January 2, 2026 March 28, 2025
U.S. $ 216   $ 647  
International 403   359  
Total cash, cash equivalents and restricted cash
$ 619   $ 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) January 2, 2026 March 28, 2025
U.S. $ 59   $ 50  

Other countries (1)
10   10  
Total property and equipment, net $ 69   $ 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 nine months ended January 2, 2026 and December 27, 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:
January 2, 2026 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 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 course 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 judgments 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.
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 infringed two 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
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also found that we did not fraudulently conceal its prosecution of a third patent 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 judgment to the Federal Circuit Court of Appeals, which remains pending.
At this time, our current estimate of probable losses from this matter is approximately $ 609  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 our 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. We engaged in ongoing negotiations with the FTC staff and 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. Avast appealed the decision, which was affirmed by the Czech DPA on April 10, 2024. Avast 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. On October 7, 2025, the court affirmed the decision regarding liability; however, it vacated the DPA’s decision regarding the determination of the fine. Both the DPA and the Company have filed cassation complaints with the Supreme Administrative Law Court. At this stage, the fine has been returned but the matter remains pending. We have accrued an immaterial amount as our current estimate of probable loss from this matter.
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 been filed. We have reached an agreement in principle to resolve this matter, subject to final documentation and approval. The expected cost to resolve the matter is immaterial, and we do not expect the resolution to have a material adverse effect on our financial condition, results of operations or cash flows.
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, a subsidiary of MoneyLion (collectively, the “Seller Members”), brought a civil action in the Southern District of New York (“SDNY”) against MoneyLion Technologies Inc. alleging, among other things, breaches of the Membership Interest Purchase Agreement (the “MIPA”) governing the acquisition of MALKA. MoneyLion filed counterclaims against the Sellers Members alleging, among other things, fraud, negligent misrepresentation, conversion, breach of fiduciary duties and breach of contract. The court issued
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its decision on September 29, 2025, finding that MoneyLion breached the parties’ agreements and awarding the Sellers Members damages and attorneys’ fees and costs, for which we have accrued $ 48  million as a pre-acquisition contingency in Other long-term obligations in our Condensed Consolidated Balance Sheet. On October 28, 2025, MoneyLion filed a notice of appeal. 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 SDNY against MoneyLion Technologies Inc., ML Plus LLC and the Company's 37 state lending subsidiaries, alleging violations of the Military Lending Act and the Consumer Financial Protection Act. The matter was fully resolved pursuant to a stipulated final judgment and order approved by the court on November 24, 2025. As part of the settlement, MoneyLion is providing refunds to relevant consumers. There is no fine involved in the settlement. The impact of the settlement was not material.
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 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. The Company maintains that the Attorney General’s claims are without merit and is 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.
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 and nine months ended January 2, 2026, we incurred $ 10 million and $ 18 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations. During the three and nine months ended December 27, 2024, we incurred $ 63 million and $ 103 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, our acquisition of 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.
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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 January 2, 2026 and December 27, 2024 each consisted of 13 weeks. The nine months ended January 2, 2026 consisted of 40 weeks, whereas the nine months ended December 27, 2024 consisted of 39 weeks. Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026.
Key financial metrics
The following tables provide our key financial metrics for the periods presented:
Three Months Ended Nine Months Ended
(In millions, except for per share amounts) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Net revenues $ 1,240  $ 986  $ 3,717  $ 2,925 
Operating income (loss) $ 433  $ 374  $ 1,317  $ 1,193 
Net income (loss) $ 192  $ 159  $ 461  $ 501 
Net income (loss) per share - diluted $ 0.31  $ 0.26  $ 0.74  $ 0.80 

As Of
(In millions) January 2, 2026 March 28, 2025
Cash, cash equivalents and restricted cash
$ 619  $ 1,006 
Contract liabilities $ 1,906  $ 1,923 

