What changed in this filing

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Item 1. Financial Statements

2025-08-13 compared with 2025-01-31 · 437 added, 422 removed, 447 unchanged (66% of the section changed)

3 unchanged sentences

(Unaudited, in millions, except par value per share amounts)

December 27, 2024 March 29, 2024

July 4, 2025 March 28, 2025

Current assets:

Cash and cash equivalents $ 883 $ 846

Accounts receivable, net 152 163

Cash, cash equivalents and restricted cash

$ 828 $ 1,006

Accounts receivable, net, including amounts held by a VIE of $ 93 million as of July 4, 2025

Other current assets 249 245

4 unchanged sentences

Goodwill 10,817 10,237

Deferred income tax assets

Other long-term assets 299 269

Total assets $ 16,360 $ 15,495

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current liabilities:

1 unchanged sentence

Accrued compensation and benefits 85 105

Current portion of long-term debt 1,396 175

Current portion of long-term debt, including amounts held by a VIE of $ 49 million as of July 4, 2025

Contract liabilities 1,783 1,846

11 unchanged sentences

3,000 shares authorized;

616 and 623 shares issued and outstanding as of December 27, 2024 and March 29, 2024, respectively

616 and 617 shares issued and outstanding as of July 4, 2025 and March 28, 2025, respectively

Accumulated other comprehensive income (loss) 26 ( 33 )

1 unchanged sentence

Total stockholders’ equity (deficit) 2,365 2,269

Total liabilities and stockholders’ equity $ 15,363 $ 15,793

Total liabilities and stockholders’ equity (deficit) $ 16,360 $ 15,495

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

2 unchanged sentences

(Unaudited, in millions, except per share amounts)

Three Months Ended Nine Months Ended

December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended

July 4, 2025 June 28, 2024

Net revenues $ 1,257 $ 965

23 unchanged sentences

(Unaudited, in millions)

Three Months Ended Nine Months Ended

December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended

July 4, 2025 June 28, 2024

Net income (loss) $ 135 $ 181

1 unchanged sentence

Foreign currency translation gain (loss) 59 ( 5 )

Net unrealized gain (loss) on interest rate derivative instruments 9 ( 19 ) ( 10 ) 6

Other comprehensive income (loss), net of taxes 59 ( 5 )

4 unchanged sentences

(Unaudited, in millions, except share amounts)

Three months ended December 27, 2024

Three months ended July 4, 2025

Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Shares Amount

Balance as of 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 28, 2025 617 $ 2,066 $ ( 33 ) $ 236 $ 2,269

3 unchanged sentences

Shares withheld for taxes related to vesting of stock units ( 2 ) ( 44 ) — — ( 44 )

( 1 ) ( 25 ) — — ( 25 )

Repurchases of common stock (1)

3 unchanged sentences

Stock-based compensation — 66 — — 66

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

GEN DIGITAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited, in millions, except share amounts)

Three Months Ended December 29, 2023 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 29, 2023 641 $ 2,655 $ 6 $ ( 299 ) $ 2,362

Net income (loss) — — — 142 142

Other comprehensive income (loss), net of taxes — — 13 — 13

Shares withheld for taxes related to vesting of stock units

— ( 6 ) — — ( 6 )

Repurchases of common stock ( 4 ) ( 100 ) — — ( 100 )

Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued

— ( 82 ) — — ( 82 )

Stock-based compensation — 35 — — 35

Balance as of December 29, 2023 637 $ 2,502 $ 19 $ ( 157 ) $ 2,364

Nine months ended December 29, 2023 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Fair value of replacement awards issued in connection with business acquisitions

Fair value of CVR issued in connection with business acquisitions

Balance as of July 4, 2025 616 $ 2,179 $ 26 $ 160 $ 2,365

Three months ended June 28, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Shares Amount

6 unchanged sentences

Repurchases of common stock (1)

( 11 ) ( 274 ) — — ( 274 )

Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued

1 unchanged sentence

Stock-based compensation — 31 — — 31

Balance as of December 29, 2023 637 $ 2,502 $ 19 $ ( 157 ) $ 2,364

Balance as of June 28, 2024 615 $ 1,959 $ 6 $ 5 $ 1,970

(1) Amount includes excise tax on share repurchases.

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

2 unchanged sentences

(Unaudited, in millions)

Nine Months Ended

December 27, 2024 December 29, 2023

Three Months Ended

July 4, 2025 June 28, 2024

OPERATING ACTIVITIES:

1 unchanged sentence

Amortization and depreciation 123 106

Impairments and write-offs of current and long-lived assets 2 ( 1 )

Stock-based compensation expense 66 31

Loss on sale of Instacash Advances

Deferred income taxes 11 ( 10 )

Gain on sale of property — ( 9 )

Loss on sale of property

Non-cash operating lease expense 4 3

Impairment on non-marketable equity investments 30 —

Legal contract dispute cost (Note 19)

Other 96 ( 2 )

5 unchanged sentences

Income taxes payable 61 81

Instacash Advances held for sale, net

Other assets 58 17

3 unchanged sentences

Purchases of property and equipment ( 4 ) ( 2 )

Purchase of non-marketable equity investments ( 4 ) —

Payments for acquisitions, net of cash acquired ( 876 ) —

Proceeds from the sale of property 9 —

3 unchanged sentences

Repayments of debt ( 191 ) ( 88 )

Net proceeds from sales of common stock under employee stock incentive plans 6 6

Proceeds from issuance of debt, net of issuance costs of $ 9 million

Tax payments related to vesting of stock units ( 44 ) ( 24 )

2 unchanged sentences

Net cash provided by (used in) financing activities 290 ( 466 )

Effect of exchange rate fluctuations on cash and cash equivalents ( 20 ) —

Change in cash and cash equivalents 37 ( 260 )

Beginning cash and cash equivalents 846 750

Ending cash and cash equivalents $ 883 $ 490

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

Change in cash, cash equivalents and restricted cash

( 178 ) ( 202 )

Beginning cash, cash equivalents and restricted cash

Ending cash, cash equivalents and restricted cash

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

3 unchanged sentences

Gen Digital Inc.

is a global company powering Digital Freedom with a family of trusted consumer brands including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner.

Our cyber safety portfolio provides protection across multiple channels and geographies, including security and performance management, identity protection, and online privacy.

Our technology platforms bring together software and service capabilities into comprehensive and easy-to-use products and solutions across our brands.

We have also evolved beyond traditional cyber safety to offer adjacent trust-based solutions, including digital identity and access management, digital reputation management, and restoration support services.

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

1 unchanged sentence

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.

In the opinion of management, the unaudited Condensed Consolidated Financial Statements include the accounts of Gen Digital, Inc., its wholly-owned subsidiaries, and consolidated variable interest entity (VIE) for which we are the primary beneficiary.

These statements contain all necessary adjustments, consisting solely of normal recurring items, unless otherwise noted, to fairly present our financial position, results of operations, and cash flows for the interim periods.

These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025.

The results of operations for the three and nine months ended December 27, 2024 are not necessarily indicative of the results expected for the entire fiscal year.

The results of operations for the three months ended July 4, 2025 are not necessarily indicative of the results expected for the entire fiscal year.

Fiscal calendar

We have a 52/53-week fiscal year ending on the Friday closest to March 31.

Unless otherwise stated, references to three and nine month periods in this report relate to fiscal periods ended December 27, 2024 and December 29, 2023.

The three and nine months ended December 27, 2024 and December 29, 2023 each consisted of 13 and 39 weeks, respectively.

Our 2025 fiscal year consists of 52 weeks and ends on March 28, 2025.

Unless otherwise stated, references to three month periods in this report relate to fiscal periods ended July 4, 2025 and June 28, 2024.

The three months ended July 4, 2025 consisted of 14 weeks, whereas the three months ended June 28, 2024 consisted of 13 weeks.

Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026.

Use of estimates

1 unchanged sentence

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, deferred revenue, loss contingencies, the recognition and measurement of current and deferred income taxes, including assessment of unrecognized tax benefits, and valuation of assets and liabilities.

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.

3 unchanged sentences

Significant accounting policies

With the exception of those discussed in Note 2, there have been no material changes to our significant accounting policies as of and for the three and nine months ended December 27, 2024, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 29, 2024.

Revision of Prior Period Financial Statements

Historically, we had a practice of recognizing revenue for certain groups of customer renewals on the successful billing date, rather than the renewal start date.

This practice was instituted to align with our system which was configured and implemented based on payment confirmation from e-commerce partners.

In the first quarter of fiscal 2025, we changed the practice to recognize revenue for these groups on the renewal start date.

We concluded that the impact of this change is not material to any previously issued annual or interim financial statements;

however, we have revised previously reported financial information.

This correction will also be reflected in future filings, as applicable.

We have corrected this error in the accompanying Condensed Consolidated Balance Sheet as of March 29, 2024 by increasing contract liabilities for $ 78 million, increasing other long-term assets for $ 21 million and decreasing retained earnings (accumulated deficit) for $ 57 million.

The Condensed Consolidated Statement of Operations for the three months ended December 29, 2023 included a decrease to net revenues of $ 3 million and a decrease to income tax expense (benefit) of $ 1 million.

The Condensed Consolidated Statement of Operations for the nine months ended December 29, 2023 included a decrease to net revenues of $ 9 million and a decrease to income tax expense (benefit) of $ 3 million.

