Company strengthens full-year guidance following strong Q3 momentum

TEMPE, Ariz. and PRAGUE, Jan. 30, 2025 /PRNewswire/ — Gen Digital Inc. (NASDAQ: GEN), a global leader dedicated to Powering Digital Freedom, released its results for the third quarter fiscal year 2025, which ended December 27, 2024.

“Sophisticated scams and financial fraud are everywhere. People need comprehensive solutions to address both the evolving threat landscape while also protecting their personal information,” said Vincent Pilette, CEO of Gen. “Millions of customers trust us to deliver practical solutions built with the best technology to address today’s challenges and anticipate tomorrow’s. We’re dedicated to building upon that trust to not only protect their data and assets, but to also help them manage and grow their digital and financial life.”

Q3 Fiscal Year 2025 Financial Highlights and Commentary Year-Over-Year 

Q3 GAAP Results

• Revenue of $986 million, up 4% in USD
• Operating income of $374 million, up 13%
• Operating margin of 38%, up 3 points
• Q3 diluted EPS of $0.26, up 18%
• Q3 operating cash flow of $326 million, up 3%

Q3 Non-GAAP Results

• Revenue of $986 million, up 4% in USD and in constant currency
• Bookings of $1,036 million, up 3% in USD and in constant currency
• Operating income of $577 million, up 4% in USD and in constant currency
• Operating margin of 58.5%, in-line with the prior year
• Diluted EPS of $0.56, up 15% in USD and in constant currency

“Our Q3 results highlight another quarter of solid execution, keeping us on track to achieve our 2025 plan and deliver long-term and profitable growth,” said Natalie Derse, CFO of Gen. “This quarter’s results are a testament to both the continued demand for comprehensive consumer Cyber Safety, and the dedication of the entire Gen team to deliver on those needs. By making strategic investments and maintaining disciplined execution, we are well-positioned to sustain this momentum and drive future success.”    

Q4 FY25 Non-GAAP Guidance 

• Revenue expected to be in the range of $990 to $1,005 million
• EPS expected to be in the range of $0.57 to $0.59

Strengthened Fiscal Year 2025 Non-GAAP Annual Guidance

• Revenue now expected to be in the range of $3,915 to $3,930 million, compared to the prior range of $3,905 to $3,930 million
• EPS now expected to be in the range of $2.20 to $2.22, compared to the prior range of $2.18 to $2.23

Quarterly Cash Dividend

Gen’s Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on March 12, 2025, to all shareholders of record as of the close of business on February 17, 2025.

Q3 FY25 Earnings Call

January 30, 2025

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

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

About Gen 

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

Forward-Looking Statements

This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, the quotes under “Q3 Non-GAAP Results” including expectations relating to achievement of long-term objectives, and the statements under “Q4 FY25 Non-GAAP Guidance” and “Fiscal Year 2025 Non-GAAP Annual Guidance” including expectations relating to Q4 FY25 and FY25 non-GAAP revenue and non-GAAP EPS, and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated cost savings from the merger with Avast); divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities; difficulties in executing the operating model for the consumer Cyber Safety business; lower than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer and partner relationships; the anticipated growth of certain market segments;  fluctuations and volatility in our stock price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices; and general business and macroeconomic changes in the U.S. and worldwide, including economic recessions, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates, and ongoing and new geopolitical conflicts. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or are not described in our periodic filings, generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments. 

Use of Non-GAAP Financial Information

We use non-GAAP measures of operating margin, operating income, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, and constant currency revenues. These non-GAAP financial measures are provided to enhance the user’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing Gen’s performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release, and which can be found, along with other financial information including the Earnings Presentation, on the investor relations page of our website at Investor.GenDigital.com. No reconciliation of the forecasted range for non-GAAP revenues and EPS guidance is included in this release because most non-GAAP adjustments pertain to events that have not yet occurred. It would be unreasonably burdensome to forecast, therefore we are unable to provide an accurate estimate.