Below are our financial highlights for the third quarter of fiscal 2026, compared to the corresponding period in the prior year:
• Net revenues increased $254 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $218 million due to the acquisition of MoneyLion, reported in Trust-Based Solutions.
• Operating income increased $59 million, primarily due to increased net revenues described above, largely offset by an increase in marketing costs, payment processing fees, amortization of intangible assets and compensation related expenses.
• Net income increased $33 million and net income per share increased $0.05, primarily due to an increase in operating income as discussed above and a decrease in other income (expense), net resulting from impairment of our non-marketable equity investments and gain on sale of nonfinancial assets. This is partially offset by an increase in income tax expense.
Below are our financial highlights for the first nine months of fiscal 2026, compared to the corresponding period in the prior year:
• Net revenues increased $792 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $588 million 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 $124 million, primarily due to increased net revenues described above, largely offset by an increase in marketing costs, payment processing fees, amortization of intangible assets and compensation related expenses.
• Net income decreased $40 million and net income per share decreased $0.06, primarily due to an increase in income tax expense partially offset by an increase in operating income as discussed above.
• Cash, cash equivalents and restricted cash decreased by $387 million compared to March 28, 2025, primarily due to the cash consideration paid for our acquisition of MoneyLion, principal payments of our Term A and B facilities and share repurchases. This is partially offset by proceeds from the issuance of our Incremental Term Loan B and cash generated from operating activities during the first nine months of fiscal 2026.
• Contract liabilities decreased $17 million compared to March 28, 2025, primarily due to billing seasonality.
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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 and their impact on customer behavior. Global macroeconomic conditions include, but are 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, the impacts of current and future trade regulations, instability in the global banking sector, slow growth and recession risks, and changes in legislation or regulations and actions by regulators, including changes in enforcement and administrative policies, 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 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, judgments and assumptions on historical experience and on various other factors we believe to be reasonable under the circumstances. We evaluate our estimates, judgments 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, judgments 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 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 and nine months ended January 2, 2026.

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:
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Three Months Ended Nine Months Ended
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Net revenues 100  % 100  % 100  % 100  %
Cost of revenues 22  20  22  20 
Gross profit 78  80  78  80 
Operating expenses:
Sales and marketing 25  18  24  19 
Research and development 8  9  8  8 
General and administrative 6  11  5  8 

Amortization of intangible assets 4  4  4  4 
Restructuring and other costs 1  0  1  0 
Total operating expenses 43  42  43  39 
Operating income (loss) 35  38  35  41 
Interest expense (11) (14) (12) (15)
Other income (expense), net 1  (3) (1) — 
Income (loss) before income taxes 25  21  23  25 
Income tax expense (benefit) 9  5  10  8 
Net income (loss) 15  % 16  % 12  % 17  %

Note: Percentages may not add due to rounding.

Net revenues
Three Months Ended Nine Months Ended
(In millions, except for percentages) January 2, 2026 December 27, 2024 Change in % January 2, 2026 December 27, 2024 Change in %
Net revenues $ 1,240  $ 986  26  % $ 3,717  $ 2,925  27  %

Three Months Ended January 2, 2026 Compared with Three Months Ended December 27, 2024
Net revenues increased $254 million, due to a $20 million increase in sales of our Cyber Safety Platform products and a $234 million increase in sales of our Trust-Based Solutions, including a $218 million increase in Trust-Based Solutions due to the acquisition of MoneyLion.
Nine Months Ended January 2, 2026 Compared with Nine Months Ended December 27, 2024
Net revenues increased $792 million, due to a $134 million increase in sales of our Cyber Safety Platform products and a $658 million increase in sales of our Trust-Based Solutions, including a $588 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
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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 Nine Months Ended

(In millions)
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Cyber Safety Platform $ 819  $ 799  $ 2,502  $ 2,368 
Trust-Based Solutions 421  187  1,215  557 
Total net revenues
$ 1,240  $ 986  $ 3,717  $ 2,925 

Direct revenues
$ 1,025  $ 871  $ 3,089  $ 2,585 
Partner revenues
215  115  628  340 
Total net revenues
$ 1,240  $ 986  $ 3,717  $ 2,925 