Significant accounting policies assumed and adopted as a result of our acquisition of MoneyLion.

Variable Interest Entity

A portion of our originated receivables is financed through a special purpose vehicle arrangement with a third-party lender (SPV Credit Facility).

In this arrangement, we sell certain loans and receivables to a wholly owned, bankruptcy-remote special purpose subsidiary (SPV Borrower), which in turn pledges these receivables and related cash flows as collateral to support the financing of additional receivables.

The underlying loan and receivables are originated and serviced by other wholly-owned subsidiaries.

The SPV Borrower is required to maintain pledged collateral consisting of cash and loan balances and receivables, in an amount equal to or exceeding the aggregate principal amounts of the loans financed under the respective SPV Credit Facility.

The aggregate principal amount outstanding is $ 49 million as of July 4, 2025.

We are required to evaluate the SPV Borrower for consolidation, which we have concluded is a VIE.

We have the power to direct the activities of the SPV Borrower that most significantly affect its economic performance, primarily through our wholly owned subsidiaries that act as originators and servicers.

Additionally, we are exposed to potentially significant risks and rewards of the SPV Borrower, including the obligation to absorb losses on the pledged collateral that exceed the principal amount of the receivables, and the right to receive residual cash flows after repayment of all obligations under the SPV Credit Facility.

Based on these factors, we have determined that we are the primary beneficiary of the SPV Borrower and therefore consolidate it as an indirect wholly owned VIE in our Condensed Consolidated Financial Statements.

For more information, see Note 10 for discussion of the ROAR 2 SPV Credit Facility.

Revenue Recognition

We adopted additional revenue recognition policies for Trust-Based Solutions that differ from our prior subscription-based software revenue model.

Refer to our revenue recognition policy in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025.

Specifically, MoneyLion recognizes revenue from stand-ready referral arrangements based on variable transaction prices within the period in which services are provided, to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Additionally, revenue from transactional services is recognized as the services are performed.

Net Interest Income on Notes Receivables

Net interest income on notes receivables is generated by interest earned on our Credit Builder Loan product, which are classified as notes receivables within accounts receivable, net on the Condensed Consolidated Balance Sheet.

Interest income and the related accrued interest receivables on notes receivables are accrued based upon the daily principal amount outstanding except for loans that are on nonaccrual status.

We recognize interest income using the effective interest method.

Our policy is to suspend recognition of interest income on notes receivables and place the loan on nonaccrual status when the account is 60 days or more past due on a contractual basis or when, in our estimation, the collectability of the account is uncertain and has not yet been charged-off.

Allowance for Losses

We maintain an allowance for credit losses on trade receivables, notes receivables and related accrued interest, and retained Instacash Advances to cover current expected credit losses as of the balance sheet date.

The allowance is recorded through a provision for credit losses, and subsequent charge-offs, net of recoveries, are applied directly against this allowance.

The allowance is based on management’s assessment of several factors, but given the short-term nature of our receivables, primarily recent trends in delinquency and charge-offs.

Our policy is to charge-off notes receivables, related accrued interest, and certain trade receivables, net of expected recoveries, in the month an account becomes 90 days contractually past due.

If an account is deemed to be uncollectible prior to this date, we will charge-off the receivable in the month it is determined to be uncollectible.

We determine the past due status using the contractual payment terms (credit quality indicator).

Sale of Instacash Advances

Sales of Instacash Advances (the amount advanced to the customer) are accounted for as a sale when we determine that the Instacash Advances meet all the necessary criteria, including legal isolation for transferred assets, lack of constraint on the transferee to pledge or exchange the transferred assets for their benefit and the transfer of control.

As a result, we no longer record these Instacash Advances in our Condensed Consolidated Financial Statements.

We have also concluded that our continuing involvement in the sales arrangement does not affect this determination.

We retain the servicing rights for the Instacash Advances sold and receive a market-based service fee for servicing the assets sold.

Instacash Advances held for sale are recorded at the lower of cost or fair value.

If fair value is lower than cost, the difference between cost and fair value is recorded as a component of loss on sale within our sales and marketing expense in the Condensed Consolidated Statement of Operations.

If we no longer have the intent to sell Instacash Advances held for sale, they are reclassified to Accounts Receivables, net.

Contingent Value Rights

We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging .

The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of liability pursuant to ASC 480, and whether the warrants meet all the requirements for equity classification under ASC 815, including whether the warrants are indexed to our own common stock, among other conditions for equity classification.

The currently outstanding CVRs issued as part of the MoneyLion acquisition consideration are classified as equity under these conditions.

Government Regulation

We are subject to various state and federal laws and regulations in each of the states in which we operate, which are subject to change and may impose significant costs or limitations on the way we conduct or expand our business.

Our consumer loans are originated under individual state laws, which may carry different rate and rate limits, and have varying terms and conditions depending upon the state in which they are offered.

We are also subject to state licensing requirements of each individual U.S.

state in which we operate, including with respect to certain consumer lending, life insurance and mortgage products and services that we offer directly or to which we connect consumers through third parties.

Other governmental regulations include, but are not limited to, imposed limits on certain charges, insurance products and required licensing and qualifications.

Restricted Cash

Restricted cash consists of cash required to be held in reserve by our vendors to support loan and Instacash Advance processing and funding activities, as well as cash held within our VIE.

All cash accounts are held in federally insured institutions, which may at times exceed federally insured limits.

With the exception of those discussed in Note 2 and new significant accounting policies as a result of our acquisition of MoneyLion, there have been no material changes to our significant accounting policies as of and for the three months ended July 4, 2025, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025.

Recent Accounting Standards

Recently issued authoritative guidance not yet adopted

ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

In November 2023, the Financial Accounting Standards Board (FASB) issued new guidance to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance.

The ASU also clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and provide new segment disclosure requirement for entities with a single reportable segment.

This is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

We do not expect the adoption of this guidance will have a material impact on our Condensed Consolidated Financial Statements and disclosures.

ASU 2023-09, Income Taxes (Topic 740):

10 unchanged sentences

Although there are several other new accounting pronouncements issued or proposed by the FASB that we have adopted or will adopt, as applicable, we do not believe any of these accounting pronouncements have had, or will have, a material impact on our Condensed Consolidated Financial Statements and disclosures.

Assets Held for Sale

Assets held for sale

During fiscal 2020, we reclassified certain land and buildings previously reported as property and equipment to assets held for sale when the properties were approved for immediate sale in their present condition and the sale was expected to be completed within one year.

However, the commercial real estate market was adversely affected by the COVID-19 pandemic, which delayed the expected timing of such sales.

During the third quarter of fiscal 2024, we completed the sale of the land and buildings in Tucson, Arizona, which were previously classified as held for sale, for cash consideration of $ 12 million, net of selling costs.

We recognized a gain on sale of $ 5 million.

During fiscal 2023, we determined land and buildings in Dublin, Ireland, which were previously reported as property and equipment, qualified as held for sale.

During the first quarter of fiscal 2024, we completed the sale of certain land and buildings in Dublin, Ireland, for cash consideration of $ 13 million, net of selling costs, and recognized a gain on sale of $ 4 million.

The remaining land and building in Dublin, Ireland, remains held for sale.

We have taken into consideration the current real estate values and demand and continue to execute pla ns to sell the remaining property.

During the second quarter of fiscal year 2025, we recognized an immaterial impairment representing the difference between the fair value less cost to sell and the carrying value of the remaining land and building in Dublin, Ireland.

As of December 27, 2024, this property remains classified as assets held for sale.

During the second quarter of fiscal 2025, we determined certain land and buildings in Tettnang, Germany, which were previously reported as property and equipment, qualified as held for sale classification.

As a result, we reclassified the aggregate $ 12 million carrying value from property and equipment, net to assets held for sale in our Condensed Consolidated Balance Sheet.

Upon reclassification, we recognized an immaterial impairment representing the difference between the fair value less cost to sell and the carrying value of the property.

On December 18, 2024, we entered into an agreement to sell certain land and buildings in Tettnang, Germany, which were reclassified to assets held for sale during the second quarter of fiscal 2025, for cash consideration of approximately $ 9 million and a 5-year leaseback agreement for a portion of the property.

The transaction is expected to close during the fourth quarter of fiscal 2025.

During the three months ended December 27, 2024, there were no impairments on our held for sale properties.

During the nine months ended December 27, 2024, we recognized immaterial impairments on our held for sale properties, which was included in Other Income (expense), net in our Condensed Consolidated Statement of Operations, because the fair value less costs to sell is less than the carrying value of our properties.

Sale of Instacash Advances

Instacash Advance Product Overview

Instacash Advances are our non-recourse earned wage access (EWA) product that provides customers with early access to their anticipated income deposits.

Customers who link a RoarMoney or external bank account can access Instacash Advances at any time during a regular deposit period, up to an approved limit.

This product gives customers financial flexibility to address short-term cash needs.

Instacash Advance eligibility is based on verification of the customer’s identity, the linked bank account and identification of recurring income deposits.

Repayments are made via pre-authorized bank debits, which customers may cancel without penalty, modify, defer, or reschedule within allowable limits.

Customers must be current on Instacash Advance repayments in order to access new ones.

Instacash Advances do not bear interest or mandatory fees.

There are no fees for standard fund delivery, although expedited delivery is available for an optional fee (Turbo Fee).