Total bookings
$ 1,319  $ 1,035  $ 3,743  $ 2,912 

As of

(In millions)
January 2, 2026 December 27, 2024
Total paid customers 78  67 

Revenue from Cyber Safety Platform increased $20 million and $134 million, respectively, during the three and nine months ended January 2, 2026 due to growth across our cyber safety membership offerings and, for the nine month period, the additional week in the first quarter of fiscal 2026. Revenue from Trust-Based Solutions increased $234 million and $658 million, respectively, during the three and nine months ended January 2, 2026 primarily due to the acquisition of MoneyLion, continued growth in our identity point solutions and, for the nine month period, 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 product usage or 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 paid customers as active users of our products and solutions, including subscribers with an active paid subscription to our products at the end of the reported period. Paid customers also includes product users with a unique account and at least one revenue-generating transaction in the relevant active period of each respective product category, whether through our first-party personal finance products, transacting through our financial marketplaces, or generating revenue through product usage. We exclude users on free trials and those who have not actively transacted in the relevant period of each respective product category.
In order to properly reflect our customer cohorts that contribute to revenue given the dynamic nature of consumers and our product portfolio, our methodology is subject to change from time to time. The methodologies used to measure these metrics require judgment and we regularly review our metrics to improve their accuracy. However, our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. We generally do not intend to update previously disclosed metrics for any such inaccuracies or adjustments that are deemed not material.
Net revenues by geographical region

Three Months Ended Nine Months Ended
January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Americas 71  % 66  % 71  % 66  %
EMEA 21  % 24  % 21  % 24  %
APJ 8  % 10  % 8  % 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 and nine months ended January 2, 2026 as compared to the three and nine months ended December 27, 2024.
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Cost of revenues
Three Months Ended Nine Months Ended
(In millions, except for percentages) January 2, 2026 December 27, 2024 Change in % January 2, 2026 December 27, 2024 Change in %
Cost of revenues $ 268  $ 193  39  % $ 801  $ 577  39  %

Three Months Ended January 2, 2026 Compared with Three Months Ended December 27, 2024
Cost of revenues increased $75 million, primarily due to a $43 million increase in partner revenue share mainly in Trust-Based Solutions, a $16 million increase in payment processing fees and an $11 million increase in amortization of intangible assets.
Nine Months Ended January 2, 2026 Compared with Nine Months Ended December 27, 2024
Cost of revenues, including the impact of one additional week, increased $224 million, primarily due to a $133 million increase in partner revenue share mainly in Trust-Based Solutions, a $40 million increase in payment processing fees and a $27 million increase in amortization of intangible assets.

Operating expenses

Three Months Ended Nine Months Ended
(In millions, except for percentages) January 2, 2026 December 27, 2024 Change in % January 2, 2026 December 27, 2024 Change in %
Sales and marketing $ 307  $ 182  69  % $ 901  $ 549  64  %
Research and development 96  84  14  % 305  248  23  %
General and administrative 70  108  (35) % 204  224  (9) %

Amortization of intangible assets 55  43  28  % 164  130  26  %
Restructuring and other costs 11  2  450  % 25  4  525  %
Total operating expenses $ 539  $ 419  29  % $ 1,599  $ 1,155  38  %

Three Months Ended January 2, 2026 Compared with Three Months Ended December 27, 2024
Sales and marketing expense increased $125 million, primarily due to a $55 million increase in loss on sale of Instacash Advances, a $41 million increase in marketing expenses, a $13 million increase in headcount costs and a $12 million increase in stock-based compensation expense.
Research and development expense increased $12 million, primarily due to a $4 million increase in headcount costs, a $3 million increase in stock-based compensation expense and a $3 million increase in equipment expenses.
General and administrative expense decreased $38 million, primarily due to a $53 million decrease in litigation settlement expense. This is partially offset by a $9 million increase in stock-based compensation expense.
Amortization of intangible assets increased $12 million, primarily due to our acquisition of MoneyLion.
Restructuring and other costs increased $9 million, primarily due to an increase in severance and termination benefits in connection with the April 2025 Plan. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for details of the fiscal 2026 restructuring activities.
Nine Months Ended January 2, 2026 Compared with Nine Months Ended December 27, 2024
Sales and marketing expense, including the impact of one additional week, increased $352 million, primarily due to a $146 million increase in loss on sale of Instacash Advances, a $102 million increase in marketing expenses, a $53 million increase in headcount costs and a $37 million increase in stock-based compensation expense.
Research and development expense, including the impact of one additional week, increased $57 million, primarily due to a $28 million increase in headcount costs, a $12 million increase in stock-based compensation expense and a $7 million increase in occupancy and IT costs.
General and administrative expense, including the impact of one additional week, decreased $20 million, primarily due to a $86 million decrease in litigation settlement expense. This is partially offset by a $31 million increase in stock-based compensation expense, an $18 million increase in headcount costs and an $7 million increase in provision for credit losses on accounts receivables, net.
Amortization of intangible assets increased $34 million, primarily due to our acquisition of MoneyLion.
Restructuring and other costs increased $21 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.
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Non-operating income (expense), net