Customers may also leave an optional tip (Tip) for use of the service.

Accounting for Instacash Advances

Instacash Advances are not loans.

The customer has no contractual obligation to repay an Instacash Advance although the customer must be current on Instacash Advance repayments to request another Instacash Advance.

At the point of Instacash Advance origination, the customer requests an available Instacash Advance amount, decides whether to incur an optional Turbo Fee and leave a Tip, confirms the scheduled repayment date and authorizes automatic debit repayment.

In the absence of directly applicable authoritative guidance, although Instacash Advances do not meet the U.S.

GAAP definition of financial assets, we believe that financial asset accounting is the most relevant for financial reporting purposes, as there is a history of customers repaying the amount advanced.

We originate Instacash Advances with an intent to immediately sell, and sales of Instacash Advances are accounted for as sales under ASC 860, Transfers and Servicing (ASC 860), when all required conditions are met, including legal isolation of the transferred assets, no constraints on the transferee’s ability to pledge or exchange the assets, and no effective control over the assets.

Instacash Advances are sold pursuant to a Master Receivables Purchase Agreement (the Purchase Agreement) with Sound Point Capital Management LP (Sound Point).

The Purchase Agreement allows the purchasers to acquire, on a committed basis and subject to certain conditions and concentration limits, a majority of our eligible Instacash Advances, up to an aggregate facility limit of $ 175 million at any given time.

The Purchase Agreement has an initial two-year term beginning on June 30, 2024, with a one-year extension option upon mutual agreement.

During the three months ended July 4, 2025, we sold $ 823 million of Instacash Advances under the Purchase Agreement and had $ 8 million of unused capacity as of July 4, 2025.

Optional Turbo Fees and Tips associated with Instacash Advances are excluded from the sale and are not transferred under the Purchase Agreement.

Each Instacash Advance portfolio is initially priced at a fixed discount based on historical portfolio performance and loss rates.

Future purchase prices are subject to adjustment based on the updated portfolio performance and changes to the applicable discount rate.

Consistent with ASC 860, Instacash Advances sold under the Purchase Agreement are removed from our balance sheet.

We retain the associated servicing rights and earn a market-based servicing fee.

Turbo Fees and Tips associated with Instacash Advances are not transferred under the Purchase Agreement.

Turbo Fees and Tips are recognized as performance is completed.

Instacash Advances that have been originated and are pending sale under the Purchase Agreement are classified as held for sale and are measured at the lower of cost or fair value.

During the three months ended July 4, 2025, we recognized $ 36 million in loss on the mark-to-market and sale of Instacash Advances, which is recorded in sales and marketing within the Condensed Consolidated Statement of Operations.

If an Instacash Advance does not qualify for sale pursuant to the Purchase Agreement or if the intent to sell ceases, the Instacash Advance is reclassified to Accounts receivable, net, and carried at net realizable value.

In connection with the Purchase Agreement, MoneyLion Technologies Inc.

(the Servicer), a wholly owned subsidiary of ours, entered into a Servicing Agreement with Sound Point and the purchasers party thereto.

Under this agreement, we are responsible for servicing the sold receivables, including collections, remittances, and reporting.

We earn a fixed percentage of net collections as a servicing fee, which is recognized as income when collections are received.

As of July 4, 2025, we were responsible for servicing $ 194 million of Instacash Advances sold under the Purchase Agreement.

For the three months ended July 4, 2025, the Company recognized $ 12 million in servicing income, recorded in Net revenues within the Condensed Consolidated Statement of Operations.

As of July 4, 2025, we have $ 35 million payable to Sound Point relating to the servicing activity which will be settled using restricted cash and receivables from payment processors recorded in Other current assets.

Refer to Note 7 for a disaggregated breakdown of Instacash Advances, Turbo Fees and Tips, which are included in accounts receivable, net on our Condensed Consolidated Balance Sheets.

Business Combinations

Proposed Acquisition of MoneyLion

On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion Inc.

Acquisition of MoneyLion

On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion.

We completed the acquisition of MoneyLion on April 17, 2025.

MoneyLion extends our identity solutions into offering comprehensive financial wellness through MoneyLion’s full-featured personal finance platform that includes credit building and financial management services.

Under the terms of the definitive agreement, each share of Class A common stock, par value $ 0.0001 per share, of MoneyLion, that is issued and outstanding as of immediately prior to the effective time of the acquisition will be automatically cancelled, extinguished, and converted into the right to receive cash in an amount equal to $ 82.00 , without interest thereon, representing a cash value of approximately $ 1 billion.

In addition, for each share owned, MoneyLion shareholders will receive at closing one contingent value right (CVR) that entitles the holder to a contingent payment of $ 23.00 in the form of shares of our common stock (issuable based on an assumed share price of $ 30.48 per Gen share) if our average volume-weighted average share price reaches at least $ 37.50 per share over 30 consecutive trading days from December 10, 2024 until 24 months after close.

There can be no assurance that any payments will be made with respect to CVRs.

It is expected that CVRs will be listed on the Nasdaq Stock Market.

The proposed acquisition has been approved by the Board of Directors of both Gen and MoneyLion.

Closing of the proposed acquisition is subject to approval by the MoneyLion shareholders.

The proposed acquisition is expected to close by the first half of Gen’s fiscal year 2026, subject to regulatory approvals and the satisfaction or waiver of other customary closing conditions.

Under the terms of the definitive agreement, each share of Class A common stock, par value $ 0.0001 per share, of MoneyLion, that is issued and outstanding as of immediately prior to the effective time of the acquisition was automatically cancelled, extinguished, and converted into the right to receive cash in an amount equal to $ 82.00 , without interest thereon.

Additionally, we cancelled all in-the money outstanding stock options, whether vested or unvested, and converted into the right to receive (i) an amount in cash, without interest thereon, equal to the product obtained by multiplying (a) the number of in-the-money outstanding stock option immediately prior to the close by (b) the excess, if any, of MoneyLion’s closing stock price over the exercise price per share of such in-the-money stock option and (ii) one CVR in respect of each in-the-money stock option immediately prior to the close.

Any outstanding stock option with an exercise price greater than or equal to MoneyLion’s closing stock price per share was forfeited and canceled for no consideration.

We paid cash consideration of approximately $ 935 million for 100 % of MoneyLion’s issued and outstanding common stock and in-the-money outstanding stock options.

In addition, for each share owned, MoneyLion shareholders received at closing one CVR that entitles the holder to a contingent payment of $ 23.00 in the form of shares of our common stock (issuable based on an assumed share price of $ 30.48 per Gen share) if our average volume-weighted average share price reaches at least $ 37.50 per share over 30 consecutive trading days from December 10, 2024 until 24 months after close.

As of the close of the acquisition, we issued 12 million CVRs representing a fair value of approximately $ 73 million.

Refer to Note 14 for further discussion on the CVRs.

Additionally, all outstanding and unvested restricted stock units (RSUs) and performance share units (PSUs) were assumed and converted into 4 million service-based RSUs of Gen’s common stock.

The conversion was calculated by multiplying the total number of unvested RSUs and PSUs by an equity conversion ratio of 3.48 .

All converted RSUs will vest in accordance with the vesting period set forth in the original award agreement assuming continued service by the recipients through such date.

The total fair value of these converted restricted stock awards was approximately $ 92 million, which $ 21 million was for pre-combination services and therefore represents purchase consideration and $ 71 million will be recognized as stock-compensation expense over the requisite service period.

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

Fair value of assumed and converted equity awards

Fair value of CVRs

Total consideration 1,029

Less cash acquired

Net consideration transferred $ 970

Fair value of assets acquired and liabilities assumed

We accounted for the acquisition of MoneyLion as a business combination.

The identifiable assets acquired, and liabilities assumed of MoneyLion were recorded at their estimated fair values as of the acquisition date.

The allocation of purchase price requires management to make significant estimates and assumptions in determining the fair values of the assets acquired and liabilities assumed, especially with respect to intangible assets.

Third-party valuation specialists were also utilized for certain estimates.

Our preliminary allocation of the aggregate purchase price, based on the estimated fair values of the assets acquired and liabilities assumed, as of the acquisition date, is as follows:

(In millions) April 17, 2025

Accounts receivable (1)

Other current assets 51

Assets held for sale

Property and equipment 2

Operating lease assets 14

Intangible assets 347

Other long-term assets 42

Total assets acquired 1,152

Accounts payable

Current liabilities 97

Contract liabilities 6

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.

During the three and nine months ended December 29, 2023, we recognized $ 702 million and $ 1,580 million from the contract liabilities balances as of September 29, 2023 and March 31, 2023, respectively.

Operating lease liabilities 14

Other long-term obligations 24

Total liabilities assumed 182

Total purchase price $ 970

(1) Gross accounts receivable at acquisition date and the amount of receivables expected to be collected are materially the same.

The allocation of the purchase price is based upon a preliminary valuation, as additional information becomes available, our estimates and assumptions may be subject to refinement within the measurement period, which may be up to one year from the acquisition date.

Adjustments to the purchase price may require adjustments to goodwill prospectively.

The primary areas of preliminary purchase price allocation that are not yet finalized include intangible assets, deferred revenue, certain tax and litigation matters.

The preliminary goodwill of $ 527 million represents the excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed.

It is attributable to the expected synergies of the acquisition, including future cost savings from planned integration of infrastructure, facilities, personnel and systems, and other benefits that are anticipated to be generated by combining both companies.

Goodwill is allocated to our Trust-Based Solutions Segment.

The goodwill recognized is not expected to be deductible for U.S.

tax purposes.

See Note 6 for further information on goodwill.

Preliminary identified intangible assets and their respective useful lives, as of April 17, 2025, are as follows:

(In millions, except for useful lives) Fair Value Weighted-Average Estimated Useful Life

Customer and partner relationships (1)

Developed technology (2)

Finite-lived trade names and other (3)

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.

In connection with our acquisition of MoneyLion, we entered into the Second Amendment to Amended and Restated Credit Agreement (the Second Amendment) with certain financial institutions to fund a portion of the cash consideration paid, in which they agreed to provide to us a $ 750 million Incremental Term B Facility, which matures on April 16, 2032.

We incurred $ 9 million of debt issuance costs associated with the Incremental Term B Facility, which was capitalized and included in long-term debt in our Condensed Consolidated Balance Sheets.

See Note 10 for further information about this debt instrument and the related debt covenants.

Impact on operating results

Our results of operations for the three months ended July 4, 2025 include $ 168 million of net revenues and $ 35 million of after-tax earnings attributable to MoneyLion beginning April 17, 2025.

Additionally, we recognized transaction and integration costs of $ 4 million for the three months ended July 4, 2025.

These costs were primarily associated with legal and professional services, which were expensed as incurred and included in general and administrative expenses in our Condensed Consolidated Statement of Operations.

Unaudited pro forma information

The following unaudited pro forma financial information represents the combined historical results for the three months ended July 4, 2025 and June 28, 2024, as if the acquisition had been completed on March 30, 2024, the first day of fiscal 2025.

The results below include the impact of nonrecurring proforma adjustments, including amortization of acquired intangible assets, interest on debt issued to finance the acquisition, stock-based compensation related to awards issued in conjunction with the acquisition, acquisition-related transaction costs, and the income tax effect of other pro forma adjustments.

The unaudited pro forma results do not include any anticipated synergies or other expected benefits of the acquisition.

The following table summarizes the unaudited pro forma financial information:

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Net revenues $ 1,289 $ 1,086

Net income (loss) $ 141 $ 162

Disaggregation of revenues

The following table summarizes the components of our net revenues:

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Subscription and service revenue

$ 1,253 $ 965

Net interest income on notes receivable

$ 1,257 $ 965

Contract liabilities

During the three months ended July 4, 2025, we recognized $ 800 million from the contract liabilities balances as of March 28, 2025.

During the three months ended June 28, 2024, we recognized $ 722 million from the contract liabilities balances as of March 29, 2024.

Remaining performance obligations

Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and amounts that will be billed and recognized as revenue in future periods.

As of December 27, 2024, we had $ 1,174 million of remaining performance obligations, excluding customer deposit liabilities of $ 675 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 solution and geographic region.

Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and, when applicable, amounts that will be billed and recognized as revenue in future periods.

As of July 4, 2025, we had $ 1,303 million of remaining performance obligations, excluding customer deposit liabilities of $ 570 million, of which we expect to recognize approximately 93 % as revenue over the next 12 months.

See Note 17 for tabular disclosures of disaggregated revenue by reportable segment and geographic region.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows:

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

Balance as of March 28, 2025 $ 7,371 $ 2,866 $ 10,237

Acquisitions — 527 527

Translation adjustments

Balance as of December 27, 2024 $ 10,171

Balance as of July 4, 2025 $ 7,409 $ 3,408 $ 10,817

Intangible assets, net

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

December 27, 2024 March 29, 2024

July 4, 2025 March 28, 2025

(In millions) Gross

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Amortization expense for purchased intangible assets is summarized below:

Three Months Ended Nine Months Ended Condensed Consolidated Statements of Operations Classification

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended Condensed Consolidated Statements of Operations Classification

(In millions) July 4, 2025 June 28, 2024

Customer relationships and other $ 54 $ 43 Operating expenses

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Total $ 119 $ 100

As of December 27, 2024, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:

As of July 4, 2025, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:

(In millions)

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Supplementary Information

Cash and cash equivalents:

(In millions) December 27, 2024 March 29, 2024

Cash, cash equivalents and restricted cash:

(In millions) July 4, 2025 March 28, 2025

Cash $ 377 $ 462

Cash equivalents 443 544

Total cash and cash equivalents $ 883 $ 846

Restricted cash

Total cash, cash equivalents and restricted cash

$ 828 $ 1,006

Accounts receivable, net:

(In millions) December 27, 2024 March 29, 2024

Accounts receivable $ 196 $ 165

(In millions) July 4, 2025 March 28, 2025

Trade receivable $ 194 $ 173

Notes receivable

Instacash Advances

Turbo Fees and Tips

Allowance for doubtful accounts ( 5 ) ( 2 )

Total accounts receivable, net $ 314 $ 171

Other current assets:

(In millions) December 27, 2024 March 29, 2024

Prepaid expenses $ 131 $ 142

Income tax receivable and prepaid income taxes 101 174

Other tax receivable 12 1

Total other current assets $ 262 $ 334

Property and equipment, net:

(In millions) December 27, 2024 March 29, 2024

Land $ 12 $ 13

Computer hardware and software 359 491

Office furniture and equipment 16 16

Buildings 15 28

Leasehold improvements 37 35

Construction in progress 1 1

Total property and equipment, gross 440 584

Accumulated depreciation and amortization ( 379 ) ( 512 )

Total property and equipment, net $ 61 $ 72

Other long-term assets:

(In millions) December 27, 2024 March 29, 2024

Non-marketable equity investments $ 110 $ 136

Long-term income tax receivable and prepaid income taxes 10 11

Deferred income tax assets 1,250 1,236

Operating lease assets 52 45

Long-term prepaid royalty 9 21

Total other long-term assets $ 1,475 $ 1,515

Assets held for sale:

(In millions) July 4, 2025 March 28, 2025

Properties held for sale $ 11 $ 22

Instacash Advances held for sale

Total assets held for sale

Properties held for sale

As of July 4, 2025, one property remains classified as held for sale.

This property, consisting of land and buildings in Dublin, Ireland, was reclassified during fiscal 2023, and is currently carried at the lower of its carrying value or fair value less costs to sell of approximately $ 11 million.

During the three months ended July 4, 2025 and three months ended June 28, 2024, there were no impairments on our held for sale properties.

Instacash Advances held for sale

Instacash Advances held for sale as of July 4, 2025, represent Instacash Advances that we originated and are pending sale under the Purchase Agreement.

Refer to Note 3 for additional information regarding the sale of our Instacash Advances.

Short-term contract liabilities:

(In millions) December 27, 2024 March 29, 2024

(In millions) July 4, 2025 March 28, 2025

Deferred revenue $ 1,213 $ 1,189

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Total short-term contract liabilities $ 1,783 $ 1,846

Other current liabilities:

(In millions) December 27, 2024 March 29, 2024

Income taxes payable $ 125 $ 198

Other taxes payable 91 72

Accrued legal fees 25 103

Accrued royalties 36 52

Accrued interest 67 78

Current operating lease liabilities 12 13

Other accrued liabilities 40 83

Total other current liabilities $ 396 $ 599

Other long-term liabilities:

(In millions) December 27, 2024 March 29, 2024

Long-term accrued legal fees $ 598 $ 586

Long-term operating lease liabilities 43 38

Total other long-term liabilities $ 688 $ 671

Long-term income taxes payable:

(In millions) December 27, 2024 March 29, 2024

Unrecognized tax benefits (including interest and penalties) $ 1,384 $ 1,346

Deemed repatriation tax payable — 139

Other long-term income taxes 1 5

Total long-term income taxes payable $ 1,385 $ 1,490

Other income (expense), net:

Three Months Ended Nine Months Ended

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Interest income $ 6 $ 5 $ 20 $ 17

Foreign exchange gain (loss)

( 1 ) ( 1 ) 1 1

Gain (loss) on equity investments

( 30 ) — ( 30 ) —

Gain (loss) on sale of properties

Other — 2 1 3

Other income (expense), net $ ( 25 ) $ 11 $ ( 8 ) $ 30

Supplemental cash flow information:

Nine Months Ended

(In millions) December 27, 2024 December 29, 2023

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Income taxes paid (received), net of refunds

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Cash paid for amounts included in the measurement of operating lease liabilities $ 6 $ 5

Originations of certain Instacash Advances held for sale

$ ( 835 ) $ —

Proceeds from the sale of certain Instacash Advances

Non-cash operating activities:

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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, 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.

When determining fair value,

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:

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The following table summarizes our financial instruments measured at fair value on a recurring basis:

December 27, 2024 March 29, 2024

July 4, 2025 March 28, 2025

(In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2

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Non-marketable equity investments

As of December 27, 2024 and March 29, 2024, the carrying value of our non-marketable equity investments was $ 110 million and $ 136 million, respectively.

During the three months ended December 27, 2024, we recognized $ 30 million impairment on our non-marketable equity investment received as consideration in a legacy divestiture.

As of July 4, 2025 and March 28, 2025, the carrying value of our non-marketable equity investments was $ 109 million and is included in Other long-term assets on our Condensed Balance Sheets.

Current and long-term debt

As of December 27, 2024 and March 29, 2024, the total fair value of our current and long-term fixed rate debt was $ 2,626 million and $ 2,624 million, respectively.