Three Months Ended Nine Months Ended
(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Interest expense $ (137) $ (141) $ (439) $ (443)
Interest income 5  6  20  20 
Foreign exchange gain (loss) 2  (1) 4  1 

Change in fair value and impairment of non-marketable equity investments
(10) (30) (79) (30)
Gain on sale of nonfinancial assets 15  —  15  — 
Gain (loss) on sale of property
1  —  (1) — 
Other —  —  5  1 
Total non-operating income (expense), net $ (124) $ (166) $ (475) $ (451)

Three Months Ended January 2, 2026 Compared with Three Months Ended December 27, 2024
Non-operating income (expense), net, decreased by $42 million, primarily due to a $20 million decrease in impairment of our non-marketable equity investments and a $15 million gain on sale of nonfinancial assets in the third quarter of fiscal 2026.
Nine Months Ended January 2, 2026 Compared with Nine Months Ended December 27, 2024
Non-operating income (expense), net, increased by $24 million, primarily due to a $49 million increase in change in fair value and impairment of our non-marketable equity investments. This is partially offset by a $15 million gain on sale of nonfinancial assets in the third quarter of fiscal 2026.

Provision for income taxes

Three Months Ended Nine Months Ended
(In millions, except for percentages) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024
Income (loss) before income taxes $ 309  $ 208  $ 842  $ 742 
Income tax expense (benefit) $ 117  $ 49  $ 381  $ 241 
Effective tax rate 38  % 24  % 45  % 32  %

Our effective tax rate for the three and nine months ended January 2, 2026 and three and nine months ended December 27, 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, increases in valuation allowances, 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 us 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. The impacts of the Act are included in our operating results for the three and nine months ended January 2, 2026. The Act has not had, and is not expected to have, a material impact on our 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 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.
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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 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 January 2, 2026, 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:

Nine Months Ended
(In millions) January 2, 2026 December 27, 2024
Net cash provided by (used in):
Operating activities $ 1,066  $ 748 
Investing activities $ (822) $ (17)
Financing activities $ (634) $ (674)

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
Net cash provided by operating activities of $1,066 million for the nine months ended January 2, 2026 was primarily comprised of net income adjusted for the net effect of non-cash items. Changes in working capital sources and uses of cash include decreases in Instacash Advances held for sale, income taxes payable, accounts receivable, net and accounts payable.
Cash from investing activities
Net cash used in investing activities of $822 million for the nine months ended January 2, 2026 was primarily related to the cash consideration paid for our acquisition of MoneyLion.
Cash from financing activities
Net cash used in financing activities of $634 million for the nine months ended January 2, 2026 was primarily due to mandatory and voluntary prepayments of our Term A and B Facilities, repurchases of common stock under our repurchase program and quarterly dividend payments. This was partially offset by proceeds from the issuance of our Incremental Term Loan B of $741 million, net of debt issuance cost.
Cash and cash equivalents
As of January 2, 2026, we had cash and cash equivalents of $616 million, excluding restricted cash, of which $403 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 nine months ended January 2, 2026 and December 27, 2024, we executed repurchases of 16 million and 11 million of our common stock under our existing stock repurchase program for an aggregate amount of $434 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.
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Debt instruments
As of January 2, 2026, 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) January 2, 2026
Term Loans $ 6,044 
Senior Notes 2,450 

Total debt $ 8,494 

The Amended Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including compliance with specified financial ratios. As of January 2, 2026, 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 February 5, 2026, we announced a cash dividend of $0.125 per share of common stock to be paid in March 2026. 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 January 2, 2026, the remaining balance of our stock repurchase authorization was $2,294 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, 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 January 2, 2026, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $1,578 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.

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 January 2, 2026, we had $2,450 million in aggregate principal amount of fixed-rate Senior Notes outstanding, with a carrying amount and a fair value of $2,514 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 January 2, 2026, we also had $6,044 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 $60 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 $2 million increase or $2 million decrease in the fair values of our floating to fixed rate interest swaps on January 2, 2026.
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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 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 third quarter of fiscal 2026 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
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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.
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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.
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• From time to time we are party to lawsuits and investigations, which have 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;
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• 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
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