As of July 4, 2025 and March 28, 2025, the total fair value of our current and long-term fixed rate debt was $ 2,536 million and $ 2,475 million, respectively.

The fair value of our variable rate debt approximated their carrying value.

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The following summarizes our lease costs:

Three Months Ended Nine Months Ended

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Operating lease costs $ 5 $ 3

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Other information related to our operating leases was as follows:

December 27, 2024 March 29, 2024

July 4, 2025 March 28, 2025

Weighted-average remaining lease term 4.6 years 4.7 years

1 unchanged sentence

See Note 7 for cash flow information related to our operating leases.

As of December 27, 2024, the maturities of our lease liabilities by fiscal year are as follows:

As of July 4, 2025, the maturities of our lease liabilities by fiscal year are as follows:

(In millions)

Remainder of 2026 $ 12

Thereafter 12

Total lease payments 81

3 unchanged sentences

(In millions, except percentages)

December 27, 2024 March 29, 2024 Effective

July 4, 2025 March 28, 2025 Effective

Interest Rate

5.00 % Senior Notes due April 15, 2025

12.50 % ROAR 2 SPV Credit Facility due December 2025

$ 49 $ — 12.50 %

3 unchanged sentences

Term B Facility due September 12, 2029 2,368 2,386 SOFR + %

1.29 % Avira Mortgage due December 30, 2029 (1)

7.125 % Senior Notes due September 30, 2030

600 600 7.13 %

0.95 % Avira Mortgage due December 30, 2030 (1)

Incremental Term B Facility due April 16, 2032 750 — SOFR + %

6.25 % Senior Notes due April 1, 2033

950 950 6.25 %

Total principal amount

4 unchanged sentences

Total long-term debt $ 8,575 $ 7,968

(1) The Avira Mortgages are denominated in a foreign currency so the balances of these mortgages may fluctuate based on changes in foreign currency exchange rates.

(2) Term A Facility due 2027 bears interest at a rate equal to Term SOFR plus a credit spread adjustment (CSA) plus a margin based either on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt or consolidated adjusted leverage as defined in the underlying loan agreement.

(3) Term B Facility due 2029 bears interest at a rate equal to Term SOFR plus 1.75 %.

The interest rates for the outstanding term loans are as follows:

December 27, 2024 March 29, 2024

Term A Facility due September 12, 2027 6.17 % 7.18 %

Term B Facility due September 12, 2029 6.32 % 7.43 %

As of December 27, 2024, the future contractual maturities of debt by fiscal year are as follows:

As of July 4, 2025, the future contractual maturities of debt by fiscal year are as follows:

(In millions)

2 unchanged sentences

Total future maturities of debt $ 8,963

Senior credit facilities

On September 12, 2022, we entered into the Amended and Restated Credit Agreement (Credit Agreement) with certain financial institutions, in which they agreed to provide us with (i) a $ 1,500 million revolving credit facility (Revolving Facility), a $ 3,910 million term loan A facility (Term A Facility), (iii) a $ 3,690 million term loan B facility (Term B Facility) and (iv) a $ 750 million tranche A bridge loan (Bridge Loan) (collectively, the senior credit facilities).

The Bridge Loan was undrawn and immediately terminated upon the close of the acquisition of Avast.

The Credit Agreement provides that we have the right at any time, subject to customary conditions, to request incremental revolving commitments and incremental term loans up to an unlimited amount, subject to certain customary conditions precedent and other provisions.

The lenders under these facilities will not be under any obligation to provide any such incremental loans or commitments.

We drew down the aggregate principal amounts of the Term A Facility and Term B Facility to finance the cash consideration payable for our acquisition of Avast and to fully repay the outstanding principal and accrued interest of the existing credit facilities at the time.

The Credit Agreement replaced the existing credit facilities upon the close of the transaction.

The Revolving Facility and Term A Facility will mature in September 2027, and the Term Facility B will mature in September 2029;

the senior credit facilities remain senior secured.

On June 5, 2024, we entered into the First Amendment with certain financial institutions under the Credit Agreement, as amended (Amended Credit Agreement).

The First Amendment repriced our Term B Facility interest rate from the applicable benchmark rate plus CSA plus 2.0 % to the applicable benchmark rate plus 1.75 %.

Other than as described above, the Revolving Facility and the term loan facilities under the First Amendment continue to have the same terms as provided under the Credit Agreement.

The principal amounts of Term Facility A must be repaid in quarterly installments on the last business day of each calendar quarter equal to 1.25 % of the aggregate principal amount as of the date of the Amended Credit Agreement.

The principal amounts of Term Facility B must be repaid in quarterly installments on the last business day of each calendar quarter equal to 0.25 % of the aggregate principal amount as of the date of the Amended Credit Agreement.

Quarterly installment payments commenced on March 31, 2023.

We may voluntarily repay outstanding principal balances under the Revolving Facility and Term loan facilities without penalty or premium.

As of December 27, 2024, there were no borrowings outstanding under our Revolving Facility;

however, from time to time we utilize letters of credits as part of our ordinary course of business.

Letters of credit reduce our Revolving Facility commitment amounts.

As of December 27, 2024, we had $ 5 million in letters of credit.

Interest on our Term A facility borrowings under the Amended Credit Agreement, can be based on a base rate or the SOFR at our election.

Based on our debt ratings and our consolidated leverage ratios as determined in accordance with the Amended Credit Agreement, loans borrowed bear interest, in the case of base rate loans, at a per annum rate equal to the applicable base rate plus CSA plus a margin ranging from 0.125 % to 0.75 %, and in the case of the SOFR loans, SOFR, as adjusted for statutory reserves, plus a margin ranging from 1.125 % to 1.75 %.

In December 2021, ROAR 2 SPV Finance LLC, an indirect wholly owned VIE of MoneyLion Inc.

(the ROAR 2 SPV Borrower), entered into a $ 125 million credit agreement, which was subsequently reduced to $ 75 million (the ROAR 2 SPV Credit Facility), with a lender for the funding of notes receivables, which secure the ROAR 2 SPV Credit Facility.

The ROAR 2 SPV Credit Facility allows for increases in maximum borrowings under the agreement of up to $ 300 million, bears interest at a rate of 12.5 % and matures on December 21, 2025, unless it is extended to December 21, 2026.

Debt covenant compliance

2 unchanged sentences

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 the Company experiencing a change of control.

As of December 27, 2024 , we were in compliance with all financial debt covenants.

On February 9, 2017, we issued $ 1,100 million aggregate principal amount of our 5.0 % Senior Notes due April 15, 2025 (the 5.0 % Senior Notes).

The 5.0 % Senior Notes bear interest at a rate of 5.00 % per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2017.

On or after April 15, 2020, we may redeem some or all of the 5.0 % Senior Notes at the applicable redemption prices set forth in the supplemental indenture, plus accrued and unpaid interest.

O n September 19, 2022, we issued two series of senior notes, consisting of 6.75 % Senior Notes due 2027 and 7.125 % Senior Notes due 2030, for an aggregate principal of $ 1,500 million.

They are senior unsecured obligations that rank equally in right of payment with all of our existing and future senior, unsecured, unsubordinated obligations and may be redeemed at any time, subject to the make-whole provisions contained in the applicable indenture relating to such series of notes.

Interest on these series of notes is payable semi-annually in arrears on March 31 and September 30 for both the 6.75 % Senior Notes and 7.125 % Senior Notes, commencing on March 31, 2023.

The First Call Dates of the 6.75 % Senior Notes due 2027 and 7.125 % Senior Notes due 2030 are September 30, 2024 and September 30, 2025, respectively.

On and after the applicable First Call Dates, we may redeem the notes of a series at our option, in whole or in part, at any time and from time to time, at a set redemption price.

occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and the Company experiencing a change of control.

Under the terms of the ROAR 2 SPV Credit Facility, the ROAR 2 SPV Borrower is subject to certain covenants including minimum asset requirements to be held by ROAR 2 SPV Borrower.

Assets held by the ROAR 2 SPV Borrower include $ 93 million of accounts receivable, net in our Condensed Consolidated Balance Sheets.

As of July 4, 2025, we were in compliance with all financial debt covenants.

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 rate and interest rate movements.

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.

10 unchanged sentences

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 %.

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.

1 unchanged sentence

Summary of derivative instruments

The following table summarizes our outstanding derivative instruments as of December 27, 2024 and March 29, 2024:

The following table summarizes our outstanding derivative instruments as of July 4, 2025 and March 28, 2025:

Notional Amount Fair Value of Derivative Assets Fair Value of Derivative Liabilities

(In millions) December 27, 2024 March 29, 2024 December 27, 2024 March 29, 2024 December 27, 2024 March 29, 2024

(In millions) July 4, 2025 March 28, 2025 July 4, 2025 March 28, 2025 July 4, 2025 March 28, 2025

Foreign exchange contracts not designated as hedging instrument (1)

3 unchanged sentences

Total $ 1,238 $ 1,230 $ 3 $ 3 $ — $ —

(1) The fair values of the foreign exchange contracts are less than $ 1 million as of December 27, 2024 and March 29, 2024.

(1) The fair values of the foreign exchange contracts are less than $ 1 million as of July 4, 2025 and March 28, 2025.

The following table summarizes the effect of our cash flow hedges on AOCI during the periods indicated:

Three Months Ended Nine Months Ended

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Interest rate swap contracts designated as cash flow hedge

1 unchanged sentence

The related gain (loss) recognized in our Condensed Consolidated Statements of Operations was as follows:

Three Months Ended Nine Months Ended Condensed Consolidated Statements of Operations Classification

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended Condensed Consolidated Statements of Operations Classification

(In millions) July 4, 2025 June 28, 2024

Foreign exchange contracts not designated as hedging instrument $ 9 $ ( 3 ) Other income (expense), net

2 unchanged sentences

Total $ 11 $ 1

As of December 27, 2024, we estimate that less than $ 5 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.

As of July 4, 2025, we estimate that $ 3 million of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.

Restructuring and Other Costs

3 unchanged sentences

Other exit and disposal costs include costs to exit and consolidate facilities in connection with restructuring events.

Separation costs primarily consist of consulting costs incurred in connection with our divestitures.

September 2022 Plan

In connection with our acquisition of Avast, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of acquisition on September 12, 2022.

Actions under this plan include the reduction of our workforce, contract terminations, facilities closures, and the sale of underutilized facilities as well as stock-based compensation charges for accelerated equity awards to certain terminated employees.

We expect that we will incur total costs up to $ 150 million following the completion of the acquisition.

These actions are expected to be completed by the end of fiscal 2025.

As of December 27, 2024, we have incurred costs of $ 128 million related to the September 2022 Plan.

Restructuring and other costs summary

Our restructuring and other costs are presented in the table below:

Three Months Ended Nine Months Ended

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Severance and termination benefit costs $ 1 $ ( 1 ) $ 2 $ 21

Contract cancellation charges — 3 — 5

Stock-based compensation charges — — — 1

Asset write-offs and impairments — 1 — 1

Other exit and disposal costs 1 ( 1 ) 2 8

Total restructuring and other costs $ 2 $ 2 $ 4 $ 36

Actions under this plan included the reduction of our workforce, contract terminations, facilities closures, the sale of underutilized facilities, and stock-based compensation charges for accelerated equity awards to certain terminated employees.

As of July 4, 2025, we have incurred cumulative costs of $ 138 million related to the September 2022 Plan.

The majority of actions under the plan were completed by March 28, 2025, and thus the remaining activity and accrual balance are immaterial and we anticipate incurring only immaterial additional expenses during fiscal year 2026 as the plan winds down.

April 2025 Plan

In connection with our acquisition of MoneyLion, our Board of Directors approved a restructuring plan (the April 2025 Plan).

Actions under this plan include the reduction of our workforce, contract terminations, facilities consolidation, asset write-offs and other restructuring costs.

The total estimated cost of the plan is approximately $ 30 million, of which $ 4 million has been incurred to date under the April 2025 Plan.

As of July 4, 2025, we had a restructuring liability of $ 4 million related to the April 2025 Plan.

The following table summarizes our effective tax rate for the periods presented:

Three Months Ended Nine Months Ended

Three Months Ended

(In millions, except percentages)

December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

July 4, 2025 June 28, 2024

Income (loss) before income taxes $ 300 $ 276

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Effective tax rate 55 % 34 %

Our effective tax rate for the 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, and the U.S.

taxation on foreign earnings.

Our effective tax rate for the three and nine months ended December 29, 2023, differs from the federal statutory income tax rate primarily due to tax benefits related to the set up and write-off of deferred tax items resulting from an internal restructuring, partially offset by state taxes, changes in unrecognized tax benefits and related interest and penalties, and the U.S.

Our effective tax rate for the three months ended July 4, 2025 and three months ended June 28, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, and the U.S.

taxation on foreign earnings.

On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States.

The Act includes various provisions that are applicable to Gen beginning in FY26.

These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses.

As the Act was signed into law on the last day of our first quarter, the impacts are included in our operating results for the three months ended July 4, 2025.

Based on our preliminary assessment, the Act is not expected to have a material impact on the Company’s effective tax rate.

Stockholders' Equity

On January 30, 2025, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in March 2025.

All shares of common stock issued and outstanding and all restricted stock units (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 will not be entitled to DERs.

On August 7, 2025, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in September 2025.

All shares of common stock issued and outstanding and all RSUs and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend equivalent rights, respectively, which will be paid out if and when the underlying shares are released.

However, the 4 million unvested RSUs assumed in connection with the acquisition of Avast and the 4 million assumed RSUs under the MoneyLion Plan will not be entitled to dividend equivalent rights (DERs).

See Note 15 for further information about these equity awards.

Any future dividends and DERs will be subject to the approval of our Board of Directors.

Contingent value rights

In connection with the acquisition of MoneyLion, we issued 12 million equity-classified CVRs to MoneyLion shareholders.

The CVRs entitle holders to receive a contingent payment of $ 23.00 per CVR, payable in shares of Gen’s common stock, if our average volume-weighted average share price equals or exceeds $ 37.50 over any 30 consecutive trading days from December 10, 2024 until 24 months after close.

The CVRs were recorded as a component of additional paid-in capital at a fair value of approximately $ 73 million as of the acquisition date, based on a Monte-Carlo simulation valuation model.

As of July 4, 2025, there were 12 million CVRs outstanding, subject to the achievement of specified stock price conditions.

Refer to Note 4 for additional information regarding the CVRs and our acquisition of MoneyLion.

Stock repurchase program

In May 2024, our Board of Directors authorized a new stock repurchase program through which we may repurchase shares of our common stock in an aggregate amount of up to $ 3 billion with no fixed expiration.

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 December 27, 2024, we had $ 2,728 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 December 27, 2024 and December 29, 2023:

Three Months Ended Nine Months Ended

As of July 4, 2025, we had $ 2,594 million remaining under the authorization to be completed in future periods.

The following table summarizes activity related to our stock repurchase program during three months ended July 4, 2025 and June 28, 2024:

Three Months Ended

(In millions, except per share amounts)

December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

July 4, 2025 June 28, 2024

Number of shares repurchased 5 11

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Aggregate purchase price $ 134 $ 272

We did not have any stock repurchases during the three months ended December 27, 2024.

Accumulated other comprehensive income (loss)

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Other comprehensive income (loss), net of taxes 59 — 59

Balance as of December 27, 2024 $ ( 52 ) $ 6 $ ( 46 )

Balance as of July 4, 2025 $ 23 $ 3 $ 26

Stock-Based Compensation

Avast equity awards

In connection with our acquisition of Avast, we assumed the outstanding equity awards under two of Avast’s equity incentive plans (the Avast Holding B.V.

2014 Share Option Plan and the Rules of the Avast plc Long Term Incentive Plan (collectively, the Avast Plans)), which consisted of 4 million unvested RSUs.

The assumed RSUs generally retain the terms and conditions under which they were originally granted.

We intend to grant all additional shares that remain available for issuance under the Avast Plans.

Upon vesting, these assumed RSUs and any additional shares granted will settle into shares of our common stock.

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) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Cost of revenues $ 2 $ 1

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General and administrative 26 12

Restructuring and other costs — — — 1

Total stock-based compensation expense $ 66 $ 31

Income tax benefit for stock-based compensation expense $ ( 9 ) $ ( 4 )

As of December 27, 2024, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 208 million, which will be recognized over an estimated weighted-average amortization period of 1.9 years.

The following table summarizes additional information related to our stock-based awards:

Nine Months Ended

(In millions, except per grant data) December 27, 2024 December 29, 2023

Restricted stock units (RSUs):

Weighted-average fair value per award granted

$ 23.81 $ 17.37

Awards granted 5 6

Total fair value of awards released $ 78 $ 73

Outstanding and unvested 9 9

Performance-based restricted stock units (PRUs):

Weighted-average fair value per award granted $ 32.57 $ 22.83

Awards granted 1 2

Total fair value of awards released $ 24 $ 19

Outstanding and unvested at target payout 5 5

Dividend equivalent rights (DERs)

Our RSUs and PRUs, except for the 4 million assumed RSUs under the Avast Plans, contain DERs that entitle the recipient of an award to receive cash dividend payments when the associated award is released.

The amount of DERs equals to the cumulated dividends on the issued number of common stock that would have been payable since the date the associated award was granted.

As of December 27, 2024 and March 29, 2024, current dividends payable related to DER was $ 4 million recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets, and long-term dividends payable related to DER was $ 4 million recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets.

As of July 4, 2025, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 432 million, which will be recognized over an estimated weighted-average amortization period of 2.13 years.

Net Income (Loss) Per Share

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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:

Three Months Ended Nine Months Ended

Three Months Ended

(In millions, except per share amounts)

December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

July 4, 2025 June 28, 2024

Net income (loss) $ 135 $ 181

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Segment and Geographic Information

We operate as one reportable segment.

Our Chief Operating Decision Maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis to evaluate company performance and to allocate and prioritize resources.

The following table summarizes net revenues for our major solutions:

Three Months Ended Nine Months Ended

(In millions) December 27, 2024 December 29, 2023 December 27, 2024 December 29, 2023

Consumer security revenues $ 619 $ 598 $ 1,841 $ 1,796

Identity and information protection revenues 355 335 1046 992

Total cyber safety revenues

Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages and reviews financial information presented on an operating segment basis for the purpose of making decisions and assessing financial performance.

The CODM assesses operating performance of each segment based on regularly provided segment revenue, segment operating income (loss) and margin, by comparing actual margin results to historical results and previously forecasted financial information.

Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our portfolio and therefore allocated between our two segments.

Our CODM reviews expenses on a consolidated basis and the expenses associated with our corporate investments.

Prior to fiscal year 2026, we operated as one reportable segment, with consolidated net income (loss) serving as the primary measure of segment profit or loss.

Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions, with the primary measure of segment profit or loss being updated to segment operating income (loss).

Cyber Safety Platform includes our security, comprehensive suites, and privacy products, which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and with confidence.

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

The “Corporate” category includes expenses that are not allocated to either Cyber Safety Platform or Trust-Based Solutions for purposes of making operating decisions or assessing segment-level financial performance.

The expenses include restructuring and other costs, acquisition and integration costs, litigation settlement charges, and amortization of intangible assets.

Our operating segments are not evaluated using asset information.

Our CODM delegates the review of the segment performance to the general manager of each respective segment.

There are no intersegment transactions.

The accounting policies for segment reporting are the same as for our consolidated financial statements.

The following table presents details of our reportable segments and the “Corporate” category:

Cyber Safety Platform

Trust-Based Solutions

(In millions)

Three Months Ended July 4, 2025

$ 869 $ 388 $ — $ 1,257

Legacy revenues 12 15 38 48

Total net revenues

Other segment items (1)

Operating income (loss)

$ 530 $ 120 $ ( 204 ) $ 446

Consumer security includes revenues from our Norton 360 Security offerings, Norton, Avast, AVG, and Avira Security and VPN offerings, and other consumer security and device performance solutions through our direct, partner and small business channels.

Identity and information protection includes revenues from our Norton 360 with LifeLock offerings, LifeLock identity theft protection and other identity information protection and privacy solutions.

Legacy includes revenues from products or solutions from markets that we have exited and in which we no longer operate, have been discontinued or identified to be discontinued, or remain in maintenance mode as a result of integration and product portfolio decisions.

Three Months Ended June 28, 2024

Net Revenues $ 780 $ 185 $ — $ 965

Other segment items (1)

Operating income (loss) $ 466 $ 98 $ ( 147 ) $ 417

(1) Other segment items for our Cyber Safety Platform and Trust-Based Solutions include product costs, infrastructure and facilities expense, and compensation and benefits excluding stock-based compensation and expenses identified in “Corporate”.

The table below are the reconciling items included in “Corporate” category:

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Amortization of intangible assets

Stock-based compensation

Unallocated cost of revenue and operating expenses

Geographic information

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The following table represents net revenues by geographic area for the periods presented:

Three Months Ended Nine Months Ended

(In millions) December 27, 2024 December 29, 2023 (1)

December 27, 2024 December 29, 2023 (1)

Three Months Ended

(In millions) July 4, 2025 June 28, 2024

Americas $ 879 $ 636

EMEA 240 230 706 683

APJ 99 99 295 302

Total net revenues

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APJ includes Asia Pacific and Japan.

(1) From time to time, changes in allocation methodologies cause changes to the revenue by geographic area above.

When changes occur, we recast historical amounts to match the current methodology, such as for the three and nine months ended December 29, 2023 where we aligned allocation methodologies across similar product categories.

Revenues from customers inside the U.S.

were $ 589 million and $ 1,752 million during the three and nine months ended December 27, 2024, respectively, and $ 564 million and $ 1,687 million during the three and nine months ended December 29, 2023, respectively.

were $ 819 million and $ 579 million during the three months ended July 4, 2025 and June 28, 2024, respectively.

No other individual country accounted for more than 10% of revenues.

The table below represents cash and cash equivalents held in the U.S.

The table below represents cash, cash equivalents and restricted cash held in the U.S.

and internationally in various foreign subsidiaries:

(In millions) December 27, 2024 March 29, 2024

(In millions) July 4, 2025 March 28, 2025

International 407 359

Total cash and cash equivalents

Total cash, cash equivalents and restricted cash

$ 828 $ 1,006

The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented:

(In millions) December 27, 2024 March 29, 2024

(In millions) July 4, 2025 March 28, 2025

Other countries (1)

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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 December 27, 2024 and December 29, 2023.

No individual end-user customer accounted for 10% or more of our net revenues during the three months ended July 4, 2025 and June 28, 2024.

E-commerce partners that accounted for over 10% of our total billed and unbilled accounts receivable, prior to allowance of doubtful accounts, were as follows:

December 27, 2024 March 29, 2024

July 4, 2025 March 28, 2025

E-commerce partner A

E-commerce partner B

On January 16, 2025, we notified e-commerce partner B of our termination of the agreement and subsequently entered into a legal settlement agreement with them.

Refer to Note 19 for further information about this notice of termination and settlement agreement.

Commitments and Contingencies

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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.

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.

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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 complied with the court’s order and submitted a stipulation regarding the final calculations of all outstanding interest, royalties and attorneys’ fees.

We have posted the required surety bond and have appealed the judgement to the Federal Circuit Court of Appeals, which remains pending.

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however, such incremental loss cannot be reasonably estimated.

Securities Class Action and Derivative Litigation

Securities class action lawsuits, which have since been consolidated, were filed in May 2018 against us and certain of our former officers, in the U.S.

District Court for the Northern District of California.

The lead plaintiff’s consolidated amended complaint alleged that, during a purported class period of May 11, 2017 to August 2, 2018, defendants made false and misleading statements in violation of Sections 10(b) and 20(a), and that certain individuals violated Section 20A, of the Securities Exchange Act of 1934, as amended (the Exchange Act).

On May 24, 2021, the parties reached a proposed settlement and release of all claims in the class action, for $ 70 million, and on June 8, 2021, the parties executed a Stipulation and Agreement of Settlement, exclusive of any claims that may be brought by shareholders who opted out of the class action.

Of the $ 70 million, $ 67 million was covered under the applicable insurance policy with the remainder paid by us into escrow in September 2021.

The Court approved the settlement on February 12, 2022, releasing the settlement payment from escrow.

On November 22, 2021, investment funds managed by Orbis Investment Management Ltd.

which previously opted out of the securities class action, filed suit under the Exchange Act, the Arizona Securities Act, the Arizona Consumer Fraud Act and certain common law causes of action to recover alleged damages for losses incurred by the funds for their purchases or acquisitions of our common stock during the class period.

On February 7, 2023, our Motion to Dismiss was granted in part and denied in part.

The parties have now settled the matter and the action was dismissed with prejudice on April 26, 2023.

The impact of settlement was not material.

Purported shareholder derivative lawsuits were filed against us and certain of our former officers and current and former directors in the Delaware Court of Chancery ( In re Symantec Corp.

), Northern District of California ( Lee v.

Clark et al., ), and the District of Delaware ( Milliken vs.

These assert generally the same facts and circumstances as alleged in the securities class action and allege claims for breach of fiduciary duty and related claims.

On January 4, 2023, after reaching an agreement on the terms of the proposed settlement, which provides for, among other things, a payment of $ 12 million to the Company by the insurers of the Company’s directors and officers, the parties to the Chancery action filed a Stipulation and Agreement of Settlement, Compromise and Release in that Court, which was approved by the Court on May 4, 2023, over the objection of the Lee and Milliken plaintiffs, and releases all claims in the Chancery, Lee , and Milliken actions, as well as any other claims based on the same operative facts.

The parties in the Milliken action stipulated to a dismissal with prejudice, which was entered by that Court on May 12, 2023.

The parties in the Lee action stipulated to a dismissal with prejudice, which was entered by that Court on June 12, 2023.

All three shareholder derivative lawsuits are now resolved.

A fourth lawsuit filed in the Delaware Superior Court, Kukard v.

Symantec, brought claims derivatively on behalf of our 2008 Employee Stock Purchase Plan.

The parties reached a settlement, which received final approval from the Court on December 4, 2024, at which time judgment was entered.

The judgment was not appealed and is now final and the impact of the settlement was not material.

All related matters are now resolved.

During the first quarter of fiscal 2013, we were advised by the Commercial Litigation Branch of the Department of Justice’s (DOJ) Civil Division and the Civil Division of the U.S.

Attorney’s Office for the District of Columbia that the government is investigating our compliance with certain provisions of our U.S.

General Services Administration (GSA) Multiple Award Schedule Contract No.

GS-35F-0240T effective January 24, 2007, including provisions relating to pricing, country of origin, accessibility, and the disclosure of commercial sales practices.

As reported on the GSA’s publicly available database, our total sales under the GSA Schedule contract were approximately $ 222 million from the period beginning January 2007 and ending September 2012.

We fully cooperated with the government throughout its investigation, and in January 2014, representatives of the government indicated that their initial analysis of our actual damages exposure from direct government sales under the GSA Schedule contract was approximately $ 145 million;

since the initial meeting, the government’s analysis of our potential damages exposure relating to direct sales increased.

The government also indicated they would pursue claims for certain sales to California, Florida, and New York as well as sales to the federal government through reseller GSA Schedule contracts, which could significantly increase our potential damages exposure.

In 2012, a sealed civil lawsuit was filed against us related to compliance with the GSA Schedule contract and contracts with California, Florida, and New York.

On July 18, 2014, the Court-imposed seal expired, and the government intervened in the lawsuit.

On September 16, 2014, the states of California and Florida intervened in the lawsuit, and the state of New York notified the Court that it would not intervene.

On October 3, 2014, the DOJ filed an amended complaint, which did not state a specific damages amount.

On October 17, 2014, California and Florida combined their claims with those of the DOJ and the relator on behalf of New York in an Omnibus Complaint, and a First Amended Omnibus Complaint was filed on October 8, 2015;

the state claims also do not state specific damages amounts.

On March 23, 2021, plaintiffs withdrew their demand for a jury trial and we consented to proceed with a bench trial, which concluded on March 24, 2022.

We settled with the State of Florida before trial and the State of New York during trial, both for immaterial amounts which have been paid.

On January 19, 2023, the Court issued its Findings of Facts and Conclusions of Law in which it found in favor of the United States in part and awarded damages and penalties in the amount of $ 1.3 million, which the Company then paid.

The Court also found in favor of the State of California in part and awarded penalties in the amount of $ 0.4 million, which the Company also paid.

The resulting Judgment was filed by the Court on January 20, 2023.

On February 16, 2023, plaintiffs filed Motions to Amend Judgment to revive the damages claimed at trial.

On January 16, 2024, the Court granted in part and denied in part the United States’ Motion to Amend and awarded $ 53 million in damages and penalties.

The State of California’s Motion to Amend was denied.

A subsequent motion to amend and correct the January 2024 judgment brought by the Company was denied.

The January 2024 judgment was paid by the Company in November 2024.

Additionally, the Company reached an agreement in principle to pay Relator’s counsel $ 12 million for its attorneys’ fees, which the Company accrued in the third quarter of fiscal 2025 and expects to pay in the fourth quarter of fiscal 2025.

Jumpshot Matters

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On June 15, 2024, Avast brought a judicial action in the administrative law court challenging the decision of the Czech DPA.

That matter is still pending.

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 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.

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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 reasonably possible or estimate the range of any potential loss.

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 commenced.

At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible or estimate the range of any potential loss.

No lawsuit has commenced.

At this stage, we are unable to assess whether any material loss or adverse effect is probable or estimate the range of any potential loss.

On December 12, 2022, a putative class action, Lau v.

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Gen Digital Inc.

), was filed in the Northern District of California alleging violations of the Electronic Communications Privacy Act, California Invasion of Privacy Act, statutory larceny, unfair competition and various common law claims related to the provision of customer data to Jumpshot.

et al.), was filed in the Northern District of California alleging violations of the Electronic Communications Privacy Act, California Invasion of Privacy Act, statutory larceny, unfair competition and various common law claims related to the provision of customer data to Jumpshot.

The claims related to Jumpshot, and Jumpshot, Inc.

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The remaining claims were then voluntarily dismissed, with prejudice, by the Plaintiffs.

Judgment was entered by the Court on October 23, 2024, as to those claims and on November 22, 2024, Plaintiffs filed a Notice of Appeal regarding the earlier dismissed Jumpshot-related claims.

At this stage, we are unable to assess whether any material loss or adverse effect is reasonably possible as a result of this action or estimate the range of any potential loss.

We dispute these claims and intend to defend them vigorously.

Judgment was entered by the Court on October 23, 2024, as to those claims and on November 22, 2024, Plaintiffs filed a Notice of Appeal regarding the earlier dismissed Jumpshot-related claims and the appeal remains pending.

At this stage, we are unable to assess whether any material loss or adverse effect is probable as a result of this action or estimate the range of any potential loss.

We dispute these claims and intend to defend ourselves against them vigorously.

The outcome of the regulatory proceedings, government enforcement actions and litigation is difficult to predict, and the cost to defend, settle or otherwise resolve these matters may be significant.

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Any future investigations or additional lawsuits may also adversely affect our business, financial condition, results of operations and cash flows.

We are involved in a number of other judicial and administrative proceedings that are incidental to our business.

MALKA Seller Members Litigation

On July 21, 2023, Jeffrey Frommer, Lyusen Krubich, Daniel Fried and Pat Capra, the former equity owners of MALKA (collectively, the “Seller Members”), brought a civil action in the SDNY against MoneyLion Technologies Inc.

alleging, among other things, breaches of the Membership Interest Purchase Agreement (the “MIPA”) governing the acquisition of MALKA.

Among other claims, the Seller Members allege that they are entitled to payment of $ 25 million of Class A common stock of MoneyLion pursuant to the earnout provisions set forth in the MIPA, based on the Seller Members’ assertion that MALKA achieved certain financial targets for the year ended December 31, 2022 (such payment, the “2022 Earnout Payment”).

The Company believes that the Seller Members are not entitled to any portion of the 2022 Earnout Payment under the terms of the MIPA and filed counterclaims against the Seller Members, alleging, among other things, fraud, negligent misrepresentation, conversion, breach of fiduciary duties and breach of contract and seeking compensatory damages and other remedies as a result of wrongdoing by the Seller Members.

We continue to vigorously pursue our remaining counterclaims and defend against the Seller Members’ claims.

The bench trial of all remaining claims concluded on May 5, 2025, and a decision is currently pending.

As part of our preliminary allocation of the purchase price to the underlying assets acquired and liabilities assumed in the MoneyLion acquisition, we estimated the contingency at $ 22 million as of the acquisition date and it is included in Other long-term obligations.

If there is any change in our estimate, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period.

See Note 4 for details regarding our purchase price allocation for our acquisition of MoneyLion.

CFPB Litigation

On September 29, 2022, the Consumer Financial Protection Bureau (the “CFPB”) initiated a civil action in the United States District Court for the Southern District of New York (“SDNY”) against MoneyLion Technologies Inc., ML Plus LLC and the Company's 38 state lending subsidiaries, alleging violations of the Military Lending Act and the Consumer Financial Protection Act.

The CFPB is seeking injunctive relief, redress for allegedly affected consumers and civil monetary penalties.

On January 10, 2023, the Company moved to dismiss the lawsuit, asserting various constitutional and merits-based arguments.

On March 24, 2025, the Court granted in part and denied in part the Company's motion to dismiss, substantially narrowing the case.

On April 22, 2025, the CFPB filed a second amended complaint.

We continue to maintain that the CFPB’s claims are meritless and we are vigorously defending against the lawsuit.

However, if a loss is incurred, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period.

NYAG Litigation

On April 14, 2025, the Office of the Attorney General of the State of New York filed a civil action in the Supreme Court of the State of New York, County of New York, against MoneyLion Inc.

The complaint alleges, among other things, that MoneyLion’s earned wage access product violates New York’s civil and criminal usury laws and asserts claims of fraud, deceptive, and false

advertising practices under state law, as well as abusive and deceptive practices under the federal Consumer Financial Protection Act.

On April 28, 2025, the Attorney General filed an amended complaint, adding MoneyLion Technologies Inc.

and ML Plus LLC as defendants.

We removed the action to the District Court of the SDNY and the State of New York is seeking to remand the case.

That motion remains pending.

We believe the Attorney General’s claims are without merit and intend to vigorously defend against the lawsuit.

However, if a loss is incurred, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period.

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 December 27, 2024, we incurred $ 22 million and $ 62 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statement of Operations.

During the three and nine months ended December 29, 2023, we incurred $ 60 million and $ 412 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statement of Operations.

Subsequent Events

Significant E-commerce Partner

At the end of our third fiscal quarter of 2025, E-commerce Partner B (see Note 17), who acts as the payment processor and merchant of record for a subset of Avast customers, missed its contractually required payment.

Additional contractually required payments were missed in the first few weeks of our fourth fiscal quarter ending March 28, 2025.

In January 2025, E-commerce partner B cited financial difficulties, which raised our concerns about its solvency and ability to comply with the contractual terms of the agreement.

On January 16, 2025, we notified them of our termination of the agreement.

After further settlement discussions, the parties agreed to resolve all disputes between them, including but not limited to claims of breach of the agreement, and the parties entered into a legal settlement agreement.

Under the terms of the legal settlement agreement, E-commerce partner B is required to transfer all of our customer information to us, and we released our claims to valid outstanding accounts receivable (net of any fees payable) from E-commerce partner B, totaling $ 66 million as of January 17, 2025, along with customary releases for the parties.

In the third quarter of fiscal 2025, $ 42 million of accounts receivable existing on December 27, 2024 from E-commerce partner B were charged off as general and administrative expense.

Accounts receivable of $ 24 million generated from E-commerce Partner B in our fourth fiscal quarter of 2025 will be charged off in that quarter.

E-commerce partner B billed our customers $ 139 million during the three months ended December 27, 2024, primarily for annual renewals for a subset of Avast customers.

We immediately began the process of migrating these customers to our proprietary eStore platform and expect to complete a significant portion of the migration process by March 2025.

Upon transfer of all data, we do not anticipate any material impact on our customer base or revenue.

However, the seamless processing of customer transactions is critical to our business operations.

Any disruption in our billing and collection processes could adversely affect the customer experience, result in a loss of revenue, and materially impact our financial position, results of operations, and cash flows.

Fiscal 2025 Acquisition

On January 28, 2025, we acquired all the outstanding shares of a technology-enabled personal finance education and recommendation platform for an aggregate purchase price of $ 85 million in cash.

While this acquisition is immaterial to Gen’s overall financial results, it is expected to enhance our capabilities in the cyber safety, identity protection (LifeLock), and financial wellness business.

During the three months ended July 4, 2025 and June 28, 2024, we incurred $ 5 million and $ 15 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements